[Allandale25]

Decision issued today.

Government of the Northwest Territories against the Canadian National Railway Company - level of service
Aug 5th 2025, 19:18 by Canadian Transportation Agency

Summary​

[1] GNWT filed an application with the Canadian Transportation Agency (Agency) under sections 113 to 116 of the Canada Transportation Act (CTA), alleging that CN has failed to meet its level of service obligations when it did not repair its railway line between Enterprise, Northwest Territories, and Hay River, Northwest Territories, from mile point 354.00 to 376.20 of CN’s Meander River Subdivision (Line), following wildfires that damaged the Line and other sections beyond it.
[2] CN has decided to not repair the Line in light of both the cost to do so and the limited traffic offered for transport on the Line. Instead, it has decided to transfer or discontinue operating the Line and it expects that the statutory process for doing so will be completed on or before November 28, 2025.
[3] GNWT is the territorial government authority that has a number of responsibilities in relation to the issues at hand. Notably, GNWT contributes to ensuring the resupply of vital goods to all parts of the territory, and is responsible for Marine Transportation Services, a government-operated entity that provides marine resupply to the territory.
[4] GNWT is seeking an order from the Agency that would require CN to repair and resume operations on the Line, despite the cost to do so, given the financial capacity of CN and the negative impacts on the people of the Northwest Territories of not having rail service to Hay River. GNWT is also seeking an award of costs. CN, on the other hand, asserts that its level of service obligations on the Line were suspended as a result of the wildfires and that it would be reasonable for them to remain suspended until the transfer or discontinuance is completed.
[5] For the reasons set out below, the Agency dismisses the application.

​

 

[Bordercollie]

Decision issued today.

If they don't want to run trains on the line they should be obliged to fix it and lease it to someone who does.

 

[lenaitch]

Interesting that that piece mentions the group’s ownership of the Abitibi mill in Iroquois Falls where that logistics operation is going in to serve a Moosonee hospital project. Perhaps they have notions of a similar repurposing here.

The site is now brownfield; there is no mill left. BMI is trying to position Abitibi Connex as a multi-modal regional logistical hub. I do wish them luck but there needs to be an ongoing need for this type of service. The Moosonee hospital project is a bit unique in that it is rail-served only. It is one project and slated for completion in 2030.

They are also being a little 'disingenuous' with some of their promotional material. The are touting the Abitibi Trestle Bridge as a gateway, and show a picture of a train on a bridge. It is, in fact, a road bridge that is owned by BMI (it was used by Abitibi/Resolute to access their cutting rights). It is a toll bridge and access to the area is also available by a provincial highway from Cochrane.

We need to be cautious about aspirational claims. BMI is also touting the former mill site in Red Rock as a 'critical minerals' refinery and deep water port. All they need is a customer. The Town of Marathon is also trying to develop a port on its form mill site. How many ports can the north support?

 

[micheal_can]

The site is now brownfield; there is no mill left. BMI is trying to position Abitibi Connex as a multi-modal regional logistical hub. I do wish them luck but there needs to be an ongoing need for this type of service. The Moosonee hospital project is a bit unique in that it is rail-served only. It is one project and slated for completion in 2030.

They are also being a little 'disingenuous' with some of their promotional material. The are touting the Abitibi Trestle Bridge as a gateway, and show a picture of a train on a bridge. It is, in fact, a road bridge that is owned by BMI (it was used by Abitibi/Resolute to access their cutting rights). It is a toll bridge and access to the area is also available by a provincial highway from Cochrane.

We need to be cautious about aspirational claims. BMI is also touting the former mill site in Red Rock as a 'critical minerals' refinery and deep water port. All they need is a customer. The Town of Marathon is also trying to develop a port on its form mill site. How many ports can the north support?

Everyone knew Domtar was going to shut down. It was just a matter of time. BMI buying it maybe a good thing, or it may turn into a folly. If they do use it for what they say, the railway will be necessary for the success of it.

I have wondered why the province did not just buy the line and put it under the ONR. These failing shortlines that lease from CP or CN are needed, but do not have enough funds to stay open. At least if they were owned by the government, then we are not funding a private entity that is trying to make a profit.

