Here's an interesting article from about 2 weeks ago:
http://www.cbc.ca/news/canada/manitoba/churchill-rail-line-wayne-wouters-1.4281563
It is a bit dated, though, with no indication on what final disposition was.
In all honesty, if something isn't economically viable, then the ownership has the general right to abandon. There are many Canadian towns that don't have contiguous rail or road service. But if the ports are closed also, then the employees aren't needed there any more. No more employees, then the support economy is no longer needed. Lose the support economy, and you don't need the government services.
It's not how I want to see it go down, but do the tax payers of Canada want to spend that much to allow 900 people to live where they do with no productive income or business?
In all honesty, unless the government of Canada finds a strategic business model to incorporate there, while integrating it with a tourist industry, it would seem to me that those who remain need to find self sustenance or move down towards Winnipeg.
That all being said, I hope they DO find a way to make it productive, and viable for continued rail service. I have always wanted to travel that line!