Hudson Bay Railway to End Passenger Service between Lynn Lake and Pukatawagan and May Sell that Portion of the Line

-- HBR enters into discussions with local First Nations Bands to purchase this section of track.

-- Service will continue from The Pas to Pukatawagan two days a week.
 
Denver, Colorado – August 12, 2003 – Hudson Bay Railway (HBR), an affiliate of OmniTRAX Inc., announced that passenger service from Lynn Lake to Pukatawagan is ending effective August 18.
 
“ Unfortunate economic circumstances will not allow us to continue operating this passenger service,” said Darcy Brede, General Manager, Hudson Bay Railway.  “The Leaf Rapids mine closure created a substantial decline in freight traffic and revenues, which dramatically increased the cost of subsidizing passenger service from Lynn Lake to Pukatawagan.  Simply stated, we cannot operate the service at a loss.  We have, however, taken steps to ensure that there will be no effect on the Band’s fishery.”
 
HBR has entered into discussions with local First Nations Bands to purchase this portion of the existing railway.  A decision is expected within the next few months whether the sale will move forward.
 
Passenger service will now run on Monday and Thursday from The Pas to Pukatawagan and on Tuesday and Friday from Pukatawagan to The Pas.
 
About OmniTRAX
An affiliate of The Broe Companies, OmniTRAX, Inc., is one of North America's leading transportation companies.  With expertise in the regional-rail industry and associated transportation businesses, OmniTRAX aggressively seeks business opportunities that maximize the company's core strengths. Aggressive marketing and innovative service offerings ensure that shippers receive exceptional and flexible service arrangements.  Based in Denver, Colorado, OmniTRAX owns and operates railroads in six states and three Canadian provinces, plus related businesses.  The related businesses include: real estate, intraplant switching, intermodal operations, and the Port of Churchill.

Media Contact:
Tom Henley
Dir. of Communications
303-398-0342
thenley@broe.com