Days after negotiations failed, a bid by two northern Manitoba companies to buy the Churchill rail line is back on the table.
Discussions between Hudson Bay Railway owners Omnitrax and a consortium of Missinippi Rail, One North and partners Fairfax Financial hit an impasse on July 3. According to a statement released by the Hudson Bay Railway (HBR), the two sides were unable to come to terms on vital rail-related concerns.
“It now appears that this transaction has fallen apart and that a sale of the HBR to this group may not be possible,” the statement read.
That changed on July 10, when another statement from HBR announced that negotiations for the line would continue with the same groups.
“We are pleased to announced that our negotiations with the consortium resumed on Monday, and we are once again in active discussions to finalize the sale,” said Sergio Sabatini, HBR president in the statement.
Under the initial deal, Omnitrax would sell the line and several additional assets to the interested parties.
Multiple northern leaders head up One North, including War Lake First Nation chief Betsy Kennedy, Opaskwayak Cree Nation chief Christian Sinclair and Churchill mayor Mike Spence.
In May, the group reached out to several northern communities, including Flin Flon, to offer shares in the company. The City of Flin Flon authorized buying three shares, at a cost of one dollar per share, in the group. It marked the first time in Flin Flon’s history that city administration approved an agreement with a First Nations-led group.
Niki Ashton, the MP representing both Flin Flon and Churchill, was displeased with the July 3 announcement that talks had broken down.
“I was very upset to read this. This was an opportunity for hope for the community,” she said in a media availability in Churchill on July 4, adding that the announcement was a key issue for residents in the discussion.
“People in Churchill have had enough. They’ve had enough of Omnitrax’s games. They’ve had enough of feeling as though they’re being held hostage – that was a word I kept hearing repeatedly yesterday.”
