Canada Calling
December 1998
by Bryce Lee
CANADIAN NATIONAL RAILWAY
An early September 1998 inquiry into a fatal train accident
two years ago in Alberta has rekindled allegations of rail safety violations and a lax
federal regulator. A Transportation Safety Board report previously confirmed CN removed a
vital derail device from the Edson rail yard before the crash that killed three men. The
Safety Board investigations chief testified this device would have prevented 20 railcars
from rolling into the path of a CN freight train. Outside the hearing, a union spokesman
said lack of action against CN for this safety infraction suggests Transport Canada is
failing to ensure public safety. CN has since installed 600 derails across Canada,
including the Edson Alberta rail yard.
Investors gave a thumbs up to Canadian National on October
21, 1998 after Canada's biggest railway announced it will chop another 3,000 employees
from its payroll. While the stock soared, questions were raised as to why CN would cut so
heavily into its workforce while profits and productivity continue to rise. At the same
time as CN announced the massive job cuts after markets closed, the railway reported a
healthy operating profit for the third quarter; excluding a C$590-million charge to pay
for the job cuts. Industry analysts were concerned about how CN could manage with so many
fewer employees. The only explanation is that the company expects more bad times down the
road as the North American economy weakens as a result of the global economic slowdown.
Another analyst who asked not to be identified added that CN has to continue cutting
costs. You've got a company that has high fixed costs and an economy that's not as bright
next year. Costs don't go down magically, they go down because people do things. Canadian
National stock has been a market favourite ever since CN was privatized in 1995. This
year, however, the shares had risen only modestly until chief executive Paul Tellier took
out the job-cutting axe again. The company is going to cut 1,600 employees in 1998, the
balance in 1999. This is 1,200 to 1,400 more than would normally leave the railway over
the two-year period, by attrition. The cuts also include 1,100 people currently on
temporary layoff. Apparently there won't be bridged pensions or any form of buy out; only
what the Canada Labour Code calls for, and this at times differs in some provinces;
basically two weeks notice (not 90 days) and two days pay for every year of service and
that's it. This is for non-union, of course. Excluding the special layoffs charge,
Canadian National had an operating profit of C$140-million for the summer quarter, an
improvement over last year's C$130 million profit. With the special charge, the company
posted a net loss of C$205 million in the July-September 1998 period. The operating ratio,
which shows the efficiency of railways, improved as well, to 73.3 per cent, which refers
to the percentage of operating expenses out of revenues. The president of the Canadian
Auto Workers is disputing severance figures for people losing their jobs at Canadian
National. The company says it's spending C$600-million on severance packages. It says that
works out to an average of about C$195,000 per person. Hargrove says the estimate is
nonsense. He says it includes multi-million dollar packages for executives and some
inflated early retirement buy-outs which he says skews the average.
Canadian National is intensifying its drive to improve
productivity to meet the profound competitive challenges posed to Canadian shippers by
United States rail industry consolidation, said CN President and Chief Executive Officer
Paul M. Tellier speaking to the Board of Trade of Metropolitan Montreal October 27, 1998.
He said CN cannot ignore the competitive muscle of newly-created, and newly-forming, rail
giants in the U.S. because north-south traffic between Canada and the U.S. is growing at
about 11 per cent annually; this traffic will soon represent more than 50 per cent of CN's
business. Tellier said there is little doubt that U.S. railroads, which are already
significantly more productive than CN, "will emerge as even fiercer and more powerful
competitors than they are now" following the latest round of acquisitions.
"Falling behind our competitors is not acceptable. The standards by which we are
judged are North American standards. We must anticipate where the U.S. rail industry will
be when consolidations run their course and act accordingly." In response to these
challenges, CN is compelled to make more intensive use of its assets and to improve
service while using fewer locomotives, fewer cars and fewer facilities to do the work.
Subject to STB approval of the CN/IC merger, CN will proceed with an access agreement with
Kansas City Southern Railway to exchange certain haulage and trackage rights in the
southern U.S. This access agreement would pave the way for CN to invest in automotive,
intermodal facilities in Dallas and Kansas City. KCSR would have an opportunity to invest
in similar facilities in Chicago and Memphis. Asked after the speech if employee cuts will
extend beyond the suggested 3,000 people Mr. Tellier advised employee cuts will continue
well beyond the 3,000 mark until the company is on an equal footing with the US railways.
The Brotherhood of Maintenance of Way Employees reached an
agreement resolving all labour issues related to the proposed merger of the CN and IC. The
BMWE stated October 2, 1998 it will actively support the CN/IC merger application before
the U.S. Surface Transportation Board and other governmental bodies. CN/IC filed its
merger application with the STB on July 15, 1998. Under the implementing agreement
approved by the BMWE, all existing collective bargaining agreements in the U.S. on the
merged properties will remain in place as an agreed-to condition of the merger. BMWE and
CN have also agreed to good-faith negotiations to deal with any other merger issues. This
is in addition to the protections afforded to railroad workers affected by mergers. The
existing IC/BMWE agreement will apply to affected employees in the Chicago terminal area
30 days after the STB approves the merger transaction. CN also agreed to maintain service
on certain Canadian track and satisfy the interests of Canadian BMWE members.
Three major North American railroads are not in favour of
the planned the proposed merger of Canadian National Railway Co. and Illinois Central.
