CN CNR CNI
announced today plans to start freight service on approximately 75 per
cent of the rail network operated by bankrupt short-line Kelowna
Pacific Railway Ltd. (KPR) in southern British Columbia after reaching
trustee, customer and labour agreements that support resumption of
operations.
KPR, which leased its network from CN in 1999, entered receivership on
July 5, 2013, and halted operations. CN this week reached mutually
satisfactory agreements with the line's trustee to take it out of the
bankruptcy process, Tolko Industries Ltd., the main customer on the
line, and the Teamsters Canada Rail Conference (TCRC) and
TCRC-Maintenance of Way Employees Division (TCRC-MWED). The TCRC and
TCRC-MWED represent approximately 35 locomotive engineers, conductors
and track maintenance workers employed by the insolvent B.C. short-line
railway.
Jim Vena, CN executive vice-president and chief operating officer, said:
"I'm pleased to say that the parties were able to come together to
assemble the right business and labour conditions to justify the
resumption of rail traffic on the major portion of the KPR as well as a
sizeable capital investment required to protect rail service in the
region. We are targeting the resumption of operations as soon as
See full press release
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