Canada Calling
May 1999
by Bryce Lee
CANADIAN NATIONAL
The merger of Canadian National Railway Company (CN) and Illinois
Central Corporation (IC) won approval of the U.S. Surface Transportation Board
(STB) March 25, 1999 in a unanimous vote. The STB is scheduled to issue its written merger
decision on May 25, 1999. That decision, reflecting the March 25 oral vote, is expected to
become effective June 24, after which CN will be permitted to exercise control over IC
operations and assets. A step-by-step integration of the two railroads is expected to
start July 1, 1999. Implementation teams are working to ensure a safe, smooth integration
process. The two railroads have developed a comprehensive safety integration plan that has
been approved by the U.S. Federal Railroad Administration. The merger joins CN and IC in
an end-to-end combination at Chicago. CN/IC (the only true North American railroad on the
continent will span Canada and mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, offering shippers: integrated, efficient single-line service in
fast-growing North American Free Trade Agreement trade corridors; new routings and gateway
choices, and strong competitive alternatives to the Big Four U.S. railroads and trucking
companies in many markets, and quicker, more efficient handling of freight shipments
around and through the busy Chicago rail hub, along with smoother interline freight
movements with other railroads. The Board, which has the authority to impose conditions to
mitigate the harm that a merger would otherwise produce, imposed the following conditions
upon the CN/IC merger:
- Geismar Shippers. In 1995, KCS sought regulatory approval for
construction of a build-in line that would allow it to access three IC-served shippers
(BASF, Borden, and Shell) in Geismar, Louisiana. The CN/KCS Access Agreement provides,
among other things, for KCS access to these shippers via haulage rights over IC. Three
other IC-served Geismar shippers (Rubicon, Uniroyal, and Vulcan) have expressed concern
that this aspect of the Access Agreement will eliminate KCS's incentive to construct the
build-in line, which (these three additional shippers claim) would have enabled KCS to
reach not only BASF, Borden, and Shell, but also Rubicon, Uniroyal, and Vulcan. To ensure
that the Access Agreement does not result in a reduction in the IC versus KCS competition
that Rubicon, Uniroyal, and Vulcan might otherwise have enjoyed, the Board imposed a
condition requiring applicants to grant KCS access to Rubicon, Uniroyal, and Vulcan under
the same terms and conditions that will govern KCS's access to BASF, Borden, and Shell.
- North Dakota. The state of North Dakota has expressed concern that the
CN/IC merger will result in the elimination of an efficient routing via Chicago for its
agricultural commodities moving to the Gulf Coast area, which are originated in North
Dakota by the Soo subsidiary of the Canadian Pacific (CP), which are then transported by
Soo to Chicago for interchange with IC, and which are then transported by IC to the Gulf
Coast area. To ensure that the Chicago gateway remains open for these commodities, the
Board imposed a condition holding applicants to their representation to keep open and
competitive their Chicago gateway with CP's Soo subsidiary.
- Detroit River Tunnel. CN and CP each hold a 50 percent interest in the
Detroit River Tunnel that runs under the Detroit River between Detroit, Michigan, and
Windsor, Ontario. CN also has a 100 percent interest in the recently built St. Clair
Tunnel that runs under the St. Clair River between Port Huron, Michigan, and Sarnia,
Ontario. CP has argued that, because CN now has access to a modern tunnel and CP does not,
and because any attempt by CP to modernize or replace the Detroit River Tunnel would
involve the right-of-way of that tunnel, CN has an incentive to use its 50 percent
interest in the Detroit River Tunnel to thwart any effort by CP to expand or replace that
tunnel. To protect CP's ability to make improvements to or replace the Detroit River
Tunnel, the Board imposed a condition holding CN to its commitment not to exercise
unfairly any rights it may have under the CN/CP Partnership Agreement respecting that
tunnel to oppose any proposed improvement project that has sufficient engineering,
operational, and economic merit to attract the necessary capital for its construction
without derogating the value of CN's existing investment in the CNCP Partnership. And, as
part of its oversight, the Board will monitor issues related to CN's operational control
of the Detroit River Tunnel.
- Rail Labour. In approving mergers such as the CN/IC merger, the Board
is required, by statute, to impose "labour protective conditions" for the
benefit of the employees of the applicant railroads. The Board therefore imposed, for the
benefit of the rail employees of CN and IC, the New York Dock conditions that are
customarily imposed in railroad mergers. However, in view of the international character
of the CN/IC merger, the Board modified the New York Dock conditions, as applicable to the
CN/IC merger, by providing that, if and when CN/IC work is moved to Canada, CN/IC's United
States employees who choose not to follow their work to Canada will not be deemed to have
forfeited their New York Dock protections. The Board also clarified that good faith
bargaining has always been an integral part of the New York Dock process and that an
arbitrator, and the Board, if necessary, can properly take notice of any abuse of process
in any deliberations over labour matters under that process. As requested, the Board
imposed as conditions specific settlement agreements the applicants reached with the
United Transportation Union and the Brotherhood of Maintenance of Way Employees.
Consistent with established policy, the Board also made clear that approval of the merger
transaction did not indicate approval or disapproval of any particular collective
bargaining agreement overrides, but rather that such issues should be resolved through
negotiation, if possible, or arbitration as necessary. The Board also noted that
applicants at oral argument had acknowledged the importance of prior labour agreements,
and had indicated that they do not expect that wholesale overrides would be necessary to
carry out this transaction. Furthermore, the Board clarified that applicants must abide by
their representation at oral argument that they would continue to engage in a consultative
role with the Federal Railroad Administration with respect to any future merger-related
changes with safety implications for the territorial United States (e.g., transfer of the
dispatching function to Canada) and that they would give sufficient notice of any such
proposed changes.
