Canada Calling
August 1999

by Bryce Lee

INDUSTRY NEWS

On Wednesday June 2, 1999 the Royal Canadian Mint launched its newest 25-cent Millennium coin into circulation at the Salem & Hillsborough Railroad in Hillsborough New Brunswick. The June coin design, entitled "From Coast to Coast", features the work of Gordon Ho of Nepean, Ontario. The image on June's 25-cent circulation coin is that of an early 20th century steam locomotive. The image acknowledges the thousands of workers who built the railway that links Canada from coast to coast. The Millennium series is the first time in the history of Canadian coinage that coins will feature the month of circulation.

Transport Minister David Collenette proclaimed amendments to the Railway Safety Act, which received Royal Assent on March 25, 1999. Contents include a new policy statement and new definitions to clarify the objectives of the Act; a streamlined administrative process; simpler and improved provisions for ensuring that appropriate safety measures are in place; greater involvement for interested organizations in rule-making; minimized disruption caused by train noise in communities; stronger and clearer federal powers at grade crossings; clearer and stronger powers for railway safety inspectors; authority to regulate railway emissions to protect the environment; authority to require railways to implement safety management systems and report critical information for railway system safety performance monitoring; and a new safety compliance order targeted at safety management deficiencies.

Details of a major urban development project in Toronto were to be released June 7, 1999. The C$1.5-billion City Place project is described as the largest project of its kind in the city's history. It is slated for former railway lands just west of SkyDome. The plans call for a mixture of housing for more than 10,000 people and office space. Toronto councillor Jack Layton says he expects the emphasis will be on residential, rather than commercial based development. Various schemes have been announced in the past to utilize these lands, time will tell if this project will succeed.

The Canadian Transportation Agency will review railway grain transportation costs, Transport Minister David Collenette said in Ottawa June 7. The gesture fell far short of what critics of freight-rate deregulation have been demanding but was quickly welcomed by railway officials, anxious to move to a new competition driven system. The agency already monitors productivity gains and their impact on costs through information supplied by the railways. It's this information that will be used to measure the change since the last full costing review, conducted in 1992 under the former Western Grain Transportation Act. That's not good enough, said a spokesman for the National Farmers Union, which maintains the railways are overcharging farmers by as much as C$200 million a year to ship their grain now. Arthur Kroeger, the man in charge of drafting a blueprint for the new transportation system, said he believes the review will be adequate. And regardless, he said there is no time for a full review. Kroeger is to report by September 30 on how to implement the Estey report on grain transportation for the 2000-2001 crop year. CN says it has already shared C$190 million in benefits with farmers and shippers since 1995 through rate reductions and cash payments. That was the year Ottawa scrapped the Western Grain Transportation Act. CN also says it already competes with Canadian Pacific, which handles just over 50 per cent of grain traffic leaving the rest to CN.

CAE Inc. announced June 16 its intent to divest its wholly-owned subsidiary, CAE Vanguard, a leader in railroad maintenance technology and services for North American freight and transit railways. The company has its headquarters in Minneapolis, Minnesota, and operations in Winnipeg, Manitoba, Montreal, Quebec, Greenup, Kentucky, Knoxville, Tennessee, Lawrence, Kansas, Lincoln, Nebraska, Pocatello, Idaho, and Sacramento, California. CAE Vanguard employs 275 people. In the fiscal year just ended the company had revenues of C$51.9 million and operating earnings totalling C$4.5 million. Backlog stood at C$37.4 million. A predecessor company, Canadian Bronze Company Limited was acquired by CAE in 1963 and the name of the company was changed to CAE Vanguard following the acquisition of Vanguard Pacific in 1991. CAE Vanguard provides complete maintenance, repair and overhaul services for locomotive and freight car axles, as well as locomotive traction motor combos. CAE Inc. also announced that CAE Vanguard, its Railway Technologies and Services company, has been awarded a contract by Bombardier to supply new transit wheel sets for Toronto Transit Commission (TTC) and to supply maintenance wheel sets for GO Transit. CAE has also been awarded a contract for transit wheel set maintenance for AMT, the Montreal commuter rail service. All work will be performed at the CAE Vanguard Transit Services Division plant in Montreal.

North Bay (Ontario) Council wants to hear from city residents about it's multi-million dollar rail land development. The city recently purchased several acres of rail property that runs adjacent to the waterfront. Tracks will be removed and the land will be developed into a heritage park, focusing on the area's fur trading history. The city still needs to get environmental approval to go ahead with the project, and it could take a couple of years before development gets underway.

Thanks to a program launched by the Cleaning Up Graffiti Along the Railway (CUGAR) committee, the view of property along the railways in Mississauga Ontario is a lot more clean and pleasant for rail passengers travelling through the city. CUGAR 1999 is an initiative to reduce graffiti along the rail corridors in Mississauga developed and sponsored by the City of Mississauga, the Peel Regional Police, the Mississauga Crime Prevention Association, Canadian National Railway Police Services, Canadian Pacific Railway Police Service and GO Transit in 1998. The program was first launched in June 1998 when clean-up efforts were concentrated along the Lakeshore Line in three specific areas. This resulted in the removal of graffiti from three major sound walls, two of which have remained free of graffiti. There has been a repeat on one wall. The program is now set to expand to other rail lines in the city. This week's CUGAR 1999 campaign launch will focus on the Meadowvale to Milton Line. The CUGAR program involves: cleaning up graffiti in a timely fashion by painting it over, blasting it with sand, lime or soda, or applying artistic murals, and monitoring cleaned-up sites; deterring graffiti by mandating the use of textured, not flat panels for noise wall construction, and impeding access to the walls with large shrubs; educating the community with a public awareness campaign that encourages people to take action when they spot graffiti; and enforcing vandalism and trespassing laws by charging all offenders. Most important, everyone must take ownership of the graffiti problem. In addition, the Team asks that: property owners clean-up graffiti as soon as it appears; commuters report graffiti along the rail lines at participating GO Transit stations in Mississauga; and residents report any suspicious behaviour to the Peel Regional Police.

