The Canadian Transportation Agency says it may allow the MM&A to continue operations in Canada until Oct. 1, 2013. (Canadian Press)
After initially being ordered to stop its operations, the Montreal Maine & Atlantic Railway has received an extension to continue operations in Canada for more than a month.
Earlier this week, the Canadian Transportation Agency (CTA) pulled the MM&A's certificate of fitness and said it no longer had the authorization to operate in Canada starting on Aug. 20.
The CTA said the railway didn’t have enough third-party liability insurance, or the funds to pay for the self-insured portion, both of which are requirements to operate in Canada.
However, the agency reversed its decision late Friday after receiving new information from the MM&A that suggests the company is able to cover its insurance responsibilities in the short term, Radio-Canada reports.
As a result, the CTA said it will allow the railway company to continue its operations until Oct. 1, 2013, as long as the MM&A proves by Aug. 23 that it can afford insurance premiums.
“Otherwise its permit will be immediately suspended,” the CTA said in a statement.
A total of 47 people were killed in the July 6 blasts after the train carrying crude oil derailed and set off a series of explosions at the centre of Lac-Mégantic.
In light of the Lac-Mégantic disaster and the financial state MM&A found itself in its wake, the Canadian Transportation Agency is launching a consultation and review of insurance coverage requirements for all railways operating under federal regulations. CBC
No comments:
Post a Comment