- Environmental Matters. To fulfil its obligations under the National
Environmental Policy Act, the Board imposed the various mitigation measures recommended by
the Section of Environmental Analysis in its Final Environmental Assessment. Included was
a safety review process to ensure the safe implementation of the transaction.
- Oversight. Various parties have expressed concerns over potential harms
that may flow from the merger in conjunction with the Alliance and Access Agreements. In
response, the Board has imposed an oversight condition of up to 5 years, which will enable
the Board to address: concerns expressed by the United States Department of Transportation
and others regarding the operation of the Alliance Agreement, particularly with respect to
ongoing IC versus KCS competition in the Baton Rouge-New Orleans corridor; concerns
expressed by North Dakota with respect to the Soo/IC interchange at Chicago; concerns
expressed by CP with respect to the Detroit River Tunnel (including concerns respecting
CN's supervision of the day-to-day operations of that tunnel); concerns expressed by
certain labour unions with respect to lack of appropriate labour protective conditions if
unauthorized control of applicants and KCS should occur; and concerns with respect to the
potential effects on domestic lumber wholesalers of Canadian lumber producers' alleged
unfair pricing practices currently under investigation by the United States Department of
Justice. The oversight process will also enable the Board to monitor the environmental
conditions it has imposed.
- KCS Trackage Rights Application. The Board, though it approved the
CN/IC merger application, denied a simultaneously filed CN/IC/KCS terminal trackage rights
application that sought, for a KCS affiliate, terminal trackage rights over several miles
of Union Pacific and Norfolk Southern track in Springfield, IL. The Board ruled that,
because the terminal trackage rights sought by the KCS affiliate had no real connection to
the CN/IC merger, the terminal trackage rights application would have to be evaluated on
the basis of the strict criteria generally applicable to such applications. The Board
further ruled that this terminal trackage rights application failed to satisfy those
criteria. The Board's vote was issued in Canadian National Railway Company, Grand Trunk
Corporation, and Grand Trunk Western Railroad Incorporated--Control--Illinois Central
Corporation, Illinois Central Railroad Company, Chicago, Central and Pacific Railroad
Company, and Cedar River Railroad Company, STB Finance Docket No. 33556. A written
decision of the Board, reflecting the Board's vote at the voting conference, will be
issued by the Board on May 25, 1999.
An unusually wet winter and a faulty drainage system are to blame for a fiery
train crash near Conrad, BC, in March 1997 that killed two crew members, says the
Transportation Safety Board of Canada. Two locomotives and the first six cars hurtled into
a hole 50 metres wide and 20 metres deep and burst into flames on March 26, 1997, which
occurred 175 kilometres northeast of Vancouver. The CN freight had no warning that a
mudslide had washed out the main line of track upon which it was approaching. In its final
report the safety board said water saturation and a build-up of pressure in the railway
fills caused the collapse of the roadbed under the tracks. The crew wasn't warned about
the washout because signal information still showed the track was intact. Shortly after
the incident, measures were taken by the railway industry, Transport Canada, and the B.C.
Ministry of Transportation and Highways to address safety concerns. At the accident site,
drainage and monitoring of the track has been improved by physical inspections and through
the installation of sensory equipment buried beneath the rail. The locomotives involved
were SD75 5658 and GP40-2 9446, both of which were encased in cement and buried at the
scene.
Canadian National Railways is disposing of another 50 kilometres of track and
transferring 250 kilometres of track to other operators. CN plans to discontinue
operations on 46 kilometres of track on the following lines in Canada: a two kilometre
section of the Doney siding in Pointe-Claire, QC; the 24-kilometre Leamington spur near
Essex, ON; the Ilderton, Leaside and Bowmanville spurs in Ontario, totalling eight
kilometres; and the 13-kilometre Battleford spur near North Battleford, SK. The Canada
Transportation Act requires that the lines first be offered for sale to the private
sector. In the United States, CN will also seek abandonment authorization from the Surface
Transportation Board for the three-kilometre Vicksburg industrial spur in Michigan. The
following lines are to be sold to short-line operators: the 77-kilometre Canal lines, made
of several spurs connected to the Canal and Cayuga subdivisions in Ontario's Niagara
Peninsula; the Cornwall spurs in Cornwall (8 km), ON; Okanagan Subdivision in Southern
British Columbia (between mileage point 14.4 in Campbell Creek and 70.8 in Armstrong, and
between 85.5 in Vernon and 118.9 in Kelowna); and the Lumby Subdivision, between mileage
point 0.0 at Lumby Junction and 14.4 at Lumby, BC, 167 km. In 1998, CN sold or
discontinued 2,346 kilometres of track. About 87 per cent was transferred to short-line
operators while the rest was discontinued. As of December 31, CN was operating 22,113
route kilometres in Canada and the United States.
Canadian National announced March 12 that it has won the Carrier of the Year
award for 1998 from Occidental Chemical Corporation (oxychem) for the third
consecutive year. The award was presented to CN officials at OxyChem's headquarters in
Dallas, Texas. CN was rated first in performance, ranking ahead of eight other Class 1
railroads. This is the sixth year for the Carrier of the Year award, which OxyChem awards
to a carrier that demonstrates exceptional performance. Carriers are rated for safety,
on-time performance, bad-order car reporting, billing accuracy, timely reporting of
quarterly reviews and carrier surveys. In 1998, CN hauled 97,000,tons of chemical products
for OxyChem, as well as 450,000 tons of industrial grade potash from the Kalium mine at
Belle Plaine, Sask., to OxyChem's plants in Alabama and Delaware.
Canadian National has implemented a new toll free number that improves
and simplifies public access to information about CN operations anywhere in North America.
Effective immediately, anyone seeking general information about CN, or who has a concern
about railroad operations, can dial 1 888 5909 for service 24 hours a day, 7 days a week.
