The Railways of Canada Archives -- Canada Calling June 1999

Canada Calling
June 1999

VIA RAIL

Via Rail Train 74, eastbound to Toronto from Windsor with 183 passengers, derailed during the late morning on Friday April 23, 1999 after two track switches were in the wrong position and routed the train on to an adjoining track, and beyond into a stationary railway car on an adjacent track. Meanwhile, Via Train 71, westbound to Windsor with 88 passengers, was eight kilometres away when it was alerted by radio and stopped before it reached the derailment ahead. Train 74 consisted of F40PH 6423, LRC coaches 3468, 3351, 3344, 3313. Investigators have learned that switches on both ends of a crossover, connecting parallel tracks lines, were in the wrong position. That means if the westbound train had reached Thamesville first, it would probably have derailed. Engineers Don Blain, 45, of Burlington, Ontario, and Kevin Lihou, 33, of Toronto, were killed in the accident which sent more than 100 people to hospital with mostly minor injuries. Passengers say help materialized quickly to help dozens of dazed passengers with bloody noses and scrapes out of the coaches. The train was carrying five crew and more than 180 passengers when it derailed in Thamesville, mid-way between Windsor and London. Human error is being investigated as the cause of the accident after the federal transportation board ruled out mechanical problems with the switches. CN traffic operators in Toronto turned over control of the switch to maintenance workers early on Friday April 23, 1999 who were supposed to return the switch to the proper position when they completed their work. It's not yet known whether the crew did as they were instructed to do. According to Via and other rail officials, much of the track from Windsor to London, and also from Ottawa to Montreal, is called "dark territory" because it is not directly operated by a central authority; rather permission to operate a specific stretch of track is given to trains by radio and no coloured signal lights are involved. Investigators are also considering the possibility the two engineers killed might not have seen in time a red circle, a 20-centimetre wide target attached to the switch which is intended to indicate incorrect settings; in part due extremely heavy rain which was falling at the time the train was in the area. It is hoped the eastbound train's event voice recorder; the railway equivalent of a airplane's black box flight recorder will answer some of the questions about what the train crew saw and how soon they saw it. The investigation will take several months to possibility a year to complete. The current replacement value of the train is C$2.3 million for the locomotive and C$1.5 million for each of the four coaches which would total C$6.8 million. Preliminary investigations have also revealed the train had been given permission to proceed at full speed through a track repair area. The lead federal investigator said a work train crew gave the engineers permission to go through the area. The engineer on the ill-fated train prevented an even worse catastrophe by warning the passenger train approaching in the opposite direction to stop.

Further investigations and information from the black box recorder a week later has revealed the Via train was travelling at close to top speed when it derailed in Thamesville one week ago. The locomotive's event recorder shows the train was travelling at 129 kilometres an hour (80.15 mpg) when the brakes were applied. Eight seconds later, the train was travelling at 109 kilometres an hour (67.73 mph) when it crashed into parked railway cars. Eight seconds later, the train crashed. All other indications from the event recorder show the locomotive was performing normally prior to the crash.

Trains across Canada stopped for one minute in honour of two crew members killed in the line of duty, a church filled with mourners heard at his funeral April 29, 1999. Locomotive horns sounded in salute to Kevin Lihou and Don Blain as the minute ended at 3 p.m., Lihou's older brother Keith told more than 200 mourners at his brother's funeral. Minutes before they died, VIA Rail crew workers Lihou, 34, and Don Blain, 45, signalled to an oncoming passenger train to apply brakes, just before their train derailed. Passengers from the Via Rail Train that crashed April 23, 1999 have filed a C$30-million class-action lawsuit. Via Rail and the Canadian National Railway have been named. Harvey Strosberg is a Windsor, Ontario lawyer specializing in class-action suits. On April 27, he filed a notice of action on behalf of the 183 passengers on board the train. A second lawsuit has been launched against Via Rail and the Canadian National Railway. The London law firm Pensa and Associates has filed a C$50-million suit on behalf of passengers on Via Train 74. Londoners Robert Christmas and Barbara Myers have been named as "class representatives" in the action. The suit seeks C$40-million for passengers and another C$10-million dollars for families of the passengers. The damaged VIA equipment from Thamesville, tarped unit 6423, and four LRC coaches, with two empty CN ballast hoppers as idlers, moved from Thamesville to VIA shop in Toronto April 27 pulled by SD40-2 5322, moving under the cover of darkness most of the way.

Some deadly railway accidents in Canada since 1983:

September 3, 1997: Via's Super Continental derails near Biggar, Saskatchewan, killing one person and injuring 78;
August 12, 1996: twenty railway cars roll downhill from the yards in Edson, Alberta and strike an oncoming freight train, killing three people;
February 11, 1992: four passengers die when a tractor trailer skids onto a level crossing and collides with a Via Rail train about 40 kilometres west of Montreal;
August 5, 1991: CN freight train crashes into an oil tanker in Kinsella, Alberta, killing the truck driver and three train crew members; February 8, 1986:
Via and CN freight trains collide near Hinton, Alberta, killing 23 people;
March 23, 1983: Via train into four empty cars on a siding near Carstairs, Alberta, killing five people.

VIA timetable changes are coming on May 2, 1999. The most significant are on the Toronto-Windsor route. Sunday-only no. 77 and Sun/Mon/Fri no. 74 are being eliminated. No. 72, which now runs six days a week, will add a Sunday run to become a daily train. It will leave Windsor at 10:30 instead of 09:20. All other changes in the Quebec-Windsor corridor are minor -- mostly the addition of 5-10 min to schedules to allow for summertime maintenance of way work. Also VIA 97, which becomes Amtrak 64 at Niagara Falls now leaves Toronto at 09:30 instead of 10:05. Both the current VIA timetables, including the new Maple Leaf schedule, and the ones coming into effect on May 2, are available at http://www.mcs.net/~dsdawdy/Canpass/via/via.html .

Via Rail Canada was expecting delays April 5 while operating between Toronto and Kingston. Crews were clearing a minor CN freight train derailment that happened the evening of April 4, 1999 near Napanee, east of Belleville, Ontario. No one was hurt when several cars from two freight trains derailed. Both sets of mainline tracks were blocked initially however the much of the debris had been removed by the time the morning VIA trains started operating. In the interim VIA used buses to move passengers between Kingston and Toronto.