Union Pacific Railroad, which concentrated its criticism on a 15-year marketing alliance
that the merger proponents signed with Kansas City Southern Railway Co., levelled the
harshest denouncement of the US$2.4 billion merger plan, unveiled eight months ago by CN
and Illinois Central. Canadian Pacific Railway, CN's rival on trans-Canada routes, was as
critical of the plan, which would create the first major North American rail merger if the
Surface Transportation Board approves the proposal in May 1999. Norfolk Southern Corp.
said it would not oppose the merger if it received a package of route and service
concessions. Those conditions included service in three Illinois locations, a cluster of
chemical plants in Louisiana and assurances of adequate service and capacity on a Kansas
City Southern-Norfolk Southern routing between the Southeast and Texas. The outright
opposition from UP and CP signalled that the eight remaining major North American
railroads would be split into two commercial camps, with Kansas City Southern and CSX
aligned with CN and Illinois Central. UP and CP are visible opponents, while NS' comments
are less critical. The three largest North American automakers, three Michigan members of
Congress and local officials have focused their attention on the Detroit River Tunnel,
jointly owned by CN and rival Canadian Pacific Railway. In comments filed with the Surface
Transportation Board, those parties supported efforts to create a Detroit-area route with
higher clearances, through steps such as sale of CN's 50% interest in the tunnel. CN now
owns the only U.S.-Canada tunnel, at Sarnia, Ontario, that accommodates the newest
generation of railcars that carry finished vehicles. Ontario Michigan Railroad was formed
to build an alternative tunnel at Detroit, according to STB filings. The Louisiana issues
concern future rail competition in places where Kansas City Southern and Illinois Central
are the primary rail operators today.
Canadian National Railway Company (CN), Illinois Central
Railroad Company (IC) and The Burlington Northern and Santa Fe Railway Company (BNSF) have
reached agreement on outstanding issues in connection with the proposed CN/IC merger. The
agreement, which is subject to U.S. Surface Transportation Board (STB) approval of the
CN/IC transaction, contains three major provisions: CN has agreed to provide a guaranteed
level of haulage service for the direct transfer of BNSF freight traffic from BNSF's yard
in Surrey, BC, to the BC Rail Ltd. interchange track in North Vancouver, BC; CN/IC will
permit BNSF to construct and utilize a crossing of CN/IC's Iowa line in Chicago, while
BNSF will permit CN/IC to build across BNSF property in the same area of Chicago for the
purposes of constructing a line connection; CN/IC and BNSF have agreed to amend, and
consider further changes in, the 1997 BNSF-IC voluntary marketing agreement under which IC
moves BNSF traffic between Effingham, Ill., located about 175 miles (280 kilometres) south
of Chicago, and Memphis, Tennessee. In recognition of the settlement agreement, BNSF has
agreed not to oppose the CN/IC transaction before the STB. BNSF had previously stated its
intention to seek certain conditions to STB approval of the CN/IC merger application. CN
announced October 28 that it had reached agreement with CSX Corporation and its rail
company on outstanding issues concerning the proposed CN/IC merger.
Canadian National opened its new network operations centre
in Edmonton Alberta October 28, 1998. The centre entrenches Edmonton as the railway's
nerve centre for train movements across North America. The centre's 67 employees manage
train performance and railway assets across CN's transcontinental network 24 hours a day,
The centre's state of the art ergonomic design provides employees with an optimal working
environment. Edmonton is also home to Walker yard, one of CN's largest, and the new,
C$18-million Edmonton Intermodal Terminal, soon to be built on the city's western
boundary. CN is Edmonton's third largest private sector employer, with an annual payroll
of about $110 million. A personal note; it would appear CN is doing much like CPR did
previously; move the majority of its operations to Western Canada, where the economic and
political climate is far more friendly than Eastern Canada and in particular Quebec.
Although CN's head office shall remain in Montreal pro tem it is only a matter of time
before the bulk of CN operations will be directed from Edmonton, and with it the majority
of important railway positions.
From the Montrain list courtesy of Gerry Burridge: An
overheard quip: "The way CN is going, the only line it will have left in Canada will
be an 800 line to Kansas City!"
Canadian National announced October 9, 1998 that it has
reached an agreement in principle to transfer 586 kilometres (364 miles) of track located
north of Jasper, Alta., to Genesee Rail-One. The network, consisting of CN's Grande
Prairie, Grande Cache and Smoky subdivisions, serves shippers in the coal, forest,
industrial products and grain industries and transports about 50,000 carloads of freight
traffic annually. The trackage begins 58 kilometres (36 miles) northeast of Jasper and
runs north to Grande Prairie, where the network splits, with one line running northwest to
Hythe and another northeast to Tangent. The southern portion of this line was formerly
known as the Alberta Resources Railroad until 1992, when CN purchased it from the
Government of Alberta. CN has also reached an agreement with the Government of Alberta to
complete the financial aspects of this transaction with the Province. The total mileage
they state is 364. The Grand Cache Subdivision goes from Swan Landing, mile 0.0 to Grande
Prairie, mile 232.9. The Grande Prairie Subdivision, goes from Rycroft Junction, mile 0.0
to Dawson Creek, BC, mile 138.0. The Smoky Subdivision goes from Tangent, mile 307.8
(original old NAR mileages right from Edmonton) to the end of operated track, mile 357.8.
