N.W.T. asks regulator to intervene in CN Rail's decision to scrap rail line

CBC

08-04-2025

The N.W.T. government has asked federal regulators to intervene in CN Rail's decision to not fix its damaged rail line between Hay River and Enterprise, arguing the company has a legal obligation to keep the line functional.
"The [government of the Northwest Territories] will not stand by as CN Rail shirks its responsibility," reads a written statement from N.W.T. Infrastructure Minister Vince McKay, in a news release on Monday.
The government says it applied to the Canadian Transportation Agency for adjudication, saying the rail company "has failed to fulfil its obligations under the Canada Transportation Act."
"As a common carrier, CN Rail has a legal duty to maintain this rail line and ensure the continued flow of goods to the N.W.T.'s most vulnerable communities," McKay's statement reads.
CN said last year that it had decided not to rebuild a critical 30 kilometres of railway between Enterprise and Hay River that was damaged in 2023's wildfires.
It said at the time that the decision followed "thoughtful engagement with local stakeholders and customers," but did not provide any details about who was consulted. The company also said that the repair costs were too high for the customer volume in the region.
Territorial officials, however, argued that the rail line was 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.
On Monday, the territory again blasted CN Rail for "shirk[ing] its responsibilities."
"To be clear, this issue goes beyond just a damaged rail line — it is about protecting the livelihood of N.W.T. residents," the news release states.
"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."
The damaged rail line is already having a "profound and detrimental effect" on many of the territory's remote communities, it says, by putting further strain on supply chains and transportation costs.
The multi-billion-dollar company can afford to fix the line, the territory says, but has instead chosen to "neglect its responsibilities."
The railway company stated last year 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.
Former infrastructure minister Caroline Wawzonek said earlier that the territory wouldn't fund the repair, as the $15 million needed to fix the 30-kilometre stretch "isn't an appropriate use of public tax dollars." She also said then that the territory was looking at its legal options to address the issue.
McKay says the Canadian Transportation Agency has accepted its application for adjudication, and that he will not comment further while the adjudication process is underway.
The agency is an independent regulator and quasi-judicial tribunal that focuses on the national transportation system, including issues related to air, marine and rail transport. Adjudication can lead to a legally binding decision.
In an email to CBC News on Monday, a CN Rail spokesperson said the company last May "communicated our formal decision to initiate the discontinuance process of our line from Enterprise to Hay River with all levels of government, key stakeholders, and our customers."