TheVIA1-4-10PlanARecoveryStrategyfor

Canada’sRailPassengerService

For

TransportAcAonCanadaBy

GregGormickOnTrackStrategies

November6,2015

TableofContents

Acknowledgements.....................................................................................................iv

Execu:veSummary......................................................................................................v

1.0Se@ngaNewCourseforVIA.................................................................................1

2.0TheFounda:onofVIA’sRecovery.........................................................................3

2.1ANewRailPassengerAc:onForce...................................................................4

2.2AReformedandInformedBoardofDirectors...................................................6

2.3ManagerialRedirec:on.....................................................................................7

2.4AClearLegisla:veMandate............................................................................10

3.0OverhaulingtheFreightRailwayRela:onship.....................................................15

4.0ModernizingVIA’sFleet.......................................................................................23

4.1RollingStock...................................................................................................26

4.2Mo:vePower.................................................................................................30

4.3FleetProcurement..........................................................................................33

4.4Short-TermFleetMaximiza:on.......................................................................34

5.0AHigh-PerformanceQuebec-WindsorCorridor...................................................37

5.1VIA’sHigh-FrequencyRailProposal.................................................................38

5.2TheHigh-PerformanceRailAlterna:ve...........................................................41

5.2.1Montreal-O\awaUpgradingProject........................................................43

5.2.2CoteauCapacityExpansionProject..........................................................44

5.2.3GananoqueCutoff...................................................................................44

5.2.4Shannonville-NewcastleLineConsolida:on.............................................45

5.2.5BranaordBypass.....................................................................................46

5.2.6Windsor-DetroitConnec:on....................................................................46

5.2.7IncrementalCorridor-WideProjects.........................................................47

5.2.8VIA/GovernmentofOntarioCoordina:on...............................................50

5.2.9ImprovedIntermodalLinks......................................................................52

5.3TheMissingCorridor:Calgary-Edmonton........................................................53

i

6.0AnEquitableOff-CorridorVision..........................................................................57

6.1RevitalizingtheLong-HaulNetwork..............................................................57

6.2TheRemoteServiceReality...........................................................................61

7.0VIA’sNeedforGrowth.........................................................................................65

7.1RidershipGrowthIni:a:ves..........................................................................66

7.2Longer-TermNetworkExpansion...................................................................67

7.3Interna:onalServiceExpansion....................................................................69

7.4Tourism-RelatedServiceExpansion...............................................................69

7.5FeederBusServices.......................................................................................71

8.0Ini:a:ngVIA’sRecovery:2016............................................................................75

8.1ImprovedFleetU:liza:on.............................................................................76

8.2Service-DrivenPricingandProductRedesign.................................................78

8.3RebuildingtheVIABrand..............................................................................81

8.4ServiceRestora:onandStabiliza:on.............................................................82

8.4.1GaspéServiceRestora:on......................................................................82

8.4.2VancouverIslandServiceRestora:on.....................................................84

8.4.3SecuringNorthernManitoba’sServices..................................................85

8.4.4AlgomaCentralServiceRestora:on.......................................................85

8.4.5StabilizingtheOcean..............................................................................86

8.4.6StabilizingtheCanadian.........................................................................87

9.0AdvancingVIA’sRecovery:2017-2019.................................................................91

9.1EnhancedFleet..............................................................................................91

9.2TheHPRCorridorTakesShape.......................................................................92

9.3ImprovedInterna:onalConnec:ons..............................................................94

9.4GrowingtheLong-HaulMarkets.....................................................................95

9.5RemoteServiceImprovements......................................................................96

9.6ExperimentalRegionalRoutes........................................................................98

9.6.1Montreal-Sherbrooke.............................................................................99

9.6.2Toronto-NorthBay...............................................................................100

9.6.3Winnipeg-Regina..................................................................................101

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10.0Comple:ngVIA’sRecovery:2020-2025............................................................103

10.1FleetRenewalandGrowth.........................................................................103

10.2TheHPRCorridorinFull.............................................................................104

10.3ExpandedNa:onalSystem.........................................................................105

10.3.1DailyTranscon:nentalService............................................................106

10.3.2Winnipeg-Calgary-Banff......................................................................107

10.3.3Montreal-Sherbrooke-Portland..........................................................108

10.3.4Toronto-Peterborough........................................................................109

10.3.5Toronto-NorthBay-Kapuskasing.........................................................110

10.3.6Sudbury-SaultSte.Marie....................................................................112

10.3.7Winnipeg-Minneapolis/St.Paul..........................................................113

11.0APassengerRailwayforCanada’sFuture.........................................................115

©2015byGregGormickandTransportAc:onCanada

iii

Acknowledgements

Theauthorswishtothankthefollowingindividualsfortheirgenerousassistanceintheproduc6onofthisplan:

TedBartle\BarryBrake

Ma\hewBuchananAndyCassidyBillChesterRayFarandHarryGowDavidGunn

DanHammondBruceHarveyBobJohnstonPeterLaceyJohnLeemingHowardLevinePeterMiasekTonyTurri@nChrisWestKenWestcar

…andnumerousmembersoftherailindustry,whowishtoremainanonymous.

iv

Execu:veSummary

1.0 Se@ngaNewCourseforVIA

ThenewfederalgovernmentwillsoonhavetomakemajordecisionsaboutthefateofVIARail

Canada.Throughnofaultofitsown,thisgovernmenthasnowinheritedalltheproblemsthat

VIAhasaccumulatedsinceitwasimperfectlycreatedin1977.Theseproblemsarearesultof

previousgovernmentsnotdealingeffecEvelywiththeissue.

TheVIA1-4-10PlanisasuggestedblueprintforthenaEonwidereconstrucEonofVIAasamodern,affordableandeffecEvepublictransportaEonservice.Itrecognizesthereisno“silver

bullet”forfixingVIA;strongpoliEcalwill,visionandinvestmentwillberequired.

TheplanisbasedonfiveunderlyingassumpEons:

! VIA’srevivalshallbeapublicly-fundedprojectundertakeninthenaEonalinterest;

! VIAshallberetainedandimprovedasanaEonwideservice;

! Proventechniquesandtechnologiesmustbeemployedtominimizeriskanddeliver

improvementsattheearliestopportunity;

! Acapitalbudgetof$5billionoveraten-yearperiodisrequiredforprojectsthatwill

reducecosts,improveserviceandincreaserevenueincrementally;and

! Improvementsmustbedeliverablewithinone,fourandtenyears,forvalidpracEcal,

financialandpoliEcalreasons.

2.0 TheFounda:onofVIA’sRecovery

ToreviveVIA,therearefourfundamentalstepsthatmustbetakenforittohaveanyprospectof

recoveryandlong-termsuccess.Theseare:

! TheformaitonofaRailPassengerAcEonForce,composedofexperiencedrail

transportprofessions,tocreatetheofficialblueprintforVIAandprovidehigh-level

advicetothenewministeroftransport;

! Aninformedboardofdirectorsappointedonthebasisofregionalbalanceandrelevant

knoledge,notstrictlypoliEcalaffiliaEon;

! AredirecEonofVIAmanagementtoensureitisworkingwiththefullconfidenceofthe

boardtodeliverthenewgovernemtn'svisionforrailpassengerservice;and

! AclearlegislaEvemandate,intheformofaVIARailCanadaAct,tospelloutpreciselythegovernment'svisionintermsofVIA'smandate,itsrightsanditsobligaEons,andto

guidetheVIAboardandmangementindeliveringit.

v

3.0 OverhaulingtheFreightRailwayRela:onship

Onallbuttwopercentofits7,500-milenetwork,VIAisatenant,dependentonthetreatmentitreceivesfromitshostrailways.ThefeeschargedbythefreightrailwaysforVIA’soperaEonontheirtracksaremuchhigherthanthosepaidbyAmtrakintheU.S.Furthermore,thequalityofservicehasdeclinedgreatlyinrecentyears,badlydamagingVIA’son-EmeperformanceanditsaZracEvenesstotravellers.

Acarrot-and-sEckapproachtoresolvingthisuntenablesituaEonisrequired.ThefederalgovernmenthasaverybiglegislaEvesEckandthefreightrailwaysneedtoberemindedofthis.However,itwillbepreferabletoresolvethissituaEonamicablyandwithoutresorEngtopuniEvelegislaEvesoluEons.RevisedVIAserviceagreementswiththefreightrailwaysshouldbethesubjectofnegoEaEonbeforeanyconsideraEonisgiventostrongerlegislaEveopEonsbeyondthosecontainedintheproposedVIARailCanadaAct.

ThefreightrailwaysneedtoacceptthatVIAisnotgoingawayandabeZerpassenger/freightrelaEonshipmustbeforged.

4.0 ModernizingVIA’sFleet

ToreviveVIA,theremustbeastrategyforthecompleterenewalofitsanEquatedfleet.Iftherearenonewtrains,therewillbenoVIAinveryshortorder.VIAmustceaserefurbishingoldequipment,whichisatbestanexpensiveandtemporarysoluEon.

VIAwillrequireasufficientamountofhigh-performanceequipment,forbothlong-haulandcorridorservice,toreplaceandexpanditscurrentcapacity.Thiswillrequire160bi-levelcarsforcorridorservice,140bi-levelsforthelong-haultrainsand70high-performancelocomoEves.Forcorridorservice,thenewrollingstockmustbecapableofprovidingbi-direcEonal,push-pullservicetoreducetheEmerequiredatterminalsto“turn”VIA’sexisEngtrains.ThiswillincreaseequipmentuElizaEon,reducecostsandmakepossiblefrequencyincreases.

StepsmustbetakentoincreasetheuElizaEonofVIA’scurrentfleetpendingthearrivalofthenewone.Aswell,thebestelementsoftheexisEngfleetwillberequiredoverthenextdecadetoprovidesurgecapacityandtolaunchnewservices,whichwillbere-equippedwithaddiEonalnewlocomoEvesandcarsiftheymeetperformancecriteriasetbytheVIARailCanadaAct.

5.0 AHigh-PerformanceQuebec-WindsorCorridor

TheQuebec-WindsorCorridorisVIA’sheart,butitisnotfuncEoningatitsfullpotenEal.MuchEmeandefforthasbeenwastedinafruitlesspursuitofhigh-speedrail(HSR).Whileitistechnicallyfeasible,HSRwouldbeextremelyexpensiveandEmeconsuming,providingnobenefitsforsevenormoreyearsaeerconstrucEonbegins.NorwouldHSRgenerateanoperaEngprofitsufficienttocoveritshighcapitalcost.

vi

VIAisnowaZempEngtosecuregovernmentapprovalofa$4-billionhigh-frequencyrail(HFR)proposal,whichwouldconstructdedicatedlinesforitsexclusiveuseintheMontreal-OZawa-TorontoTriangle.HFRwouldoperateat110mphandwouldrequirefourtosevenyearstobuild.ItisanunprovenschemebasedonhighlyopEmisEcridershipandrevenueassumpEons.

TheprovenalternaEveishigh-performancerail(HPR).InaddiEontospeed,HPRisdefinedbyitsmulEpleserviceaZributes,includingfrequency,Ecketprice,comfort,all-weatherreliability,on-Emeperformance,connecEvitywithotherpublictransportaEonservicesanddoor-to-doortravelEme.

UnlikeHSRandtheVIAHFRproposal,HPRisn’ta“bigbang”approachthattakesyearstodeliveranybenefits.ItwouldproduceimprovementsincrementallyandbuildonpreviousinvestmentsintheexisEnglines,includingthemorethan$400millionVIAspentonthecurrentMontreal-OZawa-TorontoTriangleroutesbetween2009and2012.

TheVIA1-4-10Planoutlinesaflexible,phasedapproachtoconvertVIA’sQuebec-WindsorCorridortoHPR.Thiswillinvolveawiderangeofprojectstoincrementallydecreaseend-to-endrunningEmes,eliminatecapacitychokepoints,boostintermodalconnecEvity,increasefrequencyandgrowbothridershipandrevenue.Thenew,bi-levelequipmentandhigh-performancelocomoEveswillbekeycomponentsofthisplan.

AmajorrequirementforHPRserviceintheQuebec-WindsorCorridoriscooperaEonbetweenthefederalandOntariogovernments.Expansionofprovincially-fundedGOTransitcommuterserviceontwoofVIA’sSouthwesternOntariorouteshasdamagedVIA’sridershipbyduplicaEngserviceatpubliccost.Ontario’spromoEonofitsownHSRschemefortheToronto-London-WindsorcorridorwillonlyexacerbatethissituaEon.Acoordinatedfederal/provincialapproachisrequiredifVIA-operatedHPRserviceistobedeliveredandtheQuebec-WindsorCorridoristoperformatitsmaximumpotenEalatreasonablecost.

TheCalgary-EdmontonCorridorisalsoastrongcandidateforHPRservice,althoughthisissuehasalwaysbeenregardedasaprovincialmaZer;ithasnotbeenincludedinTheVIA1-4-10Plan.However,thefederalgovernmentandVIAshouldbepreparedtoparEcipateinanyplantointroducemodernrailpassengerserviceinthiscorridor,shouldtheGovernmentofAlbertadecidetopursuethisopEon.

6.0 AnEquitableOff-CorridorVision

WhiletheQuebec-WindsorCorridorisVIA’sheartanditmustfuncEonatitsmaximumpotenEalthroughtheimplementaEonofaprogressiveHPRprogram,therestofVIA’snaEonalsystemmustreceiveappropriateaZenEonandinvestment.VIA’slong-haulandremotetrainsplayvitalrolesinmanycommuniEesnaEonwidethatlackothertransportaEonopEons.

vii

VIA’stwoprimarylong-haultrains–theHalifax-MontrealOceanandtheToronto-VancouverCanadian–requirenew,bi-levelequipmentandfrequencyincreasestobemorecost-effecEveandpubliclyuseful.Amtrak’sapproachprovidesthemodelfordeliveringtherequiredimprovementsatareasonablepubliccost,someofwhichcanoccurearlyinVIA’srecovery.

VIA’sremotetrainsservelow-densityregionslackingothertransportaEonservices.Theyareexpensivetooperateandtherearealimitednumberofmeasuresthatcanbeundertakentoimprovetheirperformance.RatherthandwellingonthecostandlimitedridershippotenEalfortheseroutes,thereisaneedforthegovernmenttoacceptthemaspartofasocialcompactwiththeCanadianstheyserve.

7.0 VIA’sNeedforGrowth

Becauseofrepeatedcutstoitsfunding,servicelevelsandgeographiccoverage,VIAhaslostfartoomuchrelevancynaEonwide.Tobeastrong,sustainablecomponentofCanada’smixofintercitytransportaEonservices,VIAmustbegiventhemandateandtheresourcestobegingrowingincrementally.

