Transportation agency puts legal weight behind order to Omnitrax for Churchill rail line repair

The Canadian Transportation Agency has now put a legal exclamation point behind last month's order to Omnitrax to get going with repairs to the rail line to Churchill.

On Friday, the federal transportation regulator filedan order in Federal Court compelling Omnitrax-Hudson Bay Rail to fix the line to northern Manitoba town.

That follows the transportation's original order to the Denver-based rail line ownerin June.

Based on a complaint filed by the Opposition Manitoba NDP,the agency ruledlast month that Omnitrax/Hudson Bay Rail were required to begin repairs to the damaged rail line by July 3.

• Omnitrax ordered to repair Churchill's damaged railway line

It has been 410 days since a train last arrived in Churchill. A flood washedout sections of the track in May 2017.

In a statement to CBC News Friday, a spokesperson for the CTAwrote that the agency'sinitial order compelled the company "tocomplete the repair and resume operation of the railway line as expeditiously as possible."

The CTAsays it was prompted to file the Federal Court order Friday after suggestions Omnitraxhas not begun the work.

"We understand there have been concerns expressed by community members that HBR may not be complying with this order," the spokesperson wrote Friday.

"Responding to these concerns, as per [Section]33 of theCanada Transportation Actthe CTA has filed the order with the Federal Court today, which makes it enforceable as an order of the court."

Omnitraxhas until July 13 to file an appeal of the order with the Federal Court of Appeal.

The CTAhas not responded to questions from CBCNews about the type of penalties it could use to enforce the order.

Asearch of the Federal Court of Appeal's proceedings does not show Hudson Bay Rail or Omnitrax having filed an appeal.

CBCNews has requested comment from Omnitrax/HBR.

Negotiationscontinuing: Carr

Hopes in Churchill for a sale of Omnitraxassets, including the rail line, port facilities and the marine tank farm in Churchill, were dashed last week when Omnitraxissued a statement saying negotiations appeared to have broken down with a consortium of First Nations and northern communities as well as Toronto-based Fairfax Financial Holdings.

A spokesperson for federal Natural Resources Minister Jim Carr says negotiations are continuing.

A written statement from Churchill Mayor Mike Spence suggests there are still efforts behind closed doors to make a deal for the sale of the rail line.

"From Day 1, our community's top priority has been to see rail line repairs undertaken immediately following the loss of rail service. That remains our priority and we trust all parties are working towards that,"wroteSpence.

Propane arrived in the community by sea this week and gasoline is coming in the next day or so, but the costs of marine shipping are far higher than by rail.

It's not clear if there are subsidies in place to cover the extra costs of these new shipments.