CN Rail plans to officially end rail service from Enterprise to Hay River, N.W.T.

CN Rail says it plans to officially end its rail service from Enterprise to Hay River, cutting off what territorial officials say is a key logistical section of railway and could further complicate the efforts to resupply rural N.W.T. communities.

"It has a tremendous effect on really some of the most vulnerable Indigenous communities in the North," Caroline Wawzonek, the N.W.T.'s infrastructure minister,told CBC.

CN Rail has decided not to rebuild a critical 30 kilometres of railway that got damaged in last year's wildfires.

Wawzonek saidit's part of a rail and barge corridor that supplies essential goods to rural communities up the Mackenzie Valley, and Inuit communities of the High Arctic.

"Without this, by forcing communities, our community governments to be finding alternatives ... it increases costs into communities that are already paying extremely high costs for fuel," Wawzonek said.

On May 23, CN Rail started the process to discontinue this rail line.

According to an email from CN Rail, thedecision followed "thoughtful engagement with local stakeholders and customers."

CN Rail declined to divulge any details about who they consulted that supported thedecision, andadded that the repair costs were too high for the customer volume in the region.

Wawzonek says that trucking to Hay River and from Enterprise will take 20 truck trips. Hence, it would take around 80 hours to fill a 1-million-litre bargefrom Enterprise, instead of six hours from Hay River.

"The additional handling is inefficient, can impact fuel quality, adds logistical complexity and spill risk," Wawzonek said.

The rail line is also important infrastructure used by Imperial Oil to fuel communities in the Sahtu.

In an email response, the oil company said, "Inlight of CN's decision, we will continue to use alternative means to transport fuel to support our customers in the region."

Brad Mapes is the owner of AWP Industries Corporation, which has a rail transloading site in Enterprise.

He disagrees with the government's prediction about the impact and says that logistical shipping has evolved as the N.W.T.has developed over the years.

"As we build more highways, we need to get [the] Mackenzie Highway up to Inuvik ... we will get less dependent on the waterways. This year is a good example, with the water levels dropped, I don't think its gonna be uncommon ... there will be less demand on barging," Mapes said

Following last year's wildfires CN Rail restored parts of the Enterprise line, and Mapes said his site then resumed transloading fuel.

"We reallocated resources from elsewhere to help restore the rail operations to Enterprise. This was because customers expressed interest in pursuing other opportunities out of Enterprise, even if Hay River were to be restored," CN Rail said in an email.

Not a good use of public tax dollars

The railway company stated that, under Canadian Transportation Agency rules, rail companies must follow a three-year process to shut down a section of track. After a year on the list, CN can attempt to sell it.

The N.W.T. government said they won't fund the repair, stating it's not a good use of public tax dollars for the $15 million needed to fix the 30-kilometrestretch.

"To have to step in and buy a small patch of railway, which is an industry that we are not well placed to undertake ... isn't an appropriate use of public tax dollars," Wawzonek said.

She said work is happening with the department of Justice and Transport Canada in terms of legal options that might be available for the government.

"It's certainly my hope that CN Rail will take a look at their entire capital envelope and consider whether or not this can find a home in it," Wawzonek said.