AnaggressiveridershipgrowthstrategyisurgentlyrequiredtoincreaseVIA’srevenueandrelevancyonitsexisEngnetwork.WithacombinaEonofbeZerscheduling,improvedoperaEngpracEces,sometweakingofthecurrentfleetandarealisEc,performance-basedrelaEonshipwiththefreightrailways,VIAcanoperatemoretrainsdailyonitscorridorroutes.FrequencyandreliabilityarethekeystoVIA’sgrowthinthismarket.

FurthergrowthcanbesEmulatedthroughacloserworkingrelaEonshipwithAmtraktoincreasecross-bordertrafficatpointswherethetwosystemsconnect,suchasVancouver,NiagaraFallsandMontreal,orwheretheycanbeconnectedinthenearfuture,suchasWindsor-Detroit.AcloserworkingrelaEonshipwithCanada’stourismsectormustalsobedevelopedtomaximizeridershipandrevenueontrainsthatserveimportanttouristmarkets,suchastheCanadian.

TheaddiEonofcontractedfeederbusservices,modelledaeerthesuccessfulAmtrakThruwaysystem,willextendVIA’sreachtocommuniEeswithoutrailserviceandgenerateaddiEonalridershipandrevenue.

8.0 Ini:a:ngVIA’sRecovery:2016

MuchoftheworkwithinthefirstyearofVIA’srecoverywilloccurbehindthescenes,butthiswillhavesignificantlong-termbenefits.ThiswillincludethenewRailPassengerAcEonForce’sdevelopmentofthedetailedblueprintforVIA’ssustainablerecovery,theappointmentofthenewandengagedboardofdirectors,theredirecEonofVIAmanagementandthepassageoftheVIARailCanadaAct.Alsooutofpublicviewwillbethemanufacturingofthenewfleetandthelong-rangeinfrastructureprojects,whichwillhavealargeimpactatalaterstage.

viii

WhilethenewequipmentmustbeacornerstoneofVIA’simprovementandgrowth,therearesEllnumerousmeasuresandopportuniEestoincreaseservice,ridershipandrevenue.ThesewilldelivernoEceableimprovementsinVIA’spublicuElitywithinthefirstyearofitsrecovery,parEcularlyonsomeoftheunder-servedporEonsoftheQuebec-WindsorCorridor.

ImprovingtheuElizaEonoftheexisEngfleet,rebrandingVIAasamoredynamictravelopEonandtesEngnewapproachestofarepricingtosEmulateridershipmustbekeyelementsoftherecovery.AZenEonandresourcesshouldalsobedevotedtorestoringthetworoutesthathavebeensuspendedduetoinfrastructuredeterioraEon,namelytheGaspé-MontrealChaleurandtheVictoria-Courtenayservice.VIA’sinvolvementinrestoringthesuspended,federally-supportedAlgomaCentralserviceshouldalsobeconsideredbythenewgovernment.

Long-haulmarketgrowthwillbedifficultunElnewequipmentisreceived,buttherearesomemeasuresthatcanbeundertakenalmostimmediately.ThemostnotableoneswillbetherestoraEonofthetri-weeklyOceantodailyserviceandthere-rouEngoftheCanadianbetweenSudburyandWinnipegovertheCProutethroughThunderBay.ThelaZerwillbeaccompaniedbytheimplementaEonofamoreusefullocalserviceontheCNroutethroughNorthernOntario.

9.0 AdvancingVIA’sRecovery:2017-2019

Inthesecondphaseofitsrebirth,VIAwon’tyetbearailwayrecovered,butitwillbearailwayfullyintorecovery.Coupledwiththeadvancesmadeduringthefirstyear,thehighlyvisiblesignsofthisrecoverywillincludeVIA’smodifiedfleet,moreinfrastructureimprovements,morefrequenciesonitsexisEngroutes,restoraEonofsuspendedservicesandthreestrategicaddiEonstothenetwork.These“earlywins”willprovideproofofVIA’sprogressanddeliveraserviceofgrowingsignificancetomoretravellers.

ThecompleEonofsmallerinfrastructureprojectsacrosstheQuebec-WindsorCorridorwillmakepossiblesomesignificantimprovementsinfrequencybycreaEngaddiEonaltrackcapacityandeliminaEngtrafficchokepoints.ThiswillallbepartofthetransformaEonofthecorridorintoatruehigh-performanceoperaEonofferingmulEpledeparturesonaclock-faceschedulewithreducedrunningEmesandimprovedintermodalconnecEons.

TheaddiEonofthreedaylightroutesonanexperimentalbasiswillenlargeVIA’sserviceterritory.ThethreeroutesareMontreal-Sherbrooke,Toronto-NorthBayandWinnipeg-Regina.

Intotal,theimprovementsthatwilloccurduringthefirsttwophasesofVIA’srecoverywillprovidethenewgovernmentwithproofthattheircommitmenttoarevivedrailpassengerserviceisbringingmeaningfulmobilityimprovementstoasubstanEalporEonofthecountry.ThiswillbevitalwhenthegovernmentonceagainfacestheelectorateinOctober2019.

ix

10.0 Comple:ngVIA’sRecovery:2020-2025

ThethirdphaseofVIA’srecoverywillbeaperiodofdynamicchangethatwillbehighlyvisibleandincreasinglyrelevanttoCanadiansfromcoasttocoast.WhilethefirsttwophaseswillstabilizeVIAandbegintheturnaround,thethirdphasewillsecureitsposiEonasthemodern,resilientpassengerrailwayithasalwaysneededtobe.

ThemostsignificantphysicalfactorinVIA’sfullrecoverywillbethearrivalofthenewbi-levelfleet,forbothcorridorandlong-haulservice.ThenewequipmentwilldramaEcallyreducecosts,improveVIA’spublicaZracEvenessandenableserviceincreasesonaveryvisiblenaEonwidebasis;thenewtrainswillbethefaceofthenewVIA.

IncombinaEonwiththisnewequipment,thecompleEonoftheinfrastructureprojectsacrosstheenEreQuebec-WindsorCorridorwillmakeVIAthecoreofCentralCanada’sintercitytransportaEonsystem.RailtravelbetweenthemajorcentresandintermediatecommuniEeswillbefaster,morefrequentandbeZerconnectedtotheurbanandregionaltransitservicesthatprovidethenecessary“firstandlastmile”componentsofcar-freejourneys.WiththefulldeliveryofHPRservice,VIA’sQuebec-WindsorCorridorwillbeasolidfoundaEononwhichtoplanforHSRserviceinthefuture,ifandwhenthatinvestmentcanbejusEfied.

Beyondthecorridor,VIA’stwoprincipallong-haultrainswillbefullyre-equippedandfirmlyre-established,offeringreliableandcost-effecEveserviceonadailybasis.FurthernetworkgrowthwilloccurthankstotheoverallreducEonofVIA’soperaEngcostsanditsincreasedridershipandrevenuesystem-wide.Sixnewrouteswillbeaddedtoprovidegreatergeographiccoverageandincreasedmarketreach.

11.0 APassengerRailwayforCanada’sFuture

Ifthecourseoutlinedinthisplanisfollowed,CanadawillhaveahighlyeffecEveandaffordablerailpassengerservicetoadequatelymeetnaEonalneedswellintothefuture.ItsposiEveimpactonmobilityandproducEvitywillbelarge,especiallyintheQuebec-WindsorCorridor,whereitwillcomparefavourablywithfutureinvestmentsintheother,lessefficientandmoreenvironmentallydamagingmodes.

Butthisplancannotsupplytheoneelementthatisnowandalwayshasbeenrequired,whichispoliEcalcommitment.Thatmustcomefromthenewgovernment.

PrimeMinisterJusEnTrudeauhassaid,“InCanada,beZerisalwayspossible.”TheVIA1-4-10PlanisbasedonthatopEmisEcpremise.Ashasbeenproveninothercountries,itispossibletodeliverbeZerrailserviceatanaffordablecost.AbeZerVIAisdesirableifCanadaistobetheeconomically,sociallyandenvironmentallycompeEEvenaEonthenewgovernmentenvisions.

ItisnowuptothenewgovernmenttosetthatbeZercourseforVIA.

x

1.0 Se&ngaNewCourseforVIA

Inhisplay,TheTempest,WilliamShakespearewrote,“What’spastisprologue.”It’san

aptphraseforanyexamina=onofthestatusandthefutureofVIARailCanada.

Inthe38yearssinceVIAwasimproperlyandinadequatelycreatedasapublicly-owned

Crowncorpora=onbyaseriesoflegisla=veexpediencies,ithaslurchedfromcrisisto

crisis.Allofthemhavebeenwelldocumented;thereisnoneedtorecountthemallin

detailhere,althoughtheydoexplainmuchaboutVIA’senfeebledstate.WhatmaKersis

learningfromthosecrisesanderrorsofjudgmenttosetanewcourseforVIA.

ThisplanisasuggestedblueprintfortherevivalofVIAonanaffordableandsustainable

basis.ItdispenseswiththetypeofschemesthathavetoooOenbeenofferedupasVIA’s

salva=onandthenfailedduetotheirimprac=cally,highcostorlackofpoli=calappeal.

Itisbasedontechniquesandtechnologiesthathavebeenappliedsuccessfullyinsimilar

caseselsewhere,par=cularlyintheU.S.

Thereisno“silverbullet”forVIA.Nosinglemeasurewillcurethemul=pleillsithas

contractedsinceanini=al,pla=tudinouspolicystatementsentitdownapoli=cal

pathwaytoturmoilandtorment.NoristhereamethodtohealVIAwithoutpubliccost.

Inthepast,theanswerstoVIA’spredictableproblemshavealwaysbeenamputa=onand

astarva=ondiet.Thisclearlyhasn’tworked.Whatisrequiredisaregimenofstrong

medicineandtherapytoconvertahobbledpublictransporta=onserviceintoa

defensibly-affordablepublicassetofna=onalimpact,importanceandpride.

Itwilltakestrongpoli=calwilltotransformVIAintoaservice-drivencorpora=onthatcan

makeitsowndecisionswithinbothaprecisena=onalpolicyframeworkandanassured

budgetsetbythepoli=cianswhooverseeitonbehalfofitsrealowners,whoarethe

peopleofCanada.Toignorethispoli=calimpera=vewouldbetoproducean

incompleteplandoomedtofailurebecauseitwouldonlyaddresshalfofthesitua=on.

TheVIA1-4-10PlandrawsonpreviousworkbytheRailPassengerAc=onForce(RPAF)in1984-1985,VIA,Amtrak,variousgovernmentministriesandagenciesinCanadaandthe

U.S.,andnumerousthird-partyconsultants.Intheabsenceofactualcos=ngdatafrom

VIA,es=mateshavebeenbasedonsimilarprojectsundertakeninrecentyearsinCanada

andtheU.S.,par=cularlythosenowunderwayorproposedbyAmtrakanditsstate

fundingpartners.

1

TheVIA1-4-10Planisbasedonfiveunderlyingassump=onsregardingVIA’sfuture:

(1) Thecompleterenewalandmoderniza=onofVIAshallbeapublicly-funded

projectundertakeninthena=onalinterest,withallaspectsoftheprojectownedby

thepeopleofCanadaandentrustedtoVIA;

(2) VIAshallberetainedasana=onalsystemopera=ngcorridor,long-haul,regional

andremoteservicesfromtheAtlan=ctothePacifictoHudsonBay;

(3) Onlyinvestmentsandmethodsthathavebeenprovenbyotherrailpassenger

operators,notablyAmtrak,shallbeincludedduetothelackof=meandfunds

availabletotestunprovenandhigh-costtechniquesandtechnologiesthatrunthe

riskoffailure;

(4) TheVIA1-4-10Planwillrequireanassuredcapitalbudgetofapproximately$5

billionspreadover10yearstorebuildandexpandVIAasamodern,sustainableand

cost-effec=vena=onalsystemthatcanthendeliverahigherlevelofserviceata

defensibleannualopera=ngcosttothepublic;and

(5) Tomeetlegi=matepoli=calneeds,alloftheprojectswithinthemasterplan

shouldhavedemonstrableandinterlockingbenefitswithinone,fouror10years,

hencetheplan’s=tle.

Thelastassump=onisofparamountimportance.Nogovernmentwouldcommittoa

large-scaleprojectsuchasthisifitcouldn’tproduceresultsthatwoulddrawpublic

favourearlyinitsfour-yearmandate.IfCanada’snewgovernmentmakesthis

commitment,itwillhavetobereassureditsdecisionisyieldingbenefitsthatresonate

withvoters.Therewillalsobeaneedtodeliverseveralimprovementsofamuchmore

substan=alnaturejustpriortothe=mewhenthenewgovernmentmustonceagainface

thevoterswhoelectedit.

Previousgovernmentspromisedtosetaninnova=veandfiscallyresponsiblecoursefor

VIAandthenfailedtodeliver.Now,Canadahasanewgovernmentthatwillhavetodeal

withVIAandtheproblemsthathaveaccumulatedoverthe38yearssinceitwascreated

togiveCanadaaneffec=verailpassengerop=on.Itwon’tbeeasy.

InhisvictoryspeechofOctober19,PrimeMinisterJus=nTrudeausaid,“InCanada,

beKerisalwayspossible.”TheVIA1-4-10Planisbasedonthatop=mis=cpremise.As

hasbeenproveninothercountries,itispossibletodeliverabeKerrailpassenger

serviceatanaffordablepubliccost.AbeKerVIAisalsodesirableifCanadaistobethe

economically,sociallyandenvironmentallycompe==vena=onthenewgovernment

envisions.ThisplanisanaKempttohelpCanada’snewgovernmentsetthatcourse.

2

2.0 TheFounda;onofVIA’sRecovery

WhocontrolsVIA?Youwouldthinkthesimpleansweris“VIAmanagement.”Butthat’s

afarfromcompleteanswer.It’salsoabigpartofVIA’sfundamentalproblem.

Historically,intermsofdirectcontrolovervariousaspectsofVIA,thelistincludes:

⚫ PrimeMinister’sOffice(PMO),thePrivyCouncilOffice(PCO)andCabinet;

⚫ TransportCanada,FinanceandTreasuryBoard,underthedirec=onoftheir

ministersandministersofstate;

⚫ VIA’spoli=cally-appointedboardofdirectors;and

⚫ VIA’schairandpresident,whoareusuallyhand-pickedbythegovernment.

