CALGARY, Aug. 22, 2013 /PRNewswire/ - Canadian Pacific
(NYSE,TSX: CP) announced today that it has been ordered by the
Canadian Transportation Agency (CTA) to interchange traffic with
the Montreal Maine and Atlantic Railway (MM&A) company
effective immediately.
On August 13, 2013, CP issued an
embargo regulating the interchange of all traffic to and from the
MM&A. This was in response to the same-day decision by
the CTA to withdraw MM&A's certificate of fitness. The
CTA's decision suspended MM&A's ability to operate a
railway.
The CTA modified its decision on August
16, 2013 to permit MM&A to continue to operate until
October 1, 2013, conditional upon
MM&A proving adequate insurance.
CP expressed its concerns regarding the fitness of MM&A to
safely handle hazardous substances, including the crude oil
currently under investigation in the Lac
Megantic derailment. The CTA dismissed CP's arguments
and ordered CP to lift the embargo.
"While we disagree with this order, we have taken immediate
steps to comply," said E. Hunter
Harrison, Canadian Pacific Chief Executive Officer.
"The CTA, as federal regulator, has satisfied itself that MM&A
is fit to operate and has adequate insurance to do so. We
will review our legal options."
SOURCE Canadian Pacific