No. H038/06
For release May 25, 2006

MANITOBA RAILWAY LINE
TRANSFERRED TO FIRST NATIONS COMPANY

THE PAS, Manitoba — The community of Pukatawagan and surrounding areas today celebrated the transfer of a railway line in northern Manitoba to Keewatin Railway Company. This First Nations-owned railway company received $4.9 million from the Government of Canada, $1.25 million from the Province of Manitoba and $500,000 from three First Nations communities for the railway line purchase.

Brian Jean, Parliamentary Secretary to Lawrence Cannon, Minister of Transport, Infrastructure and Communities, together with Ron Lemieux, Minister of Transportation and Government Services Manitoba; Chief Pascall Bighetty, President of Keewatin Railway Company; Lore Mirwaldt, member of the board of directors of VIA Rail Canada; and Tony Fortino, General Manager of Hudson Bay Railway Company, were on hand to mark the transfer of the 185-mile Sherridon subdivision, which runs between Sherritt Junction and Lynn Lake in Manitoba. Keewatin Railway Company—owned jointly by the Mathias Colomb Indian Band, the Tataskweyak Cree Nation and the War Lake First Nation—acquired the subdivision on April 1, 2006, through an asset purchase agreement with the Hudson Bay Railway Company.

“The Government of Canada is committed to working with First Nations to make sure our investments achieve the best possible results,” said Mr. Jean. “The initiative shown by Keewatin Railway Company will help build a strong local economy and will create opportunities that benefit the region.”

In addition to the $4.9 million for the railway line purchase, the Government of Canada is providing up to $3.2 million to Keewatin Railway Company for start-up costs and capital investments, including the acquisition of locomotives, railway equipment, transitional services, office equipment, and planned infrastructure work on the rail line. Federal funding comes from the Regional and Remote Passenger Rail Services Contribution Program administered by Transport Canada. The program ensures that safe, reliable and sustainable passenger rail services are provided to regional and remote areas of the country.

“It is important to the Government of Canada that the people of Pukatawagan and surrounding areas have reliable freight and passenger rail service,” said Minister Cannon. “It is through such rail services that people in remote communities can get the things they need every day, as well as travel through the region or to the rest of the country.”

“Manitoba has made significant investments in northern transportation in recent years to promote economic growth and opportunity,” said Minister Lemieux. “We are pleased to be working with our federal colleagues, VIA Rail Canada and Keewatin Railway Company to maintain this important link for the community of Pukatawagan.”

“Our elders recall the arrival of the first train to Pukatawagan in the summer of 1952, when they were called to see the “Fire Horse”, said Chief Pascall Bighetty. “Little did we know that, over 50 years later, we would be the owners of the railway. This initiative was successful because the three First Nation communities worked together on a common objective, one that we hope will generate even more opportunities to participate in the economy of Northern Manitoba.”

“We are pleased to have the opportunity to work with the First Nations, the federal government and Manitoba on this project. We feel this is a perfect example of a successful public/private partnership,” said Mr. Fortino. “Hudson Bay Railway Company looks forward to a long and fruitful relationship with Keewatin Railway Company.”

VIA Rail Canada previously operated a twice-weekly passenger rail service between The Pas and Pukatawagan through an operating agreement with Hudson Bay Railway Company. This passenger service continues under a new operating agreement between Keewatin Railway Company and VIA Rail Canada.

“We look forward to working with Keewatin Railway Company; we have committed to offering both expertise and assistance to help ensure this community-based venture and operating partnership enjoy every success possible,” said Ms. Mirwaldt.

Under this agreement, VIA Rail Canada will lease four rail cars to Keewatin Railway Company for a one-year period and will continue to service the train in The Pas. VIA Rail Canada will also work with Keewatin Railway Company to ensure passenger safety and comfort are maintained. Additionally, Keewatin Railway Company will consult with VIA Rail Canada in matters relating to the schedule of the train to ensure travellers wishing to connect with VIA Rail Canada services will be able to do so in a timely and efficient manner.

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