The number offers callers the convenience of an option menu that connects with either a
specific department, or with an operator trained to handle concerns and general inquiries.
Calls received outside of regular business hours are recorded and responded to the next
business day. The new toll free number is in addition to two others already in place: one
for emergency calls to the CN Police, the second specifically for CN's customers. In
addition, calls from the media and the investment community will continue to be handled
through previously existing contacts.
That portion of CN's Newmarket Sub. between mileage 230.53 and mileage 233.40 is abandoned
effective February 11, 1999.
On March 11, 1999 CN received Ontario Hydro units CP 5784, 5786, and
5860 in Winnipeg and they will become CN 5396, 5397, 5398, assigned to Symington for
maintenance. Subclasses will be GF-30x and GF-30z, in with the other former CP Hydro units
in the same two subclasses, according to their GMD orders. These units were reassigned to
CN by Ontario Hydro, the owner, to properly distribute the Hydro units according to the
amount of Hydro business done by CP and CN.
A pair of Union Pacific locomotives were in Toronto March 14, CN 460
operated from Proviso to Battle Creek Michigan with UP SD60 6059, SD40-2 3176. Then, 396
to Toronto ran with the same pair, and picked up, on the head end in Sarnia, CN GP40 9469,
SD75I 5609, SD75I 5623. Returning March 15 from Toronto on 393, were SD75I 5623, GP40-2
9469-UP SD40-2 3176, SD60 6059, DW&P SD40 5907. On March 17, a train of empty auto
racks operated from C&NW Proviso with units CR SD60I 5536, UP SD40-2 3071 and lifted
units GTW SD40-2 5930 and CN SD70M 5604 on the head end at Sarnia and operated to Toronto
MacMillan Yard via Oshawa.
Also visiting Toronto March 21, were D&RGW SD40T-2 5397 and SP
SD45E 7417. Train 393 left Toronto March 22 with CN SD75 5646, GP40-2 9411, DW&P SD40
5910, UP SD40-2 3071, and CR SD60(I) 5536, with the last two heading back to the UP.
A pair of Wyoming coal trains headed eastward on the South Bend
Subdivision of the GTW the morning of March 24 had on train 760, BN SD60 9234, KCS SD40u
698, and BN C30-7 5068. KCS 698 is none other than Canadian-born former QNS&L 202. On
train 764, were BN SD60 9211, and Oakway SD60's 9025 and 9037.
A special Bombardier train interchanged to the UP at Griffith IN
around noon on March 21, enroute to the Pueblo Colorado test centre. It consisted of two
new Acela locomotives as well as new Bombardier-built coaches on the train numbered 3402,
3500, 3502, 3503, and 3505. Of note, the six idlers were Grand Rapids & Eastern plug
door cushion underframe boxes. The train was powered with CN GP40-2 9439 from St. Albans
Vermont to Montreal, KCS SD40u 6636 from Montreal to Sarnia, CN C44-9W 2506 from Sarnia to
Battle Creek, and SP 7365 & UP 9262 from Battle Creek west. The train would have gone
through Bayview Junction, near Hamilton Ontario around 0200-0300 Saturday March 20, 1999.
Installation of Centralized Traffic Control on the Strathroy Subdivision
is scheduled to start May 21, 1999. The portion of the Strathroy Subdivision that is still
ABS is from Rideout, mile 0.2 just west of London, Ontario to Blackwell, mile 55.6. By
July 15, 1999 it is hoped the installation will be completed to mile 15 which would be
somewhere between Srathroy and Komoka. To relieve some of the workload for RTC K, he/she
will handle only to Rideout, and an additional desk, YZ, will handle the OCS portion of
the Strathroy Subdivision. Some track realignment may well also take place. Come the fall
of 1999, there will be a complete realignment of the Toronto based Rail Traffic
Controller's territories.
A deal to sell the old Alberta Resources Railroad line to a
Montreal-based short-line railway company is officially off, Canadian
National Railway says. No reason was given. CN announced last October it had sold the
586-km line to Genesee Rail-One. Much of the route northeast of Jasper to beyond Grande
Prairie was known as the Alberta Resources Railroad which CN purchased from the Alberta
government in 1992.
CANADIAN PACIFIC
Service on a 71-km (44-mile) rail line in southern Alberta, between
Claresholm and a point just south of High River, has been discontinued as
of March 1, 1999 by Canadian Pacific Railway (CPR), in accordance with the Canada
Transportation Act (CTA). On April 1, 1997, CPR announced the line, part of the railway's
Macleod Subdivision, was a candidate for discontinuance under its three-year network plan.
In recent years, traffic on the line has been steadily decreasing.
The Canadian Wheat Board and Canadian Pacific Railway have reached an
out-of-court settlement March 8, 1999 in the dispute over the shipping problems
experienced during the 1996-1997 crop year. The value of the settlement, payable to the
CWB to be distributed to Prairie farmers, is approximately C$15 million. The settlement
will be paid to the CWB in 1999 and 2000. In addition, under the terms of the agreement,
the CWB will discontinue its lawsuit against the CPR. This is a no-fault settlement. The
CWB, which serves as Canada's grain marketing agency on the western Prairies, late last
year launched a C$45 million lawsuit against the rail system for more than 1.5 million
tonnes in lost grain sales during the tough 1996-97 winter. A federal, quasi-judicial
agency ruled last year that the CPR did not give grain shipments headed from the Prairies
to Vancouver on the West Coast a reasonable share of the railway's capacity. Calgary-based
CPR, a subsidiary of Canadian Pacific Limited, operates about 24,600 km of track in Canada
and the United States and has about 19,900 employees. The CWB is one of the world's
largest wheat and barley marketers. Headquartered in Winnipeg, Manitoba, it is Canada's
fifth largest exporter and largest net earner of foreign currency. Marketing Prairie-grown
wheat and barley to over 70 countries around the world, the CWB returns all sales
revenues, less the costs of marketing, to farmers in Western Canada.
