Minister of Infrastructure Vince McKay announced today that GNWT is taking legal action against CN Rail, accusing the organization of failing to repair a “critical” rail line and meet obligations under the Canada Transportation Act.
Minister McKay says the rail line between Enterprise and Hay River is considered key infrastructure component for the territory and was damaged during the 2023 wildfire season.
Mckay explained that without the rail connection, communities are confronting increased costs and reduced access to fuel that residents need to “live, work and play.”
“To be clear, this issue goes beyond just a damaged rail line—it is about protecting the livelihood of NWT residents. CN’s decision to abandon this critical infrastructure is a failure of corporate responsibility and contradicts the very principles of reconciliation and respect that the company has publicly committed to through its Indigenous Relations Policy. CN Rail must fulfil its obligations, as their inaction is already having a profound and detrimental effect on some of our most remote and vulnerable Indigenous communities, who depend on fuel transported by this rail line to the barging services it supports,” he said In the April 7 media release.
McKay pointed out that the rail connection is “critical” to the “timely delivery” of fuel to remote communities, especially those who depend on barging services.
McKay also explained that the rail line occupies an important role in the territory’s economic future.
“The CN rail line to Hay River is vital for future regional development, enhancing trade, investment, and connectivity. It plays a key role in advancing Canada’s critical minerals supply chain, supporting economic and infrastructure objectives both regionally and beyond,” he said.
McKay called N.W.T.’s transportation infrastructure resources “profoundly lacking” compared to the rest of Canada.
Ashley Michnowski, who is CN Rail’s senior media relations manager, told True North FM that the formal decision was made almost one year ago.
“On May 23rd, 2024 we communicated our formal decision to initiate the discontinuance process of our line from Enterprise to Hay River with all levels of government, key stakeholders, and our customers,” said Michnowski.
“As this matter is currently before the CTA, CN will not be commenting any further at this time,” added Michnowski.
Mckay accused CN Rail of “abandoning its responsibility” to maintain a critical part of the NWT’s supply chain.
“The Government of the Northwest Territories (GNWT) has made repeated attempts to resolve this matter directly with CN Rail, but to no avail. CN’s refusal to act leaves the NWT in an even more precarious situation, deepening an already severe infrastructure deficit,” he said.
McKay affirmed that GNWT will continue to pursue the matter on behalf of N.W.T. communities.
GNWT’s application for adjudication was accepted by the Canadian Transportation Agency.