The total of all of this is 420.9. Both the Smoky and Grande Prairie Subdivisions are
former Northern Alberta Railways. Alberta Resources Railway was incorporated under the
statutes of the province of Alberta There's still 49.9 miles of the Grande Prairie
Subdivision from Hythe to Dawson Creek. It sounds like there may be no CN business on
those 49.9 miles and that when grain starts moving via BC Rail, something might happen to
those 49.9 miles, possibly BC Rail will end up with some track in Alberta. CN and the
Kansas City Southern Railway have entered into a split lease agreement utilizing
refurbished locomotives retired from Canadian National and other railways. The leasing
agent which will purchase and refurbish the locomotives is not known at this time. The
units are presently either on the property at ACIT (AMF in Montreal) or will be in due
course. They are Canadian lead qualified and equipped with microwaves for extended run
territory. They shall be EMD SD40 units equipped with extended range dynamic brake and are
equipped with ditch lights on the lead end only. The locomotives are partly retired CN
SD40s; the locomotives shall be painted in the Kansas City Southern paint scheme, with the
KCS locomotives to be used in Canada from October to the end of March and then on the KCS
from April to September. The locomotives shall be numbered 6600-6699 inclusive.
CANADIAN PACIFIC RAILWAY
Canadian Pacific Railway (CPR) announced September 30 it is
satisfied that a Canadian Transportation Agency (CTA) ruling lauds the exceptional efforts
of railway employees in the face of the extraordinary winter of 1996/97. At the same time,
the railway is disappointed the Agency ruled against its performance to the Port of
Vancouver during a short period in the winter of 1996-97 The CTA did not issue any
recommendations or orders against the railway, and ruled that CPR did not breach
level-of-service obligations in two of its grain corridors to the Port of Thunder Bay and
to Eastern Canada. The ruling acknowledges the severe impact on transportation of extreme
weather-related incidents during the winter of 1996/97 and the tireless efforts of
employees in overcoming those conditions.
In its decision, the CTA states that evidence provided
during public hearings in Saskatoon amply demonstrate that the winter of 1996/97 was a
severe winter which seriously impacted rail operations. One of the main features of that
winter was the frequency of the storms affecting many regions simultaneously or in
succession.
The Canadian Wheat Board is set to go ahead with a
multimillion dollar lawsuit against CP Rail after a ruling found the railway breached its
service obligations to Prairie farmers two years ago. The chief commissioner for the wheat
board, has directed his lawyers to begin taking the steps toward (seeking) compensation,
which could be upwards of C$30-million behalf of western farmers. The federal finding
confirmed CPR discriminated against grain shipments to Vancouver by giving priority to
other commodities. The federal agency found this difference in the treatment of grain to
be unreasonable; and was of the view that CP failed to furnish adequate and suitable
accommodation for the delivering of Canadian Wheat Board traffic to Vancouver. The agency
also ruled that CP Rail breached its contract obligations to supply hopper cars for grain
shipments to the U.S. However, it noted that the railway did meet its obligations under a
best efforts arrangement with the wheat board. The company met its obligations to
transport grain to eastern ports, the agency found. There is no word yet on an appeal,
however CP will vigorously defend itself against any civil action. The agency chose not to
take any action against CP Rail, but warned the company to be guided by the ruling in
future. Its findings means the wheat board can now sue CP Rail for compensation through
the courts.
Canadian Pacific has been given permission by the courts to
buy out the shareholders of two dormant railways and merge the lines into its own
operations. The early October decision by the Ontario Court of Justice general division
brings to an end one of the longest running and most controversial episodes in CP's
history. It involved thousands of investors, many of whom bought stock in Ontario and
Quebec Railway Co. (O&Q) and Toronto Grey and Bruce Railway Co. (TG&B) in the
mid-1980s, only to find their shares were worth a fraction of what they originally paid.
The issue goes back to 1883 when TG&B leased its entire railway to O&Q for 999
years. O&Q then leased its own assets to CP in perpetuity for a sum of $6 a share a
year. Some of these shareholders told the court they paid up to C$12,000 a share in the
mistaken belief that their shares were underpinned by real estate that was potentially
worth more than C$1 billion. But, Mr. Justice Robert Blair said in his decision that the
value of those shares was based only on the annual dividends that the stock produced, just
C$6 a share. A number of security holders suffered serious financial losses as a result,
and some of the fallout from these financial difficulties has continued to dog CP's
ability to deal with the issues, Blair wrote. He chided the investors for buying on
speculation during previous litigation when the case reached the Supreme Court of Canada.
During the court hearing, he added that some rural shareholders had literally mortgaged
the farm to buy shares. The minority shareholders eventually approved the CP buyout of
their shares, but only after it raised its offer to C$2,300 a share from the original
C$600. The buyout will now cost CP C$9.97-million, significantly higher than the
C$2.6-million it originally offered. Blair said CP's offer to buy out the minority
shareholders for C$2,300 a share was fair and reasonable. It was also advantageous to the
minority shareholders because they will now receive a one-time payout that is higher than
the capitalized value of their annual dividends. The lump sum is equivalent to the
dividends the shareholders would have received for the next 383 years. Nearly 98.9 per
cent of the TG&B minority bondholders voted in favour of the CP buyout in
mid-September, while 93.4 per cent of the O&Q minority common shareholders and 96.8
per cent of the permanent debenture shareholders voted in favour.
Someone tampering with switches likely caused a 42-car
train to derail on October 11, 1998, said a CPR spokesman. One locomotive and the front
portion of a second engine derailed shortly before 0500 as the freight train passed near
CPR's Red Deer Alberta facility. Both locomotives remained upright. However it took CP
crews until early afternoon to re-open the track. All 42 cars were empty so there was no
risk to the public, and the accident caused minimal disruption.