INDUSTRY NEWS

"Governments are putting passengers' and employees' lives in danger on Canada's railways," a national transportation watchdog group charges. High levels of taxation on railway property, punitive investment rules, and massive neglect of investment in railway infrastructure and safety are leading railways to reduce investment and employment. This has a direct impact on safety," says Harry Gow, President of Transport 2000 Canada. "The recent accident of Via Rail Train 74 at Thamesville on April 23 caused two deaths, and the toll could have been worse," said Gow. In addition railways have removed cabooses from the rear of freight trains, so switches are often left open by departing train crews, to avoid long walks to the rear to reset switches for the main line, leaving the job for the crew of the next train. On the 200 km of track east from Windsor there is now just one railway policeman, to do preventive and surveillance work, where there were six. There is no electronic track monitoring system in place on large sections of the main line. Maintenance on railways is no longer done by only by employees, a large portion of the maintenance is done utilizing machines. There are plans afoot on CN to reduce from two tracks to one on significant lengths of track between Bayview Junction, near Hamilton Ontario and Chicago. Single track slows down passenger trains and can create capacity and even safety problems. Federal investment in VIA Rail is reduced to an inadequate operating grant with very little money for investment, including in safety improvements. Staff devoted to the Operation Lifesaver, a safety program have been cut. Gow and Transport 2000 Canada is calling on all levels of government to review their railway investment and taxation rules, and in particular, on the Federal Government to invest in new equipment and signalling systems for VIA Rail Canada.

Ninety-eight people were killed while driving across railway crossings and trespassing on railway property in Canada during 1998. The same goes for the 58 men, women and children seriously injured in 1998 in crossing collisions and trespassing incidents. Virtually all of these accidents were preventable. They occurred because drivers or pedestrians put themselves in the wrong place at the wrong time. Level crossing accidents declined from 307 in 1997 to 275 last year. The overall reduction in deaths and injuries involving the public is in part a tribute to the effectiveness of Operation Lifesaver, which is co-sponsored by the Railway Association of Canada and Transport Canada. The program works closely with provincial safety councils, police forces, railway unions and public interest groups to draw attention to the lethal hazards on railway lines and yards and to teach people how to conduct themselves safely when around trains. The program has been instrumental in reducing crossing collisions by 60 per cent since it began in Canada in 1981. It is largely driven by a nationwide corps of volunteers; many of them railway workers and police who have witnessed the carnage and who conduct safety workshops in schools and among other organizations. It has also been successful in persuading authorities to enforce laws more strictly against motorists who ignore highway-rail crossing warnings, and to increase the applicable fines. The program has met with less success in curbing trespassing in railway yards and on tracks than on road-rail crossings. Fifty-six Canadians lost their lives on railway property in 1998, compared with 68 in 1997.

Federal Transport Minister David Collenette attended the inaugural meeting of the Railway Safety Consultative Committee, a permanent committee composed of Transport Canada officials and rail safety stakeholders held in Alymer, Quebec on April 21, 1999. The Committee, which is chaired by Transport Canada's director general of railway safety, will meet biannually. Membership is open to persons and groups with an interest in rail safety, such as railway companies, associations and unions. The establishment of the Committee is one of a number of new railway safety measures. Others are: increasing safety at railway crossings through more stringent visibility standards; reducing trespassing on railway tracks through a variety of measures, such as fencing and information and awareness activities; and enhancing passenger safety on trains through on-board safety announcements.

Mattawa's Timber Train ride has been named Ontario's best new tourist attraction by the Ministry of Tourism and Attractions Ontario. The train takes visitors on a wilderness ride through the forest from Mattawa to Temiscaming and back. It started up last fall and is expected to attract 30,000 visitors this year. The train will now be entered in a national tourism competition sponsored by Attractions Canada. Officials with the town say they're thrilled and look forward to the increased publicity and attention this will bring to the timber train ride. It starts its first full season in May 1999.

The British Columbia government has abruptly suspended negotiations on cost-sharing for a multi-billion-dollar SkyTrain expansion. The Greater Vancouver Transportation Authority says provincial officials have cited a busy calendar for the provincial government for halting discussions. But BC negotiator Peter Cameron says the adjournment has not derailed SkyTrain expansion from Vancouver and New Westminster to the Lougheed Mall. He anticipates talks will resume in a couple of weeks. Reports say the transportation authority is unwilling to increase the $600-million local municipalities originally committed to the project. The authority has also refused to agree to hand over the operation and maintenance contract to Bombardier without going to tender.

Bombardier Transportation has won contracts for the supply of 88 tramcars and trailers for the cities of Schwerin, Leipzig and Rostock in Germany. The deals are worth about C$80 million, Montreal-based Bombardier said in a press release. The Schwerin order includes an option for 10 additional vehicles. Twenty-eight new low-floor trams will enter service in Schwerin in July 2001; 38 will be delivered to Leipzig between August 2000 and October 2001; and 22 will be supplied to Rostock in 2002. Production of the light rail vehicles will take place at the Bombardier plant in Bautzen, Germany. The concept of the new trams will be based on vehicles Bombardier Transportation is making for the cities of Kassel and Essen, Germany, as well as Krakow, Poland.

Fire fighters in Canada lack the tools they need to provide a reasonable level of public safety in the event of an accident involving plutonium or other deadly substance, according to the International Association of Fire Fighters (IAFF). For two years, the IAFF has urged Ottawa to endorse and continue testing Operation Respond, a proven computer based system that can transmit accurate information to fire fighters at the scene of an accident involving hazardous substances, detailing what's on board; direct from the shipping company's computer. "Plutonium will soon be shipped in Canada. As fire fighters, we fear for public safety in the event of an accident involving plutonium or some other deadly substance if we arrive on the scene without knowing what we're dealing with," said IAFF Canadian Director Sean McManus. The IAFF has asked Ottawa to endorse Operation Respond and provide a small grant of $236,000.00 to launch additional test sites and further develop the system to integrate Operation Respond with the current placard system used to identify hazardous substances. Shipments of hazardous goods by rail and truck have skyrocketed in Canada since the NAFTA agreement was put in place. Now, the federal government is seriously considering putting shipments of plutonium on Canadian highways. A full-scale test of Operation Respond was conducted in Burnaby, BC in 1997 demonstrated that fire fighters were informed of the contents of an overturned tanker truck a full seven minutes faster than they would have known relying on the current placard system. In these situations, minutes saved can mean the difference between life and death. "Ottawa intends to spend billions upgrading Canadian highways, but so far, the Transport Minister is unwilling to improve the tools available to fire fighters to safeguard the public,'' said IAFF Canadian Director Sean McManus.

