The federal government said repairs will begin immediately on the flood-damaged rail line from Northern Manitoba to Churchill on James Bay.
The government said the aim is to have the repairs done in time to move winter supplies to Churchill for residents there and in surrounding communities.
The rail line was purchased by OmniTrax of the United States, but the company failed to deliver on the repairs that were part of the deal.
It was under orders from the Canadian Transportation Agency to do the repairs, which it said would cost $60 million, but didn’t do any because it said it was trying to sell the business.
A deal that was supposed to close July 3, but then negotiations resumed with the consortium that bought it.
The buyer is the Arctic Gateway Group Limited Partnership and the deal includes the Hudson Bay Rail Co., the Hudson Bay Port Co. and the Churchill Marine Tank Farm.
The Arctic Gateway Group is a private/public partnership including the northern communities’ consortium Missinippi Rail Ltd. Partnership, Toronto investment firm Fairfax Financial Holdings and AGT Limited Partnership, an arm of Regina pulse crop processor AGT.
Prairie grains move on the line to export terminals at Churchill.
