STEVE MERTL

VANCOUVER (CP) - Federal Transport Minister Jean Lapierre has ordered CN Rail to cut the length of its conventional trains on a treacherous stretch of track where there have been several recent derailments.

The order limits conventional freight trains to 80 cars while operating northbound between Squamish, about 50 kilometres north of Vancouver, and Clinton, B.C., 220 kilometres north. CN had been running trains of more than 100 cars.

The twisting, mountainous line has been the scene of three derailments in recent weeks, including one that spilled toxic sodium hydroxide into the Cheakamus River.

"I am very concerned about the recent CN derailments in British Columbia and that's why we are ordering CN (TSX:CNR) to restrict the length of their conventional trains in the Squamish area as a precautionary measure," Lapierre said in a news release.

"I have made it clear if corrective actions aren't taken by the company I could call a public inquiry into CN's operations."

CN public affairs officer Jim Feeny said the railway could say little about the Transport Canada order.

"All that we can say at this point is that we have received the order," he said from Edmonton.

"Our policy is to comply with Transport Canada orders. We have been in compliance with them to date and we will comply with this one as well."

CN Rail took over operation of the former B.C. Rail northern line when the provincial government privatized operation of the Crown-owned railway in 2003 for $1 billion.

The spate of derailments sparked criticism CN had increased the length of freight trains beyond what the line could handle. B.C. Rail trains typically were 80 to 100 cars long.

The sodium hydroxide spill occurred Aug. 5 when six cars of a CN train derailed at a bridge across the Cheakamus River, north of Squamish.

The tank car tumbled down the riverbank and broke open, sending most of its contents, also known as caustic soda, into the river and sparking a fish kill.

Wells of several nearby residents were also put off limits until testing found the water to be safe.

On Oct. 24, nine empty CN flat cars derailed in the same general area.

On Thursday, 10 empty cars of a 131-car train went off the track just north of Sunset Beach as B.C. Transportation Minister Kevin Falcon was meeting with the railway's senior executives.

Falcon said Friday CN had already promised him that it would begin using distributed power - putting locomotives in the middle of trains to help push them up steep grades - on its longer trains.

"What the order from the federal minister of transport, whom I also spoke with the other day, does is it adds regulatory backing to the commitment CN made to us earlier this week," Falcon said in an interview. "So I'm very encouraged by that."

Transport Canada said the severity and frequency of the derailments led the department to launch a national, targeted inspection and safety review of CN's compliance with railway safety rules.

The inspection was carried out between Aug. 22 and Sept. 16, before the two latest derailments.

"Deficiencies and incidences of non-compliance were identified and conveyed to CN on Sept. 27," the department said in its release.

"CN is actively addressing the immediate concerns and an action plan has been developed to address other issues identified during the targeted inspection and safety review."

The department said it is reviewing that plan.

The results of the inspection, safety review and audit of CN's safety-management systems will be made public, probably by early December, the department said.

Falcon applauded the review, saying he told senior CN executives public safety tops his priority list in all areas of transportation.

"They know where I'm coming from; my position is crystal clear," he said. "I expect them to run this railway in the manner which maintains public confidence."

But Falcon pointed out train length is only one possible cause of the accidents. Other factors such as human error or mechanical problems - he said a broken brake hose is the suspected cause of Thursday's derailment - must also be investigated.

Friday's Transport Canada order also requires CN to provide a detailed analysis of its distributed power-operated train operations in the Squamish area.

It also calls for a comprehensive risk assessment of any chances CN has made to B.C. Rail's operating instructions, focusing on train length, equipment, track conditions and speed.

CN executives had been meeting with federal and B.C. government officials about the derailments.

The Opposition B.C. New Democrats had called on Falcon to push Ottawa for a reduction in the size of CN trains on the line.

Falcon said Thursday he was awaiting findings of a federal Transportation Safety Board investigation into the August accident.

© The Canadian Press, 2005