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The Railways of Canada Archives -- Canada Calling November 1999

Canada Calling
November 1999

by Bryce Lee

INDUSTRY NEWS

The CIT Group, Inc., has announced the acquisition of 40 SD90MAC/4300 high horsepower and 50 GP15D and GP20D road switcher diesel electric locomotives, from the Electro-Motive Division of General Motors Corporation. Deliveries will begin in the fourth quarter 1999, and deliveries for the GP15D road switchers, the largest order for new switcher locomotives in over 15 years, will begin in the first quarter 2000. It is expected the locomotives will be assembled at GM's London Ontario plant. The CIT Group/Capital Finance provides a wide array of equipment leasing and financial products to the rail and aerospace industries. Founded in 1908 and with over US$28 billion in total managed assets. For more information, visit www.citgroup.com. In addition to its present locomotive fleet of nearly 400, CIT maintains a fleet of nearly 40,000 freight cars. The sale of the new locomotives is EMD's first to an operating lessor.

Bombardier Transportation and its French partner Alstom have run into delays in delivering North America's first high-speed passenger trains. The companies revealed Sept. 1 they have told Amtrak they will be at least six months late in delivering 20 high-speed trains for use between Washington, New York and Boston. Spokesmen admitted that the problems, which emerged during tests at the test centre in Colorado, have to do with adapting European technology to North American tracks. The main problem is that the wheels wear down faster than expected as the trains round curves. For Amtrak, the U.S. publicly owned passenger rail service, the delay is a setback in efforts to attract more passengers in the heavily populated Northeast. Bombardier and Alstom will also suffer stiff financial penalties; amounting to between US$20,000 and US$270,000 a day on a graduating scale. The companies are using the technology of France's TGV high-speed trains. In Europe, the TGV rides on straight track built exclusively for high-speed service. In the Boston-New York-Washington York corridor, Amtrak's Acela trains will use existing lines with tighter curves. The trains are expected to have an operating speed of 233 kilometres an hour and a top speed of 266 kilometres an hour. Montreal-based Bombardier's share of the total order is C$972 million. It is building the train sets in the province of Quebec, and in Vermont and New York states.

A noticeable improvement in Japan's economy will have little immediate impact on Canada's embattled coal sector, industry leaders meeting at an international coal conference in Banff Alberta on Sept. 20, 1999. Japanese coal orders from Canada have been cut in the last two years as the economic recession in Asia left Japan with an oversupply of steel. Sluggish demand pushed down prices for Canadian coal companies and forced job cuts and other production curbs at coal mines in British Columbia and elsewhere when long-term contracts with the Japanese were renegotiated at lower prices and shipment levels. Historically, about half of Canadian coal exports are shipped to Japan. In recent months, the Asian economies have been recovering, led by Japan, where tax cuts, a government stimulus package and financial and corporate reforms have helped improve consumer confidence.

Demand for metallurgical coal from the Japanese steel industry is rising but that doesn't mean an increase in the low price for coal for Canadian producers. The export contract price for coal in Japan is about $41 US a tonne, while coal can be bought in the spot marketplace for about $32 US a tonne. Two years ago, the price was above $50 US. More than 200 international delegates were meeting in Banff for the 43rd Canadian Conference on Coal. Members of the coal association include Canada's major coal producers and coal-using utilities, the railways and ports that ship coal.

Shares of Canadian National Railway Co. and Canadian Pacific Ltd., owners of Canada's two largest railways, are set to rise as cost cutting and service improvements boost profits, Bloomberg News reports, citing financial publication Barron's. Montreal-based CN, whose stock has risen 400 per cent since it went public in 1995, is now the only railway in North America with ports on three major coastlines, and that gives it a chance to grow with north-south trade fostered by the North American free-trade agreement. Canadian Pacific Railway plans to lower its operating ratio, a key measure of railway success that measures operating costs against revenue, to 70 per cent from 82 per cent by 2001 at its rail division. James Lawson, a senior portfolio analyst at Toronto-based Guardian Capital, expects CP profit to grow 20 per cent a year until 2001, the paper said. CP said in July that it will cut 1,900 rail jobs, or 10 per cent of its work force, at its rail unit.

Public Works and Government Services Canada is currently seeking prequalification proposals from general contractors for the renovations to the Jasper railway station in Jasper, Alberta. The work is the first phase of several renovation phases and consists of all exterior restoration including roofing, all mechanical, electrical and interior finishes to about 70% of the building. The central interior part of the building occupied primarily by VIA Rail is excluded. All site work except for essential mechanical services is also excluded. Project is in the range of C$2 million. The "West Wing" of the building is to be completed by March 24, 2000 and the remaining work completed by June 23, 2000. The train station is a classified heritage building and is considered a landmark in the Jasper community.

Mexico's largest railroad, Transportacion Ferroviaria Mexicana (TFM) has just received the first of 75 Mexican-built General Motors locomotives. The locomotives were assembled at a plant in the central state of Hidalgo, where General Motors has a joint-venture assembly operation with Bombardier Concarril. The purchase of the 4,000-horsepower SD70MAC locomotives will be financed by a bank syndicate of the Export Development Corp., which is a Canadian export-import bank, and the German export-import bank Kreditanstalt fur Wiederaufbau.

