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Rail News Home Canadian Pacific

7/6/2011



Rail News: Canadian Pacific

Seven Canadian towns seek feds' help to acquire CP line


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The leaders of seven Canadian municipalities recently called on the federal government to help maintain freight-rail service for their region in southwest Saskatchewan.

The municipalities, which include Glen Bain, Gravelbourg, Hodgeville, Lawtonia, Shamrock and Sutton, have joined together to seek a “net salvage value” determination from the Canadian Transportation Agency (CTA) for a Canadian Pacific line slated for abandonment between Hodegville and near Mossbank. The communities plan to purchase the line — which serves farmers and local businesses — and retain it as a short-line railway.

If the line is abandoned, farmers and other rail users “will be forced” to use long-distance facilities and truck transportation, the community leaders said in a joint statement.

CP is seeking to have a commercial value placed on the line, but the federal government should direct the CTA to calculate a final value by subtracting the fees that would be paid to the municipalities if the railroad were allowed to tear out the track, the leaders said.