CPR's historic Glen Yards near Montreal will be the site of
McGill University's new sprawling super-hospital. The Glen Yards were once the passenger
storage yards for CP. The site is now a storage and maintenance facility for West Island
commuter trains. Glen Yard; partly in Westmount and partly in Montreal poses environmental
concerns as the location has been a locomotive servicing facility for nearly 100 years.
Containments in the soil could slow construction however it is fairly certain the site
could be turned over to contractors within 18 to 24 months. Current CPR operations on the
site will move closer to Montreal's Windsor station. Also on October 27, 1998 the City of
Westmount announced a deal with CP to refurbish and convert the city's abandoned train
station into a heritage site that will include a 16-unit housing development in vicinity
of the Glen Yards along Ste. Catherine Street West.
OTHER NEWS
A freight terminal that loaded trailers onto rail cars
closed October 2, 1998 in Welland Ontario, throwing at least 16 people out of work. The
Dain City terminal ceased operations after 26 years when the Norfolk Southern suspended a
contract with Canadian National, the owners of both the track and the facility. The yard
dealt with containerized freight going to or coming from the United States. Norfolk
Southern Railroad cited a drop in business and a plan to streamline intermodal service in
the eastern United States as reasons for halting operations.
The Markham Railroad Modellers (MRMI), Toronto's newest
model rail road club, invited the media to a private showing of the club on Friday,
October 16 between the hours of 12:00 noon and 3 p.m. The MRMI gave the public its first
ever opportunity to view the model railroad layout on October 18 and 25 from 12:00 noon to
4:00 pm. Founded in 1996, MRMI members have been working for the last 2 years on the
construction of a 1,400 square foot railroad layout. Located in a bright, modern facility,
the MRMI, HO Gauge railroad has over 1,000 feet of mainline track, replicating southern
Ontario in the 1940s and 50s. Public exhibitions are scheduled to be held once or twice a
year. When not holding member only running sessions or having exhibitions, the MRMI will
be holding private showings for interested groups such as school groups, Scouts or retired
persons associations. Small sections of the MRMI layout have been left unfinished
intentionally to allow visitors to the club's first show the opportunity to see how a
large layout is assembled. In almost every case, visitors have asked to see what lies
behind the scenes and they wanted to try to accommodate that request for the open house.
The MRMI will also be showing pieces of railroad memorabilia at their show. On display
will be a bell from a pre-1940 steam engine, a silver plate cover from a dining car, a
telegrapher's key, an oiling can and various other pieces representative of railroad
history.
In addition to the memorabilia there will be a number of
exhibits illustrating how the layout was built and how various elements of layout scenery
were created. The MRMI is a not for profit society incorporated in 1996. The club is
funded entirely by members and proceeds from public shows. Located on the second floor at
30 Royal Crest Court in Markham, Ontario (northeast of Toronto) the club plans to expand
membership over the next 12 months and will be providing membership information to
interested persons at their upcoming open houses. For further information contact Mr. Jeff
Ferguson at (905) 763-1288. This is the first situation I can recall of a model railway
club using Canada Newswire to promote its club(BL).
Rail companies in Canada are still pulling up track and
cutting more jobs, but the railways are in fact carrying more freight and making more
money on it, says the Railway Association of Canada. Railway Trends, published each year
by the industry lobby group, also notes an increasing number of new railways, as
entrepreneurs take over track abandoned by Canadian National and Canadian Pacific and try
to make a profit on it. Two years ago, there were 31 railways in Canada. At the end of
1997, the association counted 43 members, and currently there are 48. Besides the growth
of short-line railways, the main trend in the industry is improved productivity. Trains
are carrying more freight and earning more per tonne for doing it, a function of having
fewer employees and more efficient equipment like longer trains, and fewer empty cars.
PASSENGER NEWS
The U.S. government and Montreal-based Bombardier Transit
Corp. are working to expand high-speed passenger rail service by jointly developing a
locomotive capable of reaching 241 kilometres an hour. The Federal Railroad Administration
and Bombardier announced the agreement October 8, 1998 during a news conference at
Washington's Union Station. The planned 4,000-horsepower engine would permit high-speed
passenger service without need for the electric power-transmission systems ordinarily
required for high-speed trains. The 65 foot long locomotive, to be assembled in
Plattsburgh, NY, will link a gas turbine with advanced transmission technology. It will
weigh about 90 tons, or one-half the bulk of some diesel freight locomotives. The
agreement calls for production of the prototype by 2000. The FRA and Bombardier will split
project costs, estimated at up to US$25-million, on a 50-50 basis. The railroad
administration already has awarded $3 million, to be matched by Bombardier, for the first
phase of the project. Although high-speed rail service using overhead wires is due to
start in a year's time between Washington and Boston, the $3-$5 million-a-mile cost of
electrification is prohibitively expensive for other potential markets.
Officials are confident of the meeting the 18-month
timetable as the turbine locomotive will be built around the same chassis Bombardier is
using for the twenty electric locomotives due for high-speed service in the Northeast.
It cost Ontario Premier Mike Harris C$750,000 to operate
the Timber Train for five minutes October 9, 1998 but he said it was well worth the ride
after announcing funding for the train. The Northern Ontario Heritage Fund Corp. is
contributing $750,000 to develop the Timber Train into a regional tourism attraction. The
train runs between Mattawa, 60 kilometres east of North Bay, along the Ottawa River Valley
to Temiscaming, Quebec. The railway discontinued passenger service 25 years ago but
freight trains run daily to the Tembec Inc. mill in Temiscaming, Quebec. So far the
federal and Ontario governments have contributed to the project along with $300,000 from
Tembec Inc. The Quebec provincial government hasn't contributed any funds. There are two
other all-day tourist train journeys operating in Ontario: the Algoma Central's Agawa
Canyon Tour and Ontario Northland's Polar Bear Express.
