On Friday, OmniTrax Canada accepted a letter of intent from a group of Northern Manitoba First Nations for the purchase of its Manitoba assets, which could include the Port of Churchill and Hudson Bay Railway.
This triggers a 45-day due diligence period in which both parties will work together to ensure that a purchase becomes a reality.
OmniTrax president of Canadian operations Merv Tweed thinks this will be a natural fit for ownership with the way the rail line services northern communities.
"The people that are being served along the line — I think — deserve the opportunity to be a part of the ownership and a part of the management," he says. "I think the solution was always there, and I think we've come forward with a pretty positive idea."
OmniTrax has agreed to work with the Northern Manitoba First Nations for a number of years going forward to ensure a smooth transition. Tweed is very confident the deal will go through.