CANADIAN NATIONAL RAILWAYS

CN has altered its plans for cleaning up polluted soil near its yard in Fort Frances. The soil is contaminated with diesel fuel. The company has dug two trenchs to capture the fuel. CN was planning on putting a third ditch on town property. That idea has now been put on hold. CN says it needs a few weeks to judge how well the present two ditches are working. After a review, the company will decide whether a third ditch is needed. Fort Frances town council has told the company to keep residents informed about the progress of the clean up.

On Friday Sept. 24, 1999 at 1330 EDT train 304 derailed 26 cars of an 94 car consist at mile 199.57 Bala Subdivision, station namesign Mowat. The derailed cars included 15 residue empty cars that last contained liquified petroleum gas and four loaded cars three of which contained anhydrous ammonia, and one that contained DC liquified petroleum gas. The car containing the LPG exploded upon impact of the derailment and two of the cars containing anhydrous ammonia leaked. There were no injuries as a result of the derailment. The train was lead by Dash 9-44CWL 2598 and SD75I 5663; with a total train length of 5889 feet.

Canadian National announced Sept. 23, 1999 the promotion of William F. Lyness to the newly-created position of assistant vice-president, coal for US operations. Lyness, 44, will be responsible for all coal-related sales and marketing for CN's U.S. operations, including the lines of recently-acquired Illinois Central Corporation. In the U.S., CN transports primarily thermal coal consumed by electrical utilities, while the coal it moves in Canada is largely exported to overseas steel makers. Lyness's most recent position was senior national account manager coal, for Illinois Central. Between 1986 and 1996, Lyness was director of coal marketing/market manager, metals and machinery, for the Chicago Central and Pacific Railroad Company, an IC subsidiary since 1996. He started his railroad career in 1979. CN's Canadian coal sales and marketing responsibilities will continue to be managed by Ken Schoor, assistant vice-president - coal (Canada). Both Lyness and Schoor will report to James M. Foote, CN's senior vice-president, sales and marketing.

Canadian National Railways has announced the donation of snowplow 55414 and Jordan spreader 50976 to the Wainwright (Alberta) Railway Preservation Society. Brian Kalin, Superintendent Operations, Pacific Division - Alberta District, made the announcement. This equipment is currently in Regina, and is expected to be delivered to Wainwright this fall. The snowplow and Jordan spreader will make excellent additions to the equipment displayed at Wainwright Rail Park, which is just south of the CN Mainline. The Society's collection which already includes ex CN sleeper "Matapedia", CN transfer caboose, CN fishbelly flatcar, and two "wooden" boxcars. "Matapedia" has been repainted from the "boxcar red" maintenance service scheme, back to her original splendour in the "green and gold" scheme.

CN Family Days at Toronto Ontario MacMillan Yard on Sept. 18 and 19 had newly repainted IC/CN E9 101 and Theatre Car 8006543 in attendance. The E9 locomotive, and theatre car were placed behind the locomotive and train which departed Gateway Intermodal in Harvey Illinois on train 143-16 of Sept. 16, 199, departure 2100 hours. The equipment was in Toronto over the weekend and was placed in train 143-20 departing MacMillan Yard, Toronto at 09:45 to Chicago, Illinois.

Canadian National announced Sept. 17, 1999 adjustments to the conversion price/rate of its 5.25 percent Convertible Preferred Securities due June 30, 2029, ("convertible securities") to conform with a planned two-for-one stock split of CN's outstanding common shares. The stock split, announced July 20, 1999, will be effected by way of a dividend paid exclusively in CN common shares. A dividend of one common share for each outstanding CN common share will be paid on Sept. 27, 1999, to shareholders of record at the close of business on Sept. 23, 1999.

As a consequence of the stock split, the initial conversion price for the convertible securities as of Sept. 24, 1999, will be halved to US$38.47595 per common share from US$76.9519 per common share. The adjusted price represents a conversion rate of 1.2995 common shares for each convertible security, compared with a pre-stock-split conversion rate of 0.6498. The convertible securities are convertible at the option of the holder, subject to the right of CN to extinguish such conversion rights upon certain conditions.

The Port of Halifax has a "huge opportunity" to increase its share of European container traffic destined for the U.S. Midwest, but that depends on aggressive cost reductions, better service and a new multi-user container terminal, said CN President and Chief Executive Officer Paul M. Tellier. Mr. Tellier, speaking to a dinner sponsored by Halifax Port Days on Sept. 16, 1999, said CN's C$3.5-billion acquisition of Illinois Central Corporation and C$250-million in container-terminal and tunnel investments have strengthened the Port of Halifax's ties to the U.S. Midwest and its competitive position in fast-growing north-south trade corridors between Canada with Chicago, Memphis, St. Louis, New Orleans, Kansas City, Dallas and Mexico City. Tellier said the U.S. Midwest market, with a population of 75 million people, represents the single largest opportunity for the Port of Halifax. "Container traffic from Europe to the U.S. Midwest is the fastest-growing component of the volume handled by the Port of Halifax," Tellier said, noting that the port handled 65,000 TEUs (twenty-foot equivalent container units) to and from the U.S. Midwest in 1998, a five-fold increase from 1994. With the recent arrival of new shipping lines, this volume will grow. "But right now, the Midwest market accounts for only 15 per cent of the total container traffic through the Port of Halifax. We can do more. There's a huge opportunity to increase Halifax's percentage of the amount of European traffic heading for the Midwest."