 

[Metroscapes]

Decision issued today.

• This serves Hay River Harbour, transferring cargo / bulk petroleum to/from communities along the Mackenzie River and Western Arctic
• CN's repair estimate is $16 million; that's not a lot of dough IMO for a project of northern importance to Canada
• NWT's application was supported by heavy-hitters: Town of Hay River, Kátł'odeeche First Nation, Northwest Territories Association of Communities, Northwest Territories Power Corporation, Community Rail Advocacy Alliance, Gwich’in Tribal Council, Inuvialuit Regional Corporation, Li-FT Power Ltd, Vital Metals and Imperial Oil
• The only real reason for dismissing is based on CN going down the transfer / discontinuance pathway process

I think the feds could help NWT find a solution and funding to this, sounds like a great opportunity for a municipally owned shortline.

 

[crs1026]

I think the feds could help NWT find a solution and funding to this, sounds like a great opportunity for a municipally owned shortline.

If they go the discontinuance route, then the line has to be offered up as a rail line, and indeed there is good reason for government to fund that.

But, if there is currently no traffic... then the line could be railbanked and kept in some de minumus state until there is reason to reactivate it.

- Paul

 

[Metroscapes]

In other CN network news.

CN adding 17 miles of second main to support growth west of Edmonton, Alberta - Trains

MONTREAL — Canadian National is building 17 miles of double track on its busy Edson Subdivision west of Edmonton, Alberta, the stretch of main line that leads to the railway’s routes to Vancouver and Prince Rupert, British Columbia. “The double‑tracking project is expected to increase capacity...

www.trains.com

 

[micheal_can]

This line falls under what I would see being a crown corporations for rail lines of importance, but not financially viable on their own. We did have that at one time - CN, but they were privatized and now are about profit.

 

[Bordercollie]

This line falls under what I would see being a crown corporations for rail lines of importance, but not financially viable on their own. We did have that at one time - CN, but they were privatized and now are about profit.

So much for being a partner in the community..

 

[just east of the creek]

This line falls under what I would see being a crown corporations for rail lines of importance, but not financially viable on their own. We did have that at one time - CN, but they were privatized and now are about profit.

We have enough money losing crown corporations - see postal service as an example. The ‘People’s Railway’ has been abandoning lines and parts of line since the first Order in Council created the. railway in 1919.

Once again, the case to set up an independent line hinges on a business plan that is not fantasy, and based on that, a working financial plan that the ? can break even? Make a little money? Exist with a defendable ongoing public grant of some sort? Otherwise, land bank the line, until those conditions are met.

 

[Bordercollie]

We have enough money losing crown corporations - see postal service as an example. The ‘People’s Railway’ has been abandoning lines and parts of line since the first Order in Council created the. railway in 1919.

Once again, the case to set up an independent line hinges on a business plan that is not fantasy, and based on that, a working financial plan that the ? can break even? Make a little money? Exist with a defendable ongoing public grant of some sort? Otherwise, land bank the line, until those conditions are met.

Unfortunately not everything can turn a profit. Sometimes it exists because it's essential or for the greater good.

Today it might be cheaper to ship by truck until you take into consideration the impact on the environment and traffic as well as safety.

One train a week has significantly less environmental impact than 400 trucks. Not to mention the wear and tear on the roads.

 

[dowlingm]

• This serves Hay River Harbour, transferring cargo / bulk petroleum to/from communities along the Mackenzie River and Western Arctic
• CN's repair estimate is $16 million; that's not a lot of dough IMO for a project of northern importance to Canada
• NWT's application was supported by heavy-hitters: Town of Hay River, Kátł'odeeche First Nation, Northwest Territories Association of Communities, Northwest Territories Power Corporation, Community Rail Advocacy Alliance, Gwich’in Tribal Council, Inuvialuit Regional Corporation, Li-FT Power Ltd, Vital Metals and Imperial Oil
• The only real reason for dismissing is based on CN going down the transfer / discontinuance pathway process

I think the feds could help NWT find a solution and funding to this, sounds like a great opportunity for a municipally owned shortline.

