The Ontario government is shooting down a joint venture acquisition proposal being floated by Mushkegowuk Council and a Toronto rail provider that the rail arm of the Ontario Northland Transportation Commission (ONTC) is available for sale.


Province derails ONR acquisition bid

By: Northern Ontario Business staff
1/26/2015


Northern Development and Mines Minister Michael Gravelle released a statement that the ONTC will remain a Crown agency.

“Our government has been clear - ONTC’s motor coach, Polar Bear Express, rail freight, and refurbishment services will remain in public hands. We remain steadfast in our commitment to ensure sustainable employment, continued economic growth, and a strong transportation network in northeastern Ontario through transformation of the ONTC.”

Last week, Mushkegowuk Grand Chief Lawrence Martin was quoted in media reports that his First Nation tribal council had partnered with TGR Rail of Toronto to acquire the rail division as part of a larger rail, transmission corridor, and James Bay saltwater port scheme to move chromite ore out of the Ring of Fire.

The chairman of TGR, Ron Dancey, told a Timmins media outlet that a bid was on the table and that his company had the operational capabilities and financial backing to run the railway.

An Ottawa political website further reported that the Prime Minister’s Office was interested in the proposal which would conceivably see Ring of Fire ore railed east to Timmins and then north to Moosonee.

With a memorandum of understanding between Mushkegowuk and TGR Rail reported signed, Lawrence was waiting on approval from his council of chiefs to proceed.
The Mushkegowuk council consists of a group of eight northeastern Ontario Cree communities stretching from Chapleau to Weenusk on the Hudson Bay coast.

It is not known if the Matawa First Nations, a northwestern Ontario tribal council representing nine communities closest to the Ring of Fire, are on board.

TGR Rail last surfaced in 2012 when it publicly announced it was submitting a preliminary bid in to buy the railway when the McGuinty government put the entire Crown agency on the auction block as a cost-cutting move.

New leadership in Queen’s Park and a damning provincial auditor’s general report resulted in a change of course and an organizational restructuring at the ONTC with only Ontera, the telecommunications arm, being sold off to Bell Aliant.

This winter, Corina Moore, Ontario Northland’s chief operating officer, told Northern Ontario Business that both the passenger and freight rail can rely on continuing government support with a campaign being devised to encourage more northeastern Ontario shippers to use rail.