OmniTrax sells Port of Churchill, Hudson Bay rail line to First Nations group

A group of northern Manitoba First Nations is buyingthePort of Churchill and Hudson Bay railline fromOmniTrax.

The Denver-based company announced on Friday that it hasaccepteda letter of intentfor the purchase of its Manitoba assets.

"It's a group of communities along the line and others that, you know, over the period of time have always believed the railway was theirs. This now can become a reality based on current negotiations," said OmniTrax president Merv Tweed.

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He wouldn't reveal the purchase price nor which First Nations are involved.

"They'll make their own statement in their time," Tweed said.

OmniTrax and the First Nations group will now enter a45-day "due diligence periodin which both parties will work together to ensure that a purchasebecomes a reality," states a news release fromthe company, whichhas alsoagreed to work with thegroupfor the next several years to ensurea smooth transition.

"We've had a lot of real good discussion, but now it's basically fine print," Tweed told CBC News.

Tweed said he doesn't knowwhether the sale will require federal or provincial funding or other assistance.

"I can't say that. I don't know. That's part of the discussion we'll undertake over the next 45 days."

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OmniTraxhas operated the port and rail linesince 1997, but a slump in grain shipments has put a strain on the operation.

That prompted the company to announce earlier this month thatit was selling the operations.

Sheila North Wilson, grand chief of Manitoba Keewatinowi Okimakanak, which represents northern First Nations in the province, refused to comment onthe deal.