From the decision (emphasis added). Given the three bolded statements, I don't see how CTA could have come to any other decision.

[19] In this case, according to CN, nearly all of the traffic it moved to or from Hay River prior to the Line being damaged was at the request of two shippers, which it refers to as Shipper A and Shipper B. CN also states that, following the wildfires in 2023, it expanded its transload facility at Enterprise. Shipper A has since informed CN that it no longer wishes to move traffic to or from Hay River and it now receives service at Enterprise.

[20] While CN acknowledges that Shipper B has an interest in transporting traffic by rail to Hay River, Shipper B is not a party to this application, and it has not filed a level of service complaint with the Agency as of the date of this decision. There is no evidence to demonstrate that Shipper B has offered traffic for carriage to or from Hay River since the Line was damaged in 2023.

[21] The Agency has examined the arguments put forward by GNWT, and the position statements noted above. It is evident that many parties believe that having the Line restored to Hay River will benefit them in the future. The evidence also suggests that traffic may be offered for carriage in the future if the Line is restored. However, as noted above, service obligations are determined by considering traffic offered for carriage, which does not include speculative or potential traffic. GNWT is not, and does not claim to be, a rail shipper, and it is not offering traffic for carriage on the Line. There is also no evidence of any other party offering traffic for carriage on the Line after it was damaged in 2023.

 

[micheal_can]

We have enough money losing crown corporations - see postal service as an example. The ‘People’s Railway’ has been abandoning lines and parts of line since the first Order in Council created the. railway in 1919.

Once again, the case to set up an independent line hinges on a business plan that is not fantasy, and based on that, a working financial plan that the ? can break even? Make a little money? Exist with a defendable ongoing public grant of some sort? Otherwise, land bank the line, until those conditions are met.

Lets use the Ring of Fire project. That line is the best way to move ore for processing from the mines to the mills. However,it will not be enough car loads to actually pay for the line. However, with the amount of trucks needed to move that much ore, the cost of that road, and maintenance of the road would be astronomical. So, the railway makes sense to build to the mine. However, once that line is built, other industries and businesses may use it. That could mean better access for the FN communities along the way. All of that is good till the mine closes, and those other industries, businesses and communities that still rely on that rail line sees that viability disappear. This is where a "money losing" crown corporation is needed. There are lots of rail lines like this.

 

[lenaitch]

Lets use the Ring of Fire project. That line is the best way to move ore for processing from the mines to the mills. However,it will not be enough car loads to actually pay for the line. However, with the amount of trucks needed to move that much ore, the cost of that road, and maintenance of the road would be astronomical. So, the railway makes sense to build to the mine. However, once that line is built, other industries and businesses may use it. That could mean better access for the FN communities along the way. All of that is good till the mine closes, and those other industries, businesses and communities that still rely on that rail line sees that viability disappear. This is where a "money losing" crown corporation is needed. There are lots of rail lines like this.

You do realize the proponents did that very math and came to a different conclusion. Besides, what other "industries and businesses" do you realistically envision for the area?

I think the feds could help NWT find a solution and funding to this, sounds like a great opportunity for a municipally owned shortline.

I'm not too sure how a town of 3000 could be expected to buy and operate a rail line. The territorial government perhaps.

I preface this with known absolutely nothing about the project, but the feds seem to be casting a favourable eye on the Gray's Bay Road and Port Project as a 'nation building project' worthy of support. The project area is in western Nunavut region, which would put it north of the eastern end of Great Slave Lake (the lake Hay River is on).

Unfortunately not everything can turn a profit. Sometimes it exists because it's essential or for the greater good.

Define the "greater good" in this context. Spending public money to maintain a rail line that has no customers?

 

[micheal_can]

You do realize the proponents did that very math and came to a different conclusion.

Can you link to it? I know there has been talk of a road and of a rail line, but I did not see that math released.

Besides, what other "industries and businesses" do you realistically envision for the area?

Possibly forestry.

Depending on what trains are 'allowed',tourism and supplying the communities would be the others.