Bombardier noted it expects 30 percent higher profits in the fiscal year 2000, mainly because of growth in its plane and passenger train manufacturing operations. In the fiscal year 1999, ended January 31, Bombardier had a net income of C$554 million, or 77 Canadian cents a share. In his first speech to shareholders since replacing Bombardier Chairman Laurent Beaudoin as president and chief executive, Robert Brown said this year's strong results would come from its aerospace and transportation sectors. Bombardier's transportation division, which makes passenger rail cars, including those for the New York subway system and various European railways, earned C$148 million pretax on revenues of C$3 billion. In his address, Robert Brown also reiterated the company's goal of doubling its revenues to C$23 billion in five years and gradually increasing its overall profit margin before taxes to 10 percent by January 2004. The company's profit margin in fiscal 1999 was 7.2 percent.

Last year in Canada, 57 people were killed in railway trespassing incidents, and another 42 died in level crossing collisions. In all, there were 175 crossing accidents across Canada in 1998. Operation Lifesaver and Direction 2006 have produced three very effective public service announcements dealing with trespassing on railway property and highway-railway crossing collisions. The three 30 second announcements will go a long way towards saving lives along Canada's railways. Operation Lifesaver is sponsored by the Railway Association of Canada and Transport Canada. It works in co-operation with the Canada Safety Council and provincial safety councils and leagues, police, unions and community groups. Formed in 1981, Operation Lifesaver has an ongoing public education program designed to heighten public awareness of the potential hazards of rail/highway grade crossings. The program also informs the public of the dangers associated with trespassing on railway property. For more information, please visit their website www.OI-OG-canada.org

In 1951, there were 1,651 wooden grain elevators on the Prairies. This month, there are only 250. In five years or less, the number will be zero, except for any preserved. They've outlived train stations and water towers! Until August 8, "Finding Our Way Home" Alberta's Disappearing Grain Elevators" is an exposition at the Alberta Provincial Museum in Edmonton featuring photos, paintings, 3-D installations, artifacts, and video of these prairie sentinels.

The Ringling Brothers Barnum & Bailey Train (the Blue Unit) was due to depart on Monday June 21, 1999, from State College Pennsylvania. There were 56 cars, 4055 tons, 4960 feet and were to travel 825 miles before reaching Ottawa Ontario. The train made it to Canada fairly well on schedule on June 21, whereupon Canada Customs held the train and the staff for 12 hours for detailed customs inspections and related paperwork. As a result of this considerable delay, the train routing was changed from a northern route to Ottawa to an alternative faster routing. The circus train finally arrived in Hamilton at 1630 and departed with a new crew after 1700. The two units were St.L&H 5649 and CP 5729 trailed by 53 cars. When the train was in Hamilton, CN wanted it to follow the evening GO commuter rush, however concern about the animals feeding and watering time resulted in the train leaving Hamilton at 1700, via CN's Oakville Subdivision, and onto CP at Canpa again. It was ordered CP Agincourt for 1945 and it arrived at Smiths Falls at 06:06 June 23, 1999. The circus train had lost over an hour at Darlington, Ontario due to problems further up the line; observers noted as the train pulled out of the siding it was quite an impressive sight (and smell) at about 1230 in the morning of June 23. During unloading in Ottawa the train was assisted by Ottawa Central RS18s 1828, 1865, and 1824 which also lead the train out of Ottawa to Pembroke. The circus was held in the Corel Centre in Kanata, just outside of Ottawa. The final performance was Sunday June 27 with the train leaving for Toronto via North Bay and Romford. CPR locomotives supplied to the circus train leaving Pembroke were SD40-2F 9008 and SD40-2 5989 facing east, in action red with the small multimark. Train was routed to Pembroke, then North Bay to Coniston/Romford. Train left Coniston/Romford 21:45 p.m. on the way to Mactier. An impressive sight. Parts of the circus train were parked along Lakeshore Blvd, at Cherry Street, Toronto the morning of June 29, 1999. The circus train is scheduled to leave Toronto sometime after the last performance at the Air Canada Centre the evening of July 11, 1999.

CANADIAN NATIONAL RAILWAY

Canadian National Railway Company and Illinois Central Corporation announced June 9, 1999 that they have negotiated implementing labour agreements with their organized shopcraft employees. The affected employees are represented by the International Association of Machinists, the Sheet Metal Workers, the Brotherhood of Boilermakers and Blacksmiths, the Firemen and Oilers, and the International Brotherhood of Electrical Workers. The agreements resolve outstanding labour issues related to the pending merger of CN and IC. CN and IC have now signed implementing labour agreements and, in one case, a letter of commitment regarding an implementing agreement, with unions representing 75 per cent of the organized workforce of CN and IC in the United States.

Canadian National and Illinois Central announced June 3, 1999 they have signed agreements to establish two fibre-optic cable joint ventures with Worldwide Fibre Inc. (WFI), a subsidiary of Ledcor Industries Ltd. of Vancouver, BC. The agreements grant the joint ventures preferred access to CN and IC rights-of-way to develop fibre optic transmission systems (FOTS) and resell strand and conduit capacity to telecommunications companies and Internet providers. The first network segment to be built on CN will link Quebec City, Montreal, Toronto and Buffalo, New York. Construction of this segment started the first week of June 1999 and should be complete by the fourth quarter of 1999. An extension of this link, from Quebec City to Halifax, is committed for 2000. Construction of a mid-America FOTS segment on the Illinois Central will start in September 1999. It will link Chicago, St. Louis, Memphis and New Orleans, and should be complete during the fourth quarter of 2000. As part of this project, IC will gain access to a new uninterrupted fibre-optics network that will upgrade the railroad's traffic control, signal and telecommunications system. The joint ventures (WFI-CN Fibre Inc. and WFI-IC LLC) will be controlled and financed by Worldwide Fibre Inc. As minority shareholders, CN and IC will share in the net cash flows distributed from joint venture fibre-optic sales to third parties.

