The NWT government has been given permission to appeal a Canadian Transportation Agency ruling in its years-long dispute with CN Rail over a section of damaged rail line between Enterprise and Hay River.
The territorial government had sought an order from the transportation agency requiring CN to repair and resume operations on the line, which was damaged by wildfire in 2023.
CN has declined to fix the track, saying there isn’t enough demand to justify the cost. Freight delivered by rail is instead being offloaded at a yard in Enterprise and moved by truck to Hay River and other destinations. CN, meanwhile, has set in motion the formal process of permanently discontinuing the line.
The NWT government – which is seeking an injunction to stop that discontinuance process – alleged CN was failing to meet level-of-service obligations under the Canada Transportation Act.
The Town of Hay River, Kátł’odeeche First Nation, NWT Association of Communities, NWT Power Corporation, Gwich’in Tribal Council, Inuvialuit Regional Corporation, Li-FT Power Ltd, Vital Metals and Imperial Oil all supported the NWT government’s case.
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However, the Canadian Transportation Agency – or CTA – sided with CN in a July ruling.
In late August, the NWT government took the case to the Federal Court of Appeal. On Wednesday, a panel of judges granted the territory’s request for leave to appeal the CTA’s decision.
That isn’t the same as winning the appeal itself, which is only just beginning. Being given leave to appeal is an initial step that confirms the court will hear the case.
In a statement, NWT infrastructure minister Vince McKay called the 30-kilometre stretch of track in question “a small section of railway with significant importance.”
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“It connects southern resupply lines to Hay River, where goods and fuel are transferred to barges that serve remote and fly-in communities across the Northwest Territories. It also serves isolated and majority-Indigenous communities as well as early-stage critical minerals essential to clean energy solutions and rare earth projects,” McKay stated.
“The value of this northern supply chain can’t be understated. Without this line, we will see increased reliance on wildfire-damaged highways, and increased costs and safety risks for families, businesses, and governments.”
From August: CN rail line verdict ‘deepens gap’ with south, GNWT says
McKay said CN Rail has a “legal duty” to maintain the line and added he will continue lobbying federal counterparts on the issue while exploring “other appeal avenues available.”
Last week, Go FM reported NWT MP and Crown-Indigenous minister Rebecca Alty had said she was “really pushing for CN to rebuild their line.”
CN has been approached for comment.
The company previously told Cabin Radio that while it recognized concerns existed about its decision not to repair the rail line between Enterprise and Hay River, “the expense required to repair the line was not justified by the level of customer volume in the region.”
