VANCOUVER, B.C. — BCR Group, government-owned parent of Canada’s third largest railway, BC Rail, blamed a drop in freight revenue and the cost of running passenger trains for a wider loss last year, a wire service reports.
The British Columbia government company recorded a C$106 million ($68.4 million) net loss for 2001 as it took a C$100 million charge as part of the rail unit’s planned restructuring, according to a financial statement quietly posted on its Web site late last week.
BCR Group had recorded a net loss of C$6.7 million in 2000, including C$13 million in special charges.
The company, which operates about 1,500 (2,300 km) of track, said revenue dropped 10 percent to C$447.2 million due largely to lower coal and pulp shipments by the railway and lower container traffic at its wharf unit, BCR Marine.
BC Rail has announced plans to drop passenger service by the end of October. The company said the train between North Vancouver and Prince George is unprofitable and it cannot afford the C$30 million needed to replace older equipment.
The British Columbia government, which is struggling with a massive debt, has put BCR Marine up for sale, but has said it will not privatize BC Rail.
Despite the vow to keep the railway in public hands, a published report said Canadian Pacific Railway recently wrote the province saying it might be interested in buying some or all of BC Rail if the government changes its mind.