Canadian National Railway Co., which has acquired Illinois Central Corp. for US$2.4 billion, plans to reduce debt by raising US$450 million in an offering of common shares and securities. The former Crown corporation said it is offering four million shares to raise about US$250 million along with convertible preferred securities worth US$200 million. "Net proceeds will be used to reduce CN's outstanding debt, giving the company greater flexibility to finance future strategic investments and new business opportunities as they arise," CN said in a press release. On the Toronto stock market, CN shares rose C$2.05 June 2, 1999 to C$97.05.

Canadian National Railway Co. and Illinois Central Railroad, on July 1, 1999 will begin to form a North American rail system designed to capitalize on rapidly growing north-south trade. The Canadian National-Illinois Central pathway, with an associated marketing agreement to reach Mexico, parallels a commercial marketplace in which trade virtually has doubled in five years since the passage of the North American Free Trade Agreement. The US$2.4 billion deal that will create the first major international rail system, has been overshadowed by extensive U.S. rail problems. When Canadian National and Illinois Central first proposed a network stretching from both Canadian coasts to central Mexico in February 1998, Union Pacific Railroad was in the throes of service problems that cost the railroad and its shippers billions of dollars. With the Canadian National-Illinois Central merger integration starting, a US$10 billion corporate breakup of Conrail Inc. by Norfolk Southern Corp. and CSX Corp. that was supposed to be trouble-free instead resembles a corporate breakdown. Shippers are irate about a wave of extensive delays, computer problems and operational mix-ups. Executives at Canadian National and Illinois Central insist that the other railroads' merger-related difficulties will not be repeated. Analysts and shipper representatives don't appear to be worried, either. Not a single shipper is losing service or (carrier) options. CN has said its systems integration won't be completed until July 2000. In addition, several original objectives to consolidate operational activities are on hold. For example, the merged railroad was supposed to change operations in the Chicago area so that train crews from Canadian National and Illinois Central could work over the other railroad for 150 miles or so. That proposal is a subject of negotiations with the Brotherhood of Locomotive Engineers and the United Transportation Union, which represent train crews on both railroads. Any revisions to current operations would have to be spelled out in new agreements to implement merger-related changes. Also on hold is consolidation of train dispatching and crew management of Canadian National's U.S. operations at an Illinois Central facility in the Chicago area. One of the few immediate changes is centralized coordination of network operations, as well as locomotive and rail car distribution activities. Those steps are tied to a new organizational structure that has five operating divisions supervised from a network operations center in Edmonton, Alberta.

The Fort-William First Nation has a deal with the CNR to get back about four square kilometres of prime industrial land; for just C$10.00. CN took the water front property 94 years ago. Today, the land along the Kam and Mission Rivers is worth about C$11-million The railway will return the land next month. The land was the site of most of the local native Indian community. When the railway came, the residents were uprooted and forced to move. The reserve has agreed to continue to allow CN to use the railway tracks on the property. The band will also become the landlord for about a dozen industries already occupying the land.

At 1904 PDT June 14, 1999 a CP train detouring on CN due to the Mission BC bridge being out of service, struck a slide at Mile 25 of Yale Subdivision. Lead engine AC4400CW CP 9635 derailed on its side at an angle towards the river. The slide was estimated to be 150 feet long and 8 to 10 ten feet deep. The train had 102 empty cars. The track was reopened the following day.

On June 17, 1999 a train on the Drumheller Subdivision struck a washout near Rockyford Alberta. The train was headed by Dash 9-44CWL 2584 and SD60F 5542. Seventeen cars were derailed.

Also on June 17, 1999, a train headed by SD50F 5428 and Dash-8- 40CM 2418 derailed along with ten cars near Canoe River on the Albreda Subdivison due extensive flash flooding in the area.

Canadian National's Strathroy Subdivison is being converted to Centralized Traffic Control during the summer period of 1999. The proposed work block schedule: June 16, 17, 18, 19 install new turnouts at Komoka; same time period remove old turnouts at Komoka; June 24 install new turnout at Poplar; June 25, 26, 27, 28 install install turnouts at Kerwood; June 30 install turnout at Wanstead; June 30, July 1, 2, 3, 4 remove redundant ABS between Ridout and mile 11.0 Strathroy Subdivision; July 4 install additional turnout at Wanstead; July 7 install turnout at Mandaumin; July 8 install turnout at MacGregor; July 20 implement new CTC between Ridout and mile 10.0, and remove ABS between mile 11.0 and 23.63; August 28 inaugurate CTC mile 10.0 to mile 22.8, remove ABS between mile 23.63 and mile 36.0.

There are now through trains from CN's Macmillan Yard operating to Allentown, Pennsylvania with the breakup of Conrail. Power operates through, and there will be power exchanges between CN and NS to compensate for CN motive power being away from home for an extended period of time. With CSXT now the operator of Frontier Yard in Buffalo, CN operates only two trains per day in and out of there post Conrail breakup. It will reduce to one per day later, when one each way become through trains to and from the facilities of South Buffalo Railway.

Smoky River Coal recently achieved a milestone in its 30-year history when coal shipments from its Grande Cache, Alberta mine reached 50 million tonnes all moved by CN. At a ceremony in Vancouver with representatives of Neptune Terminals, Sumitomo Metal Industries, and CN, Smoky River president and COO Barrie Davies noted the contribution of each of the partners. Said Robert Stan, Smoky River's vice-president, Marketing: "CN has been one of our most important partners,and we are grateful of their support." Ken Schoor, CN's assistant vice-president, Coal, congratulated Smoky River, adding that CN much appreciates its long standing relationship with the coal producer.

