CN back on the Metrolinx Line???

I heard from a GEXR employee that CN was taking back over the freight operations on the Kitchener line that's now owned by Metrolinx.

Any truth to this?

Thanks in advance,

M.

CN apparently made the announcement sort of a couple months ago.

I sort of because there wasn't any public press release but they did send a message out to the customers on the line that CN would be taking over effective November 15th. Important to note that GEXR's lease from CN expires this year so it would appear to more be a case that CN declined to renew the lease.

The key will be that Metrolinx only owns a portion of the trackage that GEXR used for their Kitchener operations - for example Guelph to Bramalea is still owned by CN (for now at least - Metrolinx has started the environmental assessment process for the "missing link", a line to have CN bypass the Guelph -> Bramalea section thus allowing Metrolinx to then gain control of the entire Kitchener line.

This means CN can effectively control who can access many of those customers.

Why does CN want this line back?

In the early 1990s they made every effort to shed it even trying to abandon it outright.

Why do they want to now operate on a line that is now owned by Metrolinx, a passenger carrier, when they have the southern route on the Halton Sub from Silver ( Georgetown ) through Milton to Aldershot all the way to London.

It makes no sense to me for them wanting run on dark territory that's used primarily for passenger.

M.

MikeCDN wrote:Why does CN want this line back?

In the early 1990s they made every effort to shed it even trying to abandon it outright.

Why do they want to now operate on a line that is now owned by Metrolinx, a passenger carrier, when they have the southern route on the Halton Sub from Silver ( Georgetown ) through Milton to Aldershot all the way to London.

It makes no sense to me for them wanting run on dark territory that's used primarily for passenger.

M.

CN never sold the line, they only leased it to Rail America, and that lease is expiring. They choose not to renew the lease, and they will take over large portions of the GEXR (just like they are doing with the SOR) in November.

CN would only take over if they thought they could make money by doing so.

The most obvious reason why is the economics have changed, likely a combination of CN reducing its operating costs combined with the short lines developing additional business on the line.

I don't believe it is dark territory anymore, I think I recall Metrolinx and VIA paying to signal the line.

It may also be related to the bigger plans Metrolinx has.

Metrolinx will be building the "missing link" - a connection between Bramalea and Milton running primarily along the 407 corridor to take freight traffic off of the Brampton-Georgetown segment and CN not renewing GEXR may be a necessary part of this process.