Someformofcontrolorinfluenceisalsoexercisedby:

⚫ TheCanadianTransporta=onAgencythroughalimitednumberofclausesinthe

CanadaTransportAct,notablySec=on152;⚫ ThefreightrailwaysthroughthetrainserviceagreementswithVIAandthe

qualityoftheday-to-dayservicestheyprovide;

⚫ TheTransporta=onSafetyBoardofCanada;and

⚫ TheOfficeoftheAuditorGeneralofCanada.

TheoneauthoritythatislargelymissingfromthismixisParliament.WhileMembersof

Parliamentcanques=onthegovernmentonVIAmaKersduringQues=onPeriodandat

theStandingCommiKeeonTransport’smee=ngs,norecommenda=onstheymakeare

bindingonamajoritygovernment.Inavote,theopposi=onpar=esareboundtolose.

ThiswasclearlydemonstratedbytherecentBillC-640,AnActrespec9ngVIARailCanadaandmakingconsequen9alamendmentstotheCanadaTransporta9onAct,asdraOedandintroducedbyformerMPPhilipToone(Gaspésie–Îles-de-la-Madeleine).

TabledonDecember4,2014,itwasunanimouslysupportedbyopposi=onMPs,

includingseveralwhoarenowpartofCanada’snewgovernment.OnApril29,2015,the

billwasunanimouslydefeatedbyformerPrimeMinisterStephenHarper’sgovernment.

TherehavebeentoomanyhandsonVIA’sthroKlefortoolongandonlyafewhavebeen

equippedforthetaskofrunningtherailwaywhilealsowithstandingthepoli=caland

bureaucra=cpressuresexertedonthem.Intheend,thegovernment-of-the-dayholds

theul=matepowerthroughtheamountoffundingitprovidesandthedirec=vesit

issues;noamountofprofessionalresistancecanovercomethat.

IfVIAistoevensurvive,itneedsahigh-powereddoseofnon-par=sanprofessionalism.

Ironically,onegovernmentdidprovidethat,onlytohalttheprocessbeforeany

meaningfulchangecouldoccur.

3

2.1 ANewRailPassengerAc;onForce

WhenPrimeMinisterBrianMulroney’sConserva=vegovernmentrolledintoOKawa

followingits1984elec=onvictory,itwasfreightedwithcommitmentstovotersin

severalregionstofixVIAandrestoreservicescutbythepreviousgovernment.The

meanstodothis,assetbyMinisterofTransportDonMazankowski,wasthroughthe

forma=onofaRailPassengerAc=onForce(RPAF).

Underthedirec=onofitschairman,formerAlbertaDeputyPremierHughHorner,the

RPAFsetouttostabilizeVIAandthenreformitthroughthedevelopmentofasetof

interlockingphysical,opera=onal,financialandlegisla=vemeasures.Theprimarystaff

fortheRPAFconsistedofa=ghtly-knitgroupofhighlyknowledgeablecivilservantswith

extensiveknowledgeofthesitua=on,allsecondedfromfederalorprovincialagencies.

Oneofthegroup’sfirstjobswastoarrangefortherestora=onofsomeofthetrainscut

in1981and1982.Thisitdid,butwithawarningthattherevivedtrainswouldbe

expensiveatfirstbecausetheywouldbeoperatedwitholdequipmentandtheywould

berebuildingmarketsVIAhadbeenorderedtoabandon.TheRPAFthenproceededto

designtheVIAblueprint,bringsomechangetoVIA’smanagement,nego=atewiththe

twomainfreightrailwaysforrevisedtrainserviceagreementsandopendiscussionswith

Canadianmanufacturersforthedeliveryofthenewmo=vepowerandrollingstockVIA

desperatelyrequired.

TowardsaModernandInnova9veVIARailCanada,theRPAF’sblueprint,wasandremainsamasterpiece.Itwaspredicatedon“twinpillarsofpolicy,”callingfor:

“Acapof600millionconstantdollarsontheannualbudget,as

establishedbyCabinetlastfall,andourgoalof50percentcostrecovery

by1989.Weknowofnootherwaytostopthedrainofgovernment

fundstoVIAthantomodernizethecorpora=on;infact,theonly

alterna=veistoscrapitcompletely.”

OneoftheRPAF’smanychallengeswascounteringthehos=lityofmanyseniorcivil

servantsandtheairlineandbusindustries,whichopposedanyinvestmentinVIA.

CertainmembersofthisgroupofVIAopponentsenjoyeddirectaccesstotheprime

minister’soffice.

Asaresultofthatinterven=on,theRPAFwasshutdownpriortothecomple=onofits

workfollowingtheJune1,1985,VIAservicerestora=ons.Itsrecommenda=onswere

largelyignoredanditsreportsandworkingpapersweresealed.Agoldenopportunity

waslostatacri=calpoint;thegovernment’s52percentslashingofVIAinJanuary1990

wasadirectconsequence.

4

HadtheadviceoftheRPAFbeenheeded,themoderniza=onofeveryaspectofVIA

wouldhaveresultedinarailpassengersystemtwiceaslargeastodayonabudget

comparabletotheoneVIAnowreceives.Thisac=onplanwouldhavedrivenVIA’s

opera=ngcostsdownby32percentoversevenyears,whilethenewfleetwouldhave

paidforitselfinopera=ngandmaintenancesavingsoverthesameperiod.

Today,withVIAinworseshapethanitwas30yearsago,theRPAFapproachistheone

thatneedstobeadoptedquicklybythenewgovernment.Aswasthecasein1984-

1985,anewRPAFgearedfortoday’sreali=esmustconsistofprofessionalswho

understandVIA’scondi=on,havein-depthknowledgeofthemeanstocorrectitsflaws

andthepoli=cally-grantedauthoritytomakethenecessarychanges.

Asin1984-1985,thenewRPAF’sdu=esshouldinclude,butnotbelimitedto:

⚫ RefinementofBillC-640,theVIARailCanadaAct;⚫ A10-yearsystemplanforVIA’sstabiliza=onandgrowth,withimprovements

achievableannuallythroughoutthefullrecoveryperiod;

⚫ A10-yearbudgetandafleetstrategylinkedtothesystemplan;

⚫ Atemplatefornewtrainserviceagreementscompensa=ngthefreightrailways

onthebasisofavoidablecostsandon-=meperformanceincen=ves;

⚫ OutreachtoAmtraktobenefitfromitsknowledgeandexperienceindealingwith

thechallengesnowfacingVIA;and

⚫ Discussionswithcertainprovinces,notablyOntario,forcoopera=ve,cost-shared

projectsandservicesthatareinthena=onalandprovincialinterests.

Anew,high-calibreRAPFcanbeassembledtotakeonthisdaun=nglistofchallenges.

Thepoolofrecently-re=redrailwayindustrytalentfamiliarwiththissitua=onand

possessingtheexperiencetosculpttherecoveryplanislarge.ThenewRPAFmust

includeindividualswithexper=sein,butnotbelimitedto:

⚫ Opera=onsplanning,par=cularlyinrela=ontotheneedtointegrateVIA’strains

oninfrastructurethatislargelyownedbythefreightrailways;

⚫ Equipmentdesign,u=liza=onandmaintenance;

⚫ Infrastructureplanning,designandimplementa=on(track,railtrafficcontrol

systems,structuresandsta=onfacili=es);

⚫ Cos=ngandbudgetplanning;

⚫ Governanceandlegisla=on;

⚫ Legalrequirements,par=cularlyinrela=ontothenego=a=onofcontractswith

thefreightrailwaysandsuppliers;and

⚫ Marketplanninganddevelopment.

5

Ineachoftheseareas,thereareindividualsnowavailablewhonotonlyhavethe

requiredskills,butalsotheenthusiasmfortherevivalofVIA.Indeed,manyofthem

spentmanyyearsatVIAorwithinthefederalcivilserviceaKemp=ngtomakethis

happen.Nowisthe=metoputthemtofulluse.

2.2 AReformedandInformedBoardofDirectors

AsVIA’sfutureisdraOedandthefirstcorrec=veac=onsaretaken,therewillbeaneed

foragroupofinformedandenthusias=cdirectorsatitshelm.ThatVIAhasrarelybeen

blessedwithsuchdirectorsispartofitsproblem.

TheappointmentofVIA’sfutureboardcan’tbestrictlyonthebasisofpartyaffilia=ons.

Whileeverypartyobviouslywishestoappointdirectorssuppor=ngitsobjec=ves,there

isnoreasonwhythatcan’tbecomplementedwithameasureoftheprofessionalismand

enthusiasmVIAhaslargelylackedinitsboardsinceitwascreated.

TheappointmentofAmtrak’sdirectorsinrecentyearspresentsarefreshingalterna=ve

totheCanadianapproach.WhileAmtrak,too,hasrepeatedlyacquireddirectorswho

couldbedescribedaspatronageappointments,manyofthemhavenotbeenwithout

relevantqualifica=ons.Somehaveevencomefromtheranksofthegovernment’s

opposi=onbecausetheyhavesolidcreden=alsandademonstratedenthusiasmfor

modern,cost-effec=verailpassengerservice.Thishaspar=cularlybeenthecaseinthe

appointmentofformermunicipalandstateofficialswhohavewitnessedfirsthandthe

localizedimpactofthepassengertrains.

AsimilarapproachmustbetakenatVIA.Itrequiresdirectorswho,aOerthenewRPAF

hascompleteditstaskinblueprin=ngVIA’srevival,canimplementthenewvision.Akey

willhavetobeadherencetotheconceptthatVIAismandatedtodeliverana=onal

serviceappropriatefortheneedsofitsdesignatedroutenetwork.

Theselec=onprocesswillneedtobalancethequalifica=onsandregionalperspec=vesof

thenextVIAboard.Itwillrequiredirectorswithtalentsrelevanttothewholebusiness

ofpublicly-supported,intercitypassengertransporta=on.Therefore,theselec=onofthe

nextVIAboardshouldaimtoincludedirectorswhohaveexperienceindealingwith:

⚫ Provincialgovernments;

⚫ Largeci=esandsmallercommuni=es;

⚫ Governance,legisla=onandlegalfunc=ons;

⚫ Railwayopera=ons,financeandlabourrela=ons;

⚫ Financialcos=ngandplanning;

⚫ Financialcos=ngandplanning;

⚫ Marke=ngandtourism-relatedbusinesses;and

⚫ Users,includingseniorsandthosewithspecialmobilityneeds.

6

AboardchosenonthisbasiswouldbringtoVIAasensibilityandexper=seithasnever

enjoyed.Alsochosenonaregionalbasis,thisboardwouldbeabletobalancethe

some=mesdivergentinterestsitmustserveacrossaroutenetworkthatstretchesfrom

theAtlan=ctothePacifictoHudsonBay.

ThehealthandperformanceofVIA,followingtheblueprintsetbythenewRPAF,willbe

dependentonitsboard.Thenewgovernmentmustchoosethosedirectorswisely.

2.3 ManagerialRedirec;on

IthasoOenbeensaidinrailwaycirclesthateventhebestmanagementteamcouldn’t

turnVIAaroundonitsown.Thereissometruthinthatstatement.Theprevious

governmentconstantlyansweredques=onsinParliamentaboutVIA’smanagerial

decisionswithaboilerplatestatementsayingVIAis“anarm’s-lengthCrowncorpora=on

thatmakesitsdecisionsbasedontheneedsofmoderntravellersandthefunding

providedtoit.”Thisisfarfromtruthful.

VIA’schairandpresidentareappointedunderthedirec=onandwiththeapprovalofthe

PMO.TherealityisthatnooneeverknowsexactlywhereVIAisheadingbecausethe

publicneverseestheconfiden=aldirec=onsgiventoVIA’sseniormanagersupontheir

appointment.Justasimportant,VIA’smanagementcanonlyperformwithinabudget

thatissetbythegovernmentitself;therecanbenomoredirectwaytocontrolthe

railway’sdirec=onandtheac=onsitwilltake.

However,thequalityofthemanagementteamselectedbythegovernmentdoesmaKer.

Initsearlyyears,VIA’smanagementteamwascomposedofindividualswithextensive

experienceinrailpassengerserviceatCNandCP.Over=me,thepercentageofthe

execu=vecorpswithhands-onrailwayexperiencehasvaried.Today,theVIAsenior

managementteamlacksasingleexecu=vewiththatexperience.

True,therearesomeVIAseniorexecu=veswithairlineexperience.Buttherearemany

aspectsofrailpassengerserviceconsiderablydifferentthanthosefacingairoperators.

Akeydifferenceistheneedintherailpassengerbusinesstonotjusttakeanend-to-end

viewofacorridorandthencatersolelytothatmarket,buttoalsoconsidertheoOen

substan=aldemandgeneratedbyintermediatepoints,wherepassengershavevery

differenttravelneedsthanthosegoingfrom,say,TorontotoMontreal.

Mostimportantistheneedtonotfocusoncertaingeographicmarketstotheexclusion

ofothers.Ontoomanyoccasions,VIAmanagementhashada“corridormentality”that

haspaidscantaKen=ontoitsotherservices.Thereisnodenyingthefactthatthe

Quebec-WindsorCorridorisVIA’sprimeterritory,intermsofthesizeofthepoten=al

marketandtheridershipandrevenueitcurrentlygenerates.Butthiscannotbethesole

7

focusofapublicly-supportedtransporta=oncorpora=onresponsibleforproviding

serviceinotherregions,someofwhichlackothertravelop=ons.

Thereisalsotheissueofmanagementpriori=esthathaverepeatedlyshiOedoverthe

years,oOenlinkedtooverly-ambi=ousplansrequiringbillionsinpublicinvestmentand

takingmanyyearstodeliver.VIAwentthroughthe1983-2001periodwithitssenior

managersfocusedofanall-new,high-speedrail(HSR)lineoverpor=onsoftheQuebec-

WindsorCorridor,par=cularlyintheMontreal-OKawa-Toronto(M-O-T)Triangle.

WhentheHSRproposalbecameobviouslyimpossibletolaunch,VIAshiOedin2002toa

moreplausibleandincrementalplanknownasVIAFast.Thiswouldhavedeliveredmany

HSRbenefitsatalowercostandonaphasedbasisthatcouldhaveproducedlarge

serviceandfinancialimprovementswithinfouryears.Thisplanwasendorsedbythe

soon-to-departgovernmentofPrimeMinisterJeanChre=enandthenimmediately

rejectedbythenextone.

