CN to Start Service on 75% of Bankrupt Kelowna Pacific Railway

CN

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