Operation Respond has been saving lives in the United States for years. The system is currently in use in more than half of American States and in Mexico. The system has the full support of major American railway and trucking companies. Fire fighters from across Canada were in Ottawa the last week of April to lobby for public safety improvements including the endorsement of Operation Respond by Transport Canada. Operation Respond already has the support of Mps from all parties. The International Association of Fire Fighters represents 17,000 fire fighters and paramedics in Canada.

Chances are slim the Port of Halifax will get even half of the new supercontainer shipping traffic it is competing for, the head of CN Rail said April 23, 1999. Paul Tellier, president of the Canadian National Railway Co., said that's because 55 per cent of the supercontainer cargo will be destined for sale in the New York area. The New York and Baltimore ports are competing with Halifax for the right to serve the new extra-large container ships run by shipping companies Maersk and Sea-Land Inc. However Tellier said Halifax is in a good position to handle the portion of the cargo bound for the U.S. midwest. The prediction cast some doubt on the Port of Halifax's expansion plans. Halifax has promised to build a 1.8-kilometre pier to accommodate the new ships, called post panamax vessels because they are too large to fit through the Panama Canal.

Notre Development Corp. received its certificate of approval for the Adams Mine Landfill on April 23, 1999, the day after a failed court challenge against its proposal. Notre Development leads the Rail Cycle North consortium proposal to ship Toronto's non-hazardous garbage nearly 600 kilometres by rail to the abandoned Adams Mine iron ore pit. The certificate allows the North Bay-based company to accelerate engineering and design of the proposal based on conditions stated in the certificate. The Adams Mine Intervention Coalition, comprised of eight groups from North Bay, Englehart, and Kirkland Lake, all in Ontario, failed in its bid to block the plan. But officials remain determined to block the proposal through an upcoming judicial review. A Divisional Court review will assess whether the Ministry's environment assessment panel was right to approve the plan to ship the garbage to an abandoned iron ore mine.

The 1872-built Canada Southern station in St. Thomas, Ontario has been sold. The family which is developing the former Alma College into a residential community, confirmed that it is purchasing the historic Canada Southern station. Plans call for a 50-room hotel. The deal with CN & CP doesn't close until sometime in May of 1999 and is conditional on planning and heritage approvals. The family members who are partners in Alma Heritage Estates, announced the purchase because the as-yet unnamed partnership is poised to begin making necessary applications. Turning the 125-year-old station into a hotel is an obvious fit with the Alma development and the unused railway line between them, an obvious link for a shuttle between the two. In fact, they said, the station hotel could be a terminus for tourist train service envisioned by members of city hall's railway lands action committee as part of the railway lands redevelopment. Alma Heritage Estates has been participating in the committee.

The Canadian Wheat Board was expected to sign a major export deal with China on April 15, 1999 in Ottawa. The afternoon signing ceremony was scheduled to coincide with the visit of Chinese Premier Zhu Rongji. China has traditionally been one of Canada's best wheat customers but bumper crops the last few years have reduced the populous nation's need for imports. However, production was down to 110 million tonnes last year from 1997's record of 116 million tonnes. This year it's expected to drop again as low as 105 million tonnes. China needs about 116 million tonnes to meet its needs. Last year it bought about 1.5 million tonnes from Canada to bolster its own production.

CANADIAN NATIONAL

CN has not been able to sell the Morris-Elgin branch in Manitoba and has started proceedings to close it. The move puts about 15 elevators as well as the tax base and roads of nine rural municipalities at risk. There remains a chance the line could still be purchased by one of the two US companies interested in it or by the federal, provincial or municipal governments. CN announced in May 1998 that it intended to sell the line but was unable to agree to terms with the Tulare Valley Railroad of Salt Lake City or another company in Minnesota. The communities along the line fear not only the loss of a tax base but also burgeoning road repairs, as heavy farm trucks bound for the new high-output elevators replace the rail cars.

As of Monday, April 13, 1999, the Grand Trunk Western added a new dispatching desk, TD5. This dispatcher handles from Schoolcraft (West of Battle Creek) to Mill (West of Lansing). The main reason for bringing this dispatcher on is ongoing Battle Creek congestion. Battle Creek is unable to handle the new longer trains, as many trains are not completing their schedules. Also the TD desk which used to cover the following subdivisions on the GTW: Mount Clemens, Romeo, Cass City, River, Dearborn, and Flat Rock Subdivisions (up to Diann) are now handled by the TD2 desk. Current dispatching assignments are: TD2 as above; TD3: Flint Subdivision (Port Huron to Mill); TD4: South Bend Subdivision (Schoolcraft - Chicago); TD5: Flint Subdivision (Mill - Battle Creek), South Bend Subdivision (Battle Creek - Schoolcraft); TD5 Kalamazoo Subdivision, with TD the balance.

Canadian National Railway is restructuring its management and setting up new divisions in the wake of its C$2.4-billion merger with Illinois Central Corp., a railway based in Chicago. The move comes a few weeks after the U.S. railway regulator ruled that Canadian National Railway Co. can proceed with the takeover of Illinois Central, creating a continental freight rail network stretching from Prince Rupert, BC, to Halifax, NS and south to New Orleans. Montreal-based CN noted that the reorganization, effective May 1 in Canada and July 1 in the United States, consolidates the administrative, finance and marketing businesses of the two railways, and creates a single network operations centre in Edmonton. There will be five geographic divisions, with divisional sales forces: Eastern Canada, based in Toronto; Prairie, based in Winnipeg; Pacific, based in Vancouver BC; U.S. Midwest (Chicago) and Gulf based in Jackson, Mississippi. CN employees in the field are to be given new authority to meet local customer needs and control costs. The changes affect about 2,500 management staff, and will require some to relocate. Job losses are expected to be minimal.

