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