Negotiations with a Northern Manitoba ownership group to buy and repair the Hudson Bay Railway (HBR), the northern section of which has been shut down from more than a year, are back on, a week after breaking down, the company said July 10.
“We are pleased to announce that our negotiations with the consortium resumed on Monday, and we are once again in active discussions to finalize the sale of the HBR,” said HBR president Sergio Sabatini in a news release. “We believe that an expeditious transfer of ownership of the line is best for all concerned, and we are making every effort to advance sale discussions. This includes initiating the repair process, so that we are in the best position to complete a transaction."
HBR was ordered recently by the Canadian Transportation Agency (CTA) to begin repairs on the line by July 3 and to provide monthly updates on the repairs. Last week, the CTA said it had filed its repair order with the Federal Court, making it enforceable as a court order.
A request for proposals to repair to the section of the railway between Gillam and Churchill, parts of which were washed out by flooding in the spring of 2017, have been issued by HBR through engineering firm AECOM, which last year estimated costs to repair the damaged section at between $40 million and $60 million.
“AECOM will be coordinating site visits with six interested contractors later this week, each of whom will have the opportunity to conduct an inspection of the line via helicopter before finalizing their bids,” said HBR’s news release, though the company still intends to appeal the CTA decision
“Although the repair process has been initiated in compliance with the CTA decision, the HBR, as previously stated, is not in a position to fund completion of the repairs in the absence of a sale agreement or government funding,” the news release said.
Though the damaged section of line does not prevent trains operating between The Pas and Gillam, or on the railway between Winnipeg and The Pas, which HBR does not own, a derailment near Hudson Bay, Saskatchewan July 5 suspended Via Rail passenger service between Winnipeg and Gillam. The rail line in that area has been cleared and repaired, but service remains suspended because of heavy rains near Wabowden, about 100 kilometres south of Thompson. Via said it has been informed by HBR that the Thicket Subdivision in the area is closed, which forced the cancellation of northbound passenger train 693 between Winnipeg and Gillam on July 11 as well as the southbound train 694 on July 13 from Gillam to Thompson.
Via said it is in contact with customers who had booked a seat on the affected trains, who can also get more information by calling 1-888-842-7245 or 1-800-268-9503 for those who are deaf or hard of hearing.
