New railway group wants reforms that fulfill the original promise of rail service in Canada

OTTAWA – A new association of short line and regional railways wants reforms to federal transportation law that will make the railway industry more competitive and serve the public interest by moving Canadian goods more effectively and efficiently.

The Association of Regional Railways of Canada will press for changes to the Canada Transportation Act, which is currently under review by the federal government. The association wants changes to the CTA that would ensure the viability of regional and short line railways and provide shippers with a competitive choice.

“Just as deregulation in the telecommunications industry led to greater competition and better prices for long distance customers, ensuring more access to rail infrastructure at fairer prices can greatly benefit businesses and enhance the economic viability of communities that ship goods by rail,” said ARRC Chairman Mark Mudie. Mudie is also BC Rail’s President and Chief Operating Officer.

“There is a vast difference in the profitability of short lines versus Class 1 railways, mainly as a result of lack of competition,” Mudie said. “Unfortunately, shippers, consumers, and their communities pay the price.”

“The viability of short line and regional railways serves the public interest. ARRC members, and other railways like them, provide an important employment base in communities outside major urban centres,” said ARRC spokesman Robert Ballantyne.

The founding members of ARRC are BC Rail, The Hudson Bay Railway, The Carlton Trail Railway, and Ferroequus Railway Company Limited. The members determined that their interests were best served in a new organization that specifically supports the interests of short line and regional railways.

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