America
Fraser and Thompson Canyons British Columbia - Floods in British Columbia over the weekend are wreaking havoc on Canada's two major
railways whose service to Western Canada is temporarily suspended due to washouts along their main rail lines.
Both CN and CP said their rail network in the B.C. interior has been out of service since Sunday following heavy downpours and mudslides.
Executives from both companies told an investor conference hosted by the Bank of Nova Scotia on Tuesday that rail engineers are "battling"
trying to get their rail network operational again.
"We're still sort of uncovering what it all means, but certainly that's our busiest corridor out in that region. Time will tell, but they're battling
trying to get our main line opened up," said CP Chief Marketing Officer John Brooks.
Brooks added that service outage is hurting all of CP'S commodity shipments, and specifically pointed to how its grain shipments, already under pressure this
year following drought conditions, will be impacted by the rail washout.
He noted that some of its shipping lines, specifically potash, have been diverted to other western ports that haven't been affected by the floods.
A CP spokesperson said the outage is located north of Hope, B.C. (Tank Hill milepost 87.1 Thompson Sub), about 120 kilometres east of Vancouver.
CN Chief Operating Officer Rob Reilly said the company's rail line is expected to be out of commission for "a couple more days" as engineers look to
repair the tracks.
He described the current situation as a "hiccup" and is viewed internally as a "short-term challenge."
"Quite frankly, we'll probably be out a couple more days," Reilly said.
"We've got some significant spots, and it puts probably both railroads out for that period of time. The volume will still be there. So then it'll look to
recover the railroad over the next several days coming out of that."
CN Chief Executive Officer JJ Ruest told investors that the current outages represent about five percent of the railroad's shipping volumes, but said the
company could make up any lost revenue by raising some of its shipping prices to move cargo within Western Canada.
David George-Cosh.
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