A $20-million deal has been made to sell the Port of Churchill and a rail line that links the area to the rest of the province.

The owner of both, Omnitrax Rail, has signed a memorandum of understanding with Missinippi Rail LP, a group of Manitoba First Nations. The deal would allow Omnitrax to finance the sale through a loan to buyer Missinippi, confirmed Mathias Colomb Cree Nation Chief Arlen Dumas.

“I believe (this deal is) a testament to the hard work that we’ve done. It shows that we have done our due diligence,” said Dumas.

Dumas said he is one of at least 15 members of Missinippi and is open to more signing on.

“This vital infrastructure should be owned by everyone that lives in the north,” he said.

Dumas said he believes, however, that the federal government has pulled its support from the deal.

“There was a commitment by the federal government to incentivize and support freight and a grain subsidy to go to Churchill ... all of a sudden we have these same representatives just telling us point blank that ‘No, we don’t want to work with you now,’” said Dumas.

The chief said he learned the feds were no longer supporting the deal last Thursday.

In an email, however, the office of Federal Economic Development Minister Navdeep Bains said his government has been “thoroughly engaged with local communities.”

“We’ve also been very clear about the requirements needed of any proposal going forward, including strong community support and a costed business plan,” the statement added. “Our government is a committed partner to local communities and we will continue to work with all affected parties to find to best solution for the people of Churchill and the surrounding region.”

Dumas said he still hopes federal and provincial funding can help ensure the success of the port and rail line, which he deems “critical” for the region’s economy.

In July 2016, Omnitrax announced the port’s closure and cut the frequency of weekly rail shipments from twice to once per week, sparking concern for the area. The port closure alone cut about 100 jobs in Churchill.

“It’s not only about economics. It’s about the livelihood and survival of our area,” said Dumas.

Omnitrax Canada president Merv Tweed couldn’t be reached for comment Monday.

In an email, Manitoba Growth, Enterprise and Trade Minister Cliff Cullen didn’t reveal if the province would support this particular deal.

“It would be inappropriate for the province to speculate on the nature of private commercial negotiations between third parties,” Cullen wrote. “We encourage all parties to pursue a resolution that is in the best interests of the economy and the people who call this region their home.”

jpursaga@postmedia.com

Twitter: @pursagawpgsun