(The Canadian Press circulated the following story on August 14.)
VANCOUVER, B.C. — A labour group fighting the sale of the increasingly profitable BC Rail said Wednesday the Crown Corporation is so successful it’s touting its own turnaround in award applications.
The B.C. Federation of Labour said such a strong operation should remain in public hands.
The confidential application for an award handed out by Railway Age magazine showed off a net operating income jump of 102 per cent. The Crown Corporation reported $71 million in 2002, up from $35 million a year earlier.
“All we have heard from the provincial government is how poorly BC Rail is performing and how much it is costing taxpayers,” said Jim Sinclair, president of the labour group. “This document prepared by the managers at BC Rail shows the real story — and it looks pretty good.”
The government issued a public offering in May for private-sector companies to express interest in taking over B.C. Rail.
A private operator is expected to take over by the end of the year, although the tracks and railbed will remain in public hands.
Bids for the railway by CN, CP Rail and U.S.-based Burlington-OmniTRAX reportedly include lay-offs of more than half of BC Rail’s 1,700 jobs to save money.
BC Rail is Canada’s third-largest railway. In public hands since 1918, the service owns 125 locomotives and has annual revenues approaching $300 million.
The railway has assets of nearly $1 billion.