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VIA dispute with GEXR is delaying passenger train improvements: KW Record

By shost at 7:40 pm on Saturday, April 17, 2010

According to the KW Record,  VIA Rail and GEXR are at loggerheads over the costs of maintenance of CTC and track resulting from planned improvements to the north mainline.

http://news.therecord.com/News/Local/article/69851

Readers of this site know VIA plans to add six trains per day (three each way) by 2011, which is now likely delayed until this is resolved. VIA has sent the issue to the Canadian Transportation Agency for arbitration, which could take months.

This isn’t the  first VIA/GEXR (Rail America) dispute — in 2008 RA(as GEXR) brought an issue to the CTA where GEXR disputed liability and indemnification requirements to benefit GEXR.

In 2009 – a dispute between GEXR’s parent company (Rail America) and Canadian Pacific up in North Bay resulted in the closure of the Ottawa Valley Railway, where Rail America is essentially pulling out up north, and portions of this line are likely to be abandoned in 2010.

So why is Rail America making things difficult for railway service (both Freight and passenger)  in Canada? Is it time for Canadian National to take back the North Mainline? Is Rail America in financial trouble?

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Comment by Tom West

April 19, 2010 @ 9:06 am

GEXR should calculate how much extra maintainence it will have to do as a result of six extra trains, and then VIA Rail pays the cost of that extra maintainence. GEXR is liable for anything bad caused by the track or signalling.

There, problem solved.

I hate it when track owners try and wiggle out of liability… I’m sorry, but if their track causes an accident, they shoudl face the consequences.

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