Regulator extends operating licence of railway at heart of Quebec train disaster

The Canada Transportation Agency has extended the operating licence of the insolvent railway involved in last July's deadly explosion in Lac-Megantic, Que., until June 1.

The regulator says it is satisfied Montreal, Maine & Atlantic Railway has adequate third party liability insurance coverage, including self-insurance, to operate until June.

The railway asked for the extension earlier this month, saying it was necessary to allow for continued service to the rail customers pending the completion of the sale and transfer to a new owner.

In January, bankruptcy judges in Quebec and Maine approved the sale of the insolvent railway to Railroad Acquisition Holdings LLC, an affiliate of New York-based Fortress Investment Group, for US$14.25 million.

The company has been granted a couple of extensions since July's explosion and fire that killed 47 people and destroyed part of the tiny Quebec community's downtown.

The explosion was caused when a train hauling tanker cars loaded with oil broke loose and barrelled about 10 kilometres down a hill into the town.
Police and federal transport safety officials are conducting investigations into the crash.

The CTA has said that the rail company has seen a significant drop in total traffic since the disaster.

Leave a comment:

· Subscribe to comments
Be the first to comment here. You DO NOT need to be a member to comment.

News Videos

Latest News

  • Bombardier-Alstom liable for $1.5 million in penalties

    Bombardier-Alsom is months late delivering the first of the 470 new cars it is building for Montreal's metro system - but the transit corporation has decided not to impose any penalties for tardiness, at least not yet. Read More
  • L'Isle Verte attendant blames careless smoking

    The night attendant on duty when a deadly fire broke out at a seniors residence in L'Isle Verte last January says he will tell a provincial inquiry the same thing he said from the start: careless smoking by a resident was to blame. Read More