The GNWT’s application for adjudication with CN Rail has been accepted by the Canadian Transportation Agency, says Infrastructure Minister Vince McKay.
The GNWT claims the railway is shirking its responsibility by not repairing the section of damaged rail line between Enterprise and Hay River. It was badly damaged during the 2023 summer of drought and historic wildfires.
Minister Vince McKay in NWT Assembly. At left is Premier R.J. Simpson. (Image courtesy of Assembly livestream)
In a fiery statement issued on Monday, the minister called the rail line “a lifeline for our territory,” critical in ensuring the timely delivery of fuel to remote communities, particularly those reliant on barging services.
“To be clear, this issue goes beyond just a damaged rail line — it is about protecting the livelihood of NWT residents,” stated McKay who is MLA for Hay River South. “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 fulfill 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.”
Last summer, CN Rail announced it decided not to rebuild the 30 kilometres of railway that was damaged in the 2023 wildfires.
CN Rail’s abandoned line, seen in the summer of 2024, runs beside Highway 2 through Hay River. (James O’Connor/CKLB)
That leaves a gap in the supply chain from the south to the Marine Transporation Services main terminal in Hay River.
McKay claimed 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.”
McKay stated the GNWT has made repeated attempts to resolve this matter directly with CN Rail, but to no avail.
CN’s decision to cease service to Hay River, continued Minister McKay, means that instead of a streamlined supply chain using the rail and barge system, the GNWT and communities will be forced to rely on expensive and inefficient alternatives, such as trucking fuel across long distances.
“This is not just a minor inconvenience — this decision puts the well-being of our residents at risk and places unnecessary strain on our economy.
This adjudication process is akin to a legal hearing, stated McKay, where the GNWT’s claim that CN Rail has failed to fulfill its obligations under the Canada Transportation Act will be thoroughly examined.
CKLB has reached out to CN Rail for comment and will update this story when we hear back.
