CANADA: CN has announced agreements to restart freight services in southern British Columbia which ceased when Kelowna Pacific Railway Ltd entered receivership on July 5. The short line had leased the network from CN in 1999.

On September 27 CN said it had reached 'mutually satisfactory' agreements with Kelowna Pacific Railway trustee Boale, Wood & Company Ltd, main customer Tolko Industries Ltd and unions representing around 35 train crew and maintenance staff.

CN is to resume operations on 115 km, or around 75%, of the network from Campbell Creek to Vernon, Lumby Junction and Lumby. Operations will be discontinued between Lumby Junction and Kelowna.

'I'm pleased to say that the parties were able to come together to assemble the right business and labour conditions to justify the resumption of rail traffic on the major portion of the KPR as well as a sizeable capital investment required to protect rail service in the region', said Jim Vena, CN Executive Vice-President and Chief Operating Officer. 'We are targeting the resumption of operations as soon as we can ensure the track is brought back to a standard to ensure safe train operations.'