CN Authorized to Abandon Part of its Newmarket Subdivision in Ontario
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OTTAWA, September 21, 1995
The National Transportation Agency of Canada today authorized the Canadian National Railway Company (CN) to abandon the operation of the segment of its Newmarket Subdivision from Barrie to Longford, a total distance of 30 miles, in the province of Ontario.
Under the National Transportation Act, 1987, the Agency must decide whether the line is economic, and if not, whether a reasonable probability exists that it will become economic in the foreseeable future. If the line is uneconomic and likely to remain so, the Agency must order its abandonment. If the line is economic or is likely to become economic in the near future, then the Agency must determine whether it is in the public interest to retain it.
In arriving at its decision, the Agency considered the evidence filed by CN and all submissions received in response to CN's Notice of Application and the Agency's Notice of Actual Loss and Preliminary Environmental Screening Report.
The Agency determined that in operating the line, CN incurred losses of $706,712 in 1992, $700,340 in 1993 and $601,484 in 1994. Traffic over the same period was only one carload, in 1993. Consequently, the Agency determined that this segment of the Newmarket Subdivision is uneconomic.
Further, there was no direct evidence to demonstrate that traffic levels would increase to eliminate the losses incurred by CN in operating the line.
The abandonment will be effective in one year from the date of the order. This will provide time for VIA Rail Canada to assess its needs and possible alternatives, including the acquisition of this line.