The passage of Bill C-155 abolishing the historic Crow's Nest Pass freight rates is a "significant event" which CP Rail says will permit it to confidently plan the level of railway capacity and service necessary to transport increasing quantities of grain and other vital commodities.

The Western Grain Transportation Act was proclaimed law 17 Nov 1983 by Mr. Justice Brian Dickson after it was passed by the Senate.

The act establishes increases in the grain freight rates through to 1991 and provides the railways with an annual subsidy to assist them with their multi-billion dollar expansion of their rail systems.

In a statement, the railway said the act "will permit CP Rail to move ahead with track work, expansion of construction of maintenance and repair facilities, improvements to its locomotive fleet, addition of new traffic control systems, and other projects to meet traffic demands of the future".

The first priority will be the Rogers Pass tunnel and double-tracking project, it said.

Construction is to start in the spring and will take about four years to complete.

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