A Canadian group that unsuccessfully bid for the Churchill rail line says the sale of the line and port to an American company is good news for Western Canada.
But Gateway North Transportation Systems Ltd. is continuing to challenge the process by which CN Rail sold the line to Omnitrax Inc. of Denver.
The group has asked the Federal Court for permission to appeal a recent decision by the Canadian Transportation Agency saying CN Rail followed all the rules when it sold the line to Omnitrax.
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Gateway spokesperson John Jardine said the group was not convinced by the reasons given by the CTA for its decision and thinks the rules governing the sale or abandonment of branch lines need to be clarified.
But he also acknowledged that no matter the outcome, the line will almost certainly remain in the hands of Omnitrax.
“We’re not doing it to reverse the decision” he said. “But the opportunity to question the law may not come again and we think it’s necessary.”
He said Gateway expects to know by mid-September whether the Federal Court will hear its appeal.
Owners want to expand business
As for the sale of the line to Omnitrax, Jardine said the group is happy the line won’t be abandoned and that both the port and the rail line will have an owner who seems intent on increasing business and revenues.
“It’s very very positive for Churchill and for Western Canada,” he said.
The Manitoba-based group of Western Canadian companies is also suing CN and the federal and Manitoba governments, arguing that proprietary information it gave CN during negotiations to buy the line was improperly included in the tender package provided to bidders, including Omnitrax.
