BC Rail Take Over Moves Ahead

The billion dollar takeover of BC Rail has cleared its final obstacle.

The Federal Competition Bureau has registered a consent agreement with the Competition Tribunal, clearing the way for CN Rail to take over the operations of BC Rail.

BC transportation minister Kevin Falcon says key benefits of the deal include:

Continued public ownership of BC Rail's rights-of-way, railbed and tracks.

Retiring BC Rail's outstanding debt.

$135-million Northern Development Initiative.

$15-million First Nations Benefits Trust.

$32-million investment in a new container terminal at the Port of Prince Rupert.

A new district rail office, wheel-work and systems shop in Prince George.

Reduced rates and shipping times for shippers, along with 600 new rail
cars.

CN Rail says that once the deal closes at the middle of the month, integration of the two railways will begin. The railway estimates that there will be reduction of 430 personnel. 250 will be offered early retirement. The Council of Trade Unions will meet with CN next week to discuss the integration.

Not everyone is happy with the plan.

The Council of Trade Unions says the 430 job loss could be conservative, and they don't understand why the BC government would sell off the profitable railway.

The NDP opposition says that the the Liberals are breaking a campaign promise by privatizing the provincial railway. They say that the $39 million in taxpayers' spent on the endeavor so far is a waste of money.

“How can the Premier justify his mismanagement of millions of dollars while surgery waitlists grow, hospitals are closing, and long-term care beds are being reduced?” says NDP Leader Carole James.