VIA’sfallbackwasthe$923millioncapitalinvestmentplanof2007-2012,whichaimedto

deliversomeoftheVIAFastbenefitsandjus=fymoreimprovementsbasedonextremely

ambi=ousridershipandrevenuetargets.Thiswasthrownintodisarraybyaseriesof

events,manyofthemwithinthecontrolofthemanagementteamthatreplacedtheone

thathadcraOedtheinvestmentplanandconvincedthegovernmenttoapproveit.The

resultisthatthecapitalrenewalprogram–whichwasinadequateforafullVIA

turnaround–ranover-budgetandover-schedule,withsomeoftheprojectss=ll

incompletein2015andthetotalcostsunknown.

Today,VIA’smanagementteamispromo=ngyetanotherconcept,whichitdescribesas

high-frequencyrail(HFR).Thiscallsfortheprivatesectortoconstructadedicated,110-

mphpassengerlineintheM-O-TTriangleatacostthathasescalatedfrom$3billionto

$4billionsinceVIAfirstdiscusseditpublicly.Forthis,VIAwouldpaytheinvestorsona

tollbasiswithahighcommercialrateofreturn.

ThisplanisdebatableonseveralpointsanditisdiscussedingreaterdetailinChapter5

ofthisreport.Manyintherailindustryhaveques=oneditsprac=calityanditschances

ofsuccess.ResolvingVIA’ssystem-wideproblemscannothingeona$4-billionplanthat

wouldaffectonlyCentralCanadaand,atbest,wouldtakeseveralyearsofcomplexand

uncertainfinancing,environmentalassessment,designandconstruc=on.

Themosttellingindicatoroftherelevancyofanyrailpassengerserviceisitssuccessin

aKrac=ngpassengers.That,aOerall,isVIA’ssolereasontoexist.Thefiguresforthe

periodbetweenthecutsof1990andtheendof2014provideaclearpictureofwhich

VIAmanagementteamshavesucceededandwhichoneshaven’t.

ManyfactorsaffectVIA’sabilitytoaKractpassengersandthereisvalidityinclaimsthat

somearebeyondmanagement’scontrol.Theseincludedeep-discountairfareson

8

highlycompe==veroutes,freightrailwayconflictsandextremeweathercondi=onsthat

leadtopoorVIAon-=meperformance,alackofadequateequipmentandgovernment-

imposedbudgetconstraints.Butthetestmusts=llbewhetherthesefactors–whichare

alwayspresentinthecompe==vebusinessofintercitypassengertransporta=on–are

beingdealtwitheffec=velybythemanagementteam.

Itisinteres=ngtonotethatthemanagementteamsinplaceatVIAbetween1990and

theendof2009managedtogenerallyimproveridershipandfinancialperformancein

thefaceofmanyofthesesamefactors.VIA'sridershipaOerthe1990slashingofthe

systempeakedin2008,whichwasthebeginningofaneconomicrecession.Itwould

appeartheteaminchargewassuccessfulinbaKlingeventhisexternalfactor.

Bycomparison,atthesame=measVIAridershipfell17percent,Amtrak’straffic

increasedby14percent,growingfrom27.2millionin2009to30.9millionin2014.

Amtrakmanagementalsohadincreasingsuccessinconvincinggovernmentthatit

requiredlargeamountsofcapitalfundingtobeginovercomingthebacklogofdeferred

investmentit,too,hasweathered.

Thereareotherdangersignsthatraiseques=onsaboutthepriori=esofthecurrentVIA

managementteam,especiallyindealingwithitsominousfinancialoutlook.Thereisa

chillingmessagecontainedinVIA’sSummaryofthe2013-2017CorporatePlanregardingthissitua=on:

“OverthecourseofthePlanperiod,VIA’sopera=ngdeficitisprojectedto

exceeditsreferencelevelsby$582.1million.Produc=vityini=a=vesarebeingimplementedtoreduceopera=ngfundingrequirementsby$181

millionoverthePlanperiod....

“VIAexpectstoincuranopera=ngfundingshorsallovertheperiodofthe

Plan.Toreducetheopera=ngshorsall,VIAisintheprocessof

implemen=nganumberofini=a=vesthatweredevelopedaspartofthis

CorporatePlanandthe2011-2015CorporatePlan.However,evenwith

successfulimplementa=onofongoingini=a=vestoreduceitsopera=ng

requirements,VIAwillbeunabletooperatewithinitsrevisedopera=ng

referencelevels….

“TrainServiceAgreementchargesformasignificantpor=onofVIA’s

opera=ngcosts.VIAandCNconcludedaten-yearTrainService

Agreementin2009thatprovidesforannualrateescala=onoverthe

2009-2018period….

“VIAcannotfunditspensionplancostswithinitsopera=ngfunding

referencelevel.TheaccumulatedfundingshorsallinVIA’spensionplans

overthePlanperiodis$295million.”

9

Notallofthesesitua=onsareduetomanagerialdecisions,butenoughofthemarethat

ques=onsmustberaised.Thenewgovernmentwillhavetoreachitsownconclusions

aboutVIAmanagement’sadequacyingrapplingwithaseriousdeclinethatwillhavea

long-las=ngimpactonitsabilitytoevencon=nueopera=ngitscurrentservices.

OncetheRPAFhaspresenteditsblueprinttothegovernment,therecons=tutedboard

willhaveprimarycontrolinbringingVIA’sprac=cesandperformanceinlinewithits

straitenedcircumstances.Butitwillbethemanagementteamthatwillhavetodeliver

theimprovedservicedesignedbytheRPAFandapprovedbythenewboard.VIA

management’sabilitytodosomustbeamajorconcern.

ThelargestomissionfromthecurrentseniorVIAmanagementteamistalentwith

substan=alexperienceinrailpassengertransporta=on.Thismustbedealtwithquickly,

giventhenumerousservicefailuresthathaveoccurredatanincreasingrateoverthelast

yearandtheongoingridershipdecline.Theacquisi=onofmanagerialtalentwith

opera=onalandrailmarke=ngexperiencewillbecri=caltosolvingtheseproblems.

Whatisnotbeingtappedfullyistherangeofenthusias=candexperiencedtalentwithin

VIA’sranks.Therearelong-serviceemployeeswhohavegonethroughallofVIA’strials

andtravails,andmanagedtokeeptherailwayafloatopera=onallyunderdifficult

condi=ons.Therearealsoyoungeremployeeswhohavealreadydevelopedapassion

forpassengerrailroading.

Suchamo=vatedworkforcewillbeinvaluableindeliveringthecost-effec=ve,customer-

drivenservicethatshouldbeVIA’swholereasonforbeing.Credibleanddetermined

leadershipcanempoweremployeesateverylevelofthecorpora=on.

2.4 AClearLegisla;veMandate

Fromthedayitwassiredthroughaseriesofpoli=calandlegisla=veexpediencies,VIA

hasrequiredcomprehensivelegisla=on.Thatits=llhasn’treceiveditremainsoneofthe

greatestobstaclestoitssurvivalandsuccess.

WhenVIAwascreatedtotakeoverandrestorethedecliningrailpassengerservicesthen

beingprovidedbyCNandCP,itwasgivenfewofthetoolsrequiredtoaccomplishits

task.Themostfundamentalofthesewaslegisla=on,whichwouldhaveclearlyandfully

spelledoutthenewCrowncorpora=on’srights,powers,obliga=onsandmandate.

Withoutsuchlegisla=on,VIAwoundupakintoagigan=cshiplaunchedwithouta

rudder,naviga=onalaidsorevenreliablepropulsiongear.ThisleOtherailpassenger

servicetobebuffetedfromcrisistocrisisfornearlyfourdecades.

10

Fundinghasbeenerra=candmoderniza=onhasbeenscant.Chargesfortrackaccess

areexcessiveandthelackofstatutoryperformancestandardshasresultedinVIAbeing

shuntedasidetogivefreightpriority.Worstofall,thepublicinteresthasbeenbypassed

=meandagainwhenunsuppor=vegovernmentshavedecreedthattheonlyanswerto

VIA’sproblemsshouldberadicalsurgery,notra=onaltherapy.

ThiscontrastssharplywiththeU.S.,whereAmtrak–undersimilarcircumstances–was

foundedtoperformthesameroleasVIA.Beforeiteverturneditsfirstwheelin1971,

Amtrakwasgiventhestronglegisla=vefounda=onrequiredtorestoretheU.S.rail

passengersystem.ItsRailPassengerServicesActof1970setthecourseforitsgrowthintotheuseful,efficientandcost-effec=vepublictransporta=onserviceitistoday.

Whileithasn’talwaysbeensmoothsailing,Amtrakhasweatheredmanyfinancialand

legisla=vestormsbecauseofitsoriginalactandsubsequentlegisla=vereauthoriza=ons.

Whatisnowandalwayshasbeenrequiredislegisla=onthatwilldothesameforVIA,as

wellascommuteragencies,specializedtouristtrainoperatorsandAmtrakontheroutes

itcurrentlyoperatesintoCanada.LiketheactthatlaunchedAmtrak,itmustspellouta

mandatetoclearlydelineatewhatVIAmustdotodeliverana=onwiderailpassenger

servicetoplayastrategicroleintheeconomic,socialandenvironmentallifeofCanada.

Amongitsgoals,theVIARailCanadaActmust:

⚫ SpecifyaBasicNa=onalNetworkthatisalterableonlybyParliament;

⚫ Setrealis=candaKainableperformancestandardsreflec=ngthevariances

betweeneachofVIA’sservicetypes(corridor,long-haul,regionalandremote);

⚫ EndthebackroomdecisionmakingthathasonseveraloccasionswipedCanadian

communi=esofftherailpassengermap;

⚫ GiveVIAthefairandprac=calrightsrequiredtooperateeffec=velyinthereal

worldofcompe==ve,mul=-modaltransporta=on;

⚫ Establishacost-sharingformulabywhichVIAcanpartnerwithprovincialor

regionalgovernmentstoaddservicetotheBasicNa=onalNetwork;

⚫ Affirmtheneedforpassengertrainstohavereasonablepriorityoverfreight;

⚫ ProvideforthedevelopmentofafeeschedulethatgrantsVIAaccesstothe

freightrailways’linesontermsthatarefairtoallpar=es;and

⚫ Setthecriteriaforboardappointmentsandtheresponsibili=esthenewdirectors

shallbearindeliveringcost-effec=veservice,asprescribedbyVIA’smandate.

IfCanadaistobepartoftheworldwiderailrenaissance,thenVIAmustbeputonthe

samesolidlegisla=vefoo=ngthatunderpinsthoseotherrailpassengercarriers

elsewherethathavesucceededaspublicly-ownedand-supportedcorpora=ons.That

VIAhassurvivedthislongwithoutsuchadynamiclegisla=vemandateisatributetothe

inherentstrengthofthebasicconceptofpassengerrailroading.

11

Thisneedforlegisla=onismostsharplyillustratedbycomparingVIAwithAmtrak,which

survivedmanypar=sanpoli=calchallengesandremainedintactasana=onalsystem

principallybecauseofitslegisla=vefounda=on.AVIARailCanadaActwillplugthisCanadianlegisla=vegapbyprovidingasortof“billofrights”forpassengertrainsand

passengersmirroringtheAmtrakexperience.ItwillestablishthemandateVIA’sboard

andmanagershavealwaysrequiredtoguidethemindeliveringthetypeofrail-based

intercitymobilityneededby21stcenturyCanada.

TheneedforaprecisemandatewasrecognizedbytheRPAFof1984-1985.Thiswasthe

coreoftheactthegroupdraOed,aimedatempoweringareformedVIAboardand

managementbyclearlysta=ngwhatwasexpectedofthemandnotleavingtheirmission

opentointerpreta=on.

ThemandateproposedbytheRPAFalsoaimedtoprovideVIAwiththerequisitepowers

toactwithoutinterferencefromOKawacivilservantswhohaddemonstratedtheir

hos=litytotheforma=onandongoingmaintenanceofVIAasanindependentand

ac=on-orientedCrowncorpora=on.Onthispoint,theRPAFstated:

“ThereappearstobeafeelingthatVIAmustbekeptonavery=ghtleash,

withreportsandapprovalsrequiredtoanextentfarinexcessofthose

requiredbytheamendedFinancialAdministra9onAct(FAA)asitappliestoCrowncorpora=ons.TherealsoappearstobeafearthatVIAwillsomehow

getaroundalloftheFAAcontrolsandothersproposed,andstartuphotelchainsandotherac=vi=esnotdirectlyrelatedtotheprovisionofrail

passengerservice.

“Wehaveaverydifferentview.TheFAAcontrols,andthoseprescribedinthisreport,willbemorethanadequate.IfCanadaistohaveaCrown-owned

railpassengercorpora=on,thatcorpora=onisgoingtohavetobeabletoact

withini=a=veandconsiderableautonomy–within,ofcourse,approved

budgetsandplans.”

ThosewhofeargivingVIAsuchamandateandpowersoOenpointtoques=onable

decisionsmadebymanagementinthepast,par=cularlywhentheyfocusedtherailway

oncertainroutesandregions,whileignoringothersorevenrecommendingtheybe

dropped.Thesafeguardagainstsuchac=onswillbethelegisla=verequirementto

operateaprescribedBasicNa=onalNetwork.Thislegisla=veprovisionwouldprotect

theservicetocommuni=esbymanda=ngtheircon=nua=ononaroute-by-routebasis.

Complemen=ngthiswouldbeamechanismtorestoreservicethatwastoooOencut

throughdraconianorders-in-councilfromOKawa.Thiswouldincludefairperformance

targetsthatmustbemetiftheserestoredorexperimentalroutesaretobeaddedtothe

BasicNa=onalNetworkthroughsubsequentamendmentstotheVIARailCanadaAct.

12

Alsorequiredisaclear,legislatedmechanismtoformpartnershipswithprovincialand

regionalgovernmentsfortheimprovementandexpansionofservicethathasmutual

benefits.ThiswasincludedinAmtrak’senablinglegisla=onandithasproventobea

maindriverofAmtrak’ssuccess.UnderSec=on403(b)oftheRailPassengerServiceActof1970,whichalsoestablishedacost-sharingformula,itwasprovidedthat:

“AnyState,regional,orlocalagencymayrequestoftheCorpora=onrail

passengerservicebeyondthatincludedwithinthebasicsystem.The

Corpora=onshallins=tutesuchserviceiftheState,regional,orlocalagency

agreestoreimbursetheCorpora=onforareasonablepor=onofanylosses

associatedwithsuchservices.”

TheseserviceshaveextendedAmtrak’sregionalreach,evenduringperiodswhen

Amtrakwasfacingextremefederalfundingproblemssimilartothoseencounteredby

VIA.OtherdriversofthisgrowthhavebeentheAmtrakThruwaybusfeederprogram,

whichaKendedtomarketsnoteasilyservedbyrailandhasworkedinconjunc=onwith

state-fundedprogramstoassistbusoperators,revamprailsta=onsorbuildnew

intermodalterminals.

