by Steve Selden | Mar 2, 2018 | Churchill News
The HBRC will be solely responsible for any damages and costs to repair the rail line. Omnitrax photo.
The parent company of Hudson Bay Railway Company (HBRC), US-based Omnitrax, is off the hook for any damages lost in a pending lawsuit. HBRC will be solely responsible to the federal government if they are found liable for not repairing the washed out rail-line that links Churchill with the south of Manitoba. In May 2017 the tracks were washed away in nearly 20 locations rendering the stretch of tracks useless until millions of dollars are allocated for repair.
Omnitrax’s claim that HBRC is a separate entity has been upheld and thus the Federal Government of Canada has removed its name from the lawsuit.
Soon after two late spring blizzards began to melt, the tracks suffered severe damage in multiple locations. Omnitrax, based in Denver, Colorado, refused to spend an assessed $60 million for repairs. The company claimed economic hardship with regards to the project and was faced with the federal government threatening to sue after the 30-day start deadline elapsed.
The government filed a lawsuit this past November naming Omnitrax and HBRC as defendants. Under a 2008 agreement, Transport Canada indicated that Omnitrax was responsible for keeping the railway running through 2029. As a result, the lawsuit is seeking to recoup $18 million that was an original part of the terms to operate the port and rail line. However, the company has claimed the damages resulted from unforeseeable circumstances or “act of God” thus releasing them from their obligation to repair under their contract with the government.
Omnitrax counsel Jamie Kagan acknowledged that the Attorney General of Canada and Omnitrax have agreed to remove the parent company’s name from the lawsuit and relieve them from any judgment for damages. Any fault and levy of damages will now only be filed against HBRC.
“Our view has always been that this is a political action mainly brought for the purposes of PR and not for a legal remedy, and it appears that the Government of Canada, when pushed, ultimately agreed and has withdrawn the allegations against Omnitrax Inc.,” Kagan said in an interview after the hearing.
“As the private owner of the line, Hudson Bay Railway Company -which also conducts business under the name OmniTRAX Canada- had the obligation to repair the rail line when it was damaged,” a spokesperson for Transport Canada said in an emailed statement.
Churchill residents and business people have been faced with increasing costs for everyday supplies as most now are transported by air. Government subsidies have deferred costs to some extent though some residents have been forced to relocate to Winnipeg or other locations as a result.
Omnitrax is still trying to work out a purchase and sale agreement with a group comprised of northern Manitoba First Nations. Those talks have stalled since the disaster last spring.
by Steve Selden | Feb 28, 2018 | Churchill Photography
Ice covered inukshuk along the Ingraham Tail in NWT. Colin Goyman photo.
An incredible shot of the aurora borealis over the boreal forest in Churchill. Eddy Savage photo.
These two photos display both the day and night beauty of Churchill and the north’s natural raw landscape! You can only get the real feel of the Arctic and sub – Arctic by taking a trip and immersing yourself in the natural wonders of the land! Come enjoy the north and the fantastic northern lights soon.
by Steve Selden | Feb 27, 2018 | Videos
We’re now in the season in Churchill when polar bear moms and their cub(s) emerge from their dens in Wapusk National Park and venture over the tundra close to town on their way to the Hudson Bay ice pack. Once there, sows will teach their young polar bear cubs how to hunt seals and also gain some sustenance for themselves after a long winter under the earth and snow in their dens. This video was taken by Quinton Hart in Churchill just a day ago. Everyone should be on the lookout for these bear families along the coast!
by Steve Selden | Feb 26, 2018 | Churchill News
The deMeulles Auto Gas Bar in Churchill reflects the price of gas prior to the rail line washout. Dale deMeulles photo.
Churchill’s gas prices have been reduced by fifty cents a litre thanks to the federal government accessing the economic stimulus fund once again. With petrol prices nearing the $10/gallon mark, this latest reprieve will keep the cost at about $8/gallon. And we complain about gas prices when they reach $3/gallon or more? Kind of puts things in perspective a little, eh?
With federal findings of a probe of Omnitrax, owner of the Port of Churchill facility and the defunct Hudson Bay Line, due to be released soon, residents are enduring rising prices and increased isolation leading to economic strife.
Last week, Natural Resources Minister Jim Carr confirmed that the Ottawa government would allocate $132,870 for Exchange Petroleum to lower gasoline prices to prior levels before the Hudson Bay Rail Line was devastated by flooding last May. Shipping on the railway was the only way to keep costs for supplies and fuel low. Now, ten months later, the pressure is causing long-time residents to move south in search of a more affordable lifestyle.
In September 2016, Ottawa approved the Churchill and Region Economic Development Fund, intended for the diversification of northern Manitoba’s economy following Omnitrax laying off most of the port’s workforce that summer. Businesses have benefitted from the money by offsetting rising shipping costs of materials shipped by barge or airplane.
Last December Carr visited Churchill and announced the government would add $2.7 million to the existing $4.6 million relief fund. After seemingly turning a blind eye to the issue the federal government now is coming to the rescue.
The new windfall of cash will be transferred to Exchange Petroleum, owner of the Calm Air fuel-storage tanks located at the Churchill airport. These tanks are being used due to issues with the port’s storage tanks related to the viability of winter storage of the fuel.
Churchill Port tank farm is unable to store fuel for the town through the winter. Churchill Tank Farm photo.
“This project is a great example of how collaboration and partnerships can help lessen Churchill’s acute economic hardships, restore a quality of life, and keep its entrepreneurs in business,” Exchange CEO Gary Bell wrote in a statement.
Churchill Mayor Mike Spence expressed thanks to Ottawa for its leadership and funding while conveying optimistic thoughts that rail line repairs would commence in the spring.
“This announcement means real savings for residents and businesses of Churchill during these difficult economic times,” Spence wrote. “It’s important to also give a great deal of credit to Exchange Petroleum who stepped in last fall.”
by Steve Selden | Feb 20, 2018 | Churchill Photography
Aurora season is going strong and the northern lights have been amazing as usual. These shots by Alex De Vries – Magnifico in Churchill capture the incredible scenery juxtaposed with the scintillating aurora borealis overhead! Alex’s Discover Churchill images are the most amazing we have seen over the last few northern lights seasons! We are sure there will be more in the next month or so from the northern lights mecca! Travelers from Natural Habitat Adventures have been awed with the incredible light show above Churchill this season. Enjoy!
