(The Globe and Mail posted the following article on its website on May 22.)
OTTAWA — Canadian Pacific Railway Ltd. says it intends to file an expression of interest in BC Rail Ltd. within 10 days, proposing a public-private partnership between the Calgary company and the nation s third-largest railway.
The company’s CEO had said last month that he would be interested in buying BC Rail, a Crown corporation, if the province would sell it.
Last week, the B.C. government issued a request for proposals, saying “BC Rail could best achieve its operating objectives with the commercial support and financial participation of the private sector. The province said, however, that it wants to retain ownership of the railway land, bed and track.”
“We strongly believe we can leverage our network of rail lines, connections and alliances to meet their needs and to achieve sustainable efficiencies for BC Rail, ” Rob Ritchie, CPR’s CEO, said.
“We will put forward a public- private partnership proposal that is structured to deliver these benefits. ”
In April, Mr. Ritchie said the railway is eyeing additional traffic from B.C. Rail’s forest products business and added that the sale of BC Rail would have moved more quickly if it had not been for delays caused by the province.
“Obviously the government is trying to find the balance between economic efficiency on the railway, providing competitive services for the shippers, and serving the community,” he told reporters in April.
But unlike unlike Canadian National Railway Co., which says it’s interested in BC Rail, CPR doesn’t physically connect to the BC Rail network.
CPR said in a statement Wednesday that it has “extensive track connections to other carriers offer more opportunities for N.A. markets.”
“As one of the continent’s premier railways, we can address the provincial government s requirements of sustainability, competitiveness and growth for BC Rail and the region it serves. We want CPR’s participation to be good for shippers, for communities, for government and for us,” Mr. Ritchie said.