Media Statement – Minister McKay Confirms Adjudication Process with CN Rail Underway

Press Release

April 7, 2025

Minister Vince McKay issued the following statement regarding CN Rail’s decision to not repair the section of damaged rail line between Enterprise and Hay River:

“In the summer of 2023, wildfires severely damaged the rail line between Enterprise and Hay River—an essential piece of infrastructure for the Northwest Territories (NWT). This rail line is not just part of our transportation network; it is a lifeline for our territory, critical in ensuring the timely delivery of fuel to remote communities, particularly those reliant on barging services. Without it, these communities face increased costs and reduced access to the fuel that residents rely on to live, work and play. The CN rail line to Hay River is vital for future regional development, enhancing trade, investment, and connectivity. It plays a key role in advancing Canada’s critical minerals supply chain, supporting economic and infrastructure objectives both regionally and beyond.

“Despite this, CN Rail has decided not to repair sections of track between Hay River and Enterprise, abandoning its responsibility to maintain this critical part of the NWT’s supply chain. The Government of the Northwest Territories (GNWT) has made repeated attempts to resolve this matter directly with CN Rail, but to no avail. CN’s refusal to act leaves the NWT in an even more precarious situation, deepening an already severe infrastructure deficit. Compared to the rest of Canada, the NWT is profoundly lacking in year-round, reliable transportation infrastructure; CN’s decision exacerbates this problem, disproportionately impacting smaller, more remote Indigenous communities that are most in need.

“These communities are already paying some of the highest costs for fuel and essential goods due to the challenges of living in northern communities without year-round road access. CN’s decision to cease service to Hay River means that instead of a streamlined supply chain using the rail and barge system, the GNWT and communities will be forced to rely on expensive and inefficient alternatives, such as trucking fuel across long distances. This is not just a minor inconvenience—this decision puts the well-being of our residents at risk and places unnecessary strain on our economy.

“The GNWT will not stand by as CN Rail shirks its responsibility. That is why we have submitted an application for adjudication with the Canadian Transportation Agency. This adjudication process is akin to a legal hearing, where the GNWT’s claim that CN Rail has failed to fulfill its obligations under the Canada Transportation Act will be thoroughly examined. As a common carrier, CN Rail has a legal duty to maintain this rail line and ensure the continued flow of goods to the NWT’s most vulnerable communities. The GNWT is calling on CN Rail to recognize the devastating impacts their inaction has on the North and to take immediate steps to restore this essential infrastructure.

It remains the position of the Government of the Northwest Territories that repairing this stretch of rail line is CN Rail’s responsibility. As a government, our primary responsibility is to advocate for a fair resolution, and we believe it is in the best interest of NWT residents for CN Rail to fulfill its obligations.

“To put this matter in perspective, CN Rail is a multi-billion-dollar company with substantial financial resources. The estimated cost required to repair the stretch of rail is a negligible fraction of their revenue. It is especially concerning that a company of this size, with such substantial resources, has chosen to neglect its responsibilities.

“To be clear, this issue goes beyond just a damaged rail line—it is about protecting the livelihood of NWT residents. 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. CN Rail must fulfill its obligations, as their inaction is already having a profound and detrimental effect on some of our most remote and vulnerable Indigenous communities, who depend on fuel transported by this rail line to the barging services it supports.

“The GNWT’s application for adjudication has been accepted by the Canadian Transportation Agency. While adjudication is underway, I will not comment further, but I assure NWT residents that the GNWT will continue to advocate for the repair of this critical rail line and ensure that the infrastructure needs of the North are not ignored.”
For media inquiries, please contact:

Cabinet Communications
Government of the Northwest Territories
PressSecretary@gov.nt.ca

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