Tellier warned that the CN advantage, and Halifax's ability to accommodate post-Panamax container ships, are not enough for the port to fulfil its U.S. Midwest potential. Right now, the port is at a "critical juncture" -- it must reduce costs and improve service to outperform rival gateway ports on the eastern seaboard of North America. Tellier spelled out what Halifax needs to reach its potential: a new, state-of-the-art, multi-user terminal capable of lifting 300 containers per hour; flexible work rules, i.e. Halifax benefits from being a first-in last-out port, with ships arriving over the weekend. But triple wage rates at the peak times neutralize the advantage; aggressive cost reductions by the Halifax Port Authority to make the port attractive to more shipping lines, along with improved service quality. The authority must also keep the playing field level; all steamship lines calling at Halifax and all port facilities should receive fair and equitable treatment; assistance from the Nova Scotia government to help the port authority meet its new commercial mandate. The province must also give port infrastructure the attention it deserves in the National Infrastructure Renewal Program, expected to be announced this fall; federal government support for the port's new commercial mandate. With U.S. ports able to finance capital improvements through tax-free bond issues, Ottawa must come to the table with similar programs that enable Canadian ports to attract capital in the market; the Port of Halifax needs rail infrastructure and service that can make the land distance to the Midwest markets less of a factor. This requires dedicated unit trains, innovative service, and a logistic chain that extends beyond traditional line-haul rail services.

On Friday Sept. 24, 1999 on CN's Springhill Subdivison excessive precipitation caused closure of the track at mile 102.50, station name Calhoun. Approximately 150 feet of track was washed out; with water in places exceeding a depth of fifteen feet. Between mileposts 104 and 109 the water was almost a foot deep and rising. Trains were held at Evans, Amherst, Halifax and Moncton until the problem could be rectified.

Canadian National has launched a new truck/train freight service between Toronto and Montreal with new dual-mode RoadRailer equipment. The 53-foot RoadRailer trailers have all the latest features: air ride, 110-inch interior height, more than 4,000 cubic feet of capacity and maximum payload of 70,000 pounds. CN has spent C$13-million to acquire 200 RoadRailer Mark V trailers and 130 RoadRailer railroad bogies for the five days a week, service between Toronto and Montreal. Trains of up to 60 RoadRailers depart Toronto and Montreal at 2100, arriving next morning at 0500. Train length will increase as demand warrants. CN's Toronto RoadRailer terminal is at its Malport Terminal, located at 7675 Torbram Road, Mississauga, Ontario. In Montreal, the service operates from Taschereau Terminal (East Yard) at 8050 Cavendish Boulevard.

CN's RoadRailer service is owned and operated by Ecorail, a wholly-owned subsidiary of CN. RoadRailer technology is produced by Wabash National Corp. of Lafayette, Indiana. This is the same technology that has been operating successfully for some years on CP's St.Lawrence & Hudson division between Detroit Michigan and Toronto. CN's RoadRailer service is owned and operated by Ecorail, a wholly-owned subsidiary of CN. RoadRailer technology is produced by Wabash National Corp. of Lafayette, Indiana. This is the same technology that has been operating successfully for some years on CP's St.Lawrence & Hudson division between Detroit Michigan and Toronto.

There was a positive work block on both tracks of the Dundas Sub. from 2130 Sunday Sept. 19 to 0730 Sept. 20. 395-19 detoured via the Guelph Sub., with CN SD75 5636 and BNSF SD40u's 7330-7329, 35 loads, 83 empties, 6805 tons, by Brampton 1812-19. It was between mile 44.9 and mile 51.9, from east of Oxford to around Thames, both tracks. The positive work block on the Dundas Sub. was from mile 44.9 to mile 50.2, and was due to bridge upgrades. Only train 395 detoured. The only other time that this will happen again, will be on Sunday, October 3, with another block from 2130 Sunday to 0730 Monday. The plan for now is to detour trains 382, 391, and 395 via the GEXR. At the same time as this block, the CPR diamond at mile 50.8 will receive some work. An interesting new train service started the third week of September: train 265, Macmillan Yard to Cincinnati, Ohio, via Oakville; over the Oakville, Dundas, and Strathroy Subs. It is due to leave Toronto at 2200, Oakville 2330-0030, Flat Rock 1205-2105, arrive Cincinnati 1200. The first run of Sept.20 arrived at Flat Rock Yard Michigan with CN 5714, 5629, 77 cars, and left (now an IORY train) with Central Oregon & Pacific GP38 5153, and 39 cars. The run of Tuesday Sept.21 arrived at Flat Rock with 5622-2582, 108 cars, and left with IORY GP38's 3804-3864, and 68 cars.

CANADIAN PACIFIC RAILWAY

Canadian Pacific Railway is defending its testing procedures for car and train inspectors in Calgary's Alyth yards. About 100 former machinists and mechanics who were laid off wanted to bump into junior inspector positions, however many of the laid off employees didn't pass the safety test given to all applicants for the inspector jobs. Union officials say laid off employees face tougher testing than other job applicants. Car and train inspectors are responsible for the safety of trains being prepared for freight service. The tests include a series of six written tests and a practical exam requiring a thorough entire inspection of freight cars. The union representing the laid off CP employees is protesting that the company has a different set of testing standards for senior employees. Close to 500 employees were laid off last month at the Ogden shop yard.

