August 31, 2018 7:19 pm

Deal for broken Churchill rail line reached

A deal has been reached to fix a broken rail line in Churchill, the town said.

Omnitrax / Submitted

A deal has been reached to sell and repair a broken rail line that is the only land link for the northern Manitoba town of Churchill.

The community on Hudson Bay has been isolated since spring flooding in 2017 damaged the rail line and forced fuel and food prices to be flown in at skyrocketing costs.

The town says the deal includes the sale of the Hudson Bay Railway, the Port of Churchill and the Churchill Marine Tank Farm.

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In a statement, the town says the assets have been purchased by a consortium of northern communities, Toronto-based Fairfax and AGT Foods.

It’s not clear how quickly repairs to the rail line can be done.

Hudson Bay Railway has said the line has been losing money for years and the necessary repairs would cost tens of millions of dollars.

 “Significant work lies ahead including immediately mobilizing for repairs to the rail line and to restore services,” the town said in a statement late Friday afternoon. “The residents and businesses of Churchill have shown great patience and resiliency during this difficult time.”

Manitoba premier Brian Pallister said the deal is an extremely positive one for Churchill residents and said the province has made financial arrangements to ensure propane re-supply for the upcoming winter.

WATCH: Churchill residents still waiting for rail line fix

© 2018 The Canadian Press

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