CN Rail purchase raises hopes at Belledune port
Published Friday January 23rd, 2009
CEO says rail upgrades would improve port's efficiency, increase container traffic
BELLEDUNE - Officials at the Port of Belledune say they'd welcome any improvements made by Canadian National Railway to portions of the New Brunswick East Coast Railway.
CN bought back the 196 miles (315 kilometres) of NBEC track, along with two other railway subsidiaries in Quebec, it sold in the late 1990s to Quebec Railway Corp. last November for $49.8 million.
The NBEC runs north-south from Pacific Junction to the Quebec border at Campbellton.
Port of Belledune president and CEO Rayburn Doucett said 2008 was a banner year for the province's northeastern seaport, and the port's geographic location and access to all forms of transport, including rail, were big reasons why.
"Rail lines are extremely important to the port's infrastructure, we have spur lines that connect with the main line that goes all the way here to our terminal, and it's something we use on a daily basis," said Doucett.
"We're looking at getting into more containers, we're going to need rail, and we're extremely pleased to here that a company with CN's reputation are committing themselves here."
CN is pledging an undetermined amount of money over the next three years to upgrade its new acquisitions, and will also be replacing its fleet of locomotives with more modern and fuel-efficient vehicles, said a company spokeswoman.
Julie Senecal, CN's communications manager for Quebec and Atlantic Canada, said the company isn't able to offer a timetable for the upgrades and that the process is still in its planning stages.
She said although much of the NBEC track is in fairly good condition, it will require some work.
"There are pieces of track that are only capable of handling maximum weight of 264,000 pounds, which really isn't up to the latest standards," said Senecal.
She said most weight standards in CN's network are designed to handle 280,000 pounds.
"We're surveying the line right now, so we're just looking at what kind of work needs to be done on it."
Senecal said the acquisition won't affect Via Rail passengers, or the 214 employees who work along the former QRC lines.
Doucett said a more efficient rail network will, in turn, make the Port of Belledune more profitable and help ensure its long-term viability.
He said he's projecting 2008 record revenues at about $2.8 million, compared with just $175,000 in 2004. Domestic cargo count was also up almost 50 per cent in 2008 over 2007.
Belledune was the only port in the province to register any growth in 2008.
"If you come from anywhere in Europe, you're closer to Belledune than you are to Halifax, there's about half a day's difference," said Doucett.
"We're also closer to Montreal and Toronto so we can say, bring your product to Belledune, we'll put it on the train and it's into Montreal overnight, so it's a great marketing tool for us."
He said the Port of Belledune ships and receives products such as aggregate, zinc, coal, gypsum, wood pellets and heavy equipment.
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