CP Authorized to Abandon Part of its Owen Sound Subdivision, in Ontario

OTTAWA, October 12, 1995

The National Transportation Agency of Canada today authorized Canadian Pacific Limited (CP) to abandon the operation of the segment of its Owen Sound Subdivision from Orangeville to Owen Sound, a total distance of 71 miles, in the province of Ontario.

In arriving at its decision, the Agency considered the evidence filed by CP and all submissions received in response to CP'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, CP incurred losses of $1,292,976 in 1992, $1,309,754 in 1993 and $1,697,943 in 1994. Traffic over the same period was 576 carloads in 1992, 458 carloads in 1993 and 428 carloads in 1994.

There was no direct evidence to demonstrate that traffic levels would increase to eliminate the losses incurred by CP in operating the line. Consequently, the Agency determined that this segment of the Owen Sound Subdivision is uneconomic.

Under the National Transportation Act, 1987, the Agency must decide whether the line is economic, and if not, whether a reasonable probability ecists 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.

The abandonment will be effective in 60 days.

Irene Harrison
(819) 953-9959

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