Today,19statessupport29Amtrakcorridorsof750milesorless.Allofferprac=cal

modelsforimprovingintercitypublictransporta=onacrossCanada,usingVIAasastrong

corethat,insomecases,wouldbejointlyfundedbythefederalandprovincial

governments.TheopportunitytoduplicatethisU.S.successmustbeincorporatedinto

theVIARailCanadaAct.

Inwrappingupitsworkwhenitsownmandatewasterminated,theRPAFof1984-1985

toldthenMinisterofTransportDonMazankowski,“Theearlypassageoflegisla=onis

s=llanecessity,andthatlegisla=onmustgiveafuture,revitalizedVIAsufficientpowers

toimplementitsmandateefficientlyandeffec=vely.”

Aswithsomanyofitsfindings,theRPAF’sviewsontheneedtomakeaVIARailCanadaActapriorityremainasvalidtodayasin1985.Now,thatneedisevenmorepressing

andthe=meleOtotakeac=onisfinite.Comprehensivelegisla=onwouldstoptheclock

onVIAasitisnowcons=tutedandassistinrestar=ngitproperly.

13

THISPAGEINTENTIONALLYLEFTBLANK

14

3.0 OverhaulingtheFreightRailwayRela;onship

TosaythatVIA’srela=onshipwiththefreightrailwaysonwhichitdependsforthebulkof

itsinfrastructureisrockyistheheightofunderstatement.Whenheappearedbefore

theHouseofCommonsStandingCommiKeeonTransportonMarch11,1998,thenCN

PresidentPaulTelliersaid,“IfIhadthechoiceofnothavingVIARailonourtracks,I

wouldprefernottohaveVIARailonourtracksbecauseIdon’tliketohaveacustomerI

cannotsa=sfy.”

Thisless-than-cordialrela=onshipwiththefreightrailways–par=cularlyCN–hasnot

improvedsincethat=me.Infact,ithasgoKenworse.VIAsuffersfromabasicproblem

thatwashighlightedinWhereisVIAGoing?,apaperdeliveredbyMalcolmG.Birdatthe

CanadianPoli=calScienceAssocia=onconferenceatOKawa’sCarletonUniversityon

May14,2009:

“CNhasavestedinterestinamarginally-runVIARail.IfVIAwereableto

provideconvenient,=melyservice,itwouldmaketakingthetrain,

par=cularlyinthecentralCanadiancorridor,amuchmoreaKrac=vetransit

op=on.MoreVIApassengers,ofcourse,wouldmeanaddi=onaltrainson

CN’stracksandthesetrains,inturn,wouldlikelyimpedeitsownfreight

haulingbusiness.

“Itisnotsurprisingthattheprofit-maximizingCNgivesitsownhundred-car

freighttrains,whichcarrymul=plemillionsofdollarsingoods,priorityover

VIA’spassengertrainsthat,atbest,carryafewhundredpassengerseach.

Theop=maloutcomeforCNwouldbeifVIAdisappearedaltogether.”

ThefailureofpreviousgovernmentstoestablishVIA’srightsandthetermsforits

opera=ononthetracksofanyfreightrailwayisakeycontributortothedeclineof

Canada’spassengerservice.Onallbuttwopercentofits7,500-milenetwork,VIAisa

tenant,dependentonthetreatmentitreceivesfromitshostrailways.Thisisespecially

thecasewithCN,whichaccountsfor70percentofVIA’sroutemileage.

TheresultisthatagooddealofVIA’sperformanceisdeterminednotbyVIA,butby

landlordswhodon’twantthepassengertrainsontheirtracks.Correc=ngthissitua=on

isvitaltoanyVIAturnaroundplan.

Thistoxicsitua=onisalegacyofVIA’slaunchwithoutcomprehensivelegisla=on.When

itbegan,therewasnoestablishmentoftheclear,equitabletermsVIArequiredto

assumethestatutoryobliga=onfromthefreightrailwaysfortheopera=onofthe

passengertrains.Beginningin1968,thepowertoalterorendthisobliga=onona

route-by-routebasiswasvestedintheCanadianTransportCommission(CTC)underthe

Na9onalTransporta9onActof1967.

15

UnderthegovernmenttakeoveroftheremainingCNandCPtrains,VIAwasauthorized

toenterintocontractswiththerailwaysforspecificroutesorservicesonbehalfofthe

Crown.ThefreightrailwaychargestoVIAweredeterminedundertheCTC’sCos=ng

OrderR-6313,whichhadbeendevelopedforapplica=ontofreightbranchlinecos=ng.

Thiswasacontroversialandfarfromsa=sfactoryformulaforseungVIA’scharges.

R-6313usedanavoidablecos=ngprinciplethatallowedtherailwaystochargeVIAnot

justtheirout-of-pocketoravoidablecosts,butalsoapercentageoftheirsystemor

overheadcosts.Asaresult,VIAcouldbechargedmorewhenarailway’sfreightbusiness

declined,absorbingagreaterpercentageofthatrailway’ssystemoverheadcosts.As

well,R-6313allowedforareseKlementoftherailways’monthlychargestoVIAatthe

endofeachyearandagainaOeritsowninternalauditoccurredasmuchasayearlater.

ThismadeVIA’sbudgetaryplanningdifficult,neverknowingun=llongaOerthefactwhat

CNandCPwouldchargeundertheseso-called13thand14thbills.

ThiscontrastswithAmtrak’srela=onshipwithitshostrailways,whichwasestablishedat

thestartundertheRailPassengerServiceActof1970.Inexchangeforreleasingtherailwaysfromtheirstatutoryobliga=ontoprovidepassengerservice,itestablishedfairer

andmoreprecisetermsthanthosefoistedonVIA.

TheAmtrakcos=ngformulacontainstwocomponents.Thefirstisbasedonthedirector

avoidablecoststhefreightrailwaysincurbecauseofAmtrak.Thesecondisanincen=ve

paymentfundthatenablesthefreightrailwaystoearnafaircontribu=ontotheir

overheadorindirectcostsbymee=ngstrictservicestandards.Theamountofthe

monthlyincen=vepaymentisdeterminedbyafreightrailway’son-=mehandlingof

Amtrak’strains,withdelaysaKributabletoAmtrakandothernon-freightrailwayfactors

excluded.Freightrailwaysthatperformpoorlyearnnoincen=ves,onlycompensa=on

fordirectcosts.

TheRailPassengerAc=onForce(RPAF)of1984-1985par=allysucceededinbringingthis

typeofcos=ngandperformance-basedcontrac=ngtoVIAthroughitsnego=a=onof

mastertrainserviceagreementswithCNandCP.Overmanyobjec=onsbythefreight

railways,thisAmtrak-inspiredapproachwasafirststepinreplacingtheroute-by-route

agreementsandtheCTC’sR-6313cos=ngformula.Alsoincludedwasaperformance-

basedincen=veclause,whichwouldallowCNandCPtoearnmorebasedonthe

percentageofVIA’strainstheyexpeditedforon-=mearrival.

However,virtuallyeverythingtheRPAFaccomplishedwaswashedawaybysubsequent

trainserviceagreementsthathavebeennego=atedsincethelate1990s.Whathasalso

beensomehowremovedfromthewholeprocessisanyacknowledgementthatthe

freightrailwayshaveneverbeenformallyrelievedoftheirpassengerserviceobliga=ons.

16

Today,VIAisembroiledinasitua=onthatcanbestbecharacterizedasalandlord-tenant

rela=onshipgonebad.Theworstaspectsofthisstrainedandul=matelydestruc=ve

situa=onareembeddedinthe10-yearCNtrainserviceagreementthatVIAwasleOto

nego=atewithoutthegovernment’ssupportorassistancein2009.

Thiscontrastswiththehands-onapproachgovernmentoOentakesonothermaKers

whereitseekstoprotectthepublicinterest.Onerecentexampleistheprevious

government’saKempttounsnarltherailmovementofwesterngrainthroughitspassage

oftheFairRailforGrainFarmersActof2014,whichincludedfinancialpenal=estoresolvethiswidespreadservicefailure.

Yet,thesamegovernment’sviewofthenego=a=onsbetweenVIAandCNin2009was

thatthiswasastrictlycommercialarrangementbetweentwofor-profitcorpora=ons.

Thisfailedtoaddressthefactthatonepartywasashrewd,for-profitfreightrailwayand

theotherwasapublicly-ownedpassengercarrier,whichusespublicdollarstodeliver

servicetoandonbehalfofthepublic.

Therewasnodiscerniblepublicinterestaspecttothesenego=a=onsandthatwas

reflectedintheagreementthatemerged.Onerailprofessionalwhowasprivytothe

nego=a=onslatercommented,“CNshearedVIAlikeaninnocentliKlelamb.”

Inthefirstfiveyearsofthe2009trainserviceagreement,CN’schargestoVIAincreased

by42percent.Thosechargeswillhaverisenanother40percentbythe=meitexpires

in2018.Inthesameperiod,CN’sdeliveryofservicetoVIAdeclinedandaccountedfor

muchofthedropinVIA’ssystem-wideon-=meperformance(OTP)from83percentto

76percent.InthecaseoftheToronto-VancouverCanadian,thefall-offinOTPhasbeenevensteeper:from70percentin2012to32percentin2014.

Thissitua=oncontrastssharplywiththeU.S.,whereAmtrakhashadtotakeatough

standindealingwithfreightrailwaysthathave,onmanyoccasions,beenjustas

unaccommoda=ngofitstrainsastheCanadianroadsareofVIA.ButAmtrakenjoys

considerableprotec=oninitslegisla=on,andboththecorpora=onandthefederal

governmentaren’treluctanttouseit.

In2012,duetoCN’sdelaysandsub-standardtrainhandling,Amtrakfiledaformal

complaintwiththeSurfaceTransporta=onBoardunderSec=on213ofthePassengerRailInvestmentandImprovementAct(PRIIA)of2008.Thelegisla=onspecifies:

“Exceptinanemergency,intercityandcommuterrailpassenger

transporta=onprovidedbyorforAmtrakhaspreferenceoverfreight

transporta=oninusingarailline,junc=on,orcrossingunlesstheBoard

ordersotherwiseunderthissubsec=on.

17

“Arailcarrieraffectedbythissubsec=onmayapplytotheBoardforrelief.

IftheBoard,aOeranopportunityforahearingundersec=on553of=tle

5,decidesthatpreferenceforintercityandcommuterrailpassenger

transporta=onmateriallywilllessenthequalityoffreighttransporta=on

providedtoshippers,theBoardshallestablishtherightsofthecarrier

andAmtrakonreasonableterms.”

InanycasewhereAmtrakoranyotherpassengeroperatorreceiveslessthanthis

legislatedpriorityservice,andithasfiledacomplaint,PRIIAsetsouttheremediesand

thedamagesthatmaybeawardedbytheSTB.Inshort,Amtrakenjoysconsiderable

protec=onfromuncoopera=vehostrailways,unlikeVIA.

WhileCNdidengageinsomenego=a=onswithAmtrakandtooksomeac=on,this

wasn’tenoughforAmtraktowithdrawthecomplaint.ThemaKerisproceedingwiththe

encouragementofsomepowerfulpoli=cianswhorepresentthedistrictswhereCN’s

treatmentofAmtrakisaffec=ngthereliabilityofitsservice.

AmtrakandtheU.S.FederalRailroadAdministra=onarealsowagingalegalbaKle

againstaKemptsbyallthefreightcarriers,throughtheAssocia=onofAmerican

Railroads,torepealthelegisla=verightthatgivespassengertrainsreasonablepriority

overfreight.Sofar,thepassengerpriorityrulehasremainedineffect,ashasAmtrak’s

cos=ngformulaforfreightrailwaycharges.

Evenintheabsenceoflegisla=onasdefini=veasthatenjoyedbyAmtrak,VIAmustbe

heldpar=allyaccountableforitsowndilemma.Thecorpora=onhasfailedtospeakout,

allegedlybecauseVIA’smanagersfearCNwillretaliatebypurposelyhamperingthe

performanceofitstrains.

ButVIAdoeshavesomeclout,whichithasrarelyexercised.Whilecurrentfederal

legisla=onoffersliKleprotec=onforVIA,theapplica=onofaclauseintheCanadaTransporta9onActcouldbegintocorrectthesub-standardtreatmentitreceivesfrom

thefreightrailways,par=cularlyCN.

UnderSec=on152oftheCTA,VIAhastherighttochallengetheservicedeliveredbythefreightrailways.Itspecifies:

“Wheneverapublicpassengerserviceproviderandarailwaycompany

areunabletoagreeinrespectofanymaKerraisedinthecontextofthe

nego=a=onofanyagreementconcerningtheuseoftherailway

company’srailway,land,equipment,facili=esorservicesbythepublic

passengerserviceproviderorconcerningthecondi=ons,ortheamount

tobepaid,forthatuse,thepublicpassengerserviceprovidermay,aOer

reasonableeffortstoresolvethemaKerhavebeenmade,applytothe

AgencytodecidethemaKer.

18

“Wheneverapublicpassengerserviceproviderandarailwaycompany

areunabletoagreeinrespectofanymaKerraisedinthecontextofthe

implementa=onofanymaKerpreviouslydecidedbytheAgency,either

thepublicpassengerserviceproviderortherailwaycompanymay,aOer

reasonableeffortstoresolvethemaKerhavebeenmade,applytothe

AgencytodecidethemaKer.”

VIAhasinvokedthissec=onoftheCTAindealingwithtwoshortlinefreightrailwaysandinasitua=onwhereCPaKemptedtobreachitsagreementtoallowaprescribednumber

ofVIAtrainsthroughatrackjunc=onatSmithsFalls,Ontario.VIAwoneachofitscases

beforetheCanadianTransporta=onAgencyandobtainedthereliefitsought.ButVIA

hasneverdonethiswithCN.

BecauseofitsimportanceintryingtogetVIAupandrunningproperly,itisnotsurprising

thatthe1984-1985RailPassengerAc=onForce(RPAF)devotedmuchefforttoproducea

newstructureforVIA’sfuturerela=onshipwiththefreightrailways.

TheRPAFdevelopedaveryclearapproachtothissitua=onanditiss=lltheonethat

shouldbepursuedtoday.Initsfinalreport,theRPAFrecommendedthattheproposed

VIARailCanadaActclarifyandvastlyimproveVIA’srela=onshipwiththefreightrailways

onthebasisoffivekeypoints:

“Toassumethestatutoryresponsibilityforprovidingrailpassenger

services,VIAmustbeassuredthatthenecessaryCNandCPfacili=eswillbe

providedand,whereliabilityisconcerned,CNandCPmustagreethatthe

basicprincipleofeachpartybearingthelegalconsequencesofitsown

acts,omissionsornegligencewillapply.