The City of North Bay Ontario has purchased 38 acres of railway property
adjacent to its downtown waterfront. The council held a special meeting March 9 to sign
the C$5-million deal with the CPR. Trains will still travel along the city waterfront. But
there will be only one track instead of a huge rail yard. The yard will be relocated south
to Ontario Northland property. It'll take at least three years for the city to completely
take over the land. In the end it'll increase the size of North Bay's already popular
waterfront and connect it to the downtown. The city hopes to turn part of the property
into a tourist attraction. It would promote North Bay's rail, native and fur trading
past...and be known as Passage North.
The CPR announced March 24, 1999 it has reached an agreement with Red Coat Road
& Rail Ltd. (RCRR) for the purchase of the 115-km (71.5-mile) CPR
branchline between Pangman and Assiniboia, in southwestern Saskatchewan. The
agreement is a culmination of about 10 months of discussions between the two parties; is
scheduled to close by June 30, pending final payment for the rail line by RCRR. While the
Assiniboia Subdivision is a low-density branchline, CPR is hopeful that Red Coat Road
& Rail ultimately will be successful in establishing a viable shortline operation.
RCRR is an organization consisting of representatives of the communities adjacent to the
rail line, including Rural Municipality No.72 (Lake of the Rivers); RM No.40 (Bengough);
RM No.71 (Excel); RM No.70 (Key West); and RM No.69 (Norton), as well as the villages of
Ogema, Viceroy and Pangman. Several other parties were instrumental in the negotiations,
including the Saskatchewan Department of Highways and Transportation, the Saskatchewan
Association of Rural Municipalities (SARM) and Judy Bradley, Minister of Highways and
Transportation. The asset purchase agreement between CPR and RCRR covers the sale of land
and track, but no equipment or other assets. It is expected that RCRR will contract with a
third party to operate and maintain the line. As part of the proposed operating service
agreement between the two parties, CPR would provide connecting rail service to RCRR,
providing empty grain cars and picking up loaded cars at an interchange point just east of
Assiniboia.
Canadian Pacific Railway (CPR) in cooperation with Union Pacific Railroad (UP) and
Transportation Ferroviaria Mexicana S.A. de C.V. (TFM) is introducing the most
comprehensive intermodal service ever between Canada and Mexico. The trailer on
flatcar services will provide shippers with links between Canada and 16 different
locations in Mexico, more than any competing services. The services are also available
between Minneapolis-St. Paul and Mexico. Robert Ritchie, President and Chief Executive
Officer of CPR made the announcement during an address to the ninth annual Transporte
International Conference in Monterrey, Mexico. Shipments to and from Western Canada and
the Twin Cities will be interchanged with UP at Chicago, while shipments to and from
Eastern Canada will be interchanged with UP at East St. Louis, Ill. Services within Mexico
will be handled by both UP and TFM. CPR will use UP's Aztec Eagle, a direct rail
intermodal service into Guadalajara, Queretaro and Mexico City, as well as its Passport
service to Laredo, Texas, where UP trucking services handle freight to and from 16 Mexican
cities, including Monterrey. Freight moving via UP's Aztec Eagle will clear Mexican
Customs at final destination, rather than at the U.S.-Mexico border. Freight moving via
the Passport service will clear Mexican Customs at Laredo. Northbound freight from Mexico
will clear U.S. Customs at Laredo, and Canada Customs at destination. TFM, Mexico's
northeastern rail franchise, is jointly owned by Kansas City Southern Industries Inc. and
Transportation Maritima Mexicana S.A. de C.V.
The CPR will be cutting the 1999 operating budget of C$2.8- billion by
C$60 million as a result of softness in coal and grain shipments. While no final
determination has been made, some staff could be affected. CPR spokesman Len Cocolicchio
said "Our reductions are budget-oriented, not body-oriented".
Canadian Pacific Limited (Canadian Pacific) announced that its board of directors has approved
the issuance of eight million 5.6501 Cumulative Redeemable First Preferred Shares
Series A at an issue price of C$25.00 per share. The company has entered into an agreement
with a group of underwriters led by Nesbitt Burns Inc. providing for the issuance and sale
of the preferred shares on a "bought deal" basis. The underwriters will offer
the preferred shares for resale to the public at an issue price of C$25.00. The
transaction, involving an aggregate issue amount of $200 million, is expected to close on
March 31, 1999. The agreement with the underwriters includes an over-allotment option that
would permit the underwriters to purchase up to an additional 800,000 preferred shares
from the company, or an additional issue amount of C$20 million, up to 30 days after the
closing date. Canadian Pacific intends to file a preliminary prospectus related to the
issuance of its First Preferred Shares Series A by March 17, 1999. Subject to approval by
the securities commissions concerned, a final prospectus is expected to be filed in late
March in order to qualify the issuance and sale of the preferred shares. The company will
apply to have the preferred shares accepted for listing on the Toronto, Montreal and
Alberta stock exchanges. The First Preferred Shares Series A will carry an annual dividend
of 5.65%, payable quarterly. Proceeds from the issue will be used to reduce outstanding
short-term debt and for general corporate purposes.
Canadian Pacific Railway has offered the following locomotives for sale
with bidding to close in April. Two SD40s located Ogden Shops, Calgary Alberta CP 5504
& 5535, rebuilt 1994 and 1991; to be sold as package a SW1200 slug 2118, at Thief
River Falls, Minnesota, & GP15Cs 4100-4101, 4103-4106 at Ogden; to be sold as a
package GP30C SOO 4300-4302 at Ogden; package of highnose GP7 SOO 378/GP9 SOO 401 at Thief
River Falls Minnesota; and a package bid of SW1200s CP 1207, 1209, 1212, 8105, 8107, 8110,
8115, 8119, 8122, 8124, 8147, at Winnipeg, Manitoba.
