18 April 2010

ONR Asks to Fill Route Void

North Bay Ontario - Ontario Northland Railway wants to operate the Canadian Pacific line between Sudbury and Temiscaming, Quebec.
 
Railway spokeswoman Beverly Martin confirmed it has filed an "expression of interest" with CP Rail to replace RailAmerica's Ottawa Valley Railway as the operator.
 
Discussions are ongoing, Martin said, adding details are not public because it's a confidential process.
 
The ONR's freight division is also negotiating to continue transporting Xstrata's copper and zinc to new destinations at refineries in Quebec.
 
More than $8-million in ONR revenue is scheduled to be lost when Xstrata closes its Kidd Creek metallurgical site in Timmins on 1 May 2010.
 
Brian Kelly, chairman of the General Chairpersons Association representing four unions with 800 ONR members, said the Xstrata revenue represents almost 25% of freight revenue.
 
Martin said they are implementing internal cost reduction exercises to mitigate the lost revenue, including a reduction in train starts to save fuel and contain expenses.
 
The full impact of the lost freight traffic won't be felt until mid-June, she said.
 
There have been no recent layoffs, but Martin said "we're continuing to look at all of our options as far as cost reductions."
 
Ideally, he said, the ONR could operate the line between Sudbury and Smith Falls and he would like to see an east-west passenger line between Sault Ste. Marie and Smiths Falls.
 
Three organizations, including the ONR, are interested in the line between Sudbury and Temiscaming.
 
Dave Dale.