CP Rail, Canadian National halt line abandonment

CALGARY and MONTREAL (July 2, 1999) — Canadian two largest railroads will temporarily stop selling off their Prairie rail lines until the end of September, when a government-industry group is scheduled to have completed its review of the country’s grain handling and transportation system.

The group, chaired by Arthur Kroeger, is charged with finding ways to implement grain transportation reforms recommended in a federal review last year led by Justice Willard Estey. CN and CP Rail are members of the stakeholders’ group. Kroeger is scheduled to report to the federal minister of transport by Sept. 30, 1999.

Canada’s Western premiers requested that the railroads delay new efforts to sell track. CN and CP Rail will continue to work on existing deals, however.

Since the Canada Transportation Act was implemented in 1996, CN has reduced its network in Western Canada by 3440 miles, transferring 2935 miles of track to short-line operators while abandoning 505 miles. CP Rail has discontinued service on about 1056 miles of track in Canada, and has sold 3074 miles of track to other railroads.

Sales to short-line operators “would not have been the case without federal legislation making it easier to establish new short lines,” said CN president and CEO Paul Tellier.