Gordon Peters was skeptical last week when told Omnitrax wants to buy the Cowan subdivision in western Manitoba.
“I think it’s a ploy,” said Peters, president of Brandon-based Cando Contracting, the company that bought the subdivision from CN Rail. “We think people are playing political games with this.”
The Cowan subdivision runs through the Swan River Valley. Cando plans to dismantle the 134 kilometres of line for scrap.
But last week Manitoba agriculture minister Rosann Wowchuk said Omnitrax, owner of Hudson Bay Railway and the port of Churchill, wants to buy the line from Cando for net salvage value.
Read Also
Government, industry seek canola tariff resolution
Governments and industry continue to discuss how best to deal with Chinese tariffs on Canadian agricultural products, particularly canola.
Omnitrax plans to operate the line as part of its proposed regional railway, the minister said.
“We are concerned that CN’s decision to sell the line to Cando for reclamation purposes rather than to Omnitrax for continued rail operations will eliminate any prospect for competition in the region,” said Wowchuk, who farms at Cowan, Man.
She and Manitoba highways minister Steve Ashton called on Cando and CN Rail to agree to mediation with Omnitrax and affected communities to prevent the dismantling of the line.
When interviewed Oct. 27, Peters said he had not seen an offer from Omnitrax. He made it clear he does not want to get dragged into a long series of negotiations.
“If Omnitrax has a business proposal, put the cheque on the table.”
Communities along the line have struggled for years to save the line from abandonment. Local municipalities this year tried to protect it by passing bylaws designating the line a heritage site.
Complaints also were lodged with the Canadian Transportation Agency alleging that CN failed to comply with the requirements for abandoning the line. The agency dismissed those allegations in a ruling last month.
Communities now are pinning hopes on a purchase by Omnitrax.
“Our goal now is to get the people to the table,” said Wowchuk. “We want to get them to the table and work out some resolution to the whole issue.”
Peters said it would be costly to refurbish the Cowan line. He suggests there is an alternative stretch of track in the region more suited for a short line.