First-quarter profit at Canadian National Railway Co., Canada's largest railway, rose as its operating costs fell faster than the 4 percent decline in its revenues, the company announced. The Montreal-based railway reported first-quarter net income of C$138 million, or C$1.42 a share, compared with C$104 million, or C$1.21 a share, in the year-earlier quarter. Revenues slipped to C$1.02 billion from C$1.06 billion. More than offsetting the 4 percent drop in revenues, CN's operating expenses for the latest first quarter declined 11 percent to C$782 million from C$875 million in the 1998 period. Costs dropped mainly because of lower expenses for labour and fringe benefits, material, fuel and equipment rents. As a result, CN's operating ratio, a key measure that declines as a company becomes more productive, dropped to 76.8 percent in the latest first quarter from 82.6 percent a year earlier. CN said automotive sector revenues rose 12 percent in the first quarter from a year earlier, while those for industrial products, forest products and intermodal operations increased 2 percent each. Revenues from grain and grain products fell 30 percent, reflecting lower overseas sales.

Coal, sulphur and fertilisers revenues declined five percent, affected by depressed demand for metallurgical coal, the company said. CN said it expects the merger of its operations with those of Chicago-based Illinois Central Corp. to become effective on June 24. The U.S. Surface Transportation Board approved the merger last month. CN bought Illinois Central in 1998 for US$2.4 billion, forming a railway stretching along some 18,670 miles (30,045-km) of track in eight Canadian provinces down through Chicago to the Gulf of Mexico.

Construction of the proposed new C$18M intermodal facility to be built in Edmonton, Alberta that was announced last May for startup this September, will apparently be delayed. Delays in gaining regulatory approval have forced Canadian National Railways to push back the opening of a new Edmonton intermodal facility for at least a year. The Canadian Transportation Act requires regulatory approval for any new rail-line construction. CN filed an application to build with the Canadian Transportation Agency in December. The CTA must now respond within 120 days.

The chief executive of Canadian National Railway Co. told shareholders April 27 that Canada's largest railway is poised to become a true North American freight carrier with its merger with Illinois Central Corp. of Chicago. In 1998 the company "succeeded in building a more financially durable railroad, and in 1999 CN will become North America's premier railroad, with a reach from the Pacific to the Atlantic to the Gulf of Mexico," president and CEO Paul Tellier told the annual meeting. As the two companies are integrated over the next three years, CN expects revenues to rise by US$250 million, costs to decrease by US$140 million and profit to increase by US$300 million due to the merger. Part of CN's growth strategy is to keep costs low. In the first quarter of 1999, the company cut costs more than revenues fell, improving profits. But critics say increased productivity and profit have been achieved on the backs of CN employees, mainly through slashing the workforce.

A new Rule Book insert for CN's employee time tables was effective April 1, 1999. One of the items no longer referred to is track torpedoes; they are no longer used. A campaign is underway to collect all torpedoes for proper disposal. The flagging kits will now be a little lighter! Yellow fusees were discontinued some few years ago as well.

Canadian National Railways has announced significant corporate support for the 1999 Pan American Games in Winnipeg for the summer of 1999. CN will build the cauldron in which the Pan Am Games flame will burn and transport it to Winnipeg from Mexico City. CN will also provide the Games; to be held between July 23 and August 8, with equipment, freight services and facilities. CN will move equipment by rail to Winnipeg from throughout North America; provide office space for Games staff in CN's offices at 433 Main Street; will supply intermodal containers at 30 Games locations; will permit a staging and construction area at the railroad's Transcona Shop for Games equipment, such as temporary grandstands; will construct the cauldron in which the Pan Am Games flame will burn between July 23 and August 8, and will be sponsoring the movement of the Pan Am Games Flame from Mexico City to Winnipeg, beginning June 23 in Mexico City. The Pan Am Games flame will travel through Jackson, Mississippi, Memphis, Tennessee, and Chicago, as well as through several major Canadian cities on its way to Winnipeg. On the days immediately preceding the Games' opening ceremonies on July 23, the flame will visit Manitoba communities before runners carry the torch through the streets of Winnipeg. Details about the Manitoba flame tour and run will be announced nearer the start of the Games.

CANADIAN PACIFIC

A Hamilton-bound CPR train pulling 16 tank cars containing sulphuric acid plus two gondola cars loaded with old creosote soaked railway ties caught fire east of Milton, Ontario in early April. The train was westbound from Toronto to Campbellville to Hamilton using CP's mainline between Toronto and Windsor for a portion of the journey. The fire started about 9:30 pm on Saturday night April 3, 1999. The heat was so intense that it started to melt the rail and distorted the shape of the metal gondolas and continuing to burn through the night. The residences in the sparsely populated area near the Fifth and Sixth line in Milton Ontario had to be evacuated. The two gondola cars that were on fire were disconnected from the rest of the train for obvious reasons.

A freight train and spilled grain added up to near disaster for one groggy bear in Banff National Park, on April 7, 1999. Canadian Pacific Railway confirmed a black bear was hit and injured by a 52-car freight travelling about 150 kilometres west of Calgary. The 180-kilogram bear was tracked and located by park wardens through his signalling collar. Three bears were hit in the same area in 1998 and two were killed. Environmentalists have long complained that spilled grain is a major factor in wildlife deaths along the rail lines running through the national parks. Animals are attracted by the easy meals which increases their risk of being hit. Almost 525 wild animals including elk, moose, deer, black and grizzly bears have been killed on the railway's lines since 1981 in Banff and Yoho national parks. CPR has been working hard to try to cut down on spilled grain and wildlife hits along its tracks. CPR pointed to the railway's C$500,000 vacuum truck that sucks up grain from the track bed as evidence of Canadian Pacific's concern. Parks Canada figures show six black bears have been killed along the tracks between 1981 and 1997 compared with 18 along highways in Banff National Park.