Canada's greatest challenge is to make our businesses and economy more productive and competitive said David P. O'Brien, Chairman, President and Chief Executive Officer of Canadian Pacific Limited. In an address Sept. 27 to the 70th Annual General Meeting of the Canadian Chamber of Commerce in Edmonton, Mr. O'Brien framed the five "winning conditions" needed for Canada to survive and prosper in the 21st century. Canada must: lower taxes which will spur economic activity, promote innovation, create new job opportunities and lead to a higher standard of living; decrease the debt to GDP ratio as 26 cents of every dollar of government revenue goes to pay interest on the debt; improve education, training and life-long learning as it is brainpower that fuels the knowledge economy; reduce government regulation and inefficiencies that impede productivity and innovation; and enhance research & development efforts through more collaboration among business, universities and government to create stronger linkages to the marketplace. Mr. O'Brien warned, "If we fail, all our citizens will lose the opportunity for a higher standard of living and more rewarding jobs but, more importantly, we will have failed the next generation of Canadians; leaving them with high debt, high taxes, a lower standard of living, an uncertain social safety net, and fewer rewarding jobs opportunities."

CSX Transportation and the CPR are now telling the US Surface Transportation Board they'll try to settle their disagreement over the Canadian carrier's access to two New York City rail freight terminals. CP and CSX have clashed periodically over terms for CP's service to the city's customers ever since the Surface Transportation Board granted the Canadian carrier access to the New York market. CP ran its first train into New York on July 13. CSX took over New York City rail service on June 1 as a result of the division of Conrail assets with Norfolk Southern. In the latest dispute, CP asked the transportation board to grant wider access to the Harlem River Yard, an intermodal facility, and the Hunts Point Terminal, site of the metropolitan area's largest produce distribution operation. CP sought permission to serve Harlem River Yard directly, instead of through switching provided by CSX for a per-car fee. CP also sought regulatory approval to serve Hunts Point. CSX responded by saying that CP's plan could create operational problems by expanding the authority STB originally gave CP to serve the city. In earlier decisions, the board ordered CSX to provide switching service to Harlem River Yard for CP in an effort to avoid duplication of services in an urban area where the rail plant already is congested. During the third week of Sept. 1999, both railroads notified STB that they were pursuing a negotiated approach to their latest dispute and asked the agency to withhold action until November 1, 1999. The STB agreed to that request. A CP spokesman said the prospect for resolving the current issue brightened after informal discussions between executives of the two carriers.

The latest skirmish is the fourth time the two carriers have clashed over the CP's access to New York. CSX opposed the original request by CP to serve the city when the Conrail acquisition was being reviewed before the Surface Transportation Board. After CP obtained the right to serve New York, CSX won a regulatory round by limiting the application of those rights to traffic between Albany and New York City. The effect of that decision blocked CP from serving any customers in between those two cities. Just before the June 1 breakup of Conrail, the two companies argued again over the price that CSX would charge CP for switching and other services. The Surface Transportation Board sided with CP on that issue.

A cooperative alliance of state, city and private partners will provide the funding to build a new railroad freight terminal in downtown Detroit, an investment that officials say will be a catalyst for future development in the Motor City. The terminal will be built adjacent to the existing Michigan Central Depot for the Canadian Pacific Railway's eastern network. Canadian Pacific will use the site for its Expressway operation, which involves transporting truck trailers by rail between Toronto and Detroit twice daily. This new freight terminal could be operational early in the new year. The most measurable impact of the new operation will be to reduce truck traffic on Highway 401 between Detroit and Toronto, as well as ease congestion at the Ambassador Bridge and Michigan highways near the bridge. Analysts predict the project will bring an estimated 25 jobs to the region, generating approximately US$24.5 million in direct and spinoff benefits over a five-year period. Most important, is that the savings realized by shippers and carriers could reach 15 percent per train load. The St. Lawrence and Hudson Railway will provide half the cost of the terminal, with MDOT providing 25 percent and the city of Detroit providing the remaining 25 percent.

The Board of Directors of Canadian Pacific Limited has declared the following dividends as of Sept. 13, 1999. A quarterly dividend of fourteen cents ($0.14) Canadian per share on the outstanding Common Shares was declared, payable on October 28, 1999 to holders of record at the close of business on Sept. 27, 1999. A quarterly dividend of 35.3125 cents ($0.353125) Canadian per share on the outstanding 5.65% Cumulative Redeemable First Preferred Shares, Series A, was declared, payable on November 1, 1999, to holders of record at the close of business on October 1, 1999.

Canadian Pacific Railway's (CPR) new, C$37-million Vancouver Intermodal Facility at Pitt Meadows opened on Sept. 15, 1999. Representatives of the provincial government, the District of Pitt Meadows and CPR were among those gathered at the Pitt Meadows facility to mark the formal opening of the new 47-hectare (117-acre) freight-handling terminal. The terminal, located about 25 km east of Vancouver, is among the largest of 24 intermodal facilities operated by CPR, providing quick and efficient exchange of freight between rail line and trucks. It replaces the railway's lower-capacity Mayfair Terminal in Coquitlam, which opened in 1979.

The Vancouver Intermodal Facility at Pitt Meadows primarily serves the domestic freight market, handling up to 120,000 containers and trailers a year in and out of the Greater Vancouver area. CPR is also a partner in the newly opened Deltaport Intermodal Terminal, a 40-hectare (100-acre) facility near Roberts Bank that improves the handling of international, ocean-going freight. CPR's investment at Pitt Meadows, along with other projects in B.C., was stimulated by the provincial government's 1995 reform of railway property taxation. These reforms brought the railway property tax level in B.C. closer to that of other jurisdictions in Canada. During the five years prior to the accord, CPR investment spending in B.C. averaged about C$30 million, but since 1995 has risen to an average of about C$75 million a year.

