The Canadian Transportation Agency has dismissed a complaint lodged against CN Rail by the village of Stenen, Sask.
The complaint was filed over a siding that was removed by CN Rail on Oct. 12, 1999. The railway company inadvertently tore out the siding in the middle of negotiations with the village about leasing or purchasing the track.
CN replaced the siding within a couple of weeks. But Stenen mayor Mervin Secundiak said only a portion of it was put back.
According to the complaint, a switch is still lying in a ditch north of the siding and numerous ties were damaged during removal and re-spiking.
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The village and the Committee to Save the Stenen Elevator requested that the transportation agency direct CN Rail to restore the siding to working condition and pay legal costs and punitive damages.
But the agency determined that CN Rail had not breached its common carrier obligations because the siding is under lease to Saskatchewan Wheat Pool.
“The service obligations of CN at Stenen are thus limited to the traffic offered for carriage by the (pool),” the agency said in its decision.
The grain elevator adjacent to the siding is owned by the pool and was delicensed by the Canadian Grain Commission in 1998 at the pool’s request.
Since CN’s only obligation was to Sask Pool and the pool had ceased operations in Stenen, the railway could not be found to have breached its common carrier obligations, the CTA ruled.
Secundiak called the ruling a disappointment.
“It appears the legislation only protects grain companies who have lease agreements with the railways and producers are left out in the cold.”
He said the village will continue to negotiate with CN to purchase or lease the siding, as well as push for legislative changes to the Canada Transportation Act.
CN Rail spokesperson Jim Feeny said the ruling corroborates the railway’s assertion that it has been dealing with the village in a fair manner.
“We did make one unfortunate mistake when we took out the siding in error, but we corrected that mistake.”
Feeny said negotiations with the village resumed last week. He said the railway won’t budge on two stipulations – the village has to agree to take out liability insurance on the siding and post a bond to cover the costs of removing the track when it is done with it.
No deadline has been placed on the negotiations.