The CPR main line was been reopened following a derailment in Yoho
National Park. An avalanche swept three empty potash cars off the tracks late March 24,
1999, just east of Field. The slide swept the cars down a 110-metre embankment but they
stopped just short of a riverbank. Crews worked through the night to repair the tracks.
INDUSTRY NEWS
When North America's fastest locomotives begin pulling passenger trains between Boston
and Washington in the year 2000, at the controls will be engineers trained by Canac
Inc., a subsidiary of Canadian National. When New York's transit authority needed
to replace 330,000 wooden ties with concrete ones on a 217-kilometre commuter line,
without interrupting traffic, Canac did the job in one summer. These are two projects
undertaken recently by Canac, a railway services company taking advantage of massive
consolidation in the North American rail industry. Besides out-sourcing by the railways
themselves, Canac has developed a niche managing the rail section of manufacturing plants
which have a locomotive and tracks on their premises, connected to a main line. Canac
offers consulting services, or may operate the in-house railway. The biggest future growth
area is the petrochemical industry in Texas and Louisiana, where 1,400 companies use rail,
and in the steel and automotive regions of Michigan and Illinois. Canac has eight offices
in North America. Texas. The firm has 520 employees, including 120 added last year, and
expects to add another 150 to 200 this year. Revenues should reach C$100 million this
year, double that of 1997. About half are from CN contracts, but CN's share is dropping.
Main competitors are engineering companies, and a similar firm, UP Tech, set up by Union
Pacific Railroad. In December Canac bought CSI, a Washington-based firm which owns a
software program able to evaluate train performance over a route, already sold to several
dozen railways. In January 1999 it bought Vectran Corp. of Pittsburgh, maker of remote
control units for locomotives and cranes. This will complement a Canac-invented device
that allows a worker on the ground to manoeuvre empty locomotives around a railway yard.
Canac was set up in 1971 to sell CN's expertise, especially in developing countries. The
focus now is only North America. Canac also maintains locomotives, and is a broker for
used rolling stock and locomotives.
Ontario Hydro, Canada's largest utility, moved some of its computer systems
ahead so at midnight Saturday March 6, 1999 so that they read January 1,
2000. The idea was to see if the power would go out in a test area, which covered
west-central Toronto. Ontario Hydro planned to set their computer systems to mimic January
1, 2000 in a test at their Manby Transformer Station in Etobicoke. While Hydro advised the
TTC that this was unlikely to cause any power loss, the TTC stopped subway service and
stayed in stations for a short duration to avoid trains being stuck in tunnels if power
was to fail. At five minutes before midnight on Saturday, March 6, 1999, TTC Transit
Control issued a stop and stay order to all trains on the Bloor/Danforth and Yonge,
University, Spadina subway lines until the test was completed. All trains were to be held
in the stations for approximately ten minutes. In addition, streetcar service stopped for
approximately ten minutes in a safe location until the test was completed. When midnight
arrived, there were no power disruptions; which was a relief for police stations and
hospitals that had backup generators on standby.
Vancouver residents are worried about increasing crime around local Skytrain
stations following a recent violent gang shootout. Shots were fired between what
police believe are rival Hispanic and Asian gangs near a downtown station. No one was hurt
in the incident. All suspects escaped on the train and by foot. The RCMP said drug
trafficking, property crime and gang warfare are concentrated around the stations that
take commuters between the Vancouver waterfront and the suburb of Surrey. Transit security
and police are doing what they can to respond to the problem. BC Transit has increased the
number of constables and SkyTrain attendants working in the stations. At Broadway station,
evidence of gang activity is written on the walls.
Politicians in the state of Alaska have voted to set aside
land for a railway right of way connecting to the Yukon. But unless similar
action happens on this side of the border the move could be a step towards a train to
nowhere. The idea is to protect a railway right of way connecting existing rail lines in
Alaska to those in the southern US States. Representative Jeanette James sponsored the
bill. But she says unless links through the Yukon and BC can be established the idea is
going nowhere. She's hoping the Alaska vote will help change attitudes in Canada. The
Alaskan Senate still has to vote on the measure but with a unanimous vote in the house and
politicians of all stripes supporting the move that's expected to be a formality.
Amtrak took the wraps off the first high-speed rail system in the United States
on March 9, 1999, a $2-billion US service that will whisk passengers between Boston, New
York and Washington at 240 kilometres an hour. But while Amtrak has high hopes for its
bullet-train service, a proposal for a comparable system between Toronto and Quebec City
is stalled. The US project, dubbed Acela, has been a boon to Montreal's Bombardier Inc.,
whose Bombardier Transportation unit is supplying 20 train sets, including 160 train cars
and 15 electric locomotives, for Amtrak. Its portion of the deal, as part of a Bombardier
Alstom consortium, is worth C$972 million. Bombardier is also part of a consortium that
proposed the now sidelined high-speed train service in the Toronto-Quebec City corridor.
The proposal for the so-called Lynx project, from a group that includes SNC-Lavalin, AGRA
Monenco Inc. and Ellis-Don Construction, asked the federal government to put C$25 million
toward a feasibility study. The group hoped to carry 11 million passengers a year on
trains that would reach speeds of 320 kmh, making a trip from Toronto's Union Station to
Ottawa in only an hour and 15 minutes. It also hoped to have trains operational by 2008 in
time for the Olympics; if Toronto is named host of the Summer Games. Meanwhile, the
Federal Transport Department is developing a long-term business plan that will outline Via
Rail's route network and funding needs. The ministry will likely be watching Amtrak's
Acela service when deciding on the fate of the home-grown high-speed proposal. The
proposed Lynx would require construction of a new rail line, while the Acela uses existing
track most of the way.