Canadian Pacific Railway Co. is laying off employees and reorganizing operations as it strives to cut C$60 million in annual costs. CPR says the move was prompted by both a desire to improve its cost structure and to compensate for the economic downturn in Asia. The aim is to reduce expenses by at least 2 per cent. Among other things, the railway wants to eliminate duplication and give regional managers more autonomy. But CP won't resort to major layoffs like those at Canadian National Railway Co., which said last year it will eliminate 3,000 jobs by the end of 1999. While Cps key operating ratio, the percentage of revenue needed to operate and maintain the railway, fell to 79.1 per cent last year from 89.4 per cent in 1994, it is still higher than CN's 75.5 per cent. The exercise has been complicated by the downturn in two of the railway's major businesses. Falling coal and grain shipments to Asia have already forced CP to lay off 435 workers temporarily in addition to 65 management jobs eliminated under the broader reorganization. Last year, grain accounted for 23 per cent of the railway's freight revenue. Coal, which along with sulphur and fertilizer represented 28 per cent of CP Rail's revenue in 1998, has been similarly affected by the Asian downturn.

Conglomerate Canadian Pacific Ltd. reported a 27-percent drop in quarterly profits April 20, but said results were on track to improve during the rest of 1999 due to strengthening commodity markets. Calgary-based Canadian Pacific, a major player in the rail, shipping, hotel, oil and coal sectors, also said it planned to concentrate in 1999 on digesting a string of acquisitions it had made over the past two years. The company's first-quarter net earnings were C$118 million or C$0.35 a share, down from C$163 million or C$0.48 a share in the same period of 1998, a drop it blamed largely on weak oil, coal and grain markets. Revenues rose 6 percent to C$2.6 billion from year-earlier C$2.4 billion. Within Canadian Pacific's divisions, operating income from its flagship Canadian Pacific Railway unit fell 6 percent to C$141 million, mostly because of a 23-percent decline in grain transportation revenues. Those revenues slipped due to weak export markets and work stoppages by unionized grain handlers at the port of Vancouver during the quarter, the company said. Operating income at CP Ships slid 83 percent to C$7 million, a drop blamed on CP's 50-percent stake in new Latin American joint venture Americana Ships, which incurred a first-quarter loss. Its energy and mining units also suffered weak quarters. Eighty-seven-percent-owned PanCanadian Petroleum Ltd. , Canada's biggest upstream oil and gas company, contributed C$71 million to Canadian Pacific's bottom line, down 16 percent from last year, as it contended at times with the lowest inflation-adjusted oil prices in 25 years. Operating income at Canadian Pacific's Fording Coal subsidiary slid 17 percent to C$29 million, a drop it said was because of falling coal prices as a result of weak Asian economies. Japanese steel mills represent one of Fording's biggest metallurgical coal markets.

A bright spot was its growing hotels division, known for such opulent properties as the Banff Springs Hotel in Alberta and Le Chateau Frontenac in Quebec City. Canadian Pacific Hotels contributed C$25 million in operating income during the period, up from just C$1 million a year earlier. CP Hotels recently took a 67-percent stake in a joint venture with U.S.based Fairmont Hotel Management LP.

Canadian Pacific Railway says declining exports of grain and coal will result in a six-month shutdown at its Ogden maintenance shops in Calgary, affecting 500 workers from July to December 1999. The shops normally close for just one month each summer. Rob Ritchie, CPR's president and chief executive said "We're extending the shutdown of our heavy repair facility to compensate for the impact of the Asian situation, which has seen a 24 per cent reduction in grain traffic and an 11 per cent reduction in coal traffic. We have enough equipment to handle current and anticipated demand for the remainder of the year and we will be bringing our employees back as the need for heavy repair work returns.

Grain sales in 1999 have been so low that the railway has 4,500 cars temporarily stored in various locations on the Prairies. The railway, which also has two coal unit-train sets stored to compensate for reduced coal exports through Vancouver, is in the final stages of receiving 350 new locomotives. With lower maintenance engines being brought into service, the railway is storing up to 100 older locomotives and returning 85 leased locomotives as quickly as possible.

Work has now begun on the final phase of single tracking and CTC upgrade of the CPR mainline between Thunder Bay and Winnipeg. On the Keewatin Subdivison changes will be seen, as they were on the Kaministiqa and Ignace Subdivisons where some station names disappeared while others were re-incarnated and a few new names added. From the Keewatin Subdivision disappearing will be Darwin (Mile 69.4); Re-incarnated will be Laclu (9.9). Culver (57.9), Shelley (78.0), Lydiatt (94.9 with new names of Croass lake and Molson West to be established. The Keewatin Sub crosses the Ontario-Manitoba border at Mile 33.36. The first change over is scheduled for Lowther on or about May 18, 1999.

Canadian Pacific Limited (Canadian Pacific) and the Royal Canadian Mounted Police (RCMP) are pleased to announce that Canadian Pacific will contribute over C$1-million from 1999 to 2001 towards the extension of the annual Musical Ride tour. With the assistance of Canadian Pacific, the 1999 Musical Ride tour will include visits to the provinces of Ontario, Quebec, Saskatchewan, Manitoba, Alberta, British Columbia, Newfoundland, Nova Scotia, Prince Edward Island and NB. Canadian Pacific and the RCMP established a partnership of cooperation in nation building with the construction of the transcontinental railroad in the early 1880s. In July 1995, Canadian Pacific became the Musical Ride's first national sponsor and provided funds to extend the annual tour. With this announcement, Canadian Pacific is re-committed for another three years and will become the Musical Ride's Founding Sponsor. The RCMP Musical Ride was developed in 1876 by early members of the North West Mounted Police to display their riding ability and entertain the local community. It has evolved over the decades into a uniquely Canadian performance enjoyed by tens of thousands of spectators every year. The troop of 32 horses and 32 riders perform a variety of cavalry drills choreographed to music. Members of the Musical Ride are first and foremost Police Officers. They all have at least three years of active experience in police work before volunteering for duty with the Musical Ride. Surprisingly, most have no prior riding experience.

