OTTAWA — Canadian National Railway Co. is going to the courts in a bid to keep a small railway off its tracks, the National Post reports.
CN is disputing a decision by Canada’s transport regulator, the Canadian Transportation Agency, to hold a hearing starting April 29 on an application by Edmonton-based Ferroequus Railway Co. for running rights on some of CN’s western lines.
“Ferroequus is a ‘virtual railroad’ with no network, no employees, no locomotives and no rolling stock. Its running rights application is an attempt to enter the rail business, not by investing in its own network, but by “cherry-picking” CN traffic through regulatory means,” CN said in a statement yesterday, in which it announced it will apply to the Federal Court of Canada.
“Ferroequus’ request, if granted, would effectively permit the expropriation of a key segment of CN’s network in Western Canada by a company that did not build it, does not maintain it and is not responsible for upgrading the service it provides.” Ferroequus applied last October for the right to run and operate its train on CN lines running from Lloydminster, Sask. and Camrose, Alta. to Prince Rupert, B.C.
It plans to pick up grain traffic from lines operated by Canadian Pacific Railway Co. on the prairies and has said in the past it only wants to introduce competition into the rail system to give shippers choice.
CN said Ferroequus has already been rebuffed twice by the agency in efforts to win running rights on its tracks and a third application is “an abuse of process”.
CN and CPR have both vigorously opposed efforts in the past by other railways to use their tracks.