Railway in Lac-Megantic tragedy has its Canadian licence suspended

OTTAWA – The railway at the centre of the Quebec train disaster has had its operating licence suspended in Canada.

The Canadian Transportation Agency has announced that it’s revoking the certificate of fitness for the Montreal, Maine & Atlantic Railway.

The federal agency says it contacted the company to ensure that it has topped up its insurance, following the myriad financial claims against it in the wake of the derailment.

But the agency says it’s not satisfied the embattled company has purchased sufficient new insurance — so its licence will be revoked as of Aug. 20.

The federal body says it didn’t take the decision lightly, because it’s aware the move will affect the economy of multiple communities along the rail line as well as workers and companies that rely on the goods shipped by MMA.

The railway has already filed for bankruptcy protection and its survival now seems a longshot.

Forty-seven people died when an MMA train slammed into Lac-Megantic, Que., and erupted into fireballs on July 6. Since then, several lawsuits have been filed, a criminal investigation is underway, rail standards have been tightened, and the provincial government has demanded money from MMA for cleanup efforts.

An official in the office of MMA chairman Ed Burkhardt, contacted this morning, said he wasn’t yet aware of the licence suspension.