Omnitrax Ordered to Repair Rail Line

by | Jun 26, 2018 | Churchill News

Foggy view of the Port of Churchill.

Future of the Port of Churchill is a bit foggy. Photo Steve Selden

The Canadian federal transportation regulator ruled last week that Omnitrax Canada is responsible for long-overdue repairs to the Hudson Bay Rail line linking Churchill with the south. The order mandates the tracks restored to usable condition, as quickly as possible.

This new development in the ongoing saga between Port of Churchill owners, Omnitrax, and the government seems to be coming to a crescendo of sorts. Repairs to the Hudson Bay Railroad have been ordered to begin by July 3rd with the additional requirement of filing monthly progress reports on the status of repairs. The Canadian Transportation Agency will be overseeing the project.

According to the transportation regulator, Omnitrax, as the current owner, is bound by a public obligation to restore the tracks and reinstate train service to the isolated communities and the “reasonable pause” in operations has elapsed. The tracks were washed out in May of 2017 due to flooding from two late spring blizzards.

The Canadian Transportation Agency maintains that the Denver-based company was contractually bound to initiate a reasonable plan to repair the tracks the by November 2017. Omnitrax hired an engineering company, AECOM, to assess the damage and then balked at the estimated $60 million estimate of repair costs. Company officials assert the transportation lifeline to the north should be treated as a public utility since commercial ownership of the railway line is no longer viable. The government has been insinuating that Omnitrax is trying to shirk its responsibilities since the time of the flooding.

Omnitrax’s argument continues with the premise that the flood was a “force majeure” event defined as an exceptional happening that nixes the firm’s contractual obligations.

Who Controls the Northwest Passage

by | Jun 6, 2016 | Conservation

Arctc northwest passage

The Northwest Passage is becoming newsworthy as a possible Arctic trade route. Fednav photo.

In April China encouraged shippers in country to use the Northwest Passage for trade routes around the world. The problem is there is dispute over the newly, somewhat accessible, Arctic route as to whether it’s an international waterway or under Canadian jurisdiction.

The Northwest Passage is roughly 40 percent shorter than the Panama Canal route, and even though there will be adverse affects on environment and wildlife species, the shorter passage will reduce greenhouse gas emissions by more than 1,300 tons. Russia’s Northern Sea Route has actually drawn more attention since it is usually more navigable than the Northwest Passage, which,often is still impassable throughout the summer. In 2009, only two ships completed the Northern Sea Route voyage as opposed to nearly 500 this year!

Eventually the passage will come to a broader discussion as to who controls rights to the region. However, at this point without enough surety that ships are able to pass with consistency, the issue is at a “simmer” level.

Traditionally, Ottawa and Washington have carried out talks trying to settle the jurisdiction dispute with Canada claiming all rights to the waterways that combine to form the Northwest Passage. Shippers, by this edict, need to comply with Canadian regulations when traversing the passage. The United States disagrees with their proposals but will comply in the meantime and notify Ottawa anytime a US firm plans to sail the waterway. Now with China entering the mix the scales could tip and a cause a flare – up in political negotiations.

northwest passage

The Northwest Passage in the Arctic will be used for future shipping to China. Canadian Geographic image.

China has vaguely outlined its’ own guidelines to sailing the Northwest Passage and announce that it wants more ships utilizing the trade route. In not so many words the country is asserting its position on Canada’s claim.

However, China may just be putting the cart in front of the horse by asserting the trade route preference for the firms that might use the route. COSCO, a prodigious shipper has deemed the northern route too dangerous to attempt on a regular basis.

For now the Panama and Suez Canals still remains the choice for most shipping companies. Posturing is in place by these interested countries for the future and at some point the route will become viable. While weather, year – round ice and challenging navigation conditions are aspects that Ottawa cannot alter, infrastructure and updated mapping can be improved. It seems that regardless of current day usability, the groundwork is being laid for future passage of the mythical region.

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