A young man of Mohawk descent has succeeded in getting a
more positive portrayal of a Mohawk native on a new mural at Brockville's VIA rail
station. Michael Martin took exception to the image originally portrayed in the mural and
requested that it be changed. The mural shows an Indian with braid and a single feather on
his head. His chest is bare and he's wearing buckskin leggings and loincloth. He's leaning
against the train coach and his expression is solemn. Martin thought that didn't reflect
how a Mohawk would have appeared. He explained his objections to David Sheridan, head of
the art department at Thousand Islands Secondary School, whose art class painted the
mural. Sheridan told him he would alter the image if Martin would pose in appropriate
costume. Martin, whose Mohawk name is Wisse, took Sheridan's words to heart and set out to
research the culture. Originally from the Montreal area, he has lived in Brockville,
Ontario on and off for about seven years. His mother and grandmother are Mohawks. A
collector and seller of bargains and antiques, Martin eventually put together an outfit of
a used buckskin jacket, leggings and breech cloth of machine-stitched hides, a necklace of
animal claws and earrings made of shells. His headdress consists of three feathers. Martin
posed for the new mural portrait this October 12, 1998. "I can't be making little
changes to the mural all the time, however I was impressed by Mike's impassioned
argument," Sheridan said. "I've cut this guy some slack. Let's celebrate his
research."
Federal Transport Minister David Collenette is willing to
dream about a high-speed rail link in the heavily travelled corridor from Quebec City
though Montreal and Toronto to Windsor, Ontario. However he is not willing to put up any
federal cash just yet. Collenette offered the comment after tabling a response to the
Commons transport committee, which asked him earlier this year to put up C$25 million for
a feasibility study of the project. The cash would be supplemented by money from the
Ontario and Quebec governments to study the so-called Lynx proposal, which would use
French and British technology to build an environmentally friendly 320 kilometre an hour
rail system. The private Canadian consortium backing the project wants the federal and
provincial governments to cover an eventual C$7.5-billion of the estimated total cost of
C$11-billion over 10 years.
Federal Transport Minister David Collenette then took the
opportunity to speak more broadly about plans to revitalize Via Rail, the Crown passenger
corporation that operates trains on tracks owned mainly by privately-controlled Canadian
National and Canadian Pacific. Via funding has been slashed since 1992 as part of a
general budgetary belt-tightening by the federal Liberals, but Collenette expressed hope
that a private-public partnership could revive its fortunes. The key, he suggested, could
be the franchising of some passenger routes in effect, contracting service out to private
operators. One possibility, he told the committee, could be the lucrative tourist trade on
the cross-country route from Toronto to the West Coast. Collenette envisioned an
arrangement in which luxury service would subsidize the basic services. Via already does
some franchising, but only on a tourist route in the Rockies. Collenette wants to mount
further test projects within the next two years. He gave no indication, however, that the
government will boost its current support of C$170-million a year for Via.
October 24, 1998 was the last day to ride VIA Rail Canada's
Ocean along the south shore of the St. Lawrence River through Levis, Quebec. Effective
October 25, VIA's Ocean (combined with the Chaleur three days a week) was to make its only
Quebec City area stop at Charny, and switch to a shorter routing, Canadian National's
17-mile Diamond Subdivision, to head east via Joffre Yard. CN wants to abandon part of the
22-mile Montmagny Subdivision north of Levis. Passengers destined to and from Quebec City
have detrained or boarded at Levis and ridden the passenger and motor-vehicle ferry which
shuttles between Levis station and the Quebec City riverfront. Charny is just west of the
big Quebec bridge over the St. Lawrence, which is on the route of VIA's Montreal-Quebec
City corridor trains. These trains stop at Charny, and at suburban Ste. Foy en route to
and from the downtown Palais station in Quebec City.
The last train (#14, the Ocean) arrived at 22:20 Saturday
October 24 (on-time) at Levis; departed 23:35 EDT rather than 2235 in anticipation of
change to Standard Time early next morning. An estimated 250 people were at the station to
protest the closing; nearly all were still there when it left. The last train out of
Levis, according to the VIA Information phone line, was supposed to be #15/17 at 0450
Sunday morning. However it became the first to run on the Diamond Subdivision,
considerably south of Levis. Station staff knew, but 'VIA Central' didn't. Work is still
in progress at the station in Charny to rebuild the platform and expand the parking area.
A baggage wing has been added to the station. The CNR does not intend to begin lifting the
tracks through Levis until April of 1999.
The Buffalo (NY) Bills football games are now bringing in
spectators by rail. On October 4, 1998 at 09:14, a Via passenger extra as train 691 passed
through Bayview Junction enroute to Orchard Park (Buffalo) NY. The Toronto-originated
train was filled with Canadian NFL fans ready to watch the Buffalo Bills play the San
Francisco 49er's. The train consisted of F40PH 6423, seven HEP-2 coaches, and F40PH 6427
on the rear to eliminate the need for the train to be turned in Buffalo. VIA Train 691 on
October 25, 1998 from Toronto with a surprisingly small consist of four VIA HEP cars with
an F40PH on each end operated over the Stamford Subdivision from Clifton to Fort Erie,
normally a freight only route. The reason for this routing is unknown but was probably due
to the train's close scheduling to the "Maple Leaf" from Toronto which has a
scheduled customs inspection time at Niagara Falls of one hour. This Train arrived in the
US behind NS train 328 (three units and three cars) at Black Rock. It then utilized its
unit on the other end to reverse south on the Niagara Branch to Buffalo's Exchange St.