GO Transit passengers can now get schedule and fare information on the World
Wide Web. GO launched its website March 12, 1999 at www.gotransit.com, giving customers another way to
access GO information, 24 hours a day. The website lets people generate train and bus
schedules, link to other transit systems, and find lots of other information about GO
Transit. Using the interactive schedule finder feature, customers enter a starting point
and destination, and the website will display the appropriate timetable or fare. For
customers who don't have Internet access, GO Transit information is still available by
phone (including 24-hour recorded information) at 416 869-3200 in the Toronto local
calling area, 1 888 GET ON GO (438-6646) long distance toll free, or 1 800 387-3652 for
TTY teletypewriters only.
The federal agriculture minister says countries such as Japan are worried about
Canada's ability to export grain. Japanese officials are concerned about a strike
by public servants that has created a grain train traffic jam across Western Canada. The
minister says striking public servants have "made their point" by shutting down
work at Vancouver's grain terminals. But he says the federal government is
"determined to keep the wheat moving." And he adds that back-to-work legislation
could be tabled" at the drop of a hat" to ensure Canadian grain is exported. The
federal government is considering back-to-work legislation against public servants. The
federal government has ordered an end to the strike by people who weigh grain at the port
of Vancouver. The "weighmen" went back to work in Vancouver March 16, on their
own, ending their latest walkout. Now the federal government has started the process of
making sure they don't go out again. Opposition parties would not give quick consent so
the legislation. Meanwhile, a dozen ships are waiting in Vancouver harbour. More than
four-thousand loaded cars must be moved to the terminals. The Reform Party's said they
have documents that show politicians knew almost two months ago grain sales could be lost
because of these strikes. Neither Reform MP's nor New Democrats would agree to the
government's request to get the bill passed quickly.
The Toronto Transit Commission's 7,800 employees could be on strike
next month after rejecting the transit system's first offer March 17, 1999. The
offer was rejected by 99 per cent of members in the Amalgamated Transit Union local, the
highest rejection percentage in the commission's history. The union had recommended that
its members reject the offer. Every one per cent raise would translate into a C$5.5
million annual cost for the transit commission. Covering that with a fare hike would mean
increasing the cost of a token by three cents. The last time transit workers struck the
system was in 1991, when an eight-day walkout lost the system 15 million rides and won the
union its last major wage increases of 4.95 and 4.75 per cent for 1991 and 1992.
Rail line rationalization in Ottawa moved a step closer today as the
St. Lawrence & Hudson Railway (StL&H), the eastern subsidiary of the Canadian
Pacific Railway (CPR), announced an amendment of its three-year plan under the terms of
the Canada Transportation Act (CTA). VIA Rail's current passenger service in Ottawa will
not be affected, nor will plans for future Bayview Greenboro commuter rail service. The
CTA plan amendment clears the way for eventual termination of joint Canadian National-CPR
ownership of about 18 kilometres of seldom-used industrial tracks and sidings and their
transfer or discontinuance. Track and related facilities in the city have been jointly
owned and operated by the CPR and Canadian National (CN) since 1963.
Steam locomotive 4-8-2 6060 owned by Rocky Mountain Rail Society will
operate a number of excursions during 1999 over RaiLink Central Western trackage at
Stettler, Alberta. All runs are round trips from Stettler: Sunday, May 23, 6060 shake-down
run to Coronation (1/2 price); Saturday, June 19, to Coronation (120 miles round trip);
Friday, June 25, to Halkirk and return; Sunday, June 27, 6060 will be at Big Valley under
steam doing run-bys (during Rail Fan Days) with 2-8-0 #41 pulling the train from Stettler
to Big Valley and return; Saturday, July 03, to Coronation and return; Saturday, July 10,
to Castor and return; Friday, July 23, to Big Valley and return; Friday, July 30, to
Halkirk and return; Saturday, Aug 07, to Castor and return; Saturday, Aug 21, to Halkirk
and return; Friday, Sept 17, to Halkirk and return.
Federal Transport Minister David Collenette announced March 29, 1999 that he has
received the report of a VIA Rail Canada-Canadian National Railway task force
designed to address the need for increased passenger train frequency in the Quebec
City-Windsor corridor. The task force's report was presented to the Minister by VIA
president and CEO Rod Morrison and CN president and CEO Paul Tellier. The results of the
task force will provide VIA Rail with the ability to improve its corridor service during
1999 on several key routes, including Montreal-Ottawa, Montreal-Toronto, and Quebec
City-Toronto. The task force has produced the following results for VIA's passenger
service: an additional Montreal-Ottawa frequency; a faster Montreal-Toronto return
frequency; improved scheduling for Quebec City-Toronto trains; provisions for an
additional Toronto-Montreal frequency.
Mr. Tellier noted that CN and VIA worked together to produce this
report, which describes how the two companies can jointly improve passenger rail service
in the corridor. The task force was formed on the invitation of the Minister of Transport
as part of the government response to the Fourth Report of the Standing Committee on
Transport, The Renaissance of Passenger Rail in Canada. The task force examined questions
of network capacity in the busy Quebec City-Windsor corridor. It was agreed that a key
element of passenger rail revitalization will be the continued co-existence of freight and
passenger operations in the corridor.
VIA rail president Rod Morrison says the study of service in the busy corridor will
result in improvements a number of areas including better scheduling for
trains between Toronto and Montreal and Toronto and Quebec City.