Between July 26 and August 14, portions of the movie Shanghai Moon will be filmed near Rosebud Alberta on the Drumheller Subdivison. The film company will be renting from CN, one locomotive, one crew, two flat cars for camera platforms and special effects, three 50 foot double door boxes, and two 80 foot passenger coaches. In addition there will other older railway equipment used. The steam locomotive to be used in the movie is expected to be MLW built 2-6-2 #1077, to come from Fort Steele, BC.

In a letter from Paul Tellier to all CN employees it was stated that as far as logos go, the company will continue with the CN noodle for CN, but on the IC, it will be the CN noodle with the IC symbol to its right. Remember too, in spite of all of the millennium and merger hullabaloo, is that the Illinois Central celebrates their 150th birthday in 2001.

CANADIAN PACIFIC RAILWAY

A recent decision by the Federal Appeal Court means Canadian Pacific Railway can construct a spur line to serve Union Carbide's plant expansion at Prentiss, Alberta. The 16-page unanimous ruling, dismissing an appeal by Lacombe county farmer Marilyn Sharp, was released June 16, 1999. Sharp launched her appeal of the planned 12.6-kilometre CPR spur on the grounds it wasn't needed. A Canadian National line is already there and CN had offered to share the line with the CPR. Union Carbide is building a new C$300-million polyethylene plant next to its two existing ethylene glycol plants at Prentiss, 20 kilometres northeast of Red Deer. The company has said two rail lines are necessary to ensure the most competitive rates and uninterrupted service for the new plant. Many area farmers have complained about the potential danger and noise the new line will bring, as well as the land it will consume.

Canadian Pacific's Matsqui BC (near Mission) bridge was badly damaged when a barge collided with it early Wednesday June 2, 1999. A CPR maintenance person at the bridge said the bridge might well be out of service for some time. There was considerable damage to the cribbing in the upriver side and apparently the bridge is tilted at a 15 degree angle in the open position with the up river side lifted. The bridge crosses the Fraser River to Abbotsford BC (formerly Matsqui) and sees upwards of 25-30 trains a day, which include CP Coal and Containers trains, Via's Canadian and the Sumas local. In the interim CN will run one CP train each four hours, crossing over at Nepa one mile east of Basque. Numerous trains are now detouring over CN due to this bridge being out of service. The re-opening of the bridge is scheduled for July 6, 1999.

At a meeting of the Board of Directors held June 7, 1999, Canadian Pacific Limited declared the following dividends. A quarterly dividend of fourteen cents ($0.14) Canadian per share on the outstanding Common Shares was declared, payable on July 28, 1999 to holders of record at the close of business on June 25, 1999. The first dividend of 47.30907 cents ($0.4730907) Canadian per share on the outstanding 5.65% Cumulative Redeemable First Preferred Shares, Series A, was declared, payable on August 1, 1999, to holders of record at the close of business on July 2.

In June 1999 Canadian Pacific Railway announced changes in its regions and service areas. Operations are now divided into three regions in Canada. The western region encompasses from Vancouver BC to Brendenbury and Broadview Saskatchewan; the Central Region covers from Broadview and Bredenbury SK to Cartier, Ontario; the STL&H region covers from Cartier Ontario to Montreal and includes the D&H and Soo. There are now seven areas in Canada and three in the U.S.: the Vancouver Service Area (SA) from Vancouver to Kamloops BC; the BC Interior SA from Kamloops to Field and Crowsnest BC; the Alberta SA from Field/Crowsnest BC to Swift Current SK and Hardisty AB; the Saskatchewan SA, from Swift Current/Hardisty to Broadview SK and Bredenbury SK; the Manitoba Service Area, from Broadview/Bredenbury SK to Ignace Ontario and Emerson Manitoba; the Northern Ontario SA, from Ignace to Cartier Ontario; the St.L&H SA, from Ignace to Windsor Ontario and Montreal Quebec including all D&H trackage in Canada and the U.S.; the Chicago SA, all former SOO trackage in Chicago and Milwaukee, and CSX running rights to Louisville Kentucky; the Twin Cities Service Area, former SOO trackage from Portage WI. to Glenwood ND; North Dakota SA, former SOO trackage to North Portal ND and Emerson Manitoba. Very few management personnel are affected as the service areas correspond closely with former Divisions within the old Districts.

StL&H train 747-19 with SD40-2 5594, and GP40-2 HATX-504 were beyond the fouling point at the west switch at Wolverton Ontario the evening of June 19, 1999 and were struck by passing train STL&H 922. There was no derailment, however a tank car was damaged, and the contents were burned off by the local fire department at Ayr Sunday June 21, 1999. The 5594 sustained minor damage to handrails and steps. A relief crew took the power to Galt the morning of June 20, and set-off the 5594 for later inspection. Two Grand River Railway assigned-units, CP 4650 and HATX-515 were then added to the consist HATX 504 and the train then continued west to London, Ontario.

There are two "new" StL&H trains running on Canadian National Railway from Canpa in southwest Toronto to Chicago (one each way via the Dundas & Strathroy Subs to Port Huron and on to Chicago) starting June 21, 1999 and continuing for at least two months. The schedule is intended to allow the trains to operate in the small hours of the morning westbound. Apparently nothing over plate C will be allowed on the train. This series of special trains is a direct result around CP's unhappiness with an inability to run additional trains over the old Conrail (now NS) from Detroit to Chicago since the division of Conrail. A quick sampling of motive power on these trains: 505-2 Soo 6027-6062, 96 cars; 504-23 CP 6009-6031-4657, 104 cars; 505-25 Soo 6025-6052, 71 cars; 504-24 CP 4651-5550-Soo 6050. These trains are expected to operate as required for a period of approximately two months. Trains will operate if traffic warrants and depending upon crew availability ie they may not operate every day. In addition the use of AC power on the CP detoured trains 505-504 between Canpa and Chicago is allowed, as the trains will be using CP crews with one CN pilot.

