U.S. company interested in providing rail service between Squamish and 100 Mile House as CN pulls out

Washington-based Columbia Rail confirmed the company has been looking into the viability of the corridor between Squamish and 100 Mile House.

U.S. company interested in providing rail service between Squamish and 100 Mile House as CN pulls out Washington-based Columbia Rail confirmed it has been looking into viability of corridor A small U.S. rail company says it is interested in taking over operation of a rail line between the B.C. Interior and Sea-to-Sky region. Gerry Bisaillon of the Washington-based Columbia Rail confirmed to CBC News his company has been looking into the viability of the corridor between Squamish and 100 Mile House. "We think we could do a good job with it," he said.

The route is owned by the province through the B.C. Railway Corporation and has been operated by CN Rail for the past two decades. However, CN Rail has said it is no longer interested in maintaining usage of the corridor and is the process of divesting itself of operations. That news has called into question the future of rail service in the region, including the tourist-focused Rocky Mountaineer, which transports customers from North Vancouver to Jasper.

Bisaillon said while no formal offer is in place, he'd recently toured the region serviced by the rail line and believed it could still be viable. "We think it would be a shame for it to be shut down," he said. Province wants to keep line operating On Saturday, CN Rail was allowed to officially begin advertising the rail line for other interested operators.

However, no formal bid process has been announced. On Monday, the province said it is committed to keeping a rail line between the Interior and Sea-to-Sky region operational, and in the hands of the public. "Our government is committed to protecting the long-term public interest.

The lands and rail infrastructure are owned by the B.C. Railway Company, a Crown corporation, and we intend to keep this rail corridor in public hands for the benefit of British Columbians," Minister of Transportation and Transport Mike Farnworth said in a news release. "This rail line is more than infrastructure; it is an asset that could support future goods movement, strengthen supply chains, connect communities and create economic opportunities throughout the region provided commercially viable operations can be established." Local governments taking action Several local governments are also taking an active interest in the rail line, including Prince George, where councillor Trudy Klassen has been coordinating with First Nations and other municipalities on trying to drum up interest in the route.

Klassen and others have said they'd like to see the line continue running freight but also bring back regular passenger service connecting northern B.C. to the Lower Mainland. "This line is so essential," she said. "The Central Interior of B.C., especially, needs that economic boost."

Major upgrades needed, consultant says However, there would be some economic challenges associated with the line. On May 11, Prince George city council heard from consultant Peter Scholz of Cairstone Planning who's been hired by the Northern Development Initiative Trust economic development group to look into the business plan for the rail corridor. Scholz said while the province's commitment to keeping the rail line publicly-owned was positive, it would still require significant investment to remain operational.

"Railway condition indicates need for near-term upgrades of tens of millions in the next two to three years," he told council. "Where that money comes from is a big question mark." Scholz suggested there may be language in the lease agreement that would force CN Rail to chip in for at least some of those costs, and he said federal grant money may be able to cover a portion of it, as well.

Bisaillon said he was aware of the challenges associated with the line and that his company would still have to do due diligence prior to making any commitment. But he also said based on what he'd seen, there was an opportunity to "rebuild" short-haul passenger service in the area. With files from Hanna Petersen