First Nations group looking to buy Manitoba rail line and port

WINNIPEG -- A troubled rail line and port in northern Manitoba may be sold to a group of First Nations communities in the area.

See Full Article

Denver-based OmniTrax says it has accepted a letter of intent from the group over the sale of the Port of Churchill and the Hudson Bay rail line.

The company says there's a 45-day period of due diligence before a sale can be completed, and the federal and provincial governments will be asked to support the group buying the assets.

OmniTrax took over the rail line and port in 1997.

Churchill is Canada's only deep-water northern port and relies heavily on grain shipments from western farmers.

Those grain shipments were less than half the normal 500,000 tonnes this year, which prompted OmniTrax to look for a new owner.

Earlier this month, the Manitoba government said it was looking for federal help to ensure the continued operation of the northern line. Manitoba Transportation Minister Steve Ashton met with federal counterpart Marc Garneau in Ottawa.

The line is the only land link to Churchill and three other communities from the south.

Omnitrax Canada president Merv Tweed indicated that service could be discontinued if no new buyer were found. He also suggested governments could have the railway operate as a utility, presumably with regulation of rates and some form of subsidy in poor years.

Ashton suggested the long-term survival of the port and railway could depend on expanding port storage facilities to handle potash and other goods.

The northern rail line, which crosses hundreds of kilometres of bog and permafrost, has been plagued by derailments that have intermittently forced the suspension of both freight and passenger services.

OmniTrax had thought of shipping crude oil along the railway, but backed off the plan last year. The proposal was opposed by aboriginal groups, environmentalists and the government of Manitoba.



Advertisements

Latest Economic News

  • Metrolinx appealing latest court loss over $770M contract with Bombardier

    Economic CTV News
    TORONTO -- Metrolinx has filed an appeal questioning the decision of an Ontario judge last month that preserved the transit agency's contract with Bombardier Transportation. The notice of appeal deepens the legal dispute between the Ontario transit agency and Bombardier over the company's ability to fulfil train orders in Toronto, where gridlock has become an increasing frustration for hundreds of thousands of commuters. Source
  • Majority say buying Canadian, even if price is higher, is more important: Nanos survey

    Economic CTV News
    The majority of Canadians say that buying Canadian products is more important to them, even if the price is higher, according to a recent Nanos survey. Fifty-two per cent of those surveyed said that it is more important to them personally to buy a Canadian product, even if it costs more, while 28 per cent said that buying the cheapest product is more important when it comes to shopping. Source
  • Female CEOs make more than their male counterparts – but there are a lot less of them

    Economic Toronto Sun
    NEW YORK — Women CEOs earned big bucks last year, but there’s still very few of them running the world’s largest companies. The median pay for a female CEO was US$13.1 million last year, up 9% from 2015, according to an analysis by executive data firm Equilar and The Associated Press. Source
  • Feds launch contest for $950M 'supercluster' plan aimed at creating jobs, growth

    Economic CTV News
    OTTAWA -- The Trudeau government is opening the competition for its $950-million "supercluster" program that aims to bring together industry and academia as a way to lift the innovation economy. Economic Development Minister Navdeep Bains is adding new details about deadlines and qualifying criteria for a five-year initiative central to the feds' innovation program. Source
  • New TD centre to create up to 575 jobs in Moncton over 6 years

    Economic CBC News
    The TD Bank expects to create up to 575 full-time jobs in Moncton over a six-year period when it opens a business services centre in 2019 with up to $9 million in help from the provincial government. Source
  • New York fines BNP Paribas $350 million in trading scheme

    Economic CTV News
    New York state regulators have fined French bank BNP Paribas $350 million, alleging bank employees for years manipulated global currency markets to benefit themselves at the expense of their customers. The New York Department of Financial Services said Wednesday that from 2007 to 2013 at least a dozen BNP Paribas traders manipulated the foreign exchange market, using chat rooms and fake trades in currencies including the South African rand, Hungarian forint and Turkish lira. Source
  • Bombardier and U.S. aerospace supplier Triumph settle legal dispute

    Economic CTV News
    MONTREAL -- Bombardier and Triumph have reached a settlement about five months after the U.S. aerospace supplier filed a $455-million lawsuit against the Quebec-based aircraft manufacturer. Details of the settlement announced Wednesday were not disclosed. Source
  • New TD call centre will create 575 jobs in Moncton, N.B., province says

    Economic CTV News
    MONCTON, N.B. -- TD has announced plans for a new call centre in Moncton, N.B., that the provincial government says will create up to 575 full-time jobs. The Toronto-based bank will receive up to $9 million in financial assistance from the government, which says the call centre will add $109-million to the province's GDP over six years. Source
  • Graco recalls My Ride 65 car seats in Canada for restraint defect

    Economic CBC News
    Graco's Canadian division is recalling 1,393 car seats with defective harness restraints. The recall affects certain "My Ride 65" model car seats manufactured between May 14, 2014 and July 30, 2014, according to a safety advisory from Graco. Source
  • Lavazza Coffee buys 80% stake in Canada's Kicking Horse

    Economic CBC News
    Italian coffee conglomerate Lavazza has bought an 80 per cent stake in B.C.-based Kicking Horse Coffee in a deal that values the company at $215 million. Elana Rosenfeld, who founded the Kicking Horse brand in 1996, will continue to own the remaining 20 per cent and will continue to be CEO of the company, which has grown to become the No. Source