Canada Calling
December 1999

by Bryce Lee

INDUSTRY NEWS

Shares of Bombardier Inc. soared 13 percent September 30 after the company unveiled ambitious new profit projections and plans to study the market for a 90-seat stretched version of its popular 50- and 70-seat Canadair Regional Jet. The detailed forecast is based on the company's target of doubling its revenues over the next five years and achieving its new target for an earnings before tax margin of 11 percent in fiscal 2003-2004. Bombardier's earnings before tax margin would improve this year from the 7.2 percent posted in fiscal 1999. The Montreal-based company announced it was that it was in talks with Workers Councils to reduce the workforce at its German railcar manufacturing operations by 25 percent or 1,200 to 1,300 jobs. That would result in a one-time charge of C$30 million to C$40 million in its third quarter but would not affect overall profit projections for the year.

Bombardier Inc. announced October 6 that it will manufacture 28 double-decker commuter cars for a California public transit group. The C$69-million contract is with the Los Angeles-based Southern California Regional Rail Authority. The 28 commuter cars will be produced at Bombardier plants in Thunder Bay, Ontario and Barre, Vermont. The California transit authority has already received 119 similar Metrolink coaches from Bombardier. The cars are similar to those used by Toronto's GO Transit commuter trains and by British Columbia's West Coast Express. Bombardier expects to deliver the cars over five months beginning in January 2001.

The Austrian city of Linz has ordered 21 Cityrunner trams from Bombardier Transportation in a deal worth at least C$72 million. The order includes an option for 18 more of the low-floor vehicles, which could increase the deal to C$134 million. The street-tram will be developed and made by Bombardier in Vienna, with ELIN EBG Traction of Austria responsible for the electrical portion. Delivery of the first Cityrunner tram is planned for September 2001. Bombardier operates plants in 12 countries in North America, Europe and Asia, and more than 90 per cent of its revenues are generated outside Canada.

ALSTOM of Montreal has won an order worth US$34.7 million for the routine overhaul of 73 cars for the Peninsula Corridor Joint Powers Board (Caltrain), the transportation agency responsible for the commuter railroad servicing the San Francisco - San Jose corridor. The service is operated by the National Railroad Passenger Corporation (Amtrak). The stainless steel gallery cars, designed for push/pull operation, were built from 1985 to 1987 by Nippon Sharyo. The contract provides for the overhaul of 73 cars (52 trailer cars and 21 cab cars) and a spare set of trucks. The refurbishment includes truck re-working, installation of new coupler and draft gear, new seats and carpet, and heating, ventilation and air conditioning. The work will be carried out in ALSTOM Canada's plant in Montreal, Canada, where the company is currently overhauling 20 F40PH-2 locomotives for Caltrain's fleet. Final assembly will be done by ALSTOM's key sub-contractor, Amtrak, in its Beech Grove, Indiana and Wilmington, Delaware facilities. The vehicles will be overhauled in batches of five at a time so as not to disrupt service. The first cars will be delivered within 6 to 9 months of the contract's start date. This latest contract with Caltrain reinforces ALSTOM's strong position in the North American transit market, following orders for bi-level commuter cars for Amtrak's Southern California service, and for propulsion systems destined for the New York City subway and New Jersey Transit's Hudson Bergen line.

Final recommendations on how best to overhaul Canada's grain transportation system were criticized by railways, farm groups and politicians when released October 5, 1999. Arthur Kroeger, who was appointed by the federal government last spring, suggested Transport Minister David Collenette implement several sweeping changes. In a letter to Collenette, Tuesday, Kroeger proposed:

• Reducing the role of the Canadian Wheat Board in grain transport and introducing commercial, contract based arrangements;
• Replacing the current railway rate cap with a revenue cap for the railways, starting with a 12 per cent reduction from 1998 revenues;.
• Increasing railway competition. The recommendations are designed to improve the grain transport and handling system while protecting farmers from crippling freight increases.

