Rail America Inc. has announced it will operate freight and passenger services on the financially devestated Esquimalt and Nanaimo Railway indefinately. In December of 2001 Norske Canada(a paper manufacturer) announced it was canelling the contract with the E&N Railway and switched to trucks. Rail America and Canadian Pacific Railway who owned the E&N had been trying to shut the line down since December of last year. Due to several concerned groups on Vancouver Island, the Vancouver Island Rail Development Initiative(VIRDI)was formed. VIRDI has successfully purchased CP’s assets which now allows Rail America to properly operate the E&N. Because CPR was dead set on seeing the E&N shut down they imposed some rediculous restrictions on Rail America. My favorite was Rail America could not solicit business or lay any new spurs on CPR’s trackage that RA was leasing.
Why the heck do the class ones come up with crazy things like this, Conrail in the U.S, used to try to rip up track without letting anyone have a chance to buy it and turn it into a viable operation(Corryville/Meadville line, the Lackawanna Main in PA for example). If some entrepreneur can make money and create new traffic on a virtually dead system get out of the way!! All railroads, the public, and shippers benefit when a feeder line is saved and brought back to life.
Good luck in Vancouver Island, from a Pennsylvanian who has been following your situation.