CN to resume service on major portion of Kelowna Pacific's shuttered line

CN yesterday announced plans to restart service on about 75 percent of the network operated by bankrupt short line Kelowna Pacific Railway Ltd. (KPR) in southern British Columbia after reaching trustee, customer and labor agreements that support the resumption of operations.

KPR, which leased its network from CN in 1999, entered receivership on July 5 and ceased operations. Earlier this week, CN reached an agreement with the line's trustee to remove it from the bankruptcy process. The Class I also forged pacts with Tolko Industries Ltd., the main customer on the line, and the Teamsters Canada Rail Conference (TCRC) and TCRC-Maintenance of Way Employees Division, which represent 35 locomotive engineers, conductors and track maintenance workers employed by KPR.

CN will resume operations on 97 miles of KPR's network from Campbell Creek, about 10 miles east of Kamloops, to Vernon, Lumby Junction and Lumby.

"We are targeting the resumption of operations as soon as we can ensure the track is brought back to a standard to ensure safe train operations," said Jim Vena, CN's executive vice president and chief operating officer, in a press release.

CN plans to abandon a segment KPR operated between Lumby Junction and Kelowna because of insufficient traffic. A 60-day discontinuance process under the Canada Transportation Act will begin soon, CN officials said.