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BC Rail Ltd. and two OmniTRAX Inc. short lines recently withdrew as members of Association of Regional Railways of Canada (ARRC), a group formed in September 2001 to promote the interests of Canadian regionals and short lines.


The railroads' officials cited recent cost-reduction initiatives as the primary reason for their decision, according to a prepared statement.


"We are, of course, disappointed with [their] decision to withdraw from ARRC at this time, but we understand the circumstances that have led them to this decision," said AARC Vice President Cindy Hick.


BC Rail and OmniTRAX officials plan to continue supporting ARRC's mission.


"It is particularly important that Canada's short lines and regional railways have a strong and independent voice at this point in our history, when Transport Canada is considering its Transportation Blueprint and stakeholders debate prospective changes to federal railway legislation for the future," the railroads said in a joint statement.


OmniTRAX's Hudson Bay Railway and The Carleton Trail Railway, and BC Rail were founding members of ARRC, along with Ferroequus Railway Co. Ltd.