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Rail News Home Maintenance Of Way

10/8/2003



Rail News: Maintenance Of Way

CPR, shipper agreement preserves low-density branch line


Canadian Pacific Railway recently reached a five-year agreement with shipper Diageo Ltd. designed to preserve rail service on a 36-mile branch line between Selkirk and Gimli, Manitoba.

The shipper agreed to use rail service and the railroad agreed to serve Diageo's Gimli distillery — which produces Crown Royal whisky for worldwide markets — twice a week and improve the line's infrastructure. Later this week, CPR expects to begin repairing a rail bridge north of Selkirk. CPR will deliver grain to the Selkirk plant and move finished products to Winnipeg.

"Local interest in maintaining the rail line to Gimli was overwhelming and we were pleased to reach a solution that works for everyone," said Ray Foot, CPR vice president of merchandise, in a prepared statement.

CPR previously explored several options for the line — including transferring ownership to another operator or discontinuing operations — because of low traffic volumes and track improvements the railroad deemed cost prohibitive.


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