Federal Court of Appeal judge dismissed case in Edmonton on Wednesday
More than two years after CN Rail announced it would end its rail service between Enterprise and Hay River, N.W.T., the territory’s appeal of the Canadian Transportation Agency’s decision on the matter has been dismissed by a Federal Court of Appeal judge in Edmonton.
In a statement Friday, Infrastructure Minister Vince McKay said while the government “[respects] the court’s decision, we are extremely disappointed by this outcome.”
In May 2024, CN Rail began the process of discontinuing its service between Enterprise and Hay River. The 30-kilometre stretch of rail line had been damaged in the 2023 wildfires, and CN Rail decided not to repair it.
At the time the announcement came out, the company said the costs for repair outweighed customer demand for the line.
In April 2025, the territory took the case to the Canadian Transportation Agency for adjudication, saying the rail company “has failed to fulfil its obligations under the Canada Transportation Act.”
In August of that year, the Canadian Transportation Agency dismissed the territory’s bid, siding with CN Rail. It’s that decision that the N.W.T. government was appealing.
On Wednesday, Federal Court of Appeal Justice Peter Pamel wrote that the court was “unconvinced” by the N.W.T. government’s arguments that the Canadian Transportation Agency had made legal errors in its decision-making.
In Friday’s statement, McKay highlighted the history of the line and its part connecting the national rail network with the marine resupply system for remote N.W.T. communities.
“Losing that connection increases transportation costs, puts more pressure on our highways and leaves an already vulnerable northern supply chain with fewer options,” McKay said.
He pointed to other industries, and how companies in the N.W.T. have had to “adapt to the infrastructure available today,” but said, “that should not be mistaken for a lack of future demand.”
“As we work to advance critical minerals projects, grow our economy and attract new investment, we need to be strengthening our transportation network, not losing critical connections.”
McKay said the government would review the court’s decision, but said they aimed to continue to try to work with CN Rail to negotiate restoring the line.
Canada: Nunavut enters into new 10-year agreement for air transportation services, CBC News
Finland: Finnair to link Helsinki and Ivalo with Kirkenes, The Independent Barents Observer
Norway: Air France launches flights to three destinations above the Arctic Circle, The Independent Barents Observer
Sweden: New rail link reconnects Finland and Sweden in North, Yle News
