The federal government has sent Omnitrax notice that it has to resume rail service in 30 days to Churchill or meet the government in court.
According to Minister of Natural Resources Jim Carr the government has been working toward the restoration of the rail line but Omnitrax has not met its obligation.
"Transport Canada sent Omnitrax Inc. a notice of default of its agreement, demanding that it complete all railway repairs and resume rail service within 30 days. Failing this, Transport Canada will instruct Justice Canada to file a lawsuit for breach of contract," the statement said.
According to the contract, if the company discontinues or abandons the rail line or port, Ottawa is entitled to have the funding returned,