“CNandCPshouldhavetheresponsibilityofdispatchingVIA’strains

accordingtotheprincipleofpassengerpriority;ofmaintainingVIA-used

linesinpropercondi=ons;andofmakingimprovementsneededbyVIAfor

theopera=onofitstrains.

“Wesupportasystemofcompensa=onforVIAbasedondirect‘outof

pocket’costs,plusanaddi=onalpaymentforindirectcosts.Thisaddi=onal

payment,however,mustbeincen=vebased,i.e.dependentuponaKaining

performancecriteriaestablishedbyVIA.OurproposalwilltreatCNandCP

fairlybycompensa=ngthemonlyforiden=fiable,avoidablecostsactually

incurredand–mostimportantly–willforcethemtoperformatpeak

efficiencyiftheyaretoearnaddi=onalincen=ve-basedcompensa=on….

19

“Anewmechanismforbindingarbitra=onwillbenecessary,preferably

independentofexis=ngbodies…anddesignedsoastoencouragethe

par=estoresolveallbutthemostintractabledisputesthemselves.

“Finally,VIAneedstohavefullaccesstodatarequiredforplanning

purposesandtoensureaccuracyandreliabilityofbudgetsandoverallcost

control.”

Withonlyslightvaria=onstoreflectsomechangesthathaveoccurredsince1985,this

five-pointplanshouldformthebasisofthenew,legislatedrela=onshipbetweenVIAand

thefreightrailways,andbeincorporatedintotheVIARailCanadaAct.

Indoingso,itissuggestedthatacarrot-and-s=ckapproachbetaken.Withitslegisla=ve

powers,agovernmenthasaverybigs=ckandthefreightrailwaysneedtobereminded

ofthis.Thepreviousgovernment’s2014FairRailforGrainFarmersActisbutoneexampleofhowbroadandswiOthoselegisla=vepowerscanbe.

However,itwouldbepreferabletoaKempttoresolvethissitua=onamicablyand

withoutresor=ngtotheuseofthegovernment’sfullpowers.Therevisedtrainservice

agreementsVIAurgentlyrequiresshouldbethesubjectofnego=a=onbeforeany

considera=onisgiventostrongerlegisla=veop=onsbeyondtheproposedVIARailCanadaAct.

Althoughthesemoreaggressivemeasurescanbeemployedifnecessary,thiswould

furtherstrainVIA’salreadyunsa=sfactoryrela=onshipwiththefreightrailways.Today

andinthefuture,thefreightrailwaysneedtobeconvincedthatitisintheirbest

intereststobemorecoopera=vethanintherecentpast.

Butthefreightrailwaysdoneedtoberemindedthatthegovernmentcanunleash

considerablepoweronthegroundsthattheserailwayss=llbearresidualpassenger

serviceobliga=onsthatcanbeinvoked.Alsotobeconsideredisthefactthattheywere

relievedofthelargefinancialandopera=onalburdenofdirectlyprovidingpassenger

servicethroughVIA’sassump=onoftheremainingCNandCPtrains.

Thisposi=veviewpointhashelpedshapetheautudesofthemoreenlightenedU.S.

freightrailwaysthatdeliverfairly-pricedandresponsiveservicetoAmtrak,evenifthey

s=llques=onthecompensa=ontheyreceive.ThecorporateviewofNorfolkSouthern

andBurlingtonNorthernSantaFeisthatthecrea=onofapublicly-fundedna=onalrail

passengercorpora=onwasablessingbecauseitrelievedthemofalargefinancial

burden.Thesemoreenlightenedfreightrailwaysbelieveitbehoovesthemtoholdup

theirendofthebargainbytrea=ngthepublic’srailwayreasonably.

20

Aswell,Amtrak’sbeKerserviceprovidersalsounderstandtheyaren’tlikelytosucceedin

obtainingpublicfundsforrailfreightprojectsthroughpublic-privatepartnershipsifthey

beatupthepublic’spassengertrains.

Thesearepointsthenewgovernmentisgoingtohavetoemphasizeandwhichthe

freightrailwaysaregoingtohavetograspifthereisgoingtobeanewdealforVIA.

Properlynego=atedandlegisla=velyaffirmed,thisnewrela=onshipcanbebeneficialto

allthepar=cipants.

21

THISPAGEINTENTIONALLYLEFTBLANK

22

4.0 ModernizingVIA’sFleet

Whilecomprehensivelegisla=onisapriorityinrevivingandre-establishingVIAasa

sustainablepublictransporta=onservice,itwillallbefruitlessifthecorpora=onisnot

properlyre-equippedtodeliveronitsnewlegisla=vemandate.Constantlyrebuilding

obsoleteandinefficientequipmentonlydelaysaninevitablecollapseofVIAundera

combina=onofrisingcosts,fallingreliabilityandlowpassengeraKrac=on.

Amajorflawinthefederalgovernment’srailpassengerprogramsinceVIA’sforma=on

hasbeentheabsenceofastrategytodealwiththesystem’sconstantly-pressingneed

fornewequipment.TherehasbeenliKlerecogni=onofthefactthatthemost

importantphysicalelementofaservicedependentontrainsisthetrainsthemselves.

VIA’spromo=onofitsunsubstan=ateddedicatedtrackproposalfortheMontreal-

OKawa-Toronto(M-O-T)Trianglehasonlyhelpedtoperpetuatethisfalselogic.

Anotherfactorhasbeentheinsa=abledemandbyOKawaforaseeminglyendlessarray

ofconsul=ngstudiesandanalysisbeforeapprovingVIA’sequipmentdecisions.Asthe

RailPassengerAc=onForce(RPAF)of1984-1985said:

“FederalofficialsbearatleastpartoftheblameforVIA’spastapproach.

Theyhaveapprovedmillionsofdollars’worthoflong-rangestudies,perhaps

beingunawareofexis=ng,availablework,insomecasescarriedoutbyother

Federaldepartmentsandagencies.Indeed,thequalita=veandquan=ta=ve

basesforourrecommenda=onsonequipmentinpar=cularhavebeen

availableforseveralyears….

“Studiescausedelayandenablegovernmentofficialstointurndelaymaking

decisions;inthis,theyaresome=meswelcomedbythosegovernment

officials–thelongdelayintranscon=nentalmoderniza=onbeingacasein

point.ButallthismustchangeinthefutureifVIAistobecomethetypeof

innova=ve,ac=on-orientedcompanywebelieveisessen=al.”

Ratherthan“bi=ngthebullet”andfacingVIA’sperpetualequipmentdeficiencieshead

on,theresulthasbeenaseriesofBand-Aidsolu=ons.Theseeffortsinrecentyearshave

beenmadeworsebyafocusonfrills,suchasinteriorappointments,ratherthanthe

basicmechanicalandopera=onalaspectsoftheequipment.

Theseineffec=vemeasureshavealwaysfallenshortoffullyaddressingVIA’sneedfor

new,reliableandcost-effec=veequipmentthatcanbequicklyplacedinservicetocutits

highper-car-mileopera=ngandmaintenancecosts.ThishasbeenthecasesinceVIA

tookovertheobsoleteequipmentusedfortheCNandCPpassengerservices.

23

TheincompleteprogramtorebuildtheLight,Rapid,Comfortable(LRC)cars,whichare

31to35yearsold,isaclassicexampleofthisfailuretodealwiththevitalneedtore-

equip.TheLRCprojectcon=nuestoeatupscarcecapitalthatshouldbegoingtoanew

fleetembodyingallthedesignadvancessincethesecarswereconceivedinthelate

1960sandbuiltintheearly1980s.

Intotal,$327.6millionoftheoriginal$923millionVIAcapitalrenewalbudgetapproved

bythegovernmentin2007wenttorebuildingoldequipment.Thetotalcostiss=llnot

knownbecausesomeoftheseprojects–notablytheLRCremanufacturing–remain

incompleteandcon=nuetoconsumeaddi=onalcapitalfunds.BasedonotherNorth

Americanintercityrailpassengerorderscurrentlyinprogress,thesefundscouldhave

purchasedasmanyas100state-of-the-artintercitycoaches.

Otherrecentequipmentdecisionsareequallyperplexing.Twodaysbeforethefederal

elec=onwascalled,thepreviousgovernmentannounceda$102-millionVIAMontreal-

OKawaimprovementproject.Itincludedfundsforthereac=va=onofseveralproblem-

plaguedRenaissancecars,whichwerebuiltinEnglandin1995-1996,modifiedfor

Canadianservicein2001-2006andthenunderwentseveralmoremodifica=onsfor

variousreasons.

Thatthefleetsitua=onhasbecomeseriousisconfirmedbyVIA’sissuanceofarequest

forproposalsfortheshort-termleasingofsuitableintercityequipmentonJune2,2015:

“VIARailneeds,from=meto=me,tosupplementitsexis=ngfleetof

railroadrollingstockoverashorttomediumtermduetoshortagein

equipmentavailabilitywhichimpactsouropera=ngrequirements,namely

ourabilitytomeetdemandduringpeakperiods.

“Therefore,VIARailislookingtoiden=fyserviceproviderswhocan

supply,forshorttomediumtermleasing,ready-to-operateintercity

passengerrailroadrollingstock.”

WithmanyLRCcarsoutofserviceforrebuildingandthebulkoftheRenaissance

corridorfleetmothballedbecauseofcostandreliabilityissues,VIAisclearlyshortof

equipment.Arailwaythatdoesn’thaveafleetadequateforitsdailyneedsishardlyone

poisedfortheridershipandrevenuegrowthrequiredtojus=fyitsexistence.

Fortunately,atemplateforVIA’sfleetrenewalexists.ItistheAmtrakFleetStrategyof2010,whichhasbeenupdatedontwooccasionstoreflectthesupplyindustry’s

capabili=es,itsownfinancialcapacityandprojectedridershipgrowth.

Inthefirstparagraphofthelatestversion,theAmtrakFleetStrategyestablishesitsimportanceanddynamicnature:

24

“TheheartofAmtrak’sabilitytodelivercompe==veintercityrail

transporta=onserviceisthefleetthatweoperate.Thefleetaffects

customerpercep=on,thewillingnesstouseourproductandservices,

productreliability,andthecostsofmaintenanceandservicedelivery….”

IfVIAistoberevived,itmustdevelopasimilarstrategy.Thismustbeendorsedearlyby

thenewgovernmentnotjustassomethingtoconsider,butasabasicnecessityforVIA’s

survival.Iftherearenonewtrains,therewillbenoVIAinveryshortorder.Acentral

principleinVIA’sfleetstrategymustbetheoneestablishedbyAmtrakregardingthe

needfornew,notremanufacturedandrefurbishedequipment.Itstates:

“Rebuildingagingequipmentisalwaysatemporarysolu=onanddoesnot

savemoneyinthelongterm.Ifpassengerrailserviceistobesustainedand

grown,equipmentinvestmentmustbeacceptedaspartoftheprocess.”

TheAmtrakapproachispredicatedonmakinginvestmentdecisionsbasedonthe“lifing”

ofmo=vepowerandrollingstock,whichitdefinesusingtwocriteria:

“ThefirstisUsefulLifeandthesecondisCommercialLife.UsefulLifeisagenericandsomewhatarbitraryage-baseddefini=onof30yearsfor

locomo=vesand40yearsforpassengercars.Itdoesnottakeaccountof

condi=onoftheequipmentorinvestmentstoextenditslife.Amtrakreports

onthepercentageofitsequipmentthatisbeyonditsusefullifeaspartof

StateofGoodRepair(SOGR).

“CommercialLifeisacombina=onofanumberoffactors.Themain

elementsareasfollows:

⚫ Maintainability–equipmentcondi=on;abilitytosupportequipment

components,basedonobsolescence,costinmanpower,support

infrastructureandpartsconsump=onnecessarytomaintainthe

equipment;thereliabilityexperiencedinservicewithassociatedimpact

onservicedelivery.

⚫ Availability–numberofcarsandlocomo=vesavailabletosupport

demandrequirements.

⚫ Technicalcapability–abilitytomeettherequirementsoftheservice.

⚫ Customeracceptance–thewillingnessofcustomerstopaytoridethe

equipmentandtheimpactonridershiporrevenuethatcanbeachieved

bychangingequipmenttypes.

⚫ Capitalavailability–capabilityoftheorganiza=ontofundthecapital

investmentrequiredtoprovidereplacementequipment.

“Thecombina=onofthesefactorswillresultinaproposedcommerciallife

forequipment.Thisisusuallyashortertermthantheusefullife.”

25

Bythismeasure,virtuallyallofVIA’sfleetisbeyonditscommerciallife.Yet,VIAhasnow

commiKedfundsfromitsuncertainbudgettorebuildequipmentthatis,inthecaseof

theLRCs,initsfourthdecadeofservice.

Thisshouldbecomparedwiththeinterlockingfleetstrategiesnowbeingpursuedby

Amtrakandsomeofits19statepartners.Intotal,Amtrakandfiveofthestates

currentlyhaveordersunderwaywiththreebuildersfor70electriclocomo=ves,32

diesel-electrics,130single-levelcarsfortheeasternlong-haultrainsand175bi-levelcars

forMidwestandCaliforniacorridorroutes.

By2023,Amtrakwillreceive25high-speedelectrictrainsetsfortheNortheastCorridor,

500bi-levellong-haulcars,825single-levelcorridorandlong-haulcars,and300diesel-

electriclocomo=ves.State-fundedpurchasesofsingle-andbi-levelcorridorequipment

willbeinaddi=ontotheseAmtrakequipmentacquisi=ons.

IfthenewgovernmentfundsVIAatalevelthatcompelsittocon=nuerebuilding

equipmentthatiscommerciallylife-expired,itwillbeseriouslymisalloca=ngpublic

funds.Attheveryleast,theproposedreac=va=onof30ormoreRenaissancecorridor

carsneedstobeweighedbytheRPAFagainstothershort-termequipmentop=onsthat

wouldincreasetheu=liza=onofVIA’sBuddandLRCfleets,andmaydeliverbeKervalue

fortheinvestmentinvolved.

4.1 RollingStock

TheaspectofVIA’sfleetthatrequiresthemostaKen=onistherollingstockassignedto

bothitscorridorandlong-haulservices.Inthelongerterm,VIAwillalsorequirerolling

stockbeKersuitedtothedemandsoftheremoteroutes,butthatsitua=onfallsfar

behindtheurgentneedtoaddressthecorridorandlong-haulrequirements.