On the St. Lawrence and Hudson: D&H, Buffalo, Selkirk, Binghamton, New York, Saratoga divisons the railway continued to have congestion problems, specifically at interchange points with rail partners in the North East US and between Canada and the US. Yards at Buffalo, Binghamton, Selkirk and Saratoga have remained at or near capacity. The congestion was still impacting service delivery capabilities with both the NS and CSX, and traffic moving on the CP north east network. As a result, shippers were being advised to continue to expect delays of 2 to 4 days on many shipments, for at least the next two to three months. CP could not predict when it would return to normal train operations however CP has added additional running trades from the Soo Line operations to supplement the tight crew situation on the D&H; additional management has been allocated to the yards to assist in the processing of traffic; new blocking procedures are in place to in processing traffic more quickly; in addition detour trains have been arranged with various other railcarriers.

CP trains 502/503 are continuing to detour Toronto via Buffalo to Chicago on the CSX (former CR/NYC) Water Level Route.

On Saturday Sept. 25, 1999 CPR conducted speed, braking and accleration tests on its new "Expressway" equipment; the new name for the replacement equipment for the Iron Highway system. The "Expressway" name is technospeak for what is in essence modified piggyback cars. The equipment was painted silver grey in color and consisted of a three platform and two platform configuration spliced with dynamometer car 62. Test were conducted on the Brockville Subdivision after the morning train departed Smiths Falls at 08:30. Car numbers were XPWX 2000 B-C-A in that order followed by dynanometer car 62, then followed by XPWX care 2001 B and 2001A. The reporting marks XPWX are meant to be read as "Xpressway." The train was powered by AC400CW 8534. Tests were also operated Sept. 16. On October 2 and 3, 1999 using the tests are to be conducted utilizing Soo SD60 6059 in place of the 8534.

The CPR Iron Highway facility located in Milton, Ontario (Galt Subdivison) is not yet complete. Tracks presently extend from Trafalgar Road in the west to the Hydro Spur east of 8th Line, except they have yet to be laid across the 8th Line proper. The Ontario Hydroelectric spur has been reconnected to the main line. It appears as if a truck turning area is being constructed east of 8th Line and a short piece of track, terminated by a buffer, is also being constructed. As there are still three properties in use on 8th Line between the tracks and north to highway 401 and the only access is from the south, it will be interesting to see how access will be maintained for these remaining properties once the Hornby facility is in full time use. For now the Iron Highway Expressway yard is temporarily on hold. In the interim a specialty "sprint" train numbered 912 is utilizing the yard as a transload centre for a specialty steel contract train which CP won from CN. The service has been operating since mid-Sept. with the train originating in Sault Ste Marie Ontario. The steel is destined for mills in Hamilton Ontario. A much talked about transload centre located on the site of the former TH&B/CP yard facilities at Aberdeen in west-end Hamilton Ontario is due to be the eventual home of the transload facility.

The construction of a dedicated high-speed train between downtown Montreal and Dorval airport is expected to start construction in 2000. A consortium, which includes the federal government and a CP Rail's subsidiary, St. Lawrence & Hudson has approved in principle a new service train that would take about 13 minutes to travel from Windsor Station to the Dorval airport terminal. There would be one stop, in Notre Dame de Grace, at Vendome where a connection can be made with the Metro. The feasibility study, begun six months ago, is in its final stages.

SHORTLINES

The first load of grain shipped on the Red Coat Road and Rail line pulled out of Ogema Sasakatchewan at the end of July. A group of farmers in the area got together and bought more than a hundred kilometres of track running from Pangman to Assiniboia. CPR had abandoned the line, and the grain elevators alongside the rails would have been closed too, if the short-line company hadn't come forward to take it over. The provincial highways department played a major role in helping the farmers jump through all the regulatory hoops to buy the line.

As of the first week of September, the status of the Cape Breton & Central Nova Scotia: GP50 3108 has been renumbered 5008 with the 3102 is the last one left to be done. All of the other RailTex locomotives have been renumbered to reflect their horsepower. RS18 3842 was parked with most of its doors flapping in the wind. It may be on its ninth life. Switching duties around Sydney were being done by GP50 5008 in early Sept. GP7u still has its stacks capped. GP40 4022 in the new Railtex corporate scheme of gray and red was being used in Stellerton, Nova Scotia for switching. Trains have been short of late, usually ten to fifteen cars; Devco has had another cave-in at its mine so the output will be further reduced. When the new natural gas refinery comes on line in Port Hawkesbury late in the fall there will be approximately twenty cars a day to and from the plant. Devco received a ship load of coal in early Sept.. There were at least three unit trains in service taking coal from Whitney Pier to the Victoria Junction washing plant. The ship offloaded half the coal at Whitney and delivered the balance to the pier at Port Hawkesbury. The coal is than transhipped into large dumptrucks which transfer the coal to the other end of the dock where it is loaded into CB&CNS hopper cars. The CB&CNS then take it a few miles to the Nova Scotia Power Corp at Point Tupper. Some of it may be taken to the Trenton plant as well near New Glasgow.

