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Kelowna Pacific Railway put into receivership

It's unknown whether a North Okanagan rail line will resume operating.

Kelowna Pacific Railway has gone into receivership and Canadian National Railway, which owns most of the track, isn't speculating on whether another company may take over.

"We are working with the receiver on the process going on," said Emily Hemer, CN's regional manager of public affairs.

Hemer added that Kelowna Pacific still has a lease to the track, which runs from Kelowna to Kamloops, as well as from Vernon to Lumby.

The end of operations for Vernon-based KPR is having an impact on a number of local businesses including Tolko Industries.

"We have a contingency plan for transportation interruption," said Janice Lockyer, Tolko's communications advisor.

All product from the mills in Lumby, Lavington and Spallumcheen is now being transported by truck.

"We are reaching out to our customers and informing them on how we will get their shipments to them on time," said Lockyer.

Lockyer says Tolko is waiting to see what happens in terms of future rail service.

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