Kroeger was appointed to find common ground among the major players in Canada's grain industry ie farmers, railways and grain companies on ways to implement the recommendations of the Estey report. In a major report last December, former Supreme Court Justice Willard Estey made 15 recommendations on how the C$12-billion grain industry can better move its product to port. The industry agreed on many of the Estey reforms, but remained divided on some, such as imposing revenue caps and taking the wheat board out of transportation. In his letter to Collenette, Kroeger said he was unable to achieve a consensus on the outstanding issues and went ahead with his own recommendations. Canadian Pacific Railway and Canadian National Railway Co. had very different complaints. They said the proposals are unfair to the railways and don't go far enough to improve the system. Both the CNR and CPR also said there's no need for regulations to increase competition. The system is already competitive, they claim, adding that they invest billions to keep the system running smoothly.

Nova Scotia's Trenton Car Works has secured a major contract for one thousand railway flat-cars. The work order for TTX Company of Chicago will start in January of 2000 and last for six months. Trenton, which is owned by U-S based Greenbrier, currently employs about 1400 people. TTX is the largest buyer of railway equipment in North America.

The Federal Government of Canada officially said good-bye to Romeo LeBlanc. The outgoing Governor General left the nation's capital October 1, 1999 on a Via Rail train. Before boarding the train bound for home in Moncton New Brunswick, LeBlanc was given a 21-gun honour guard salute. With Prime Minister Jean Chretien looking on, LeBlanc's final official act was to sign a guest book at the train station. LeBlanc was applauded by cabinet ministers and onlookers as he boarded the train back to private life. LeBlanc is to be succeeded as Governor General by former broadcaster Adrienne Clarkson. VIA No. 14 originating out of Montreal had F40PHs 6433-6429, and 18 cars, including two Park cars and two CN business cars. The consist numbers were 8618, 8146, 8143, 8138, 8511, 8407, 8140, 8206, 8218, 8223, 8216, 8220, 8211, 8703, 8709, 8221, 15162 Courier des Bois and 94 Gatineau. The train arrived at Moncton only a couple of minutes late.

Transport Minister David Collenette announced October 21, 1999 that the federal government will provide C$2,123,200 to improve safety at 18 railway crossings across Canada. In the past six years, Transport Canada has contributed some C$50 million to 518 projects across Canada. The locations are: Rosedale British Columbia: Old Yale Road C$189,300; Calgary Alberta: 7th Avenue NE C$54,400; Tomkins Saskatchewan: East Access Road C$96,000; Gull Lake Saskatchewan: Municipal Road C$62,400; Wallace, Manitoba: Highway 83 C$56,000; Pickering Ontario: Dixie Road C$177,200 & Fairport Road C$137,200; Otter Lake, Ontario: Otter Lake Road C$280,300; Ramara, Ontario: Concession Road 2 C$175,000; Brockville, Ontario: Laurier Blvd. C$62,900 & Centennial Road C$96,200; Sand Point Ontario: Sand Point Road C$5,400; Sundridge Ontario: John Street C$110,400 & Horse Stable Road C$159,200; St-Norbert Quebec: Highway 347 C$134,900; St-Paul-de-Joliette Quebec: Forest Street C$239,600; Enfield Nova Scotia: Highway 2 C$86,000.

General Motors Electro-Motive Division (EMD) announced October 6, 1999 that it plans to build 1,000 new locomotives over the next three to four years to be leased by the Union Pacific Railroad. This will be the largest single order for locomotives ever placed with GM. The SD70 locomotives are slated to form the core of the Union Pacific fleet, replacing as many as 1,500 older, SD40-2 and similar models. The locomotives are expected to be assembled at GM's London, Ontario plant.

