New owner of Lac-Mégantic railroad plans to restart oil shipments

New

Central Maine and Quebec Railway plans to ship oil within 18 months after making safety improvements

The Canadian Press Posted: May 16, 2014 10:59 AM ET Last Updated: May 16, 2014 11:17 AM ET

The new owner of the railroad responsible for a fiery oil train derailment that claimed 47 lives in Quebec says he plans to restart oil shipments after making safety improvements.

John Giles, CEO of the Central Maine and Quebec Railway, told The Associated Press on Friday that the company must first make track improvements.

He hopes to have an agreement with Lac-Mégantic, Quebec, within 10 days to resume shipments of non-hazardous goods, restoring the vital link between rail to the east and west. The company's timetable calls for resuming oil shipments in 18 months.

Giles' company closed on the sale of U.S. assets of the bankrupt Montreal, Maine and Atlantic Railway on Thursday. The firm is expected to close of the Canadian assets in a couple of weeks.

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