CN nixes Rails with Trails extension (KELOWNA)

Wayne Moore - Aug 9, 2009 CASTANET:

CN has put the brakes on the second phase of the city's Rails with Trails project. Phase two of the multi-use corridor was to be built between Sexsmith Road and the UBCO campus, however, in a letter dated July 9, CN Rail officially turned the city down. "CN's main concern is the risk to public safety, whether as a result of a rail-related incident or as a result of trespassing," CN Regional Manager, Anita Fleming wrote in response. "Both of these risks are, in CN's experience, unfortunate but inevitable results of bringing the public closer to the right-of-way." Phase one of the multi-use corridor between Gordon Drive and Spall Road, was completed in 2008.

The city paid CN Rail $1 million for right of way access for phase one. Preliminary design work for the second phase has already begun. Funding has also been committed from both the city and province. The city has apparently suggested physical barriers could be constructed to mitigate the risks. It has also suggested that financial risks to CN could be dealt with by way of an indemnity agreement. CN has rejected both. "It has been CN's experience that these agreements can be unreliable and result in protracted litigation," continues Fleming. "In any event, the consequences to CN of an incident go well beyond its immediate financial impact, including damage to CN's safety record and its reputation." Fleming concludes by indicating this is CN's "final position."

City Regional Services Director Ron Westlake, says the city has no recourse concerning CN's position at the present time. "The first resolution in this report therefore asks for support from the federal government to the concept of Rails with Trails initiatives," says Westlake in a report for council. He says with that support, the city could then ask the Canadian Transportation Agency to step into the dispute.