Station where busses took the fans to the stadium for what proved to be another incredible
win for the Bills! The return trips were more normal operating procedure with the Via
special operating via Niagara Falls.
SHORTLINES
On Monday October 5, 1998 RaiLink ran a Shipper's Special
consisting of VIA F40PH 6413, 3 VIA coaches Railink 1752 (freshly repainted in the new
paint scheme) from the former Canadian National Hamilton Ontario Yard to the VIA Brantford
station (from Hamilton via Dundas Subdivision.) arriving shortly before 1500, where local
shippers boarded the train. The train the proceeded to Caledonia on the Grand River where
participants detrained to join tour boats on the Grand River. The tour boats then went
slowly up the Grand River while evening meal was served on board. The special returned to
Brantford at 20:47, disembarked Brantford-area customers, then headed east to Hamilton
with 1752 in the lead.
The railway line between Gaspe and Chandler is going to get
rebuilt. Quebec's Transport Minister announced a C$1.5-million grant to help repair the
track. Trains running along the tracks between Chandler and Gaspe must slow down to safely
cross at least a dozen ageing wood and metal bridges. The provincial government's money
will used to bring the many bridges back to proper condition. The improved track will help
attract more freight clients; something the privately-owned short line must do to make the
track profitable. Via Rail says the investment is great news for Via Rail as the
"Chaleur Train" which runs between Gaspe and Montreal; is chronically late, in
part due to track conditions.
The following Canadian National lines have been recently
sold to shortline operators during the month of October 1998: The Montfort Spur sold to
QGRY is from MP 23.1, diamond crossing with Quebec Gatineau Railway, to mile 39.4,
end-of-track St. Jerome, including Carbo, Rinfret, and St. Jerome industrial spurs. Takes
effect 0001 November 2, 1998.
The Cayuga Spur (there is no such thing as Talbot Spur)
which is the westernmost remaining portion of the Cayuga Subdivision will become the St.
Thomas & Eastern. Mileage is from former mile 80.92 Cayuga Subdivision (roughly the
west end of Delhi Ontario near a place called Fertilizer Road) to mile 114.55, near
Yarmouth Centre, which is the crossing of the out-of-service CASO Subdivision with
trackage rights on CN from mile 114.55 into St. Thomas's former Wabash Yard. Takes effect
0001 November 9, 1998 and is owned by Trillium Rail which also has a hand in the Port
Colborne Harbour Railway. The present west end of the Cayuga Subdivision, extends from
Robbins, mile 12.0, junction with the Stamford Subdivision., to end-of-track, mile 22.0,
1.1 miles west of Feeder West.
Emons Transportation will acquire the Sherbrooke
Subdivision. from mile 15.8, Canada/U.S. boundary near Norton, Vermont, to mile 109.5,
near Ste. Rosalie, Quebec. Takes effect 0001 November 13, 1998.
Railtex will LEASE the Guelph Subdivision from Silver, mile
30.08 to Highbury Avenue, London Ontario, mile 118.78, including the Fergus Spur, the Galt
Industrial Spur, the Guelph North Spur, the Bridgeport Spur, the Huron Park Spur, and the
Waterloo Spur. They'll have trackage rights on CN from Silver to Macmillan Yard and from
Highbury Ave. to London East. Takes effect 0001 November 15, 1998. VIA passenger service
will continue on the line as before; it is expected operations will incorporate the
present RailTex owned line Goderich-Exeter which operates from Stratford to Goderich on
Lake Huron with a branch to Exeter, Ontario Methinks CN is concerned RailTex may well
allow track standards to slip; and this in turn will lead to continued delays to VIA
trains in particular. VIA rents track space to VIA and doesn't want to lose that revenue.
This particular transfer could be very interesting in the long run!
The Chemin de Fer du Quebec will get the Beachburg
Subdivision from Federal, mile 5.97 to end-of-track in Pembroke, mile 88.7 and also the
Walkley Line between Hawthorne, mile 0.0, and Wass, mile 5.83. The Ottawa Central will
have trackage rights on CN on CN's and VIA's Alexandria Subdivision between Ottawa and
Coteau, and on CN's Smiths Falls Subdivision. from Federal to Richmond. As far as the
Alexandria Subdivision. is concerned, VIA leases from Coteau Junction, mile 0.0 to Glen
Robertson, mile 15.0, and owns from Glen Robertson to Hawthorne, mile 72.4. Ottawa Central
will have rights only on VIA's Alexandria Subdivision. (both owned and leased portions)
from Hawthorne, mile 72.4 to Coteau Junction, mile 0.0. In addition, the shortline
"may" also operate the Renfrew Subdivision. However, this line is already owned
by the Regional Municipality of Ottawa-Carlton, and when train 537 operates to Renfrew and
return, the entire cost is billed to the Municipality. The line will be called the Ottawa
Central Railway and they have purchased the last six CP RS18us: 1815, 1824, 1828, 1838,
1842, 1865 and C424 4204, all in terrible condition, to hopefully be returned to service
by Canadian Allied Diesel, Lachine Quebec. Judging by the number of other retired CP units
at CAD, this is going be one big kit bash job!