Today,VIAoperatesfivetypesofsingle-level,locomo=ve-hauledcarsincorridor,long-

haulandremoteservice,consis=ngof:

⚫ 174remanufacturedBuddcarsofvariousconfigura=onsforlong-hauland

remoteservice;

⚫ 33remanufacturedBuddcoachesandBusinessClasscarsforcorridorservice;

⚫ 3glass-roofedcoachesfortheCanadianwestofEdmontonandtheJasper-Prince

Ruperttrain;

⚫ 106RenaissancecarsforcorridortrainsandtheOcean,withseveralcurrentlystoredoutofservice;and

⚫ 97LRCcoachesandbusinessclasscarsincorridorserviceonly.

UnderTheVIA1-4-10Plan,thelocomo=ve-hauledfleetwouldbereducedtotwobasic

types,bothofwhichwouldbebi-level.UnlikeAmtrak,whichmustcontendwith

26

clearancerestric=onsonitseasternlinesthatprecludetheuseofbi-levelrollingstock,

VIAfacesnositua=onswherebi-levelspoten=allycannotbeused.Theeconomicand

opera=onaladvantagesofbi-levelequipmentmakeittheclearchoiceforallofVIA’s

locomo=ve-hauledservices,whichincludecorridor,long-haulandallbuttworemoteor

regionaltrains.

In1983,ananonymousgovernmenttransporta=onanalystpreparedareportforthe

advocacygroup,Transport2000(nowTransportAc=on),infavourofre-equippingVIA’s

long-haultrainswithbi-levelequipment,usingdataregardingtheperformanceof

Amtrak’sthenrela=velynewSuperlinersforcos=ngpurposes.Thereportstated:

“Thetwo-storeybi-levelcarshaveahigherpassengercapacitythan

conven=onal[single-level]equipmentandofferthepossibilityof

combiningdifferentaccommoda=onsandservicesintoasinglecar.The

economicefficiencyofrailserviceisenhancedascarmilesarereduced,

trainweightsarereduced,andfueleconomyisimproved….

“Theinvestmentinnewbi-levelequipmentisthemosteconomically

advantageous[onethat]thegovernmentcanmakeinequippingthe

transcon=nentalservices.Opera=ngcostswilldecreaseby32percent

fromthecostofopera=ngthecurrent[steam-heated]single-level

equipmentandby28percentfromthecostofopera=ngrebuiltsingle-

levelequipment.Passengerrevenueswouldincreaseduetotheon-=me

reliabilityoftheequipment,theabilitytomeetfasterschedules,andthe

aKrac=onofthenewequipment.Thecombinedeffectsofthereduc=on

incostsandincreasesinrevenueswithbi-levelequipmentwouldbeto

reducelossesbyasmuchas46percent.”

Whilethe1983reportdealtsolelywithVIA’slong-haultrains,thesameefficienciesalso

applytobi-levelequipmentincorridorservice.Onaverage,abi-levelpassengercarcan

accommodate40percentmorepassengersthananequivalentsingle-levelcar.When

thismaKerwasstudiedin-depthbythe1984-1985RPAF,theconclusionwasthatsingle-

levelcoachescouldbereplacedbybi-levelsonatwo-for-threebasis.Forsleepingcars,

thereplacementra=owasone-for-two.

VIA’scurrentfleetisroughlycomposedof186corridorcarsand227long-haulcars.

Thereissomeoverlapthroughtheuseofcertainpiecesofequipmentforbothtypesof

service,suchastheRenaissancecoachesandlounge/cafécarsdeployedoncorridor

trainsandtheOcean,andbaggagecarsthatareassignedtoalltypesofservice.Intotal,VIA’s413-carfleetcanprovideapproximately13,000coachorbusinessclassseatsand

2,100sleepingcarspaces,plusnon-revenuedining,loungeandbaggagecapacity.

27

TheMulroneygovernment’sRailPassengerAc=onForceof1984-1985recommendedthepurchaseof214

Amtrak-provenSuperlinersforthemoderniza=onoftheVIAlong-haulnetwork,buttheywereignored.

TheeconomicconsequencesarenowreadilyapparentinVIA’smoun=nglong-haulcosts.Theonlyhope

forthelong-termreten=onofthesetrainsrestsontheacquisi=onofthistypeofbi-levelequipmentto

reducecostsandimproveperformance.PhotoscourtesyofBombardierTransporta=on

28

Includingthediningandloungecarsrequiredforthelong-haultrains,replacingthis

capacitywithbi-levelequipmentforVIA’scurrentneedsandtoallowforareasonable

amountofserviceexpansionwouldrequire160carsforthecorridorand140forthe

long-haultrainsandtwooftheremoteservices.Itisassumedthatsingle-levelBudd

baggagecarswilloperateinconjunc=onwiththenewbi-levelfleetonthelong-hauland

remoteroutes,whilesecurebaggageandbicyclestoragefacili=eswillbeincorporated

intoonecoachineachcorridortrainset.Asisstandardprac=ce,thepurchasecontracts

forthisnewequipmentwouldincludeop=onsfortheaddi=onalcarsrequiredto

accommodatefrequency,ridershipandnetworkgrowthinthefuture.

Basedoncos=ngdataprovidedbymembersoftherailmanufacturingsector,itis

es=matedtheaveragecostofthenewbi-levelequipmentwouldbe$5millionpercar.

Theini=alrequirementwould,therefore,befor$1.5billiontopurchaseenoughrolling

stocktocoverVIA’sprimaryfrontlineneedsandabsorbapercentageofitsgrowth

throughthelifeofTheVIA1-4-10Plan.Thisincludesenoughsparecarstoallowforprogrammedmaintenanceandtrafficsurgesduringthepeaktravelperiods.Itisalso

dependentonthecon=nueduseofthebestelementsofVIA’sexis=ngfleettoprovide

addi=onalsurgecapacityandtolaunchtheexperimentalservicesthatareoutlinedlater

inthisplan.

Theactualdesignofthebi-levelcorridorandlong-haulcars,andthefinalsizeofthe

orders,aremaKersfortheRPAF,VIAandthequalifiedbidderstoworkout.Withno

intercityrollingstockproducedrecentlyinCanada,itisnotamaKerofsimplypullinga

designofftheshelfandendorsingitsimmediatepurchase.However,pastandpresent

U.S.experience,aswellaspreviousCanadianstudies,clearlyestablishesthebasic

specifica=onsoftheequipmentrequired.

ForVIA’scorridorservices,thenewbi-levelswouldfollowthedesignconceptofthe175

corridorbi-levelsnowbeingproducedbySumitomoinRochelle,Illinois,forthestate-

supportedAmtrakservicesinMichigan,Illinois,MissouriandCalifornia.Thisdesignis

basedonpreviousonesemployedintheproduc=onof66CaliforniaCarsin1995-1996

and62Surflinersin2000-2002.Inturn,thesetwobi-leveldesignswerederivedfrom

thelong-haulSuperliners.Asaresult,allfourtypesofcarsareopera=onallycompa=ble.

Amajorrequirementofthenewcorridorbi-levelfleetisthatitshouldbeequippedfor

bi-direc=onal,push-pullservice.Oneofthemainproblemsaffec=ngtheflexibility,

u=liza=onandcost-effec=venessofVIA’scurrentcorridortrainsetsisthattheycan

operateinonedirec=ononlyandmustbeturnedbymeansofawye–athree-point

turnfortrains–oralooptrackattheirterminals.Thisisa=me-consumingprocessthat

keepsthetrainsandcrewsoutofrevenue-producingserviceforlongperiodsof=meand

preventsquickturnaroundsatendterminals.

29

Thealterna=veispush-pullopera=on,whichisstandardforNorthAmericancommuter

opera=on,andisappliedwidelybyAmtrak.Thebi-levelcorridorcarsnowbeingbuiltby

Sumitomoarealsopush-pull.Withalocomo=veatoneendandafully-equippedcabcar

ontheother,apush-pulltrainsetarrivingatitsterminalcanbereadytoheadinthe

oppositedirec=onwithinthe=meittakesforpassengerstodisembarkandboard,and

thelocomo=vecrewtowalktotheoppositeendofthetrain.Havingthisopera=onal

flexibilityisanabsolutegiveninthedesignofVIA’snewcorridorequipment.

Forthelong-haulfleet,thedesignbaselineshouldbeBombardier’sSuperliners,which

areemployedonnineofAmtrak’s15long-haultrains.Themixofcarstobeacquired

includescoaches,sleepers,dinersandloungecars.Withoutrequiringmajordesignor

structuralaltera=ons,theVIAlong-hauldesignmusthavetheflexibilitytomixsomeof

thesefunc=onstoprovidecombina=oncarsthataregearedtothetrafficdemandsof

certainroutes.Forexample,whenthe1984-1985RPAFdrewupitslistofproposedbi-

levelrollingstock,itincludedanumberofsleeper-loungesanddiner-loungesfortrains

thatdidn’tgenerateenoughridershiptojus=fytheuseoffullloungeanddiningcars.

Thereareotherissuestobeconsideredinthewri=ngofthespecifica=onsforVIA’snew

bi-levelfleet.AmajoroneisthemaKerofdoorheight.Alltheintercitybi-levelcars

nowinserviceoronorderintheU.S.aredesignedforusewithlow-levelsta=on

plasorms.However,theplasormsatMontrealCentralSta=onandQuebec’sGaredu

Palaisarehigh-level.Amajorques=oniswhetherthebi-leveldesignshouldbemodified

toaccommodatetheseplasormsortheplasormsmodifiedfortherollingstock.

ThenewRPAFshouldconsultwithAmtrakbeforeitproceedswiththeseungofthebi-

levelfleetspecifica=ons.TheknowledgeAmtrakhasgainedthroughyearsofactualbi-

levelopera=on,thedevelopmentofitsfleetstrategyandtheawardingofitsmostrecent

orderswillbeinvaluableinhelpingtoshapeastrategyforVIA.

Consulta=onwithAmtrakwillalsoensureahighdegreeofcommonalitybetweenthe

futurefleets,whichisdesirableforshared,cross-borderservices,suchasthecurrent

Toronto-NewYorkCityMapleLeaf.Therecouldbeopportuni=esforjointVIA-Amtrak

equipmentpurchases,whichwouldproduceeconomiesofscaleforboth.

4.2 Mo;vePower

Newmo=vepowerwillalsoberequired,althoughthisisn’tasurgentastheneedfor

newrollingstock.VIA’sfleetnowconsistsoftwotypesofdiesel-electricmo=vepower:

⚫ 21GeneralElectric(GE)P42DCunitsbuiltin2001,ratedat4,250HPandgeared

foramaximumspeedof100mph;and

⚫ 53GeneralMotorsDiesel(GMD)F40PH-2unitsbuiltbetween1985and1989,

ratedat3,000HPandgearedforamaximumspeedof90mph.

30

Themodelforthere-equipmentofVIA’scorridorservicesistheprogramnowunderwayonthestate-supported

AmtrakroutesintheMidwest,PacificNorthwestandCalifornia.Thisincludestheacquisi=onofbi-levelrolling

stockequippedforpush-pullserviceandhigh-performancediesel-electriclocomo=ves,aswellasincremental

infrastructureimprovementstoallowforincreasedfrequencyanddecreasedrunning=mesusingthisstate-of-the-

artmo=vepowerandrollingstock.

.

31

The53GMDF40sunderwenta$100-millionrebuildprogrambetween2009and2012,

whichhasimprovedtheirreliability,fuelconsump=onandoverallperformancetoa

degree.However,theseunitsarebeyondtheirdesirablecommerciallivesandwillneed

tobereplacedprogressivelyattheearliestopportunity.ComparableAmtrakunitswere

longagosold,scrappedorconvertedtootheruses.Whentheywererebuilt,VIA

es=matedtheirremainingservicelifeas15to20years,althoughindustrysources

suggestthatisop=mis=c.

Whenthe21GEP42sreceivedsomemidlifeoverhaulworkin2009-2010,VIAsaidthis

wouldgivethemanother1millionmilesoreightyearsofaddi=onallife.Theseunits

are,therefore,closetothepointwheretheywillhavetobefullyremanufacturedor

replaced.Giventhe=meitwouldtaketoreplacethem,andthefactthattheyarethe

onlyunitsinVIA’sfleetthatcanbeusedforitsfastestcorridortrains,theP42swould

mostlikelyhavetoberebuiltatacostofmorethan$1millionperunitforanother

decadeofservice.

Asfornewmo=vepower,thechoicesarelimited.Aswell,withtheclosureofthe

formerGMDplantinLondon,Ontario,in2012,Canadalostitslastlocomo=ve

manufacturer,sofutureVIAmo=vepowerwillhavetobebuiltintheU.S.

Theonlyintercitypassengerlocomo=vecurrentlyavailableisthenewSiemensCharger,

whichhasbeenorderedbyacoali=onoftheMichigan,Illinois,Missouri,Washington

andCaliforniadepartmentsoftransporta=onforuseontheAmtrakcorridortrainsthey

supportfinancially.

TheChargerisahigh-performance,4,400-HPunitdesignedforamaximumservice

speedof125mphandmee=ngthecurrentTierIVemissionstandards.Itmakesuseof

designsandsub-systemsSiemenshasemployedonitssuccessfulVectronseriesof

Europeanelectricanddiesellocomo=ves,aswellasthe70ACS-64Ci=esSprinterelectric

locomo=vesitrecentlydeliveredtoAmtrak.

Thestatecoali=on,whichplaceditsorderin2014,ispaying$7million(U.S.)perunitand

holdsanop=onfor75moreconfiguredforcorridorserviceand150foruseonAmtrak’s

long-haultrains.Thefirstunitsareexpectedtoarriveinlate2015.

Foritscurrentrequirementsandtoaccommodatethegrowthan=cipatedunderTheVIA1-4-10Plan,VIAwouldrequireaminimumof70Chargerlocomo=vesforbothcorridor

andlong-haulservicebetween2016and2025.Allowingforinfla=onandfluctua=onsin

theexchangerate,thisAmerican-builtmo=vepowerwillcostapproximately$700

millioninCanadianfundsbythe=meitisdelivered.

32

4.3 FleetProcurement

ItwouldbelogicaltosuggestthattheeasiestandfastestwaytoacquireVIA’snewfleet

wouldbebypiggybackingonthecurrentAmtrakandstateorders.Theproblemisthat

thisequipmentisbeingmanufacturedtotallyintheU.S.underfederalfunding

guidelinesrequiring100percentAmericancontent.SimplyaddingtotheU.S.orders

wouldbeexpedi=ous,butitwouldproducenoeconomics=mulusbenefitsinCanada.

