In a week the absolute last deadline for the E&N Railway comes. While the groups involved in saving the RR have struck a deal with the Canadian Pacific Railway, Rail America is now being "difficult" they feel that since they spend 15 million dollars to buy the 63 mile section from Wellcox to Port Alberni and pays through the nose to CPR for the rest of the network, they want their original 15 million back and are not prepared to do any bargaining. Both CPR and Rail America have created more and more hurdles and have done everything they can to stop anyone from saving the line. On a lighter note a Sperry Hirail and the ENR Burro crane has been working on the line to replace broken rails.
I'm wondering- How does RailAmerica expect to recover that $15 Million if it's not sold? Is there that much available in scrap value? Would they be able to lay claim to any funds when rails are lifted, and assets are disposed? Why is there a need for such a firmly fixed deadline? Also, I'm guessing that through the court system, no mediation is possible in this standoff? This is very, very sad. To all those who have erected road blocks, shame on you! BoxcabE50
Rail America has been using the threat of lifting the rails as leverage. They'll say to VIRDI if you don't give us this much we'll pull up the rails. Including yard trackage, bridges and what have you the scrap value for the Wellcox-Port Alberni section is about 7 million, at most. [ 23. September 2002, 17:56: Message edited by: E&NRailway ]
Tyler- Isn't there some way to get the two sides sitting down together, and have some meaningful negotiations? Could a mediator be used to help this along? I just don't quite understand the position being taken against VIRDI by the RR's. It makes no sense. BoxcabE50
We're talking about RR companies, nothing ever makes sense. For example cutting services to a customer without telling them doesn't make sense yet CPR did it all the time on the E&N. CPR's original intentions when they sold/leased the line to Rail America was "We're going to put so many restrictions on them, they won't be able to operate profitably and shut the RR down. Making what we've said for the past 50 years true." [ 24. September 2002, 06:04: Message edited by: E&NRailway ]