At 00:40 June 26, CP train 571 hit a set of grain cars that had blown out on to the main line, after a tornado had passed through the area. The train impacted the derailed rolling stock at 32 mph. Locomotives CP AC4400CWs 8566 and 8518 as well as fourteen cars were damaged. The two man crew were taken to hospital and later released. Two divisions of Hulcher were called from Hudson, Wi, and Rapid City, SD). The location of this accident was spur 348 located 3.5 miles southeast of Carrington ND which is roughly 90 miles east, and 45 miles north of Bismarck, North Dakota.

Except for three tracks laid and a very little landscaping on the west end, the state of the new Iron Highway Complex at Milton, Ontario appears much as it did last December: there is as yet no building or even a sign to indicate what it is on the site. It looks as if CP is no longer in hurry to get this site going or have run into some problems.

Construction has been completed on a new connecting track from CPR's MacTier Subdivison to the Galt Subdivision. This is in the northwest quadrant of the junction and will allow movements from Vaughan Intermodal and the Honda plant in Alliston accessibility to Obico and points west without having to reverse or run around their train. The north approach to the dismantled Weston Road bridge has been removed, and the connections were made without having to remove either CN's abandoned Weston station or the derelict grain elevators adjacent to the Galt Subdivision. The new diamonds to cross CN's Weston sub are in place, signal installation is in progress, and the roadbed has been constructed. This should allow CP to remove one set of diamonds from the Galt sub and two from the current Weston Subdivision crossing.

How much time do North American consumers spend thinking about how the car or truck they buy gets from the manufacturing plant to the dealer's sales lot in just-off-the-assembly-line condition? Probably not much. However, CPR Automotive team employees are constantly thinking about this critical aspect of the manufacturing and sales process of new automobiles. Toyota Logistics Services, Inc. thinks CPR's preoccupation is a healthy one. The company recently presented CPR with the 1998 Toyota President's Logistics Award for outstanding achievement in on-time performance, quality and customer service. This is the second consecutive year Toyota has recognized CPR's commitment to excellence in this way. CPR was also named the number one rail logistics partner in on-time performance, beating out all US Class Ones. Both awards speak clearly of the abilities of Toyota and CPR to work together to fulfill the needs of today's car-buyers. Finished vehicles make up approximately 80 per cent of CPR's automotive business. In fact, CPR moves in excess of one million new vehicles a year, with 99.5 per cent arriving to their destination, damage free.

On Monday June 28, The St. Lawrence and Hudson Railway bulldozed a number of garden plots located on its right of way on the Adirondack Subdivision in the Notre Dame de Grace section of Montreal. The garden plots, mostly for fruits, vegetables and herbs, were worked by local residents, a practice which has been going on for decades. The railway knew of the gardens but turned a blind eye. The residents were given notice by the railway of the intended action. Transport Canada told the railway to remove the gardens last fall. The federal agency did an inspection prior to the start of the temporary extension of Blainville commuter trains into Windsor station when it noticed the gardens, some of which were only twenty feet from the right of way. The agency was concerned about safety with the more frequent and higher speed passengers trains passing through the area. The temporary extension of the trains into Windsor station has been stopped but is supposed to resume in the fall. In any event these gardens are now history.

PASSENGER NEWS

Federal Transport Minister David Collenette addressed the Board of Trade of Metropolitan Montreal on June 3, 1999 to reiterate his commitment to revitalizing passenger rail in Canada. The Minister reiterated the Government of Canada's position that it is now time for the private sector to apply its expertise, initiative and capital to allow passenger rail to resume its crucial role in Canada's transportation system. The Minister stated his commitment that any revitalization process would respect Montreal's position as a centre for excellence for all forms of rail services. He also confirmed that Montreal must remain the operational centre of any future national passenger rail service. The Minister also outlined the steps taken by the Government of Canada to explore options for passenger rail, including consultations with the private sector as part of a market-sounding exercise. Collenette had earlier pledged to maintain the federal government's C$170-million annual subsidy for Via for the indefinite future. He said the passenger carrier, which has 3,000 employees, must make moves soon to update its equipment.

Lawyers working on behalf of passengers on a Via train that derailed in April 1999 have decided to combine two separate C$30-million class-action lawsuits into one. Chris Beckett, a lawyer with Pensa and Associates in London, said his firm has reached an agreement with the Windsor firm of Gignac Sutts to represent many of the 100 passengers in the suit against Via Rail and Canadian National Railway Co. Beckett said joining with his Windsor counterpart, lawyer Harvey Strosberg, will reduce legal costs and avoid duplication. Both had launched separate $30-million lawsuits on behalf of passengers. Beckett said the dollar amount is unlikely to change drastically. Federal investigators who examined the train's event recorder announced shortly after the crash they believed the derailment was caused by a combination of speed and the fact that a manually-operated switch to a siding had been left in the wrong position. Around the same time, CN announced plans to spend C$25-million to replace all manually-operated switches between London and Windsor with a fully automated system.