An Ontario Northland freight train operating on a former CN subdivison now owned and operated by ONR derailed east of Kapuskasing; in the tiny community of Gregroire Mills during the afternoon of Sept. 9, 1999. Nine boxcars derailed, spilling several tonnes of rolled newsprint and wood products. Constable Henry Olivieri of the Kapuskasing OPP says there was no threat to the environment, or local residents. Ontario Northland work crews are on the scene trying to restore service. Service resumed some 24 hours later.

Presently in the paint shop of the Arkansas & Missouri is ex-CP 4500, a MLW C630M. This will become A&M #70. All the ex-D&H ALCOs are in A&M paint and are in service. Here is a summary of the current status of A&M motive power: 58 exxx D&H 420, exx D&H 401, ex L&HR 29, nee CR 2077; 60 ex D&H 413, nee LV 413; 62 exx D&H 416, ex D&H 406, nee LV 406; 64 exx D&H 417, ex D&H 407, nee LV 407; 66 ex 412, nee LV 412; 68 exxx A&M 411, exx D&H 411, ex LV 411, nee IHRC 311.

The Elgin County Railway Museum in St. Thomas, Ontario will soon be adding a new piece of rolling stock to its already wide-ranging collection. Four of the board members headed off to the Canadian Railway Museum at Delson in Quebec Sept. 27, 1999 to prepare the former London & Port Stanley interurban #14 for its trip "back home" to St. Thomas. This example of Canadian interurban history was built in 1917 and was operated until the end of the passenger days of the L.& P.S. in the late 1950's. At just over seventy feet long, it was one of the longest cars operated. A definite arrival date is not known however #14 is expected leave Delson sometime during the first week of October 1999.

On Sept. 6, 1999 PLUX 000059, ex-C&O 6193, GP-9, was noted at the CSXT Rougemere Yard in Dearborn, Michigan. Locomotive was enroute to Vaughan Intermodal Terminal north of Toronto via CPRS. Plusar is now the name of the company performing the contract switching. The operation has SW7 72, SW1200RS 1254, and SW9 7703. StL&H trains 504 and 505 have come off the NS between Detroit and Chicago via Ft. Wayne and returned to CSXT rails across Michigan. The NS had the crews however they have so much traffic after the Conrail dismemberment that CP trains were not able to complete their trips in time and were frequently outlawing.

A consultant hired by the Ontario Northland Transportation Commission has proposed three alternatives to the current six days a week railway passenger service between Cochrane and Toronto. The best of these is dropping the train to a three times per week service; other alternatives call for replacement with buses or a combined bus-train schedule with rail involved for only part of the journey. It is clear the "powers that be" have decreed the way to go is the highway, regardless of its cost and dangers. At a recent public meeting on this, Transport 2000 Ontario proposed that before assuming the losses on the train were significant to examine the complete profit and loss statement for Highway 11/400, including capital and borrowing costs for the ongoing improvements. The consultant made it clear that Ontario will spend any amount of taxpayer money rather than operate a passenger train. A Transport 2000 brief calling for expansion of rail passenger service to give some choices to riders, proper intermodality and an expansion of parcel/courier business was ignored by the consultant.

The Trillium Railway Company started operations of a significantly enlarged Port Colborne Harbour Railway (PCHR), at 0300 hours Sunday 19 Sept. 1999. The new railway encompasses non-core Canadian National operations west of the Welland Canal. The properties included in this transaction include the Cayuga Subdivison from Robbins, MP 12.00 to Feeder MP 22.00; the Canal Spur from Feeder West MP 0.00 to Thorold Junction MP 14.00; the Thorold Spur from Thorold Junction MP 4.05 to Merritton MP 7.81; the West Welland Spur in the city of Welland MP 0.00 to 0.54; the Fonthill Spur in the city of Thorold MP 4.61 to 6.27; the Pine Street Lead in the city of Thorold MP 0.00 to 0.77; the Grantham Spur in the city of St Catherines MP 3.40 to 5.65; the Townline Spur at Merritton MP 1.78 to 4.10 and the Lakeshore Spur in the city of St Catherines MP 0.00 to 1.50, for a total of forty miles.

Trillium currently operates the existing Port Colborne Harbour Railway, the St. Thomas & Eastern Railway and is closely associated with the New York & Lake Erie RR which operates three short lines in the states of New York and Pennsylvania. Trillium Rail will be responsible for maintaining the track and roadbed. Canadian National Railways shall interchange at Merritton, Ontario with a provisal for an interchange at the south end of the line should traffic offering exceed the capacity of the Merritton interchange. Interchange is to occur five days per week, Monday to Friday. CN shall have running rights on the PCHR between Merritton and Robbins over the Thorold, Canal and Cayuga Spurs as a emergency detour route in lieu of the CN Grimsby and Stamford Subdivisons. Provision has also been made to regularly route Canadian National trains over the line should the CNR desire to do so. The CNR retains the right to turn locomotives on the wye at Robbins. The Port Colborne Harbour Railway shall have the following trackage rights on Canadian National between MP 9 and MP 11 on the Grimsby Sub at Merritton to facilitate interchange and also permit the short line to connect both halves of their properties. One of the conditions of this sale is that PCHR shall increase customer service from the current one to two day a week service level to five days per week. Customers have been kept informed from the beginning of the process through letters and business unit contacts. Present operation is a five days a week. Alco S-1 308 is the switcher assigned to Merritton and services the Thorold Spur, the West Welland Spur the Fonthill Spur, the Pine Street Lead, the Grantham Spur, the Townline Spur and the Lakeshore Spur in the city of St Catherines MLW M-420(W) 3575 is Mu'd with the Alco C-425 6101 and services all other trackage. In addition if there is a grain train to be delivered these two locomotives will utilize the old Cayuga Sub to Robbins to collect the train. Most of the time all three locomotives can be seen at Merriton station which now serves as operating headquarters for Trillium Rail.