The search is now in progress for communities such as Toronto that want to ship their garbage to the disused Adams Minesite near Kirkland Lake, in northern ontario. The Ontario Court of Appeal has rejected a challenge to prevent the open pit mine from becoming a landfill site. The plan has approval from the Environmental Assessment Board. It could be next spring before Toronto makes a decision about shipping some of its garbage by rail to the minesite. There is stiff competition from other landfill sites that are already operating just across the border in Michigan and New York. The controversial C$50-million dollar project has been underway for 10 years. It has faced opposition from the previous New Democratic Party government and local groups who say there are environmental concerns about using the old mine.

CANADIAN NATIONAL RAILWAYS

Canadian National (CN) has started consolidating the financial results of Illinois Central Corporation (IC) in its forthcoming third-quarter 1999 financial statements. The consolidation of financial statements will be applied retroactively to January 1, 1999, to give investors a full picture of the combined Company's year-to-date financial performance. CN accounted for IC's results on an equity basis prior to taking control of the U.S. railroad on July 1, 1999. Starting with third-quarter 1999, CN will also adopt new revenue and expense classifications, change the way it capitalizes refurbishment of certain fixed assets and various expenses, and employ a new method to determine workers' compensation liability.

Canadian National reported October 19, 1999 third-quarter 1999 net income of C$199 million, compared with net income for the comparable quarter of 1998 of C$140 million, excluding a special charge. Diluted earnings per share for the quarter ended Sept. 30, 1999, were 96 cents, compared with 73 cents for the same period of 1998, excluding the special charge. In the third quarter of 1998, CN recorded a special charge of C$590 million (C$345 million, after tax) for workforce reductions. Including this special charge, CN reported a net loss of C$205 million (C$1.06 per share, diluted.) CN's third-quarter and nine-month 1999 results reflect the consolidation of Illinois Central Corporation (IC) financial statements. CN's operating ratio was 71.0 per cent for the latest quarter, an improvement of 2.6 points over the third-quarter 1998 performance of 73.6 per cent, excluding the special charge.

CN has posted a notice to end use of the Humberstone Spur which is 5.9 miles in length. The Humberstone Spur connects to the Stamford Subdivision at mile 16.1. This abandonment would include the balance of the Macey Spur located on the east side of Port Colborne Ontario. A track off the Macey Spur in turn services the Inco plant in Port Colborne on Lake Erie. There is on average a railway car a month on the trackage. The Macey Spur was once part of the now abandoned Dunnville Subdivision connecting Fort Erie to Caledonia and Brantford.

CANADIAN PACIFIC RAILWAY

Canadian Pacific Railway Company (CPR) announced October 1 that it has completed its previously announced C$235 million public issue of 6.91% Secured Equipment Notes due 2024. The equipment notes provide long-term financing of 101 General Electric model AC4400 locomotives that are currently in service. CPR will apply the net proceeds of approximately C$233 million to repay a C$225 million unsecured bank credit facility and use the balance for general corporate purposes. The locomotives were acquired at a cost of approximately C$260 million, as part of a major capital spending program that modernized CPR's locomotive fleet and upgraded its rail network and facilities. The CPR equipment notes, rated A by CBRS Inc. and A by Standard & Poor's, are secured by a first charge on the 101 locomotives. The issue was placed in the Canadian public debt market by an underwriting group co-led by RBC Dominion Securities Inc. and ScotiaMcLeod Inc.

Canadian Pacific Railway announced it has begun construction of a 12.6 kilometre rail line in Lacombe County, Alberta, after receiving all necessary approvals from the federal government. The new rail line extends south from the railway's existing Lacombe Subdivision to the Union Carbide Corporation (UCC) polyethylene plant being constructed at Prentiss, Alberta. The Minister of Transport has, under Section 10 of the Railway Safety Act, approved construction of the proposed railway line. The Canadian Transport Agency's decision to approve the CPR application was appealed to the Federal Court of Canada by a Lacombe County resident. The Federal Court upheld the CTA decision and dismissed the appeal with costs in June, 1999. The CPR had acquired approximately 99.5% of the land required for the railway line through direct negotiation with affected landowners. The company had been unsuccessful in acquiring the final 0.41 acres of land required for the line, despite extensive efforts at negotiation. In the coming months, the federal Department of Public Works and Government Services will implement the Cabinet approval to conclude expropriation of the land still required to conclude construction of the line.