A local economic development group, BCA Holdings, is the driving force behind Silver Dart Railways (named for Alexander Graham Bell's experimental aircraft). BCA is involved in a number of projects, including two local radio stations. Apparently they are a non-profit outfit that works to bring various stakeholders together with government money. The plan is to operate passenger rail service between Sydney Nova Scotia and Halifax. To capture the segment of the market that hates travelling but must do so, the service will have to be as quick as competing buses. An automobile can make it in five to five and half hours. They will have to have sufficient equipment to handle the weekend college crowd, especially on holiday weekends. They will have to have spare equipment and to be as reliable as possible. Breakdowns and delays will damage their image. A lot will depend on what kind of deal they get from CB&CNSR and Canadian National Railway. There hasn't been a train between the two cities since Via pulled out of Cape Breton in 1990. The local company, Silver Dart Railway, says it's convinced the service can be profitable. It's planning to raise nearly two million dollars from private investors to get it up and running. The train would probably cost about C$50.00 one way, utilizing rail diesel cars currently stored in Montreal which would be refurbished in Cape Breton.

Federal Transport Minister David Collenette released a report in mid-June by the IBI Group that estimates capital costs of approximately C$200 million for an air-rail link to Lester B. Pearson International Airport at Toronto. Transport Canada initiated a study by the IBI Group to identify the most logical corridor to connect Pearson Airport and Union Station in downtown Toronto. The study included consultations with the Greater Toronto Airports Authority (GTAA), the City of Toronto, the Province of Ontario and GO Transit, along with extensive field work and a comprehensive review of previous studies. Rapid transit access was found to be technically feasible by connecting to the airport via Canadian National's existing Weston Subdivision. The GTAA has agreed in principle to set aside an appropriate land corridor to accommodate a link and a station. A contract has been awarded to KPMG to study the connection by estimating traffic and ridership projections, and to determine whether the project could be financed by the private sector. Funding for both studies was provided for in the federal budget and is therefore built into the existing fiscal framework. This initiative is an example of how the Government of Canada is prioritizing its spending so that it can better serve Canadians by making efficient use of their tax dollars.

Ontario's new Environment Minister Tony Clement was to leave his car at home and join Pollution Probe Executive Director Ken Ogilvie on a GO Train clean air commute from Mr. Clement's Brampton riding to Toronto's Union Station to encourage others to find less polluting ways to get to work. The Minister is one of thousands of executives and employees of 100 companies and organizations participating the third week of June in Pollution Probe's 7th annual Clean Air Commute. Commuting by public transit such as the GO Train is up to 94% less polluting than driving a single-occupant automobile. That's especially important now as Toronto was suffering its third high-smog episode of the 1999 summer smog season. Smog pollutants kill 1,800 Ontarians a year. Mr. Clement and Mr. Ogilvie made brief remarks and responded to questions when they debarked at Union Station.

The American Orient Express will start its first Canadian journey from Vancouver to Montreal, departing Vancouver's Pacific Central Station Saturday afternoon July 3. The train arrived Seattle July 1, and deadheaded to Vancouver BC. Power is CN GP40-2L(W)'s 9671, 9672, freshly painted with Amtrak F40 340 and fifteen cars.

Apparently an order for new motive power has been placed by Montreal's Agence Metropolitaine de Transport with General Motors for delivery in late 2000. Pending the delivery of the new power sometime in 2000, Amtrak F40s are to be leased to replace the FP7s and the leased VIA units. The FP7s will eventually be retired as they are suffering major failures. The terms of the Amtrak lease are said to be very favourable as all maintenance is included. Presently Amtrak 319 has been leased and the unit was modified at St. Luc shops before entering service. No word, as yet, how long the unit will be here.

On June 7, 1999 four former Via passenger cars lettered DAWX, were spotted in the Goderich-Exeter's Kitchener, Ontario yard. These were originally sold to the Waterloo-St. Jacobs Railway, and have now be resold to the Adirondack Scenic Railway via David A. Walmsley, dealer. They are: 9630 baggage car, built by National Steel Car in 1955, ex-Via 9630, exx-CN 9630 nee CN 9249, acquired by WSJ in 1996; 3211 Cafe-coach, built by Canadian Car & Foundry in 1954 ex-Via 3211, exx-Via coach 5544, nee CN 5544, acquired by WSJ in 1996; 5485 coach built by CC&F in 1954, ex-Via 5485, nee CN 5485, acquired by WSJ in 1996; 5469 built by CC&F in 1954 ex-TTSL 5569 Cap St-Joseph, exx-Via 5569, CN exxx-CN 5569, exxxx-CN 3249, nee CN 5569, acquired in 1997.

On June 24, VIA train 72 with F40PH 6426 and four coaches struck a pickup truck killing the driver at mile 21.54 of the Chatham Subdivision near Glencoe Ontario. Passengers were bused to their destinations.

SHORTLINES

The Baie de Chaleurs railway company is facing an uncertain future its best customer is closing down indefinitely Sunday June 20, 1999. There are no immediate plans to reopen Abitibi's Gaspesia mill in Chandler, Quebec. The railway company says it will cancel three trains a week that run between New Richmond and Chandler. Only passenger trains and those that transport copper anodes will travel east of New Richmond as of June 21, 1999.

RaiLink announced June 16, 1999 that the Company's Board of Directors has extended the expiry date for rights issued under the Company's shareholder rights plan from June 22, 1999 to July 17, 1999. The extension of the expiry date remains subject to regulatory approval. As previously announced, RailAmerica, Inc., through its wholly-owned Canadian subsidiary RL Acquisition Corp., has commenced an all cash bid for all of the common shares of RaiLink at a price of C$8.75 per share pursuant to the terms of an acquisition agreement entered into between RaiLink and RailAmerica on May 17, 1999. Under the agreement, RaiLink agreed that it would extend the expiry date of the shareholder rights plan to a date not later than August 15, 1999 if requested to do so by RailAmerica. RL Acquisition Corp. has now announced that it is extending the expiry time of the bid to 5:00 p.m. (local time) on July 16, 1999 and that it has requested that RaiLink extend the expiration time of its shareholder rights plan to July 17, 1999. RaiLink is a publicly traded regional railway company based in Edmonton, Alberta and provides freight transportation services to the national railways and to a wide variety of shippers in Alberta, Ontario and Quebec.

