2 November 2010

CP Rail Line Up Against the Ropes

Weeds grow up and around the unused Canadian Pacific railway line in
Renfrew County, including this section near downtown Renfrew.

Renfrew Ontario - A passionate plea from Renfrew County Warden Don Rathwell to the federal ministry of transportation and the local rail freight service review panel may create enough pause for thought to salvage the future of railway freight service in Renfrew County.
 
Or it may be just another unheard cry before the death of local railway service.
 
A letter dated 26 Oct 2010 refers to the "looming abandonment of the CP railway section" from Mattawa to Smiths Falls and the fact most of that 104-mile (or 168-kilometre) stretch of track runs mostly through Renfrew County.
 
Rathwell's letter says the county is afraid Canadian Pacific and the panel "have not grasped how this abandonment will adversely affect freight service in Canada. Let us state clearly that it will immediately result in cost hardships for our wood-processing industries and it will unquestionably discourage potential investors, who require bulk transport options, from locating in Renfrew County."
 
The railway that in recent years has been called Ottawa Valley Railway was "the steel ribbon that brought Canada together" and that remains an essential communication, transportation, and cultural corridor, writes Rathwell.
 
On 4 Feb 2010 the Canadian Pacific Railway Company advertised its intention to sell its Chalk River subdivision from Smiths Falls to just north of Petawawa, or to discontinue operating the line if it is not transferred.
 
No buyers have come forward, therefore Canadian Pacific, as required by law, has offered its interest in the line to the Canadian government.
 
Early this week, neither MP Cheryl Gallant's office nor Canadian Pacific spokesman Kevin Hrysak were aware of any available buyer. There were two potential buyers a few months ago, said Hrysak, but those expressions did not result in completed offers of purchase.
 
"I don't think there's been any (recent) movement at the federal level," said Hrysak.
 
An expression of interest, however, could include an expression "for any operations they want," he said.
 
The first of four 30-day "offers of interest" periods ends Friday this week.
 
The next 30-day period is for the Ontario government, which would have until 6 Dec 2010 to provide written acceptance to Canadian Pacific.
 
If that deadline passes by 5 p.m. on 6 Dec 2010, the offer to acquire the line will be in the hands of the urban transit authority (the City of Ottawa) through whose territory part of the railway line passes.
 
The city would have until 5 Jan 2011 to make, or find, a purchase of the railway line.
 
If that period passes, the County of Renfrew would have until early February to buy the railway or find a buyer.
 
After that, Canadian Pacific would be in position to start discontinuing or salvaging the railway, said Hrysak. That would likely mean ripping up the railway and selling the line's wood, steel, and/or other equipment.
 
An estimated price tag of about $90 million for the railway makes it almost virtually certain the county won't be a buyer, according to Petawawa mayor and county councillor Bob Sweet.
 
"We don't have the resources. Plus, it's not one of our core responsibilities," said Sweet. "We're almost getting drawn into this by default."
 
Without adequate transportation for industry, industry isn't going to come to the market, he added.
 
That could change if the extension of Highway 417 through the county happens in the short-term, says Sweet. But that possibility seems remote, seeing that Highway 417 has only come as far as Arnprior, where a major bridge and four-laning is being built.
 
REASONS FOR CONTINUANCE
 
So, the clock is ticking, as county officials hope Warden Rathwell's letter offers some motivation for a buyer.
 
In his letter, Rathwell listed seven "significant" reasons for saving the railway, including:  1. the lack of municipal finances to operate a railway;
 
2. the need for rail transportation to support reinvestment and growth in the forestry and mining sectors;
 
3. Canadian Forces Base Petawawa's need of the line to deploy large amounts of equipment;
 
4. Atomic Energy of Canada Limited's use of the railway to securely and safely transport radioactive and related equipment.
 
Rathwell's letter asks Minister Merrifield and the review panel "to allow additional time for discussion and for government consideration of management options for the OVR."
 
Rathwell also suggested the federal and provincial governments jointly develop a solution to maintain the OVR section of the Canadian Pacific line, perhaps modelled on the Ontario Northland Transportation Commission.
 
In conclusion Rathwell said the corridor has been paid for by the people of Ontario and Canada and by corporate Canada "over more than a century and it is our duty to preserve this invaluable investment."
 
NDP Resolution
 
Meanwhile, the local New Democrat riding association has passed a resolution calling on the federal government to purchase the railway line running through the county.
 
"The time for talk is over, this vital community asset is on life support," said local riding president Susan McSheffrey of Renfrew in a news release.
 
"All the federal government has to do is buy the line at net salvage value. There would be no risk as the right of way is a valuable transportation corridor and, if necessary, the rails can be sold for scrap at a profit," added McSheffrey.
 
"With light rail networks all over the country and two heavy users of the existing line, in AECL and Base Petawawa, there should be no question about the need for this railway."
 
Steve Newman.