The tentative dates for the 1999 RCMP MUSICAL RIDE TOUR: Granby, P.Q. May 8, 9; Rockton, ON May 13; Sarnia, ON May 15, 16; Boucherville, QC May 20; Carp, ON May 22; Valleyfield, QC May 23; Ogdensburg, NY May 24; Ottawa ON May 26-May 30; Avonlea, SK June 5; Regina SK June 6; Killarney, MB June 9; Minot, North Dakota June 11-12; Brooks, AB June 15; Lloydminister, AB June 17; Medicine Hat, AB June 19; Fort Walsh, SK June 20; Spruce Grove, AB June 23; Grande Prairie, AB June 25; Hinton, AB June 27; Ponoka, AB June 29; July 1-2; Fort Macleod, AB July 4; Revelstoke, BC July 6; Calgary, AB July 9-11; Innisfail, AB July 12; Canmore, AB July 13, 14; Lac Labiche, AB July 17; Two Hills, AB July 18; Lethbridge, AB July 21; Lamont, AB July 23; Fort Saskatchewan, AB July 24; Clarenville, NF Aug. 4; St. John's City, NF Aug. 5; Burin, NF Aug. 7; Grand Falls, NF Aug. 9; Gambo, NF Aug. 10; Gander, NF Aug.10; Cornerbrook, NF Aug. 13; Port aux Basques, NF Aug. 15; Antigonish, NS Aug 18; Bridgewater, NS Aug. 20; Digby, NS Aug. 22 Georgetown, PEI Aug. 25; Tignish, PEI Aug. 27; Hampton, NB Aug. 29; St. Andrews, NB Aug. 30; Sussex, NB Sept. 2; Moncton NB Sept. 3; Tracadie, NB Sept. 5; Truro, NS Sept. 8; Cole Harbour, NS Sept. 9; Campbellton, NB Sept. 11; St. Leonard, NB Sept. 12; Dallas, Texas Sept. 24-Oct. 17; Shreveport, Louisiana Oct. 22-28; Kansas City, Missouri Oct. 30-Nov. 6; Nashville, Tennessee Nov. 9-11, 1999.

GO TRANSIT

A rush-hour accident one and half years ago between two regional commuter trains in which dozens of passengers were injured was the result of unsafe practices and human error, a federal investigation has concluded. A poorly-trained crew, weak safety procedures as well as bad communications were all cited as factors causing the November 1997 GO Transit crash. In its final report released April 15, 1999, the Transportation Safety Board also found that the emergency brakes on the trains weren't readily accessible, a concern the provincially owned corporation is currently addressing. Eight hundred people were on board a stationary train when it was struck by an empty train that was backing into downtown Union Station at a speed of up to 20 kilometres an hour. It was GO Transit's only major mishap in its 30-year history and the report concludes that GO trains are safe to ride. Until the collision, the modern green double-decker trains reduced delays by sharing track, with one moving in as the other moved out. They were also allowed to enter the station in reverse, with the engineer at the back controlling the speed and the conductor in front, telling him if the way was clear. Immediately after the crash, GO barred both procedures. The report concluded that the conductor in the moving train mistakenly thought the track was empty and gave the engineer permission to back up. When he realized his error, he tried to warn the engineer but couldn't because the intercom communications failed. So did procedures for emergency braking. The conductor scrambled frantically to activate the emergency brake but couldn't reach it from behind the open cab door. Another emergency brake was accessible, but he didn't have time to use it because the handle had to first be re-installed. The report called for quick and easy access to backup brakes in times of emergencies, something GO still hasn't addressed. In addition schedules were unnecessarily tight and allowed little room for error and employees had insufficient knowledge of GO's signalling system.

GO Transit planned to add six extra trains and adjust some GO Bus services to help people commute if there was a major TTC service disruption. GO planned to begin its special service the first weekday morning after a TTC labour shutdown is announced. The Milton, Georgetown, and Richmond Hill GO Train lines, besides running their regular rush-hour service, were to each operate one extra train into Toronto in the morning and one homebound in the evening. These extra morning trains were to originate from Erindale station on the Milton line at 9:10 a.m., Malton station on the Georgetown line at 9:10 a.m., and Richmond Hill station at 6:30 a.m. Homebound in the evening, an extra train will leave Union Station at 7:25 p.m. headed for Milton; at 6:45 p.m. on the Georgetown line to Brampton; and at 7:40 p.m. to Richmond Hill.

Kipling GO station, which is accessed through the TTC tunnel, was to be closed; Milton line GO Trains were to not stop there. GO is able to run the extras by cycling trains back along the regular return routes. All other GO Train schedules were to be unchanged, including the frequent rush-hour and all-day service on the Lakeshore line. The TTC strike took place Monday April 19 and Tuesday April 21, however mediation enabled the strike to be concluded in time for the morning of April 22, 1999.

Toronto's transit service was back in operation Wednesday April 21, 1999 as transit workers returned to work, ending a two-day strike that left thousands of commuters in Canada's biggest city without their usual public transport. A tentative contract agreement was reached at 5:30 a.m. Details of the agreement were not immediately available but effective April 1, workers get a wage increase of at least two per cent a year for each of three years; which is what the TTC had originally offered. Any additional increase will be decided by an arbitrator but will be limited to a maximum of three per cent per year. Hopes of ending the strike had been raised April 20 after the union offered to allow an arbitrator to settle the dispute over higher wages and benefits. Talks continued throughout the night until the agreement was reached between the 7,800 members of the Amalgamated Transit Union and the Toronto Transit Commission. Full subway service got rolling just before 8:00 a.m. Bus and street-car service also resumed but were taking longer to reach pre-strike levels. About 800,000 people use the system daily.

GO Transit, the region's key rail commuter service, put on extra trains, as it did during the strike, but said it would scale back later in the day as the Toronto system got back in full swing. The two per cent increase could leave the commission on the hook for millions of dollars and push the C$2 one-way fare as high as C$2.35. The top wage rate for subway, bus and street-car drivers _ the largest group of employees; is C$20.61 an hour. On average, drivers make about C$52,000 a year, including overtime.