ARN Alberta RailNet Inc. which is the new name of the ex-CN Grande Cache Subdivision (Swan Landing to Grande Prairie, 232.9 miles) and the Grande Prairie Subdivision (from Rycroft Junction to mile 89.0 just beyond Hythe) and the entire length of the Smoky Subdivision (Tangent to Spirit River 50 miles). Offices have been established in Grande Prairie Alberta. The company is looking at some form of maintenance facility, also in the Grande Prairie area. Twelve locomotives were delivered from the Livingston Rebuild Centre to Calgary Alberta. They were to be brought to Edmonton and then via CN. ARN officially took over the trackage north of Swan Landing as of 0001 Sunday June 27, 1999. Their timetable #1 has been issued accordingly. Motive power is: ARN 1001 C30-7 exx LRCX 8032 ex NS 8032 nee NW 8032; ARN 1002 C30-7 exx LRCX 8148 nee ATSF 8148; ARN 1003 C30-7 ex LRCX 8120 nee ATSF 8120; ARN 1004 C30-7 ex LRCX 8021 ex NS 8021 nee NW 8021; ARN 1005 C30-7 ex LRCX 8138 nee ATSF 8138; ARN 1006 C30-7 ex NS 8077 nee NW 8077; ARN 1007 B30-7 ex LRCX 5490 exx BN 5490 nee SLSF 868; ARN 1008 B30-7 ex LRCX 5491 exx BN 5491 nee SLSF 869; ARN 1009 B23-7 ex CSXT 3120 exx SBD 5120 nee L&N 5120; ARN 1010 B23-7 ex NS 3975 nee SOU 3975; ARN 1011 B23-7 ex NS 3974 nee SOU 3974; ARN 1012 B30-7 ex LRCX 5485 nee BN 5485 nee SLSF 863. All are 3000 horsepower except the three B23-7's which are 2250 horsepower. CN train 445 arrived in Edmonton Alberta at about 2030 Saturday July 3 head by SD50F 5409 and Dash 8-40CM 2442 leading these Alberta Railnet locomotives: 1002, 1005, 1007, 1003, 1012, 1004, 1008, 10011 and 1010. It was expected they would move west of train 447 of July 4, 1999.

Canadian National Railways announced June 16, 1999 that it has reached an agreement in principle to transfer 230 kilometres (144 miles) of line located in southern Manitoba to Manitoba Southern Railway Inc., a newly created affiliate of Tulare Valley Railroad Company of Salt Lake City, Utah. The Manitoba Southern Railway Inc. will commence operations in August 1999. The line to be transferred extends from just west of Morris, Manitoba in a westward direction for 230 kilometres (144 miles), to the village of Elgin. The line handled 1,900 carloads of grain in 1998. The Tulare Valley Railroad Company has been successfully involved in the railroad industry for more than 30 years. The company currently operates a short-line railroad in California's San Joaquin Valley.

Canadian National and Canadian Pacific announced June 30, 1999 they will delay new Prairie branch-line discontinuance applications until a stakeholders' group completes work on ways to implement recommended reform of Canada's grain handling and transportation system. CN and CP are members of the stakeholders' group, chaired by Arthur Kroeger, which is charged with finding ways to move forward grain transportation reforms recommended by Justice Willard Estey earlier this year. Mr. Kroeger is scheduled to report to the federal minister of transport by September 30, 1999. The temporary moratorium on new line discontinuances follows a request for such a delay by Canada's western premiers. In addition both railways noted they will continue negotiations with groups interested in acquiring sections of lines to be disposed of on the prairies, and will suspend further discontinuance steps affecting these lines while the Kroeger committees are still at work; and will await the Canadian Transportation Agency's (CTA) decisions.

The long journey for the Motor Tug "Gimrock Titan" pulling Barge PB001 loaded with five ALCO DL 535 locomotives will soon end. The vessels will have travelled 5000 miles in 38 days. The voyage was from Santa Marta, Colombia through the Panama Canal to Seattle and on to Skagway, Alaska; home of the White Pass & Yukon Railroad. Arrival in Seattle, its port of entry, was set for June 15, 1999. After a brief one day stop at the JORE Dock near the Duwamish shipyard in Seattle, the journey was to continue with a scheduled arrival in Skagway four days later at the White Pass Railroad Dock. Sold to the Sociedad Colombiana de transporte Ferroviario (STF) by the WP&YR in 1992, the locomotives are now returning to their former home in the north. The five ALCO DL 535 locomotives, travelling from Seattle by barge, will join an equipment fleet that includes an operating 1947 Baldwin-built steam engine, fourteen diesel locomotives and 51 passenger coaches. Due to increased tourism, the railway now needs more motive power. The WP&YR served first as a passenger train and supply line for the Klondike gold fields of the Yukon, and later as a freight carrier for nearby lead and zinc mines, moving ores and concentrates to the port in Skagway. For 82 years the WP&YR served as a vital link between the Yukon and the tidewater port of Skagway. In 1982 the closure of Yukon mines also brought the closure of the railway. By 1988 the growth of tourism in Alaska caused the WP&YR to re-open. Today, the railroad provides passenger service on the first 40 miles of the original 110-mile line. In 1998, the WP&YR served more than 258,000 passengers. Many are cruise ship passengers enjoying a half-day shore excursion. Passengers ride in both restored parlour cars and new train cars while a narrator announces all the points of interest. The railroad is one of the steepest in North America, climbing 2,865 feet in just 20 miles. The train operates with 14 diesel locomotives with most dating back to the late 1950's, and No. 73, a 1947, 2-8-2 Mikado class steam locomotive which escorts the trains 1.5 miles out of town. The diesel engines then take over for the steep grade. Presently 51 passenger cars are in use, some dating back to the turn of the century and the balance constructed new to vintage specifications. The WP&YR was designated an International Historic Civil Engineering Landmark in 1994, joining a list of landmarks such as the Eiffel Tower, Panama Canal and the Statue of Liberty.

