The Federal Court of Appeal has backed the Canadian Transportation Agency’s decision to dismiss a move from the NWT government to force the reopening of a rail line between Hay River and Enterprise.
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.
While CN repaired the track from Alberta to Enterprise after that wildfire season, the company decided not to rebuild approximately 35 km of rail line between Hay River and Enterprise.
The GNWT alleged CN was failing to meet level-of-service obligations under the Canada Transportation Act, but the transportation agency dismissed the GNWT’s application to have CN repair and reopen that stretch.
CN declared the line to be fully discontinued in November 2025, even as the GNWT continued legal action in the Federal Court of Appeal. Rail freight now heads to Enterprise, where it is offloaded onto trucks and taken to Hay River or other communities.
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This week, the appeal court sided with the transportation agency.
The court said it found no issue of procedural fairness and was “unconvinced of any error of law” in the agency’s decision.
The GNWT had complained that CN miscalculated its timeline and the rail line should not have been discontinued until March 2026. The court said that didn’t matter as, by the GNWT’s own admission, “no fuel traffic would have been shipped up to Hay River” between November 2025 and March 2026 anyway.
In a statement, NWT infrastructure minister and Hay River South MLA Vince McKay – who has spent years campaigning for the line to be restored – said the territory was “extremely disappointed.”
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“For decades, this railway connected the national rail network to the marine resupply system that serves remote communities across the territory. Losing that connection increases transportation costs, puts more pressure on our highways, and leaves an already vulnerable northern supply chain with fewer options,” McKay stated.
“The mining industry has identified the Hay River rail connection as an important part of their development and transportation plans. Companies have had to adapt to the infrastructure available today, but that should not be mistaken for a lack of future demand.
“As we work to advance critical minerals projects, grow our economy and attract new investment, we need to be strengthening our transportation network, not losing critical connections.”
The territory said it is reviewing the court’s decision and considering its next steps.