In a previous column there was some confusion to a reference about railways
being responsible for their rails where people have to cross them to reach their
destinations. It appears the recent Supreme Court ruling stems from the following
news story. "Canada's so-called railway law came under scrutiny last June. In 1995
the BC Court of Appeal ruled that the CPR and the City of Victoria were only half liable
for injuries suffered by Murray Ryan. He injured his knee and hip in 1987 when his bicycle
wheel got caught in one of the rails set into the pavement on a Victoria street. His
lawyer said the man can't work on oil rigs as well as before. The appeal court overturned
a lower ruling that the railway and city were fully liable for Ryan's injuries. The
Supreme Court decision ruled whether railways have what's called "duty of care"
to the public. Further to the news story...
Dr. Thomas Wilson, Regional Coroner for Southwestern Ontario, today announced that
there will be an inquest into the death of Robert Ivison, who died March 20, 1997, in
Chatham, Ontario. A response regarding the Supreme Court decision from Jerry O'Brien is
the lawyer for the Ivison family in Chatham. O'Brien represented them at the inquest into
the death of Robert Ivison almost two years ago. Ivison's wheelchair became stuck at a
railway crossing in Chatham. People with disabilities made a case at the inquest for
standards that would allow crossings to be safer than they have been up to now. The
Supreme Court ruling will force railway companies to consider those safety issues by
taking away protective laws that gave these companies immunity. For the past 90 years
railways have had special status under negligence laws. They could not be held fully
accountable in civil lawsuits filed after accidents at rail crossings. O'Brien said the
ruling changes that; now rail companies have to follow the same public safety laws of all
other property owners, and that means ensuring safe crossing for all people going over
rail road tracks. "For anyone who has the misfortune of suffering injury or loss as a
result of a dangerous crossing at a railway the ability to get compensated has now been
greatly improved. Railway companies will have to ensure all crossings are safe whether
someone is on a motorcycle, bicycle or in a wheelchair, or in an automobile."
SHORTLINES
Edmonton-based RaiLink Ltd revealed March 11, 1999 it is looking
for a potential buyer. The short-line railway company has been the subject of
takeover speculation in recent weeks because Denver-based OmniTrax Inc has bought up a
24.8 share of RaiLink's shares. The company said in a news release that it has authorized
financial advisor HSBC Securities "to approach parties who may have an interest in
consummating a transaction involving the company, including a number of parties who have
already expressed such an interest."
Effective 0001, March 21st, 1999, Canadian National turned over the Coronado,
Bonnyville, and Lac La Biche Subdivisions to RaiLink Ltd. Operations are on a 434
kilometre (271 mile) rail line located northeast of Edmonton. The rail line extends from
St. Paul Junction, immediately north of Edmonton, to Boyle and northeast to Grande Centre
and Elk Point. It also connects with RaiLink's existing Lakeland and Waterways line at
Boyle, which serves Fort McMurray and Alberta's oil sands region. The acquisition of the
line by RaiLink from Canadian National was originally announced in August 1998. The
closing of the transaction was delayed pending completion of labour negotiations by CN
relating to the sale of the line. RaiLink is a publicly traded regional railway company
based in Edmonton, Alberta. RaiLink is the largest regional railway in Canada, providing
freight transportation service to the national railways and a wide variety of shippers in
Alberta, the Northwest Territories, Ontario and Quebec.
Effective 0400 March 1, 1999, an arm of Genessee Rail-One called
Railterm has taken over the train dispatching of the Huron Central,
Quebec Gatineau, and VIA owned or leased trackage as follows: from Coast De Beaujeu, mile
7.5 Alexandria Subdivision to Hawthorne, mile 72.7 and between Federal, mile 0.0 Smiths
Falls Subdivision to Smiths Falls East, mile 34.5. Their RTC centre is in Outremont,
Quebec with seven dispatchers (RTC's).
Ontario Southland finally commenced operation of the CP Port Burwell
Subdivision from Ingersoll to Tillsonburg on Friday, February 26, using S6 500,
former Vancouver Wharves 29, once upon a time Southern Pacific 1240.
Nagel Tours Wine Train looks to be closer to operation in the Okanagan
Valley. The 22 former VIA passenger cars sold to Nagel Tours of Edmonton have all arrived
in the Okanagan Valley, with the exception of baggage car 9653, which is still in
Vancouver. The reporting marks for these moves was FTRN "Fun Train" not to be
confused with the now defunct Florida Fun Train. The consignee was GE Capital Railcar. Now
on site: coaches 5473, 5487, 5532, 5603, 5654, 5585, 5440; Cafe lounge 752, 755; E series
sleepers 1128 Elmsdale, 1137 Enfield, 1157 Evelyn, 1153 Eldorado; and steam generator
15475. Club galley cars yet to come. Reporting mark is FTRN (Fun Train?). CN power is to
be used in 1999; leased power in the year 2000. Cars to be kept in Kelowna in the off
season.
Four commuter coaches from Montreal have been sold for use on the Timber
Train, ex. AMT/STCUM/CP nos. 815, 824, 828, and 829. They were once steam-heated,
but are now HEP. The other two cars planned for use this season are ex VIA Coach/Cafe
Lounge 3034 and coach 5488. The cars will be numbered 3600 (3034) and 7600-7604 (5488 +
four 800's). The first two digits of the new number indicate the seating capacity. The
power will be FP9Au's 6303 and 6312. The 6312 has a steam generator however the 6303 has a
big hunk of concrete in lieu of the steam generator.
MOTIVE POWER
CNR:
New SD75's delivered to CN from Alstom: Feb 19 5772, March 3 5773, March 14 5774, March
16 5775, March 19 5776, 5777 March 26.
