Discussions are underway between a bankruptcy trustee and Canadian National to see if the Kelowna Pacific Railway line can resume operation.

Discussions are underway between a bankruptcy trustee and Canadian National to see if the Kelowna Pacific Railway line can resume operation.

Railway future still uncertain

It’s still not known if rail service in the North Okanagan will get back on track

It’s still not known if rail service in the North Okanagan will get back on track.

Kelowna Pacific Railway declared bankruptcy July 5, bringing a halt to shipments between Vernon and Kamloops and Vernon to Lumby.

“We are looking at options to see if we can start up rail service again,” said John McEown, a trustee with Vancouver-based Boale, Wood and Company.

“It’s likely the operator would be Canadian National and they are looking at it.”

CN which owns most of the track, is saying little about the situation.

“KPR still has a lease on the line and CN is working with the receiver on the process moving ahead,” said Emily Hemer, CN’s regional manager of public affairs.

In terms of whether cargo activity will resume, Hemer would only say, “It’s too early to speculate.”

McEown also wouldn’t speculate on whether CN may re-establish service on the entire line or only parts of it.

A number of businesses are being impacted by the lack of rail service including Tolko Industries. Many of them are now shipping product and material by truck.

KPR had been operating the short-line since 2000 and it had between 40 and 50 employees mostly based in Vernon.