Strong earnings from its railway and oil subsidiaries has given Canadian Pacific Ltd. a significant third quarter improvement over a year ago. The Calgary-based energy, transportation and hotels conglomerate reported 1999 third-quarter profits of C$270 million, up from C$205 million for the same period a year ago. Canadian Pacific Railway, which contributed C$112 million to the third quarter results, has seen quicker results from an efficiency program than had been projected in July. The railway earned C$89 million in the same quarter last year. Railway revenues rose to $874 million from $845 million. In fact, railway results could have been better if not for congestion problems in the U.S. Northeast and Midwest.

Construction has begun at a C$14.5-million transfer and warehousing centre that will stimulate the flow of steel and other raw materials to and from industries and consumers in Hamilton Ontario this city and the surrounding region. A new 13,935-square-metre (150,000 square foot) steel transfer and warehousing facility which will be the key feature of the project at the Canadian Pacific Railway (CPR) yard at Aberdeen Avenue and Highway 403 in Hamilton's west end. The building will offer fully enclosed rail-truck transfer for a growing number of Hamilton area customers who require delivery of high-grade steel, and for local producers shipping steel out of the city. Steelcare of nearby Stoney Creek is constructing the facility and shall operate the steel transfer and storage facility in partnership with the railway, whose eastern subsidiary, the St. Lawrence & Hudson Railway (StL&H), provides daily train service connecting Hamilton with the North American railway network. The railway is building new track and related structures, and has already implemented an overnight, dedicated train service connecting the centre with Northern Ontario and Western Canada. The railway has also agreed to fund improvements at the intersection of Longwood Road and Aberdeen Ave entrance to ensure safety and smooth truck flow in and out of the site. As a temporary measure the railway is installing a 2,230-square-metre (24,000-square-foot) tubular frame structure large enough for a rubber-tired gantry crane to shelter steel transfer activities through the coming winter. Additional track for the transfer of lumber and raw plastic will be built elsewhere on the site, with an increase in rail car capacity of more than 50 per cent. An asphalt work surface and filtered drainage will ensure tight environmental safeguards for the transfer of plastic pellets. Some 30 permanent jobs are expected to be created at the new facility.

At a recent ribbon cutting ceremony, Canadian Pacific Railway (CPR) officially opened its new Philadelphia Multi-Product Bulk Terminal at the Philadelphia Naval Business Center to serve industry and distributors in the tri-state area. The new facility is constructed on eight acres of property leased from the Philadelphia Industrial Development Corporation. It consists of six railway sidings with 62 carspots with access to paved roadway with an additional 15 carspots without paved roadway access. There is a new truck scale on the property and an office trailer. The site is fully lighted and there is a fence plus Naval Base personnel to provide a very secure environment. The cost of all the improvements was C$1 million. Current market opportunities include food products (corn starch, sweeteners, vegetable cooking oils, and flour); plastic resins for packaging and general manufacturing; and miscellaneous products moving in tank cars and covered hoppers. Future market opportunities might include building products such as lumber and brick. CPR has chosen Rail Services Inc. as its operator for this terminal. RSI has had considerable success in terminal operations in the Midwest and Eastern US. They have also been chosen to operate another new CPR bulk terminal that will soon open in New Jersey.

Canadian Pacific Railway (CPR) on October 27, 1999 added 4,300 horsepower to the 1999 United Way fundraising drive, with the launch of a new locomotive emblazoned with the United Way logo and a simple message: "Pulling for United Way." The United Way locomotive, unveiled at a ceremony in Calgary, is designed to give the 1999 United Way fundraising campaign a boost and heightened profile in Calgary and throughout Canada. CPR's United Way locomotive is its most recently acquired General Motors AC-traction locomotive numbered 9159, the 60th of 4,300 horse power locomotives that were ordered from GM in 1998 by the railway and assembled at CPR's Ogden Shops in Calgary.

