Prince George - The deal is done, except for the paperwork.
 
By mid-July it's expected that BC Rail will officially be sold to CN Rail, following the announcement of approval of the sale by the Federal Competition Bureau.
 
"It's the good news we've been waiting for almost with baited breath," said Prince George Mayor Colin Kinsley on Friday.
 
"The good thing is that the Competition Bureau did their job, which was to see that competition will remain and that it will be viable."
 
The $1 billion deal will bring a wide range of benefits to the north, including some hard cash, which Kinsley says will bode well for the local economy.
 
Benefits of the deal, according to the mayor and B.C. transportation Minister Kevin Falcon, include the establishment of a $135 million Northern Development initiative, the establishment of a regional CN office here, the opening of a new $1 million state-of-the-art CN wheel shop, as well as a $4 million payment to improve the terminal and runways at the Prince George Regional Airport.
 
"This all bodes well for Prince George," said Kinsley.
 
"This is great news for British Columbians and communities all along the BC Rail corridor," Falcon said, after confirming the Competition Bureau's approval.
 
"I am pleased this billion dollar investment can proceed as the Competition Bureau's review has now concluded. It has taken a little more time than originally anticipated, but I am confident the bureau's process provides the assurances British Columbians need that this partnership provides improved services for shippers and communities."
 
With the good news, however, there will likely be some bad.
 
Falcon confirmed in a news conference Friday that he has been told there will be as many as 180 involuntary layoffs over three years following CN's takeover and that 250 employees will be eligible for early retirement.
 
"The greatest certainty for job protection is a vital, thriving, railway," says Falcon.
 
"With CN, it's going to mean reduced rates for shippers and I believe that will revitalize the economy of the north."
 
He says "hundreds of jobs will be created" as a result of the deal, and when questioned as to why the government would sell a company like BC Rail, which pulled in a reported $100 million in profits last year, Falcon reminds all of the debt load the railway has been carrying.
 
"Remember that over the last 15 years BC Rail racked up over $1 billion in losses and a half-billion in debt," said Falcon.
 
Servicing that debt, Falcon said, cost the province about $30 million a year.
 
"I talked recently to a former BC Rail CEO, he was CEO for 10 years and he told me this is the single, smartest move the government could make," said Falcon.
 
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