CN in Fight with Small Railways
TORONTO -- Canadian National Railway Co. is fighting back against two small railways seeking access to its track network, the National Post reports.
In a filing with the Canadian Transportation Agency yesterday, CN argued that applications by OmniTRAX Canada Inc. and Ferroequus Railway Co. for running rights on its lines should be rejected because they seek more than the law allows.
In an unprecedented move in February, OmniTRAX's shortline subsidiary, Hudson Bay Railway Co., applied for permission to use 2,400 kilometres of CN prairie lines. The request is unusual not only because of the track distance but also because no one has used the Canada Transport Act's running rights provisions.
Ferroequus has applied to use lines between Saskatoon and Prince Rupert, B.C. Mark Hallman, a CN spokesman, said the two not only want to transit CN's lines but also pick up traffic along the way, something the Canada Transportation Act does not provide for.
"They're asking for one-sided access, the right to be able to solicit traffic from CN but no reciprocal rights," he said.
The transport agency has decided to rule on the scope of running rights and then assess the individual applications. A ruling on scope is due in mid-April.
Officials from OmniTRAX said yesterday they are confident.
"We believe that the act was intended to provide for competitive access," said Gary Rennick, chief operating officer of OmniTRAX.
The shortline railways' bid comes when the access issue is foremost in
the mind of regulators and a major subject of a special panel reviewing
the transport act.