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While OmniTRAX Inc.'s Hudson Bay Railway failed — and Ferroequus Railway Co. Ltd. continues trying — to obtain running rights to Canadian National Railway Co.'s and Canadian Pacific Railway's grain shipper-serving Saskatchewan and Manitoba lines through Canadian Transportation Agency, CPR and short-line holding company Cando Contracting Ltd. Feb. 21 reached their own line-use agreement.
CPR agreed to lease its 58-mile Winnipeg Beach Subdivision line in Manitoba to Cando's 118-mile Central Manitoba Railway Inc.
Under the long-term lease, which is subject to certain conditions, Cando would provide service on the line and connect with CPR's Winnipeg mainline. Cando also would provide CPR haulage services to and from Imperial Oil's Birds Hill, Manitoba, facility.
CPR and Cando officials expect to close the transaction by early summer, at which time Central Manitoba Railway would take over service on the line that runs north from Winnipeg to Gimli, Manitoba.
Officials of both railroads believe the deal will provide continued rail service to line shippers despite recent declining volumes.
Employees affected by the transaction would be covered by collective-agreement provisions.
Cando also owns and operates 202-mile Athabasca Northern Railway and 63-mile Barrie-Collingwood Railway.