Winnipeg’s growth has long been closely tied to its railway infrastructure. From the point where the Red and Assiniboine rivers meet, the city expanded alongside rail lines and vast marshalling yards where freight trains are assembled and dismantled.
Today, Winnipeg remains one of Canada’s most rail-intensive urban centres. More than 240 kilometres of active railway lines cross the city, while approximately 50 trains travel through residential and commercial neighbourhoods every day.
For some residents, however, this railway presence has become increasingly difficult to live with.
The Government of Manitoba is now examining a proposal, championed by retired politician Lloyd Axworthy, to construct a rail bypass around the city. The broader objective of relocating railway infrastructure would be to reduce urban traffic congestion and move major rail yards away from Winnipeg’s core.
The provincial government has recently launched a 90-day feasibility study and proof-of-concept consultation to assess whether the idea could realistically move forward.
Supporters argue that removing a significant share of freight rail traffic from Winnipeg’s urban centre could improve the movement of goods, reduce dirt, noise and delays affecting residential communities, and create new opportunities for housing and economic development.
At this stage, however, the study will not include detailed engineering work or financial cost estimates.
The initiative builds on the Winnipeg Rail Relocation and Renewal Study, launched in 2024.
A southern bypass under consideration
The 90-day study will examine the potential of using Manitoba Hydro’s southern transmission corridor as part of a new route around Winnipeg. The corridor sits on Crown land that has already been cleared and serviced, making it potentially available for future development.
For Lloyd Axworthy, the project represents an opportunity to rethink Winnipeg’s long-term development.
“This is an opportunity to think ahead about the kind of city we want Winnipeg to become,” Axworthy said in an announcement.
“We have a chance to plan for growth in a way that brings communities together, protects the land around us and leaves future generations a stronger, more connected city.”
Manitoba Premier Wab Kinew said the study team will work with the railway companies whose tracks and rail yards could be affected by any relocation plan. These include Canadian Pacific Kansas City, Canadian National and Burlington Northern Santa Fe.
The goal, according to Kinew, is to determine whether a viable business case exists for the proposed relocation.
The premier also believes a bypass could reinforce Manitoba’s north-south and east-west trade corridors while benefiting CentrePort Canada Inc. (CPC), the industrial park located near Winnipeg airport.
A stronger rail network?
Carly Edmundson, president and CEO of CentrePort Canada Inc., believes rail relocation would “definitely” deliver benefits for Winnipeg, Manitoba and Canada.
“It will help build a stronger rail network and move more freight more efficiently,” Edmundson said.
She also believes the project could create a clearer distinction between residential life in central Winnipeg and economic activity outside the city centre.
“It will also help create a more deliberate division between a more residential central Winnipeg and more economic activity outside the centre,” she added.
From an urban development perspective, Ahmed Shalaby, a professor of civil engineering at the University of Manitoba, said relocating freight rail lines and rail yards could help reconnect neighbourhoods currently separated by railway infrastructure.
Such a transformation could also allow industrial areas to be redeveloped into urban and suburban spaces, creating new development opportunities while eliminating the need for grade crossings.
But Shalaby stressed that the scale of the undertaking should not be underestimated.
“Rail relocation is a massive undertaking requiring land acquisition, new crossings and new grade separations,” he said. “The construction cost together with any potential disruption to rail operations can be cost-prohibitive.”
Optimism, but significant financial challenges
Christopher Adams, an adjunct professor of political science at the University of Manitoba, said he remains cautiously optimistic about the potential benefits of rail relocation.
He believes the project could have an impact comparable to the Red River Floodway, which has protected Winnipeg from flooding on numerous occasions.
“It could have a comparable impact on Winnipeg and the surrounding region as the Red River Floodway, which has saved the city many times from flooding,” Adams said.
However, he acknowledged that such an ambitious project would require extensive coordination with railway companies and substantial government funding.
“It will require a lot of co-ordination with the railroads and a lot of government money, and there is already a lot of pressure on provincial and federal government finances,” he added.
According to Adams, one factor working in favour of the proposal is the political approach of Premier Wab Kinew, whom he described as a “bold” leader compared with previous Progressive Conservative premiers.
“They were more cautious about spending money,” Adams said.
‘The train has left the station’
Not everyone is convinced that Winnipeg will ever see its railway infrastructure relocated.
Chris Lorenc, president and CEO of the Manitoba Heavy Construction Association and a lifelong Winnipeg resident, offered a far more skeptical assessment.
“The train has left the station. Rail relocation is not going to happen,” he said.
Lorenc believes that rail rationalization, including the abandonment of certain rail infrastructure, could nevertheless be a more realistic option.
He also argues that Winnipeg faces numerous other transportation priorities that should be addressed before embarking on a project that could take decades to complete.
“Anyway, there are many other transportation needs in Winnipeg that need to be addressed first, and they can be done faster than rail relocation, which would take decades to bring off,” Lorenc said.
He also questioned whether the railway companies themselves would support the idea.
“And are the railways interested? Whenever the subject of rail relocation has come up in the past they’ve been very reluctant.”
That reluctance is reflected in the position of Canadian Pacific Kansas City.
Terry Cunha, a spokesperson for CPKC, said assessing the feasibility of relocating railway infrastructure is an extraordinarily complicated process.
“Evaluating the feasibility of relocating railway infrastructure is an enormously complex matter,” Cunha said. “The challenges inherent with any proposal to relocate railway infrastructure are vast, complex and should not be underestimated.”
According to Cunha, the difficulties and costs associated with rail relocation are too often underestimated.
“Given the magnitude of the challenges and costs with any such proposal, we have generally cautioned governments against rail relocation,” he said.
“Such proposals would invariably require significant public dollars to rebuild infrastructure that already exists.”
As Manitoba’s 90-day feasibility study moves forward, the debate over Winnipeg’s railway future is therefore likely to intensify. The proposed bypass could potentially reshape freight transportation, urban development and trade connectivity across the region.
But between the promise of a more efficient rail network and the enormous financial, technical and political challenges involved, one question remains unresolved: whether Winnipeg is truly ready—and able—to move its railways beyond the city limits.
