Denver-based OmniTrax is filing a complaint against the federal government under a section of the North American Free Trade Agreement. (NAFTA)
The railway says Ottawa's decision to end the Canadian Wheat Board's single desk selling system in 2012 drastically reduced the amount of grain moved through the port of Churchill in northern Manitoba. OmniTrax states the change made both the port and railway financially unviable.
OmniTrax bought the railway from CN and the port of Churchill from the federal government in 1997.
Severe flooding damage put the line out of commission in the spring and no repairs have been made.
The federal government has served notice that it is suing OmniTrax for failing to repair and maintain the line after receiving $18.8 million for repairs and upgrades in 2008.