Postal Service Disruption | Interruption des services postaux

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CN ABANDONMENT PLAN EXCEEDS WORST FEARS

Released on July 3, 1996

Highways and Transportation Minister Andy Renaud was alarmed by the
announcement yesterday that Canadian National (CN) will be abandoning
approximately 300 miles of branchline in Saskatchewan in 1996. This is
in addition to the 150 miles of CN branchlines recommended for
abandonment last fall by a federal task force.

"With the ink barely dry on the federal government's new Canada
Transportation Act, CN has announced the largest single abandonment in
the history of Saskatchewan with even more to come," Renaud said. "We
recognize that some rail rationalization is needed to improve railway
efficiency. However, CN's three-year plan, which calls for the
abandonment of 4,000 miles of branchline in Canada by 1999, raises
major concerns about the impact this will have on producers, rural
communities and provincial and municipal roads.

"This is a difficult time for rural communities struggling with the
federal government's elimination of the Crow Benefit. Abandoning rail
service to these communities makes the pursuit of alternative economic
development more difficult."

Saskatchewan is also concerned that CN has not made a stronger
commitment to establishing short-line railways, as provided for in the
new Canada Transportation Act. Instead, CN is pursuing branchline
abandonment, without encouraging the transfer of prairie branchlines to
potential short-line operators.

"This has also been done without consultation or consideration of the
effects on farmers and shippers," Renaud said. "CN's abandonment of
branchlines will increase the strain on provincial resources to
maintain and upgrade roads. The federal government's limited financial
assistance will be totally inadequate.

"The federal government's Agricultural Infrastructure Transition
Program will not come close to dealing with the problems that
additional trucking will create."

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For more information, contact:

Kim Graybiel
Logistics, Planning and Compliance
Highways and Transportation
Regina
Phone: (306) 787-4121

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