CN Authorized to Abandon Operation Between Harlaka and Saint-Romuald, Quebec
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OTTAWA, February 22, 1996
The National Transportation Agency of Canada today authorized the Canadian National Railway Company (CN) to abandon the operation of 7.77 miles of the Montmagny Subdivision, between Harlaka and Saint-Romuald, in the Province of Quebec.
In response to an application by CN, an abandonment order was issued by the Agency on April 3, 1991; the effective date of abandonment was to be April 4, 1992. This date was varied twice by the Agency at the request of CN and VIA who needed additional time to arrange for a new VIA station at Charny. When this could not be accomplished, the Agency's abandonment order was rescinded, on March 16, 1993, by the Governor in Council. Under the National Transportation Act, 1987, the Agency is required to reconsider applications at least once every three years. This reconsideration process was initiated on September 6, 1995, with publication of a notice by the Agency, inviting public submissions on this matter.
Under the Act, 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.
The Agency determined that in operating the line, CN incurred losses in 1992, 1993 and 1994 of $155,048, $208,285 and $334,598. As well, the Agency did not receive any direct evidence from interveners that traffic levels would increase to eliminate the losses incurred by CN in operating the line.
The abandonment will take effect one year from the date of the order.