Essentially, what will be left in CN's hands, will be the
Alexandria Subdivision. from Hawthorne, mile 72.4 to Ottawa, mile 76.5, the Beachburg
Subdivision. from Ottawa, mile 0.0, to Federal, mile 5.97, and the Smiths Falls
Subdivision. from Federal, mile 0.0 to just past Richmond at mile 13.0.
Until October 23, 1998 a railway line between Barrie
Ontario and Collingwood Ontario, had been operated under contract by Cando Contracting, as
the Barrie-Collingwood Railway, with little to distinguish the operation from what CN had
previously provided, and absolutely no future security in the face of abandonment notices
for their connection with the outside world which was the disconnected to the north
Canadian National Railway Newmarket Subdivision. The people from Collingwood and Barrie,
have fought CN in the face of abandonment notices for their line and the connection to the
outside world and more so to establish their own shortline railway. Current motive power
is GP9 numbered 1000. Convincing Canadian Pacific Railway executives to allow the
construction of an interchange track at a diamond crossing between their mainline and a
shortline railway was no small accomplishment. There are many who worked hard to establish
the opening of an interchange between CPR, and a fledgling but feisty shortline operation
forged by two determined communities. The presence of a Canadian Pacific vice-president
and one of their six-axle units in the new paint scheme, along with many dignitaries from
CN and federal, provincial and municipal politicians spoke to the magnitude of this
accomplishment. The event really marked the completion of the BCRY/CPR interchange.
With the probable dismantling of CN's Newmarket
subdivision, BCRY needed the interchange with CP. With this finally in place, BCRY can
breathe easier knowing their future doesn't depend on attempts to save the CN trackage. In
the interim the remainder of the Newmarket Subdivision to the south between Barrie, where
it connects with the Barrie Collingwood Railway and Bradford It is likely to survive,
owned by the Ontario government, ostensibly to allow future GO Transit usage.
SHORTLINE MOTIVE POWER
CN Train 421 operated from Canora Saskatchewan on Friday
October 2, 1998 (left 1740) to The Pas, Manitoba (arrived 2300) with SD40-2 5267 and
GP40-2(W)9437 with 25 loads, 39 empties, 4198 tons and handling recently sold to Hudson
Bay Railway M420W's 3539 3548 3547, 3558, 3538, 3556, 3559, 3557, 3533. A Churchill grain
train took 3544 and 3555 from Canora to The Pas on Sunday October 4, 1998. Now, all of the
M420Ws have been delivered to the Carlton Trail and Hudson Bay Railways except for 3542
and 3545, still in Quebec.
The current RaiLink plan calls for Hamilton Ontario Yard to
have SW1200s 1200, 1201, 1285, and GP9 4205. The Nanticoke line would have GP20 1751, GP9u
1752, GP9 1759, and M420W's 3502 and 3508. GP9 1759 is ex GTW 4135, and has not been
released from Transdynamic Services in Des Moines, Iowa. The following eight units,
despite where they may be now or where they've been working, will be considered relief
units, able to work on any RaiLink lines: GP9E 1703, former TOR 4202, presently in ONR
North Bay shop, GP9u 1754, presently on the Central Western, GP18 1806, presently on
Mackenzie Northern, GP9 4200, presently in Hamilton, GP9 4204, presently stored
unserviceable, and may not be repaired, and ancient GP7u's 4301, 4302, and 4303, presently
on Mackenzie Northern, and planned to be sold or replaced within a year or two. On October
12, 1998 recently purchased former CPR GP35s 5005 and 5006 were delivered to RaiLink's
shop in North Bay, Ontario. RaiLink also purchased GP35 5011 which went directly to
Edmonton for use. HR412W 3582 is currently out of service due to injector problems. HR412W
3585 has been placed on the TEMBEC turn with 2002 in place of 3582. GP9E 4202 is still out
of service due to blower trouble and leaking mass quantities of oil. Looks like those
GP35s arrived not a moment to soon.
In my August 1998 column there was mention of the freshly
painted RaiLink calf at RaiLink Hamilton, Ontario and nobody was quite sure of its
history. 1026B was built by EMD for Illinois Central in February 1940 as IC 9203B; it was
renumbered sometime to 1026B and was rebuilt in March 1972 and renumbered 1300B. It was
purchased by Paducah & Louisville from Illinois Central Gulf in August 1986 from where
RaiLink purchased it as SW13B #1300B in 1998. The unit is 58 years old!
More MLWs are dying; Bangor & Aroostook are
transferring five GP38s to the Windsor & Hantsport to replace their 12 RS-23s which
will be sold. All this should happen by the beginning of 1999. The companies are owned by
Iron Road Railways. Canac-owned and now leased M420Ws 3500, 3501, and 3504 arrived October
10, 1998 at Mont Joli, Quebec and 3542, 3545, and 3554 are to return. 3554 is retired and
will be for sale. 3542 and 3545 will then head to the their new home on the Hudson Bay
Railway. RaiLink Mackenzie Northern was holding an opening ceremony October 26, 1998 in
Hay River, NWT. The Edmonton-based rail company took over CN's line in Hay River in May of
this year. The line ships freight from Smith, Alberta to Hay River. General Manager
Clayton Jones says forest conditions in the summer made the first months challenging.
"to some degree it has been a trial by fire, given the fire hazard, dry conditions
that have existed, in northern Alberta since May. However we have been up and successfully
operating." The ceremony began at the Ptarmigan Inn and ended at the freight yard
with a banner breaking ceremony. The public was invited to attend.