The Port Colborne Harbour Railway and the St. Thomas & Eastern are now known collectively as Trillium Rail with no distinction being made between the two present operations.

VIA

VIA ran a special for the American Airlines Board of Directors on Saturday Sept. 25, 1999 from Toronto to Niagara Falls. It consisted of two LRC club cars, Park car 8706, and locomotive F40PH 6432. The special left Toronto at 12:40 and arrived at Niagara Falls at 14:20, where the passengers detrained, and the train departed at 1500 on a deadhead move back to Toronto. Train was staffed with two service attendants in each club car, one service attendant in the Park car and one service manager. No conductor of course, and two locomotive engineers.

Recent private car movements on VIA: the first is "Intrepid" and was identified as AMTK 800034, and was on train 15 on Sept. 17 out of Halifax NS, and moved to Toronto on train 65 on the 18th. A second car that arrived on Sept. 18 in Winnipeg was AMTK 800640, owned by the NRHS New Orleans chapter, and now leased to VIA for Churchill service. It had come into Toronto on VIA 88 from Chicago on the 17th. The second sleeper being leased to VIA for the Churchill service, AMTK 800355, belongs to the Sleeper Car Line which is owned by Alain and Richard Longpre of Montreal, arrived in Winnipeg on VIA No. 2 on Sept. 14 from Vancouver. The purpose of leasing these cars was to increase capacity on the "Hudson Bay", since it is now polar bear season in Churchill, the big tourist draw for the year. The leased sleepers can only be used on the tail end; which in turn allows VIA to release sleepers to be used on their transcontinental trains, and also give VIA a maintenance break on their own sleepers.

Federal Transport Minister David Collenette, Transport Minister, has delayed announcing his strategy for restructuring the ailing VIA Rail Canada Inc. until the late fall of 1999. He is drawing fire from opposition critics who say the VIA reforms are being sideswiped by departmental bickering and the airline crisis. More than a year ago, the Liberal government promised the Commons it would come up with a long-term strategy for VIA by Sept. 30, 1999 at the latest. Mr. Collenette recently rejected a solution proposed for VIA by a senior departmental taskforce, insiders said. Because VIA's C$170- million-a-year federal operating subsidy is insufficient, it has had to dip into capital reserves and it may face more cutbacks. VIA is operating the same system as it was six years ago with better products and more efficiently. In June Mr. Collenette dropped the idea of dividing up the national passenger network into three franchises and inviting the private sector to run the trains in each. He embraced "public-private partnerships" but insisted on "one seamless network based in Montreal with a national ticketing system." Faced with the Minister's repeated refusal to envisage raising VIA's official budget, short of needed operating funds by C$30 million plus, officials have apparently resolved to bite the bullet and draw up a list of cuts to the network.

The Minister could go to cabinet at any time and ask for 20 or 30 million and the money would probably be granted. In any case, the monies have been coming from VIA's capital budget and other federal sources, so a state of fact would merely be officialized and acknowledged. Minister Collenette, painted as a Trudeau-era spend and borrow profligate by right-wing media, is possibly just trying to hold the line to prove them wrong, but who knows? The cuts would be deep, and would affect the very core of the system including such runs as Niagara Falls and Sarnia, and who knows what else. It is expected the Transportation Minister will be going before the Federal Cabinet with his "final" proposal on VIA on October 21, so it is urgent that media, MPS, mayors, and Transport 2000 members understand what is coming down.

VIA FP9Au 6302, which disappeared from the West Island commuter runs after only a few weeks, operated to Northern Quebec with 6307, on the trains out of Montreal Sept. 3 and 6.

The VIA Northern Quebec train left Sept. 17 with 6300-6307, with 6302, which arrived the evening of Sept. 16, remaining at the shop in Montreal.

There was a Hamilton Tiger Cats football special operated Sept. 12, 1999, around 0600 out of Hamilton with five LRC cars and a 4100-series coach, units 6408 and 6425, to Montreal and return, back into Hamilton about 0030.

MOTIVE POWER

Canadian National:

