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Erik's Rail News

BC Rail Discontinues Passenger Trains

Dear media friends,

It is with great regret that I must inform you of the demise of BC Rail's
passenger trains, the Cariboo Prospector, the Whistler Northwind, and the
Pacific Starlight Dinner Train.

As you can see from the letter below, the company no longer felt it could
justify the continuing losses of revenue, coupled with the need for
significant capital expenditures and has decided to quit the passenger train

Those of you who have taken these trains will know what a loss this is.

Please do not hesitate to call or email me if you have any questions.

Best regards,
Nora Weber

TerraCom Communications Group
715 McPherson Street
Port Townsend, WA 98368
p: 360 379 5464


As you know, BC Rail?s Passenger Services division continues to face
extremely difficult business challenges. It lost almost $10 million last
year, and steadily decreasing ridership continues to be a problem.  In
addition, the Passenger division faces operational and capital cost
requirements that BC Rail is simply unable to generate.

Industry trends, impacted by the North American economic downturn and post
September 11th declines in travel, do not suggest a market turnaround in the
near future.

With BC Rail?s heavy debt load of more than $600 million, and the capital
required to sustain our core freight division, there is no money available
to invest in aggressive marketing campaigns or even to wait for a rail
tourism revival.

In keeping with its priority to focus its resources on its core freight
business, I write to inform you that BC Rail is ceasing all non-commercial
passenger operations by the end of 2002 to stem annual operating losses and
to avoid substantial capital cost requirements.

In addition to discontinuing the Cariboo Prospector at the end of October,
2002, we will also cease operating the Whistler Northwind and Pacific
Starlight Dinner Train at the completion of their 2002 seasons in September
and October, respectively.

We appreciate the opportunities we have had to work together and I encourage
you to bring any questions or concerns you may have as a result of these
decisions to my personal attention. 

Yours truly,
Acting Manager, Marketing & Sales
BC Rail Passenger Services Division

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