The following Canadian National Locomotives were retired during March 1999: March 3:
SD40 5004, 5036, 5044, 5052, GTW GP38 6202; March 5: GTW GP38 6204, GP40 6400, 6402, 6403;
March 8: SW1200RS 1367; March 9: SD40 5041; March 11: SD40 5016, 5121; March 15: SW1200RS
1359, SD40 5014, 5032, 5053; March 17: GTW GP9 4520 GTW GP38AC 5804, 5805, 6208, 6211,
6213; 6219, 6220; March 22: SD40s 5003, 5105. March 23: SD40 5007, 5019, 5178, GTW SD38's
6251, 6252, 6253, 6254; March 26: GTW GP38AC 5811, 6209, 6212.
CN GMD1 1063, formerly 1163, originally built as 1063 was released from Transcona Shops
in Winnipeg on February 24, 1999. Unit 1063 received its A1A-A1A trucks from GMD1m 1602,
which received the B-B trucks from unit 1163 (1063). Unit 1602 will be renumbered 1432.
The only remaining main line trackage of 60 pound rail on CN is 105.4 miles of the Lewvan
Subdivision, from mile 1.4 to mile 106.8. CN operates, from the Regina end, from mile
106.8 to Estlin, mile 100.4 only, as there are no customers on the balance. There are cars
stored along the line, so it will see the three GMD1's 1600, 1063 and 1601 eventually.
Five former CN switchers owned by Canac were recently scrapped in Montreal. These were
SW1200s CFMG 103, SW1200 7731, and SW900's 7907, 7914, 7937, and 7938.
Of the four ex-CN GMD1's heading to the Dardanelle & Russellville, only 1143 will
go to the DR. 26L brake units 1151, 1155, and 1159 are going to the Ouachita Railroad in
Eldorado, Arkansas. Both roads are owned by the same company.
CPR:
Retired CP GP30 5001, which is to move to the Broadway Motors agent in Calera, Alabama,
it's a location on CSXT. Apparently CP SW1200RS 8100 will also go there. The Calera &
Shelby shortline, is a former L&N line which runs east of this location.
Former CP GP35s 5003, 5004, 5007, 5020 have been sold by Helm to the Fort Worth and
Western Railroad in Texas.
As of March 29, 1999 the CPR had 32 SD90MAC's in service.
The first SD40-2B units are now in hump service at Toronto's Agincourt Yard. The units
are high-hooded former NS locomotives now CPR numbered 5476, 5478, 5480, 5481. The hump
units consist of one GP9u with an SD40-2B at either end. The unique LCS hump control cab
SW1200RS 1214, proved unsuccessful and was replaced by GP9us.
The following CPR/SOO locomotives are now stored unserviceable: CP SW9u 1204; SW1200RS
8138, 8142; SD40-2 5449; SD40 5504, 5516, 5535; SD40-2s 5589, 5622, 5628, 5632, 5646,
5710, 5740, 5855, 5963; Soo GP7 378; GP9 401, 410; SD40 750, 753, 773, 787; MP15AC 1422;
MP15DC 1435; GP9u 1541, 1545; GP38-2 4421; GP40 4607, 4617; SD40 6401; SD40-2 6609.
Eleven SOO Line SD60's have been transferred to Agincourt Yard, Toronto: 6017, 6024,
6025, 6028, 6030, 6032, 6035, 6039, 6040, 6050 built between 1987-1989. Eventually there
will be forty such locomotives based at Toronto Agincourt. This will allow older SD40
series locomotives to be placed in long-term storage.
SHORTLINES & OTHERS:
Renumbering of retired CN SD40's being outshopped from Alstom: CN#-NBEC#: 5087-6900,
5040-6901, 5065-6902, 5057-6903, 5021-6904, 5010-6905, 5080-6906, 5064-6907, 5067-6908,
5070-6909, 5077-6910. SD40s 6900 to 6903 will be lettered New Brunswick East Coast and the
units 6904 to 6910 will be lettered Chemin de Fer de Matapedia et Golfe. Units 6900 and
6906 were released from Alstom on March 26, 1999.
RaiLink Mackenzie Northern returned GP9u 4017 March 1, 1999 and moved GP9u 4016 over to
the Lakeland-Waterways. The two SD40's leased to RLGN, 5060 and 5215, returned to CN March
15.
Goderich & Exeter has returned GP40-2's 9643 and 9661. QGRY has returned GP9's
4012, 4117, 4119 to CN, and is now leasing GP40-2's 9637 and 9639. Omnitrax's Hudson Bay
Railway has forwarded the following EMD's back to the Central Kansas in Witchita: GP7
2500, GP35 2501, GP20's 2505 and 2506, and GP7's 2507, 2509, and 2510. Canac has leased
retired CN SW1200RS units 1338 and 1353 to Fina Oil in Houston, Texas.
Retired VIA FPA4 6765, now at the Canadian Railway Museum, is to be painted in the 1961
CN colour scheme, hopefully by the end of the spring of 1999.
Remanufactured BC Rail C30-7u (C36-8E) 3622 moved to BC Rail in late March. This unit
is ex HLGX 6703, nee Conrail 6603, and is one of six being done. RaiLink SD10 1802 was
enroute to RaiLink Mackenzie Northern in late March.
As Vancouver Wharves in British Columbia will now be switched by BC Rail, the fleet of
locomotives consisting of SW1500 820, 821, 823 and SW1200 822 are up for sale. Slugs NREX
82 and 83 are now being used at Neptune Terminals in North Vancouver BC.
Thank you to the following individuals for contributions for the
May 1999 Canada Calling: Rainer Auer, Will Baird, Phillip Blancher, Brian Bukowski, Gerry
Burridge, Bruce Chapman, Tim Green, Doug Hately, Roman Hawryluk, Joseph F. Kazmar, Randy
Kotuby, Jim Little, Doug Page, Carl Perleman, Earl Roberts, Jim Sandilands, LGR Smith, Rob
Sterne, Mike Swick, Drew Toner, Terry Wolfe.
[ DEPARTMENTS ] |
