RailAmerica inks new deal to operate Ottawa Valley Railway

Ottawa
RailAmerica’s Ottawa Valley Railway interchanges with Canadian Pacific at Sudbury, Ont., in August 2009. The company will continue operating CP’s route that runs east from the city.
Stephen C. Host
NORTH BAY, Ont. — RailAmerica will continue operating part of Canadian Pacific’s Smiths Falls-Sudbury, Ont., route under a new lease agreement reached today. Service from Sudbury to Mattawa, Ont., then north to Temiscaming, Que., will continue under RailAmerica auspices.

The deal “provides us and our customers certainty of the operation going forward,” said Mike LoVecchio, a CP spokesman.

RailAmerica’s Ottawa Valley Railway had operated the line as a through route until early this year, with trains operating between Sudbury and Smiths Falls, interchanging with CP at both ends. It had also handled overhead CP trains, providing the Class I with a shortcut for Montreal-Winnipeg, Man., traffic. However, with declining local traffic and with capacity over CP’s route via Toronto, the two reached an agreement to cease through trains and for RailAmerica’s operating agreement to expire early.

In the interim, RailAmerica has continued operating the Sudbury-Mattawa-Temiscaming route until a new operator could be found. Meanwhile, CP is progressing the discontinuation process for the line east of Mattawa, while some local officials are pushing for assistance to ensure continued operations.
NORTH BAY, Ont. — RailAmerica will continue operating part of Canadian Pacific’s Smiths Falls-Sudbury, Ont., route under a new lease agreement reached today. Service from Sudbury to Mattawa, Ont., then north to Temiscaming, Que., will continue under RailAmerica auspices.

The deal “provides us and our customers certainty of the operation going forward,” said Mike LoVecchio, a CP spokesman.

RailAmerica’s Ottawa Valley Railway had operated the line as a through route until early this year, with trains operating between Sudbury and Smiths Falls, interchanging with CP at both ends. It had also handled overhead CP trains, providing the Class I with a shortcut for Montreal-Winnipeg, Man., traffic. However, with declining local traffic and with capacity over CP’s route via Toronto, the two reached an agreement to cease through trains and for RailAmerica’s operating agreement to expire early.

In the interim, RailAmerica has continued operating the Sudbury-Mattawa-Temiscaming route until a new operator could be found. Meanwhile, CP is progressing the discontinuation process for the line east of Mattawa, while some local officials are pushing for assistance to ensure continued operations.
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