PASSENGER NEWS

The longest passenger train in Canadian history has been recorded. Rocky Mountain Tours is celebrating its tenth year in business and on October 7, 1990 it had a record 1144 passengers on its trip to Banff, Alberta. Generally Rocky Mountain Tours adds extra equipment to accommodate increased passenger loads. The train was split into three sections to make it easier for passengers to board. The train was 43 cars in length which is just over one kilometre in length. The first leg of the journey stops in Kamloops British Columbia overnight as there is no sleeping accommodation on the train. The next day the train continued through the Rockies during the daylight hours to Banff, and Calgary. Rocky Mountain Tours over 25 different tours ranging from 2 days to eleven days in length and operate from May to October.

Ontario Northland Railway union representatives are pleading to the province of Ontario to help save the Northlander passenger train service which operates six days a week from Cochrane to Toronto. The union said that 100 full-time positions are at stake, if the train is cancelled. The Northlander train has been losing money for many years. A rail review committee is recommending either cancelling the train altogether or running fewer trains each week with the help of government subsidies. Ontario Northland's board is now examining the various options and will present them to the provincial government sometime in November.

GO Transit is adding another morning express train to downtown Toronto from the Durham region east of Toronto. The train will leave Oshawa at 07:11 each work-day morning with stops in Whitby, Ajax and Pickering. The new train will get commuters to Toronto's Union Station at 07:55 a.m.

Transport 2000, a national lobby group is painting a bleak picture for passenger rail service to parts of Ontario. The group says service could be cut to some communities and reduced to others. T2000 says Sarnia and Niagara Falls are on a VIA rail list to have service eliminated. It also says service could be reduced to communities along the main rail corridor between Quebec City and Windsor. The federal government wants to incorporate public-private partnerships along many VIA lines; which T2000 says would only drive up prices, because private operators would need to build in profit margins.

The New York Susquehanna & Western business train arrived in Montreal Quebec on October 9 to stay the weekend. The special train departed Montreal for the D&H on Monday morning Oct 11, powered by CPRS GP9u #8244 (for a Canadian Leader). The train consisted of NYSW E8Au's 2402 & 2400; NYSW dome observation 505 (operating backwards); NYSW diner 507; NYSW 536 "Southerner"; NYSW 537 "Crescent" NYSW coach 533; NYSW heavyweight observation 510; NYSW 511 square end dome observation. The ancestries of the E-units are: NYSW 2400 ex-BN (Metra) 9921, nee CB&Q 9991 and NYSW 2402 ex-BN (Metra) 9915, nee CB&Q 9985A.

SHORTLINES

Ontario Northland employees are still trying to reach a contract settlement. In September 1999 they voted 92 percent in favour of strike action to back their contract demands. The tradespeople and clerical staff are members of the Associated Railway union; and their contract expired last December. The union and management met with a conciliator last week. The union said it could take a month to hear back from the conciliator. In the meantime the employees are willing to continue to negotiate; but they haven't yet heard from the company. The main issues are pensions,wages and benefits.

Algoma Central Railway in Sault Ste. Marie Ontario has laid off 15 workers effective October 15, 1999. The layoffs follow a decline in freight traffic. The company is suffering after its largest customer, Algoma Steel shut down its iron ore rail operations over a year ago. The railway is a subsidiary of Wisconsin Central Railway in the US. When it took over Algoma Central five years ago, it terminated 120 employees. Algoma Central Rail now employs close to 175 Sault Ste. Marie, Ontario and along its line running north to Hearst.

In additionally the ACR wants government assistance in improving its main line north of Sault Ste Marie, Ontario. The company had recently met last week with Soo MP Carman Provenzano and Transport Minister David Collenette to discuss about financial aid. Involved is 50 miles of track between Oba and Hearst. Algoma Central is negotiating a contract to haul phosphate from a new mine near Kapuskasing. Ontario Northland would carry the cargo to Hearst. Algoma would move it to Oba for transfer to the CNR mainline. The CNR in turn would haul the phosphate to customers in Alberta.