Canadian Pacific Railway (CPR) and Red Coat Road & Rail Ltd. (RCRR) on June 30 noted they have concluded an agreement for the sale to RCRR of a 115-km (71.5-mile) branchline between Pangman and Assiniboia, in southwestern Saskatchewan. With the conclusion of the agreement, RCRR, an organization representing communities along the branchline, assumes ownership of the former CPR Assiniboia Subdivision. RCRR is an organization consisting of representatives of the communities adjacent to the rail line, including Rural Municipality No. 72 (Lake of the Rivers); RM No. 40 (Bengough); RM No. 71 (Excel); RM No. 70 (Key West); and RM No. 69 (Norton), as well as the villages of Ogema, Viceroy and Pangman. The asset purchase agreement between CPR and RCRR covers the sale of land and track, but no equipment or other assets. The new RCRR line will be operated and maintained under contract by Southern Rails Cooperative Limited, a Saskatchewan-based company with previous shortline railway operating experience.

ONR SD75s 2100-2104 have been delivered from Alstom Montreal to the Ontario Northland Railway at North Bay, Ontario.

The Timber Train has started operations with freshly painted RaiLink white and dark blue HR412(W) 3582 and GP-10 1703. Great ride apparently. On June 26 Ottawa Valley RaiLink ran a company picnic using RLK M420(W) 3509 and two coaches which ran to Mattawa; arrived 10:45; had picnic, head back about 14:25 following the Tembec Turn back to North Bay. Power on the Tembec train was RaiLink HR412(W) 3586, ex CPR GP-35 5006.

MOTIVE POWER

As of June 27, 1999 Canadian National was transferring the following locomotives to BNSF in exchange for horsepower hours owed: SD75I 5604, 5608, and 5609. Other CN locomotives are also constantly in rotation paying back horsepower hours owed.

The following CN units in Macmillan Yard were moved from Toronto Yard dead on June 18, 1999. On June 30 they were returned to service. The units are GP40-2s 9410, 9411, 9445, 9460, 9461, 9462.

New GM SD75Is have been delivered to CN up to and including 5789 as of the end of June 1999.

The following NS units are repaying HPH (horsepower hours) to CN in international service in Southern Ontario and on the GTW: SD40 1624 (hi-nose, ex. N&W), SD40-2 3179 (hi-nose, ex. Southern), SD50 6518, SD60 6639, C39-8 8575, C44-9W 9033, CR C30-7A 6563. Seven units, seven different models! Other NS locomotives paying back HPH will be now seen on an on-going basis due to the breakup of Conrail.

The Wisconsin Central is paying back horsepower hours owed to CN. At the end of June 1999 the units involved were F45s 6650, 6651, 6656; SD45 6503 and SD45u 7637. These units will change over time; they are supposed to stay on western lines.

The Cape Breton and Central Nova Scotia Railway has placed all of its MLW built Alco powered locomotives up for sale. CBCNS M630 2035 was noted in a scrap yard in Humphrey's Nova Scotia; her trucks will be sent to Symington in Winnipeg as a spare set of trucks for the GE Dash 8-40CM 2430-2454 series of locomotives.

Apparently CSX 2572 and 2581 were brought to Montreal in late June for use for a week or so on unit oil trains between St. Romuald and Montreal East in order to allow people from the Cartier Railway to ride them. The Cartier is considering General Electric C44-9W's to replace their aging six-axle MLW and Alco units.

The CPR would like to see Hudson 2816 (presently at BC Rails North Vancouver BC steam shop) returned to service as long as it doesn't break the bank. Costing estimates were to be determined by the end of June 1999. The boiler was tested June 10, 1999 at a pressure of 345 pounds per square inch; that's 1.25 time the maximum allowable operating pressure of 275 p.s.i.

Three more CP SD90MAC(U)'s finally emerged from Ogden as of June 28, 1999: 9144, 9147, and 9148, making a total of 48 in the operating fleet so far: 9100-9144; 9146-9148.

The CPR hump units 1150 and 1151 in Agincourt are Hump Control Cabs, unpowered, formerly CP 1214 and 1204. A third one, 1152, will be done as soon as another SW1200RS fails. These three will replace GP9s, and no doubt the 1150-1152 will have LCS controls which allow operation by one person of the hump units. The first two Hump Control Cabs have been in service for a while now. Originally, CP was thinking of giving them some numbers like HP-1, however cooler minds prevailed and suggested an 1150-series, in line with other cab control types.

Will Baird of Montreal advised that Guilio Capuano, the CP shop foreman at St. Luc Shops who has been so helpful and instrumental in many ways involving CP's MLW diesel units is one happy man. Minnesota Commercial called him to advise that Caterpillar M636 4711 has just been repainted in red by Minnesota Commercial and they've named the unit "Guilio Capuano". So, when fans see that and wonder who he is, he's a long way from where the unit now is working!

The following individuals contributed to the August 1999 Canada Calling: Lewis Ableidinger, Rainer Auer, Will Baird, J.A.Blunt, Peter Bowers, Jim Brock, Bruce Chapman, Geoff Elliot, Hilt Friesen, Steve Goodman, Paul Hammond, Doug Hately, James R. Hay, Robert Heathron, Joe Kazmar, Randy Kotuby, Patrick Lawson, Mark Liddell, Dave Lisabeth, Phil Mason, Timothy Mayhew, Bill Miller, Arnold Mooney, Grant Morgan, ken Pebesma, Carl Perleman, Wayne Regaudie, Thomas Sajnovic, Jim Sandilands, Bill Schaubs, Glen Smith, LGR Smith, Mike Swick, Michael Torzsok, Dale Wilson.

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