Canadian Shipper


CPR selling Alberta rail line

Canadian Pacific Railway (CPR) is selling a low-density railway branchline in southern Alberta, in accordance with discontinuance procedures of the Canada Transportation Act.

The 158-km(98-mile) branchline, known as the Lomond Subdivision, is situated between Vauxhall and a point just south of Blackie, Alta.

CPR first announced this railway line was a candidate for discontinuance with the update of its three-year network plan in May, 2000.

The railway says that traffic on this line has been steadily decreasing in recent years, with very few carloads in 2001.

In accordance with CTA guidelines, parties interested in acquiring the line for railway operations must make their interests known to the railway in writing by March 19, 2002.

The railway must meet certain conditions before it can discontinue service on a line. First, it must offer line discontinuance candidates for sale to the private sector. If there is no interest in the marketplace, the
railway must then offer the line to the federal (under certain circumstances), provincial and municipal governments.

Unless CPR receives expressions of interest in the Lomond Subdivision by March 19, and an agreement to purchase is reached within six months of that date, CPR may offer the line for sale at net salvage value to the provincial
and adjacent municipal governments.