Denver-based OmniTRAX, which operates both the port of Churchill and the Hudson Bay Railway, has completed a deal to ship nearly 60,000 tonnes of peas and alfalfa pellets to a European buyer. Company officials hailed the deal as a new age of opportunity for the beleaguered northern Manitoba seaport where nine ships are expected in October. If everything goes according to plan, these shipments could trigger another shipment this season along with strong potential for repeat business next season. OmniTRAX, an operator of short-line railways in the United States and Canada, bought the rail line and port in 1997 with a mandate to turn it into a major hub of shipping activity. However, the company's efforts over the past two years to increase shipments through the port have produced only mixed results.

Throughout its history, Churchill has relied almost entirely on grain shipments arranged by the Canadian Wheat Board. But the wheat board has never been able to provide Churchill with the tonnage necessary to make it a money-maker. Detractors argued the port's shipping season was too short and the rail line too unstable to make it viable. OmniTRAX has successfully dispelled many of those notions but has failed to reap new business. The wheat board has shipped about 350,000 tonnes of grain through Churchill since 1997, far less than the million tonnes needed to make the port and rail line economically viable. With the first shipment of peas and alfalfa, however, Churchill is demonstrating to Western Canadian farmers it can service non-board commodities. OmniTRAX noted many farmers in Saskatchewan and Manitoba could save up to C$25 per tonne on their shipping costs if they used Churchill, Manitoba instead of Thunder Bay, Ontario.

During September the status of New Brunswick East Coast motive power has changed. C424 4210 has received 4 new wheels and is back in service on trains 402-403 Miramichi-Moncton, New Brunswick; 4235 spent a week or more on 402-403 Campbellton Miramichi between SD40s 6900 & 6904; 4219 is to be used for a parts source for the C424 fleet; 4230 is waiting to enter service, has to come in to the shop for inspection and repairs before it re-enters service. Two additional C424m's, 4238 and 4243, may be returned to service and later may move to the Ottawa Central. RS-18 1813 has been returned to service after being at CLN in Charney Quebec; RS-18s 1849, 1858, 1867 1868 have been returned from CAD in Lachine Quebec after main generator changeouts. CFMG SD40 6903 was due to go to Alstom in Montreal for repairs. Ottawa Central C424m 4204, out of service for most of 1999, has been sent to CAD Lachine for repairs. OCRR 1865 is also at CAD-Lachine for repairs.

News from the Cape Breton & Central Nova Scotia Railway indicates that former Indiana Ohio Railway GP50 3102 has been relettered CBNS & renumbered 5002. This is the last GP50 on the CBNS that had to be done. GP50's 5002,5007,5009 and 5008 delivered thirty-one coal hoppers to Nova Scotia Power in Trenton N.S. October 16, 1999. Although the smaller GP9s are the normal power for this train with shutdown of Cape Breton Development coal mining operations (DEVCO) it is likely the deliveries with the larger road power will become a common sight as loads are increased to compensate for the Devco closure. Devco and all of its mines were recently placed for sale.

Emons Transportation Group, Inc., has announced that its subsidiaries, the St. Lawrence & Atlantic Railroad (Quebec) Inc. the St. Lawrence & Atlantic Railroad Company and Maine Intermodal Transportation, Inc., have begun a new double stack intermodal train service for shipments from Pacific Rim countries in coordination with Canadian National Railway. The initial container was originated in Asia by the Company's first international steamship customer, Zim Israel Navigation Company where it was loaded on a ship in Hong Kong for transport to the port of Vancouver, British Columbia. When the container reached Vancouver, it was loaded onto a CN train for transcontinental transport to Richmond, Quebec for continued seamless train service by Emons' SLQ/SLR railroads in Quebec and New England, which then hauled the container on the Company's double stack train to Auburn, Maine. At Emons' intermodal terminal in Auburn, the container was immediately transferred onto a truck for local delivery to a customer in northern New England. Additional containers are now in route to Auburn from Asia.

