Canadian National aims to start freight service on about 75 percent of the rail network operated by the bankrupt short line Kelowna Pacific Railway in southern British Columbia.
KPR, which leased its network from CN in 1999, entered receivership on July 5, 2013, and halted operations. CN has reached agreements with the line’s stakeholders, including Tolko Industries, the main customer on the line, as well as the Teamsters Canada Rail Conference and TCRC-Maintenance of Way Employees Division, to take it out of the bankruptcy process.
“I’m pleased to say that the parties were able to come together to assemble the right business and labor conditions to justify the resumption of rail traffic on the major portion of the KPR, as well as a sizeable capital investment required to protect rail service in the region,” said Jim Vena, CN’s executive vice-president and chief operating officer, in a written statement. “We are targeting the resumption of operations as soon as we can ensure the track is brought back to a standard to ensure safe train operations.”
CN will resume operations on 97 miles of the network KPR operated, running from Campbell Creek, British Columbia, to Vernon, Lumby Junction and Lumby, British Columbia. It will also discontinue operations on trackage KPR operated between Lumby Junction and Kelowna, B.C., because of insufficient freight traffic.