  • Retired CN GMD1 1900 has been donated to the Midwestern Rail Association in Winnipeg.
  • New CN SD75 5796 was released from Alstom on Sept. 2nd. New SD75 5791 was received from GM in Toronto on Sept. 8th; SD75 5797 Sept. 21st.
  • The following CN units have been retired: August 30 GP40-2's 9428, 9595, 9621, 9633, and 9635; Sept. 1 GP40-2's 9422, 9562; Sept. 17 CN GMD-1 1166, 1170, GP9 4009; Sept. 30 CN 1153, 1167, 1362. Number of units returned so far in 1999, 103.
  • CN has retired the following cabooses: 79577, 179627, 79638, 79372, 79464, 79642, 79902 effective Sept.30, 1999.
  • The following CN GP40s in various configurations have been selected to be leased to the Kansas City Southern: GTW 6411, 6414, 6416, 6418, 6421, 6425; CN 9402, 9461, 9468, 9486, 9495. 9498, 9524, 9525, 9529, 9547, 9549, 9560, 9587, 9604, 9606, 9626, 9668, 9673, 9674, 9675, 9676.
  • The following six GTW GP38AC's are to be renumbered as soon as possible. From 5800, 5801, 5807, 6200, 6201, 6203 to 4997, 4998, 4999, 4994, 4995, 4996 in order to avoid conflict in part with the soon to be completed order of SD75s from Alstom.
  • The remaining GTW GP38-2's in the 5800-series, 5812-5836 and 5844-5861, will also be renumbered by changing the '5' to a '4', to avoid number conflicts with CN SD75s which are nearing completion.
  • As of Sept. 13, 1999 the following Duluth Winnipeg & Pacific units were being sent to BNSF to pay back horsepower hours owed: DWP SD40s 5904, 5905, 5908. GTW 6418 was sent Sept. 30, 1999 to the Indiana & Ohio Railway to payback horsepower hours owed.
  • The following Wisconsin Central units are presently on Canadian National Railways to pay back horse power hours: 6531, 6613 6609, 6635, 6653, 7500, 7518, 7581, 7589. WC units on CN for HPH are to be used on trains M34051/M34131 (between Walker Yard and Chicago), M34641/M34731 (between Symington and Chicago) and all trains between Symington and Superior.
  • The first of the 22 former GTW GP38AC's was released Sept.30 from Transcona shops in Winnipeg. The unit is numbered 2204 probably following 2203, the former NdeM 9275, and may just all become 2204-2225, but lettering and paint will be a big question and is waybilled to the Terminal Railroad Association of St. Louis at East St. Louis and has reporting marks TRRA. Unit TTRA 2204 was to be held at Symington until waybilling and customs issues have been settled. Once these are in place, this unit is to be sent on 176 to Markham then to Illinois Central for delivery to East St. Louis. This is the first of the LLPX units Locomotive Leasing Partners (formerly GATX and GM) which are ex-GTW GP38AC in the 5802-5811 (with gaps) and 6207-6220 number series.

Alstom:

  • Nine of the ten retired CP SD40-2's entered Alstom in Montreal the week of Sept. 1: 5447, 5449, 5484, 5596, 5608, 5628, 5659, 5686, 5740, for the BNSF rebuild program.
  • From Alstom, released August 31 were BNSF SD40u's 7308, 7311, 7312, and 7313, on Sept. 1 7300, 7301, 7305, 7307; Sept.2 7306, 7309, 7310, 7314, 7316, 7320; Sept. 3 7315, 7317, 7318, 7319, 7321, 7322, and 7323; Sept. 9 7324, 7325; and 7326; Sept.14 7327, 7328, 7329, 7330, 7331; Sept. 22 7332, 7333, and 7334 all waybilled BNSF.

Canadian Pacific Railway:

Soo SD40's 753 and 6402 have been sold to National Railway Equipment. Soo GP7 378, which was earmarked to be held for historical purposes has, instead been transferred to Ontario Southland, to join sister 383. The 378 was sent to ILS at Thief River Falls MN for new wheelsets before being shipped to Ontario Southland; the 378 was still at ILS the first week of October. CP has leased GP38-2 3046 to the Okanagan Valley Railway, since they have wrecked one of their GP9u's. Nine more CP SD40's will be sold to the Dakota Minnesota & Eastern, giving them a total of 24 former CP units. The 15 they have are to be DM&E 6068-6082, not in CP order, and the additional nine will take it to 6091.

Shortline Power:

  • QGRY C424m's 4223 and 4228 were in Binghamton, NY, enroute to Genesee Valley Transportation at Taylor, Pennsylvania. They left Montreal on train 556 Sept. 8, 1999.
  • Canac has sold the remaining five M420W's, 3500, 3504, 3515, 3563, and 3571, to Trillium/Nighthawk for use on the new Kelowna Pacific, startup date to be October 31, 1999.
  • CN 4000 is leased to NBEC-CFM, in addition to 4033, which has not yet gone to the IC. GP9u 7008 was replaced by 7049 which in turn replaced 7064 which was derailed and damaged on the Okanagan Valley Wine Train.
  • CN GP9u 4036 was leased to RaiLink at Brantford, Ontario. Former Inco RS18 208-2 from Thompson, Manitoba was sold to the Carlton Trail and will be the yard engine in Prince Albert, Saskatchewan.
  • The Alcos of the Belt Railway of Chicago have been acquired by Omnitrax, via Locomotive Leasing Partners. LLPX is EMDX and GATX joined together, always purveyors of EMD power, but the BRC will be getting SD40's from LLPX, and this is how the Alcos got to Omnitrax. The units are S6 420 and C424's 600 to 605.

Illinois Central:

  • The following five GP9u's have been sold to Kingsport Railcar Services, Chattanooga, Tennessee: IC 8292, 8312, 8447, and CC&P 8400, 8414.
  • IC 9631 is back in service from repairs are NRE-Dixmoor. And here are four of their "imports" that are out of service: CN 4012-SUS, GTW 4932-SSV, GTW 4933-SUS, and DW&P 5903-SUS.

Thanks to the following for information compiled in this edition of Canada Calling: Kevin Argue, Rainer Auer, Will Baird, Shari Boland, Kenny Borg, Brad, Bruce Chapman, Robert Heathorn, Peter Jobe, Joe Kazmar, Randy Kotuby, Richard Longpre, Bill Miller, Stephen Reeves, Jim Sandilands, LGRsmith, Michael Torzsok, Ian Taylot, Dale Wilson and many others...

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