Gaspesia Paper mill officially closed October 28, 1999, after having stopped producing this summer. Gaspesia Paper was one of Baie des Chaleurs Railway most important customers. In October, Mines Gaspe, which recently was permitted to reinstitute freight service on the Gaspe line with a weekly copper anodes train, ceased extracting from its Murdochville mine (near Gaspe). With these 2 closures, very few freight trains will go east of New Carlisle in eastern Quebec and Baie des Chaleurs Railway may probably want to abandon this trackage, which is used by VIA's Chaleur. The Chandler-Gaspe section has already been saved by area municipalities and local communities, but they will probably have to do the same for the New Carlisle to Chandler section. With the closure of the Murdochville mine, the supporters have lost a great opportunity to find other markets other than passenger trains to help save the line.

RailAmerica, Inc. and RailTex, Inc. announced October 16, 1999 that RailAmerica will acquire RailTex, creating the world's largest short line/regional freight railroad operator, with expected first year revenues of approximately US$450 million. Upon completion of the acquisition, RailAmerica will own or have equity interests in 51 railroads operating over 12,500 total track miles in key regions of the United States, Canada, Chile, Mexico and Australia. Under terms of the definitive acquisition agreement, unanimously approved by the Boards of both companies, RailAmerica will acquire all of the outstanding stock of RailTex. The transaction is valued at approximately US$325 million, including the assumption of RailTex's outstanding long term debt. RailTex's shareholders will receive US$13.50 in cash and two-thirds of a share of RailAmerica stock in exchange for each share of RailTex stock. Following the transaction, RailTex shareholders will own approximately 35% of the combined company. The transaction, which is expected to close in early 2000, is subject to shareholder approval by both companies, any necessary regulatory approvals and other customary closing conditions.

MOTIVE POWER

Canadian National:

SD75s delivered in October; 5798 Oct.4, and 5799 Oct.5, 1999.

The following locomotives were retired in October: GMD1m's 1172, 1181 on October 19; SW1200RS's 1364,1366,1386 October 19.

Twenty-two former GTW GP38AC's are being refurbished for LLPX at the Transcona Shops, in Winnipeg. 2204 was sent to the Terminal Railroad of St. Louis in September; in early October 2205, 2206 and 2207 were released first to the Illinois Central for radio work and then to the Norfolk Southern.

Canadian Pacific:

CP SD90MAC's in service now number 59, with 9100-9157 (inclusive) and 9159 completed, leaving two to follow. The CP order for 6000 horsepower SD90MAC's has been reduced to four locomotives, numbered 9300-9303 inclusive.

CP has repainted SD40-2s 5742 and 5745 in the new "Expressway" livery. The white (and black) lettering includes a large "X" on the long hood. The new CP Expressway Terminal, located west of Toronto near the boundaries of the Regions of Peel and Halton abutting the 401 highway opened the weekend of October 11, 1999. The new Expressway equipment being delivered to CP from National Steel Car in Hamilton, is made up of Two-Pak and Three-Pak permanently coupled piggy back flats.

CP has sold SD40's 5505 and 5523 to Alstom; to Helm SOO SW1200's 1203, 1204; to Unicapital SOO SD40 787, CP SD40-2 5428; Dakota Minnesota & Eastern has acquired Q-Tron equipped SD40s 5401, 5402, 5403, 5407, 5411 (these first five are nee-QNS&L), 5503, 5528, 5530, 5533, 5548, 5556, 5559, SOO 6411 (nee B&O), bringing to a total of 28 CP SD40's sold to DM&E.

