End of the line for BC Rail?

[Anonymous]

It appears the deal is done and BC Rail has been sold to Canadian National.
The British Columbia government is passing a bill in the legislature to close the deal.
What all this means is CN will take control of BC Rail's operations while the BC government retains control of the right-of-way and trackage.
The deal is worth $1 Billion.
Some people are pleased with the deal, it will try to get more details tomorrow of the particulars where it will affect people and communities.

To me this is a sad end to an era for this railroad which was built for serving the interior and the Northern communities.

[Anonymous]

It is always a sad deal to see a once proud railroad die. I have seen the aftermath of a merger. It isn't pretty. People lose their jobs. Cities lose their railservice. Those are just the visible changes, there are many other negative effects on people (health, marriage and divorce, money problems, losing their homes, etc., etc., etc.,) than just losing their job.

I am sadden to hear this news. [:(]

I am sadden for my Canadian friends. [:(]

Take all the pictures you can NOW while there is still some time to do so.

[Anonymous]

Will CN absorb it into its system, or keep on operating it as BC Rail. It just dawned on me that CN was formed from the ashes of money losing line (Canadian Northern, Canadian Transcontinental, Grand Trunk). I guess some things never change.

[Anonymous]

Here are the highlights of the deal:

CN will pay the BC government $1 Billion in cash for outstanding shares of BC Rail Ltd. and the right to operate over BC Rail's roadbed under a 60-year lease, which can be renewed for another 30 years.

BC Rail's roadbed will remain in public hands under the BC Railway Company, which is a provvincial Crown corporation.

CN plans will require a workforce of 950, resulting in 430 job cuts over three years. Of these, 250 are eligible for early retirement. The government argues there will be 180 involuntary jub cuts, mostly in the loewer mainland.

BC Rail's current $500 Million debt will be eliminated through the deal.

CN will assume responsibility for maintaining the railway and cars, currently costing $40 Million a year.

CN will buy 600 new centre-beam cars to increase capacity for forest shippers and upgrade 1,500 boxcars.

Other spin offs:

New Chicage Express be established next year providing freight access from Prince George to Chicage in four days, reducing transit times by up to two days or 35 percent.

There will be a new $1 Million state-of-the-art wheel shop.

There is more that wasn't covered in the paper.