The BC Rail M420's have been pulled from regular freight
service, but are apparently not quite finished yet. Last month four were sent out on work
train service and they are still out as of mid- October 1998. M420W 647 is working alone
while M420W 646 and B-unit's 681 and 683 are working an undercutter train on the Squamish
subdivision. In addition, The National Broadcasting Corporation (NBC), has contracted with
BC Rail to shoot a television movie called "The Atomic Train". Part of the
contract calls for a train and power. The railway assembled the short train and assigned
M420W's 642 and 644 to it. The units were painted in a fictional railroad's scheme
(Westrail) that resembles the old BC Rail lightning bolt scheme. The colors are battleship
Gray with blue-gray. The units and the train ran as an extra north from Squamish to
Lillooet on September 27, 1998. As if this wasn't enough, NBC also asked for a second
train for the movie and so BC Rail put together another train and assigned M420W's 641 and
643 to this one. It has been in Lillooet since the 1st of October working with the other
train. So, three months after being pulled from regular service, eight of the nine
remaining BC Rail M420's are still operating. The shells of the wrecked 640 and 682 have
been stripped of usable components and are stored at Squamish BC.
MOTIVE POWER
Canadian National
Add to the stored serviceable lists as of October 5: GTW
GP38-2s 5833, 5859, GP38s 6200, 6203. Retirees: SD40 5160 October 7; 5150 October 16; 5126
October 15; 5126, 5144, 5180, 5196 October 17; CN SD40 5025, which had failed on CSXT,
returned, and was stored, is now repaired, and was returned to CSXT on lease. More off
CSXT lease: 5121, 5132, 5142, all headed for retirement. Retired CN SD40 5209 has entered
ACIT\AMF.
CN GP40-2L(W) 9483, wrecked near Island Pond Vermont in a
washout earlier this year, a few weeks ago, was finally retrieved from down an embankment.
She was brought to Taschereau Yard in Montreal at 10 MPH. Judging by the fact that the
GP40-2's are on a hit list, and given her somewhat sad condition she'll probably be
scrapped. The ninth and tenth M420W's going to the SLR will be 3505 and 3512. In addition,
NRE has also purchased 3514 and 3528, still in Montreal. The five HR616 2100's moved one
evening in October, and are presently in Battle Creek.
CN units returned October 17, 1998 from CSXT lease: 5000,
5003, 5032, 5054, 9405, 9443, 9463, 9470, 9475, 9481, 9548, 9602, 9626.
CANADIAN PACIFIC
CP Rail AC4400CWs 8543, 8553-8571 assigned to the Soo Line
are to be delivered in Snow Blaster configuration. Units will be equipped with high
pressure air hoses in front of the lead truck wheels which will blow high pressure air
onto the track to clear of snow to aid adhesion.
The Helm purchase of CP motive power has finally been
consummated. Enroute to VMV Paducah, October 7, 1998 were CP GP35s 5004, 5007, 5016, 5020
and eventually SD40 Soo 743. Enroute to Metro-East in East St. Louis, same day were CP
SW1200 1202, 1206, GP35s 5008 and 5019. At CP Alyth Yard in Calgary, are CP GP35s 5005,
5006, 5010, 5011, 5013, 5014, 5015, 5017, 5022, 5023, 5024, and 5025. CP will only be
getting eight of the former B&M GP40-2's, to be CP 4650-4657, with Canadian leader
equipment now being installed in Thief River Falls. Three SW1200RS's sold to Louis
Dreyfus, Winnipeg Manitoba; 1242, 1243, 8109 have been renumbered LDCX 2001, 2002, and
2003, not necessarily in that order. The three units will each work at a different grain
elevator. 2001 will be moving to Rathwell, Manitoba. Leased SD60's EMDX 8300-8302 and
GP60's LLPX 6001-6003 will be going off lease at the end of October 1998. CP SD90MAC 9102
was to operate on a test train starting October 12 and then was to go to Winnipeg for six
weeks of training classes. Training on CP GE-built AC4400CW's starts October 12, 1998 for
crews in Schreiber, Chapleau, Mactier, and Toronto Yard. Locomotives are in position for
training classes with 9626 at Agincourt, 9627 at Mactier, 9621 at Chapleau, and 9659 at
Schreiber, so it looks like the big GE's will start to handle transcontinental stuff;
however they will venture no further than CP Toronto Yard.
At this time of the year I would like to thanks all who
have helped make Canada Calling on the Internet a success. Happy holidays and best wishes
for 1999.
Thank you to the following individuals and
functionalities for contributions for the December 1998 Canada Calling: Jack Armstrong,
Rainer Auer, Brent Best, Kenny Borg, Gerry Burridge, Reg Button, Bruce Chapman, Alex
Collins, Glenn Cunningham, Brian A. Elchlepp, John Gradek, Dave Howard, Ron Jackson,
Joseph F. Kazmar, Randy Kotuby, Al LeTeste, Milli Nem, Randy O'Brien, Doug Page, Erick
Pelletier, Ian Platt, JDBR, Earl Roberts, Melvin W. Roberts, Jim Sandilands, LGR Smith
Company, Mike Swick, Thumper, Al Tuner, Dale Wilson, Ian Wilson, Sandy Claws and Sean
Graham-White.
Please continue to send contributions by snailmail to
Bryce Lee, 1377 Eden Place, Burlington, Ontario L7S 1J9 Canada or by e-mail to brycelee@globalserve.net. Alternate e-mail shpbur@passport.ca
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