As of April 26, 1999 GO Transit has put on another rush-hour train on the Richmond Hill line in response to growing ridership and customer requests. The line now has four trains to Toronto's Union Station in the morning and four homebound in the evening. A fourth morning train had operated before, with slightly different times, until budget cutbacks forced GO to discontinue it in March 1996. During last week's TTC strike, GO Transit was able to run a special morning train on this line at a lower cost than before, and decided to reinstate this train immediately for a trial period until at least October 1999. GO will monitor the new train's ridership and on-time performance before deciding whether to add the train to the permanent schedule. The new train leaves Richmond Hill GO station at 6:30 a.m., stops at Langstaff at 6:34, Old Cummer at 6:40, and Oriole at 6:44, and arrives in Union Station at 7:08. A GO Bus connects Newmarket, Aurora, and Oak Ridges with the train, starting from Newmarket bus terminal at 5:50 a.m. and travelling via Yonge St. to the Richmond Hill station.

GO Transit locomotives trains will soon be making a run to Capreol north of Sudbury for mid-life overhauls. CLN Ventures has won an C$11.5-million contract to repair 29 locomotives for the system. The repairs will be done at company subsidiary CLN Industries. The company hopes to add 20 full-time jobs to its current 30 member workforce by the second year of the contract with work to begin the first week of June 1999.

SHORTLINES

On March 31, 1999 the Canadian Pacific Railway (CPR) and the City of Guelph completed the transfer of five kilometres (3.15 miles) of industrial track north of Norwich Street to the City of Guelph and the Guelph Junction Railway Company (GJR). Terms of the sale were not disclosed. The track connects with the 29.8-kilometre (18.5-mile) GJR line, which is in turn linked to the CPR's network near Campbellville. The city has owned the GJR, a federally incorporated railroad, since 1884. It was formerly operated by the CPR's eastern subsidiary, the St. Lawrence & Hudson Railway (StL&H), under a lease which was in the name of the Toronto Hamilton & Buffalo; the lease expired at the end of 1997. London based shortline operator Ontario Southland Railway Inc. will continue to provide service on the five-kilometre line, as it has since January 1, 1998. Ontario Southland also operates the line to Campbellville under an agreement with the GJR.

The Canadian Transportation Agency was in error when it issued a notice to the City of Grande Prairie Alberta indicating local CN lines could be sold and taken out of service. Canadian National Railway plans to transfer its line running through the heart of the city along 97 Avenue to another operator only. There was "no reason" for CTA to mention discontinuance of the line in its February 25, 1999 letter to the city. The city's general government services committee directed administration to contact CTA for more details on the letter which had indicated the line could be discontinued or transferred. CN's government affairs branch is now "dealing" with CTA staff to clear up the confusion. CN is currently receiving bids on the line which runs from the British Columbia border to Grande Prairie, and expects to announce its new operator by June. The deal affects 56 CN employees who were offered various options including relocation and retirement. Talks between CN and a potential buyer, Genesee Rail-One, were discontinued in March however there are plenty of other interested parties. The line was identified as a transfer candidate quite some time ago.

Premier Camille Theriault helped the New Brunswick East Coast Railway unveil 11 rebuilt locomotives in Campbellton April 12, 1999. The company has been in business since January 1998. At that time, it promised to create about 25 jobs in the region. However company officials say they've more than doubled that number. The railway is also introducing a loading yard in Campbellton which allows lumber to be transferred from truck to train. The New Brunswick East Coast Railway offers freight service between Moncton and Campbellton on more than 300 kilometres of track.

Prince Albert, Saskatchewan Mayor Don Cody is upset with the National Transportation Agency. The NTA ruled the city and its partners have to pay C$300,000 to take over a 34-kilometre rail line from Prince Albert to Birch Hills. Prince Albert and the rural municipalities of Birch Hills and Prince Albert want to buy the branch line to preserve it. Cody says he's considering an appeal, because he thinks the price is too high. Cody says the agency didn't consider the cost of dismantling a bridge and culvert when it determined the price. According to the Mayor, the CNR should pay "him" for taking over the money-losing line.

A North Dakota rail company has reached agreement with the village of Ethelbert to buy a 134-kilometre stretch of track from Dauphin through Swan River. On May 1st, Dakota Missouri Valley and Western Railroad will on May 1, 1999 become the official owner of the track. In return for the village's help with the deal, the company has promised to restore rail service to the village located 59 kilometres northwest of Dauphin, Manitoba. The line is to be called the Great Northern Railway. DM&W currently operates about 700 kilometres of track in North Dakota and Montana. A financial deal is already in place with CN Rail for shipping most items, but grain is still being negotiated as line is in good condition overall so it should be up and running soon.

The first Ontario Northland SD75 in their new paint scheme should be coming out of Alstom before too long. The six units will be assembled at Alstom in the middle of the CN SD75 order. Apparently ONT GP38-2 1801 is already repainted in this scheme.

On the Cape Breton & Central Nova Scotia... GP7u 2160 is still wearing Georgia Southwestern paint and lettering was coupled to GP9 5967 in Stellerton Nova Scotia in early April and being used for switching. The MLW/Alco dead line has been divided into two portions. RS18 3716, C630's 2003, 2016, 2034, RS18 3627, C630 2032 are in one group and in the second group C630 2028 still in CN colors, RS18 3675, C630's 2029, 2039 and 2035. The second group may well be scrapped. GP50 3108 was in the Sydney shop awaiting derailment repairs. There were a large pile of traction motors piled at the front of the shop likely out of the second group of MLW's. GP18 4700 was performing switching duties GP7u 2176 still had it's exhaust stacks capped from last fall. Whenever RS18 3842 fails the 2176 may well be activated. Suspect the 3842 is the last ex-CN RS18 in service anywhere in Canada. The remaining GP50's and CN GP40-2[W]'s seem to be calling Port Hawkesbury home these days. where was a medium pile of coal on the west side. GP50 5007 along with Pte. St. Charles built van 2000 were moving the coal from the wharf to the power plant.

