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6/25/2002



Rail News: Rail Industry Trends

CN renders short line monetary, maintenance-of-way assistance


Canadian National Railway Co. June 25 provided Kelowna Pacific Railway (KPR) an assistance package, including new ties to help the 104-mile short line complete 286k-related trackwork and funds to build a rail-truck reload center.


KPR, which operates a line from Lumby and Kelowna to a CN interchange at Kamloops, B.C., in February 2000 began operating CN’s Okanagan Internal Short Line, increasing its traffic almost 20 percent by year-end 2001.


"CN’s aid package will improve KPR’s ability to capture additional traffic," said David Edison, vice president of CN’s Pacific Division, in a prepared statement. "This is also good news for CN, because our short-line partners are significant originators of CN traffic and key to our growth strategy."


CN officials believe Canada’s rail industry should urge the federal government to join major railways and short lines in financing line improvements that enable small roads to more efficiently transport greater freight volumes and divert traffic from highways.


"Federal participation in short-line track capacity upgrades — one element of a more balanced national transportation policy in Canada — would make more such upgrade projects possible," said Edison.


KPR is a joint venture of KnightHawk Rail, a wholly owned KnightHawk Inc. subsidiary, and 35-mile New York & Lake Erie Railroad.


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