June 27, 2006
Washington Companies' Southern Railway named as Vancouver Island rail operator

Victoria B.C., June 27, 2006: An agreement has been reached between representatives of Southern Railway of British Columbia Limited (SRY) and the Island Corridor Foundation (ICF) for SRY to operate freight and passenger service on the ICF-owned rail line between Victoria and Courtenay on Vancouver Island beginning July 1, 2006. SRY will operate under the name Southern Railway Vancouver Island Limited.

Southern Railway of British Columbia is an affiliate of the privately held Washington Companies. SRY is a major transporter of freight in British Columbia's Lower Mainland, and Fraser Valley with a diverse customer base including over 150 shippers of forest, building, agricultural, chemical, consumer and steel products.

The Island Corridor Foundation is a not-for-profit organization incorporated in 2004 as a partnership between local Governments and First Nations along the Island's Railway Corridor.

Speaking at the Victoria news Conference where the announcement was made, ICF Board Chair Jack Peake said "In our search for a dedicated operator for our service, we have chosen SRY as they have a well-proven reputation for providing customer-oriented, neutral access, freight services. SRY's business model is truly based on providing customers with competitively priced access to the major railways, such as Canadian Pacific, CN, BNSF and Union Pacific via their interline connections in New Westminster, B.C."

SRY's President, John van der Burch said, "It is this successful model that has enabled SRY to grow its business on the mainland and is central to our service plan for the freight and passenger customers on Vancouver Island".

Focusing on the rail freight side, SRY's Vice President of Business Development, Ken Doiron said, "We will now be able to offer a scheduled, seamless freight service from points on the Island through our interchanges with the main transcontinental carriers in concert with our sister company, Seaspan Coastal Intermodal". Seaspan Coastal Intermodal is the commercial ferry company that transfers the railcars between Nanaimo on Vancouver Island and the mainland. "We will bring much needed competition to the Island's industrial customers as the major transcontinental lines will now be more motivated to provide competitive rates to these customers and compete for the business", Doiron said.