CP has leased on a long-term basis through the Livingston Rebuild Centre eight former Union Pacific SW10s upgraded originally by UP from SW7s. Known as a switcher with a headache these switchers have a high hood on the end of the long nose. UP numbers were 1212, 1213, 1217, 1220, 1221, 1222, 1231, 1240, these are to be renumbered CP 1280-1287 in order. It is expected these switchers will remain stateside on former Soo Line trackage to allow the return of other four-axle power to Canada.

CPR's third executive locomotive has now been repainted. Former CN FP9A 6541 is numbered CP 1401 and is awaiting a cab upgrades and airbrake modifications, striping and lettering.

Shortlines:

Three Hudson Bay Railway M420W's are to be moved to OmniTrax's Okanagan Valley Railway to release three GP10's which are to return to the USA. OmniTrax also has purchased the remaining Alcos (one S6 Switcher, six C-424s) from the Belt Railway Of Chicago; these are to be sent to the Hudson Bay Railway.

Southern Ontario Railway, formerly Railink Southern Ontario GP35 5005, ex-CP 5005 has failed at Brantford, Ontario and has been moved to Bombardier for repairs at the GO shop in Mimico. Bombardier has the contract for the maintenance of GO Transit locomotives. Railink/Railamerica, ex-VIA, FP9Au 1400 is now ready at the Ontario Northland shops in North Bay, Ontario for movement to the Lakeland & Waterways Railway in Alberta.

Goderich & Exeter in southern Ontario has recently received GP38 3821 from the Central Oregon & Pacific. The unit is former CORP 5041, ex-CSXT 2041, nee B&O 3841.

Canadian American Railroad has received F40PH-2m's 454 and 455, former Amtrak 384 and 254 after extensive modifications. CDAC 456 is now being moved to CDAC from Amtrak's, Beech Grove Shops.

On October 24, 1999 Dofasco NW2's 417, 419 and 420 were being readied at Hamilton, Ontario for transport to Larry's Truck Electric in Girard Ohio. NW2 417 EMD 7/1947 sn 5204 ex Dofasco 17, nee Jacksonville Terminal 32 acquired 2/66; NW2 419 EMD 10/1949 sn 8704 ex-Dofasco 19, nee Jacksonville Terminal 34, acquired 11/71; NW2 420, ex-Dofasco 20, nee Jacksonville Terminal 35, acquired 2/72.

British Columbia Railway is leasing six units from Helm: SD40u 6077, nee-CN 5220; SD45u 6512, exx-MKCX 9541, ex-ATSF 5362 nee ATSF 5556; SD45u 6522, ex-DRGW 5334; SD45u 6525, ex-DRGW 5320 SD40-2 6229; SD40-2 6298, ex-BN 7094.

Alstom Montreal:

Presently there are 13 former CP/SOO SD40/SD40-2's at Alstom in addition to former NdeM 8519 and FNM 8563. Three Dakota, Minnesota & Eastern locomotives are also on the property: DM&E 6057, ex-MKCX 9417, exx-CSXT 8322, nee L&N 1246; DM&E 6061, ex-MKCX 9419, exx-CSXT 8397, nee WM 7546; DM&E 6064, ex-HLCX 5029, exx-CRL 811, nee CR 6264.

Caltrains F40PH-2's 900, 901, 906, 917, 918 and 919 arrived in September for midlife overhauls. Caltrain F40PH-2's 900, 904, 905 and 913 have been overhauled and returned to California.

Thanks to the following for information compiled in this version of Canada Calling: Kevin Argue, Rainer Auer, Justin Babcock, Will Baird, Bruce Chapman, Glenn Courtney, Paul Duncan, Robert Heathorn, Matthew Frahm, Peter Jobe, Joe Kazmar, Randy Kotuby, Phil Mason, Mongo, Erick Pelletier, Ian Platt, Jean Turcotte, Stephen Reeves, Jim Sandilands, Jeff Semper, Al Tuner, Michael Torzsok, Dale Wilson and numerous others. This is the last column dated for this century; next month will be a whole different century. Best wishes to all for the preceding holiday season and the change. Where will you be when 1999 becomes 2000?

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