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The transit agency is now considering redesigning the rail line without the school site, simply running trains down the middle of Indiana Street.
Currently, the ministry only mandates use of an older version of the ATS system that automatically slows trains down at a red light.
The not-for-profit company has seen late trains down by 47 per cent in the past four months in Reading, Berks, where it ditched private contractor Amey last year.