Industries not assured of rail service: OBRAG

We would like to respond to a letter written by Thomas Kelly, concerning the Highlands Group of Companies, their possible acquisition of the rail line, and the continued use of rail service in Orangeville by the companies that depend on its use.

We represent OBRAG, which stands for the Orangeville Brampton Rail Access Group, consisting of the following companies: Clorox, PolyOne, Roechling, Delta Companies Group, Holmes Agro, Industrial Thermo Polymers and Unical. Our consortium represents companies which employ hundreds of people in Orangeville and surrounding areas and we are dependent on rail service to remain competitive in our respective markets. Ever since the rail line was acquired by the town (ORDC) from CP Rail in 2000, OBRAG has ben responsible for the maintenance and upgrading to the line and is spending over $500,000 each year on the line in order to ensure that it is safe for commercial freight movements. The cost of paying CANDO as well as the maintenance and upgrades to the line have been OBRAG's responsibility by agreement with the town.

When we heard that the town of Orangeville was intending to sell the line for $7,000,000 to the Highlands Group of Companies we considered the prospect of another major line user to be very positive news. We have, however, repeatedly asked for some assurance from both the Orangeville Town Council and Highlands that we, OBRAG, would continue to have access to the line. This assurance has not been provided. It is interesting to note that the sight-seeing train, which contributes nothing towards maintenance and upkeep of the line, was given assurance that they would have continued access to the line.

This original agreement with the Town and OBRAG will expire in September 2010. In the meantime, OBRAG continues to make significant maintenance investments in the line which have a useful life beyond our promised access to the line.

We are extremely concerned that we will be deprived of rail service. Loss of rail service will have a significant impact on the viability of our local manufacturing operations and employment.

In addition, losing the rail access would result in hundreds of additional trucks moving in and out of town which has a greater negative impact on the environment and will cause more traffic congestion, and possible safety issues.

Consequently, we continue to appeal to the Town and the Highlands Group to address our concerns and the concerns of the residents we employ and the drivers who would be sharing roads with hundreds of additional trucks.

Steve Hartman, Chairman

OBRAG