The provincial government came through April 5, 1999 with C$2- million in funding to help Orangeville, Ontario in its bid to purchase the Orangeville-to-Streetsville CP-owned, St.Lawrence & Hudson operated railway line. Dufferin-Peel MPP David Tilson made the announcement at First Brands' Orangeville factory before a crowd of local politicians and manufacturers. Local manufacturers and the town have been lobbying the province for funding for nearly a year. Orangeville has studied the potential purchase of the 56-kilometre line ever since CPR indicated it was going to dispose of the line two years previously. There were hints that an upcoming provincial election may have played a part in the government's generosity. Regardless of the motivation, manufacturers who depend on rail service to move their products were elated at the news. The announcement, however, does not affect Orangeville's decision to appeal to the Canadian Transportation Agency (CTA) for a ruling on the line's net liquidation value. CP turned down the town's final offer of a C$2-million outright purchase and made a counter offer featuring a $2-million sale of the tracks and ties and a 20-year lease of the land.

Canadian National announced April 13, 1999 that it reached an agreement in principle to transfer 134.4 kilometres (83.5 miles) of track to the Village of Ethelbert, Manitoba. The transaction will close by May 1, 1999. The affected track, known as CN's Cowan subdivision, runs northwest of Dauphin, through Ethelbert to a point east of Swan River. This line was identified for discontinuance in CN's Three-Year Plan of July 1996.

After a very successful tour of duty whereby the train set of the Waterloo St. Jacobs Railway operated on the Guelph Junction Railway on April 9, 10 and 11 for seven trips; the Guelph Historical Railway Association and the WSJR have agreed that the next excursion on these rails will take place in the fall of 1999. Dates are Friday October 1 to Sunday October 3, 1999. It is expected these 32 mile round trips will operate from the River Run Centre in downtown Guelph Ontario to Guelph Junction on the CPR/St.L&H Galt Subdivision. The following 2 weekends October 9 and October 16 will feature the Octoberfest WSJR trains from Waterloo to St. Jacobs Ontario.

MOTIVE POWER

CNR:

Retired GTW SD38's 6251, 6252, 6253, 6254 are now in Edmonton, Alberta for sale. Retired April 6: CN SW1200RS 1374; SD40 5132; GTW GP38ACs 5802, 5806, 5808, 5809, 5810; GTW GP38ACs 6207, 6210, 6214, 6215, 6216, 6217, 6218. SW1200RS 1342 April 8; SW1200RS 1379 April 14 (now renumbered CS02, replacing former carshop CS02, ex-CN 1272, which will be sent, unnumbered to Canac in Montreal for disposition); SD40 5235 April 21; 5239 April 26; 5054 April 27; April 29 5066.

Released from Alstom on April 3, 1999 was new CN SD75 5779. On April 30 SD75s 5781, 5782, 5783 were also released. Forty retired SD40's (37 CN & 3 GTWs) are being upgraded at Alstom for BNSF. New numbers not assigned at presstime.

The following CN locomotives have been leased to shortlines:

Quebec Railway Corp/New Brunswick East Coast: GP9us 4137, 4142, SD40s 5081, 5109, 5218, 5222;
Ottawa Central: GP9s 4012, 4036, 4107;
Cape Breton & Central Nova Scotia GP40-2 9615;
St. Lawrence & Atlantic Quebec GP40-2 9407, 9602, 9639;
RaiLink Southern Ontario: SW1200RS 1363, 1389; GP38-2 4807; GP40-2 9660;
RaiLink Lakeland Waterways: GP9s 4015, 4016, 4017;
RaiLink Mackenzie Northern GP38-2(W) 4810.

KCS units SD40us 6620 to 6639 which have been working on the CN for the winter, have been sent to the Kansas City Southern. It is expected these will be sent to BNSF to repay horsepowers owing.

The following retired GTW GP38ACs will have work done at CN Transcona (Winnipeg) and have been sold to Locomotive Leasing Partners (EMD+GATX Leasing); 5802, 5804, 5805, 5806, 5808, 5809, 5810, 5811, 6207 to 6220 inclusive.

CPR:

All of the leased GSCX SD40's are now stored on the Soo Line, pending return to lessor. A lot of Helm SD's are stored too, as well as CP's. In addition HLCX 4403, 4406, 4407, 4409, 4410, are off lease from CP and are going to the Alaska Railroad.

CPR has sold the following units:

To Helm: SD40-2 5710, SOO SD40 750, SOO SD40-2 773, SOO SD40 6401;
To Independent Locomotive Service SOO SW9 328;
To Belvedere & Delaware River, Ringos New Jersey CP SW1200RSs 8142, 8159;
To Northern Plains Railroad Soo GP7 378, SOO GP9 401;
To Diesel Supply SOO SW1200, SOO SW9 slug 2118;
To Progress Rail CPR S1200RSs 1207, 1209, 8105, 8115, 8119, 8122, 8147, SOO Line SW1200s 1201, 1202, 1205;
To National Railway Equipment CP SD40s 5504, 5535, SW1200RS 8124;
To Unicapital SD40-2s 5622, 5632;
To Generation II Locomotive Soo Line GP9CAT's 4100, 4101, 4103-4106 GP30CATs 4300, 4301, 4302;
To Lewis Dreyfuss CP SW1200RSs 1212, 8107, 8110 (for grain elevators in western Canada.

OTHER CANADIAN RAILROADS:

The last three SD40's for Quebec Railway Corporation, CFMG 6908, 6909, 6910 were released from Alstom on April 28, 1999. SD40s 6900, 6901, 6904, 6905 are lettered for New Brunswick East Coast; the remainder, 6902, 6903, 6906, 6907-6910 are lettered CFMG.

BC Rail remanufactured GE's 3621-26 have all arrived as of the end of April 1999.

RaiLink ex-CP GP35's 5010 and 5011 have both failed in Alberta. 5010 is moving to CLN-Charny for repairs and GP35 5011, GP18 1808, GP9u 4003is enroute to CP Ogden for repairs.

RaiLink has purchased retired CN SW1200 RS 1359 and 1367. They will be used in Hamilton to release CN units 1363 and 1389, which will bring to a close the "last use" of unrebuilt model SW1200RS on Canadian National Railways.

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