CP Rail ordered to lift self-imposed embargo on MMA traffic

CALGARY—Canadian Pacific Railway announced it has been ordered to interchange traffic with the rail firm embroiled in controversy over last month’s deadly derailment in Lac-Megantic, Que.

According to the rail giant, the Canadian Transportation Agency (CTA) ordered it to interchange traffic with Montreal, Maine and Atlantic (MMA) Railway effective immediately.

CP said it issued an embargo on the interchange of all traffic to and from MMA Aug. 13, the same day the CTA withdrew the embattled rail firm’s certificate of fitness in the wake of the disaster that killed 47 people in the town in southeastern Quebec.

The CTA modified its decision three days later, on Aug. 16, to allow MMA to continue to operate in Canada until Oct. 1, conditional on the firm proving adequate insurance coverage.

CP claims “the CTA dismissed (its) arguments and ordered (it) to lift the embargo” on MMA traffic.

“While we disagree with this order, we have taken immediate steps to comply,” CP Rail’s CEO E. Hunter Harrison said in a statement. “The CTA, as federal regulator, has satisfied itself that MMA is fit to operate and has adequate insurance to do so.”

According to Harrison, CP will review its legal options.