Thedomes=ceconomics=mulusthatresultsfromapublicspendingprogramaslargeas

thetotalre-equippingofVIAmustbeaconsidera=on.Oneofthefactorsinfavourof

publicinvestmentinrailpassengerprojectsisitslargeeconomicspinoff.TheU.S.

DepartmentofCommerceandothercrediblesourceses=matecapitalinvestmentinrail

passengerprojectshaveaneconomics=muluspaybackra=oofthree-orfour-to-one.

Whilethenew,American-builtlocomo=veswillgeneratenodomes=ceconomic

s=mulus,therollingstockwill.Atatotalcostof$1.5billionovera10-yearperiod,this

wouldproduceasmuchas$6billionineconomicspinoff.

Canadacurrentlyhastwocompanieswithexperienceinthemanufacturingofintercity

passengerequipment,withtheobviousandmostac=veonebeingBombardier.VIA’s97

LRCcoaches,195ofAmtrak’s479Superlinercarsand20Acelahigh-speedtrainsetsfor

Amtrak’sNortheastCorridorwerebuiltbyBombardier.WhiletheBombardierplantsin

LaPoca=ère,Quebec,andThunderBay,Ontario,haveturnedouthundredsofcommuter

railandurbantransitcarsinrecentyears,nointercityworkhasbeenundertakensince

theThunderBayplantmodifiedVIA’sRenaissancecarsbetween2001and2006.

Addi=onally,FrenchrailmanufacturerAlstomnowhasapresenceinCanadathroughits

jointcontractwithBombardierforMontreal’sAzurmetrocars.WhileAlstomdoesnot

currentlyhaveanyNorthAmericanintercitypassengercarorders,itdeliveredthe62bi-

levelSurflinercarsforCalifornia’sstate-supportedAmtraktrainsin2000-2002.

ThecurrentAmtrakordershavegonetoSumitomo/NipponSharyoinRochelle,Illinois,

CAFinElmira,NewYork,andSiemensinSacramento,California.Thesefirmswould

likelybeinterestedinbiddingonanyVIAorders,undertherightcondi=ons.Toobtain

thebestequipmentatthebestprice,compe==vebiddingguidelinesshouldincludeall

oftheseestablishedmanufacturers,whicharenowgainingconsiderableexperiencein

theproduc=onofNorthAmericanintercitypassengerequipment.

VIA’sfutureequipmentpurchasingwillhavetobalancetwomajorobjec=ves.Firstand

foremostisthemoderniza=onofVIA’sfleetwiththemostreliableandcost-effec=ve

equipmentavailable.Thesecondobjec=veisthegenera=onofmaximumdomes=c

manufacturings=mulus.

33

Whatmustbeguardedagainstisleungthesecondobjec=veovertakethefirstand

defea=ngtheproject’sgoal.ThisoccurredinVIA’searlyyearswiththepurchaseofits

LRCfleet,theconsequencesofwhichares=llaffec=ngitsperformance.Itisahistory

lessonthatneedstoberecalledinfutureequipmentdecisionmaking.

VIAcannotaffordtogothroughanyfurtherequipmentmisfires.Thebasisfordecision

makingmustbalancetheprimaryneedfornewequipmenttodras=callyreformVIA’s

costlyopera=onswiththevalidconsidera=onofitspoten=aldomes=cmanufacturing

sectors=mulus.

Sor=ngthismaKeroutshouldbeoneofthetasksoftheRPAF.Thegroupwillneedto

setthecriteriaforthenewequipmenttypesandthequan==esrequiredbyVIA,and

thenopenthediscussionswithallqualifiedbuilders.Ashasbeendoneinseveralrecent

Canadiantransitprocurementprograms,thebestapproachmayberequiringa

reasonablepercentageofCanadiancontentandbalancingthisagainstabidder’sability

todeliveraproven,qualityproductatafavourablepriceandona=melybasis.

4.4 Short-TermFleetMaximiza;on

NomaKerwhichdesignsandmanufacturersareselected,anunfortunatefactthatmust

befacedisthatthefirstelementsofVIA’snewfleetwon’tarriveforthreetofouryears

aOertheordersareplaced.Thisisalegacyofthecollapseoftherailpassengerbusiness

priortothecrea=onofAmtrakandVIA,andtheon-offnatureofintercityequipment

purchasinginthesubsequenteraofpublicly-fundedopera=on.

Un=lthemid-1950s,passengerequipmentmanufacturingwasclosetoaproduc=online

business,withmodifiable,off-the-shelfdesignsavailableandordersplacedatregular

intervalsbynumerousrailways.Sincethen,ithasbecomeanerra=candcustomized

business,withtheordersunevenlyspacedoutandinsufficientdemandforthe

manufacturerstoupdatetheirdesignsinthehopeofs=mula=ngorders.Theresultis

thatittakesagreatdealof=mefordesignwork,prototypedevelopmentandtes=ng

beforeasteadystreamofnewequipmentcanbedeliveredonaproduc=on-linebasis.

Thecurrentsitua=onintheU.S.givesagoodindica=onofhowlongtheVIAre-

equipmentprogramwilltake.TheorderforAmtrak’s130single-levellong-haulcarswas

signedwithCAFinJuly2012.Thefirstpre-produc=onpilotcarsweredeliveredinJune

2014andproduc=oncarswillbearrivingbeforetheendof2015.Thefullorderwon’t

becompletedun=ltheendof2016,attheearliest.

Becauseofthisinabilitytoquicklysecurenewequipment,andbecauseofthelarge

investmentthathasbeenmadeinrefurbishingVIA’soldequipment,theRPAFmust

developastrategytomaximizetheu=liza=onofthecurrentfleet.Anotherverygood

reasontodosoisthefactthattoomuchVIAequipmentnowsitsidlebetweenruns

34

becauseoflowservicefrequencyandinefficientopera=ngprac=ces.Thesetrainsneed

tobeoutontheroadgenera=ngridershipandrevenue.

Inpar=cular,thebestelementsofVIA’sexis=ngfleetwillberequiredfortheproposed

experimentalservicesthatwillbeaddedprogressivelythroughoutthedura=onofTheVIA1-4-10Plan.Doingsomayrequiresomeshort-termfleetinvestmentstoboost

equipmentavailabilityandu=lity.Theaddi=onofcabcarstoVIA’scorridortrainsetsis

themostobviousandpoten=allyproduc=veexample.

Amtrakcreatedapoolofcabcarsmorethan20yearsagousinglife-expiredlocomo=ves

androllingstockitreconfiguredin-housetoenableitsunidirec=onal,locomo=ve-hauled

corridortrainsetstoprovidebi-direc=onal,push-pullservice.ComparedwithVIA’s

corridorfleet,theseAmtrakpush-pulltrainsetsrunmoremilesandproducemore

revenuedaily,whilealsoreducingopera=ngcosts.ThishasenabledAmtraktoboost

servicefrequencieswithinalimitedopera=ngbudget.

Anotherpossibilityisshort-termleasingofequipmentalreadyconfiguredforpush-pull

opera=on.WhilethereisliKleintercityequipmentavailable,thereispush-pull

commuterequipmentthatcouldbeadaptedandtemporarilyemployedtoexpand

serviceinSouthwesternOntariopendingthearrivalofanewVIAfleet.Therearealsoa

limitednumberofbi-direc=onalex-VIABuddraildieselcars(RDCs)thatcouldbeleased

toserveonsomeroutesduringtheperiodwhentheVIAfleetmoderniza=onis

occurring,althoughCNhasraisedsometechnicalissuesthatmightmakethisdifficult.

Theseshort-termsolu=onsarediscussedfurtherinChapter8.1ofthisplan.

35

THISPAGEINTENTIONALLYLEFTBLANK

36

5.0 AHigh-PerformanceQuebec-WindsorCorridor

TheQuebec-WindsorCorridorisVIA’score.Italwayshasbeenanditalwayswillbe.

Manyoutsidethecorridorhavejus=fiablycomplainedthatittoooOenpreoccupiesVIA

managementandgovernmenttothedetrimentoftherestofthena=onalsystem.

Whilethisshouldn’tbethecaseifVIAistobeatrulyna=onalservice,thereisno

denyingthatthecorridordemandsthebulkoftheaKen=on.Infact,itcouldeasilybe

saidthatVIAcan’teverhopetofunc=onproperlyasana=onalsystemifthecorridoris

notopera=ngatitshighestpoten=al.

ItisalsointheQuebec-WindsorCorridorthatVIAcanprovethewisdomofinvestment

inrailasanalterna=vetotheothermodes,par=cularlytheautomobile.Thehighway

conges=onproblemsoftheMontrealandTorontoareasnowspreadwellbeyondthe

areasservedbytheregionaltransitoperatorsandintowhathavetradi=onallybeenVIA’s

markets.Investmentinasubstan=alimprovementinVIAcanbeposi=onedasacost-

effec=veandenvironmentallysuperioralterna=vetofurtherhighwayspending,which

neverdefini=velysolvestheproblemandbringswithitahostofenvironmentalandland

useproblems.

However,thesimplefactisthattheQuebec-WindsorCorridor,despitetheaKen=onit

hasreceivedsinceVIA’screa=on,isfarfromperformingatitsfullpoten=alor

demonstra=ngrail’saKrac=venessasanalterna=vetobothhighwayandavia=on

spending.Betweensomecitypairs,itprovidesamoderatelyusefulservicethataKracts

areasonablelevelofridership,butits=llfallsfarshortofwhatitcouldbe.

TheproblemisthattherehasneverbeenaconsistentplantogrowtheQuebec-Windsor

Corridor.WhenfundinghasbeenavailabletoVIA,ithasbeenappliedonapiecemeal

basiswithoutaclearobjec=ve,onlyfuzzyprojec=onsofincreasedridershipand

improvedperformance.Thisisquiteclearinthedeliveryofandtheresultsfromthe

mostrecentVIAinvestmentplan.

Thebulkofthe$923millionthepreviousgovernmentallocatedtoVIAforcapital

renewalbetween2007and2012wasdevotedtothecorridor,butithashadanegligible

effectonridership,revenueorservicefrequency.Elementsofthisplanares=ll

incompleteandrunningseriouslyoverbudgetthreeyearsaOeritwassupposedtobe

completed.

Acomplica=ngfactorthroughoutmuchofVIA’sexistencehasbeenthesugges=onthat

VIAortheprivatesectorshouldbuildanall-new,electrifiedhigh-speedrail(HSR)service

forpartoralloftheQuebec-WindsorCorridor.HSRemergedoverseasinthe1960s

whenexis=ngpassengerroutesreachedtheirspeedandcapacitylimits.

37

Newhigh-speedlinescorrectedthelimita=onsoftheoldones,whichremainedin

serviceforfastregionaltrainsconnec=ngwiththenewexpressservices,whichoperate

atspeedsof150mphormoreonthesededicated,passenger-onlylines.Underlying

theseoverseasinvestmentsinHSRhavebeengovernmentpoliciesaimedatestablishing

railasthebackboneoftheiren=retransporta=onsystemsontheirmostdensely-

populatedcorridors.

HSRhasbeenstudiedrepeatedlyinCanada,buttheresultshavealwaysbeenthesame.

WhileHSRisaKrac=veatfirstlook,itwouldbemonstrouslyexpensive,itwouldnot

repayitscapitalcostthroughopera=ngprofitsandwould,therefore,requirepublic

investment.Aswell,itwouldtakesevenormoreyearsbeforeanyHSRlinewould

becomeopera=onalandyieldanypublicbenefits.

VIApromotedtheHSRop=onfrom1983un=l2001,butnevergainedanygovernment

support.Third-partyinves=ga=onsalsocameupempty-handedandnoprivate-sector

investorseversteppedforwardtotakeiton.

The$923-millioncapitalinvestmentplanof2007-2012was,inmanyways,the

replacementforVIA’spreviousHSRstrategy.Whenitwasannounced,VIAandthe

governmentsaiditwouldimproveitsconven=onal,100-mphcorridorservicestosuch

anextentthatitwould“accommodatemorethanonemillionaddi=onalpassengers–an

increaseinridershipof32percent–whentheinfrastructureimprovementsare

completedby2012.”

Infact,thisprogramwasthoroughlyinadequateforsuchagoal.Ithasamountedtojust

con=nuingthesamepaKernofinves=ngmarginallyinVIA’scorridorservicewithno

prospectofbringingaboutthemajorturnaroundthatwoulddrama=callyincrease

ridershipandrevenuebyofferingconsiderablymorefrequenciesandslightlyreduced

running=mes.IthasbroughtliKlemeaningfulimprovementtotheQuebec-Windsor

Corridorandhasnotposi=onedVIAforgrowth.

Now,VIAisproposingaturnaroundstrategybasedonamuchlargercapitalinvestment

schemefortheQuebec-WindsorCorridor,althoughfarshortofHSR.Thisraisesserious

issuesthatneedtobeaddressedbeforeanyaddi=onalcapitalisexpendedonfutureVIA

infrastructureprojects.

5.1 VIA’sHigh-FrequencyRailProposal

ThemostrecentproposalfromVIAisasketchyplantobuildadedicated,110-mphline

intheMontreal-OKawa-Toronto(M-O-T)Triangle.The$4billionprojectwouldbe

financedbyinvestorssuchastheCaissededépôtetplacementduQuébec,theOntario

MunicipalEmployeesRe=rementSystemandtheOntarioTeachers’PensionPlan.This

linewouldbeusedbyVIAonacontractedtollbasisthatwouldobviouslyhaveto

generateaprofitfortheinvestors.

38

Theprivate-sectorfinancingapproachwouldbetakenpar=allybecauseVIACEOYves

Desjardins-SicilianosaysthegovernmenthassuppliedenoughmoneytoVIAandit

wouldbe“unfair”toexpectmore.Headded,“VIARailisanincreasingburdenon

Canada’staxpayersduetodeteriora=ngon-=meperformanceandthelackof

frequenciestoberelevant.”

GiventhedepthsofVIA’saccumulatedwoesandthefactthatitwillrequiresteadyand

assuredcapitalfundingtogetitoutofitsdeeppit,thisso-calledhigh-frequencyrail

(HFR)projectringsalarmbells.Itispredicatedonano=onthatonlyadedicatedlinewill

endthedelaysandconflictsnowafflic=ngVIAthroughitsshareduseofCNfreight

infrastructure.Whiletheobjec=veofbeingtotallyfreeoffreighttrafficisadmirable,its

likelihoodisques=onable.Attheveryleast,VIAisgoingtohavetolivewithsome

infrastructureownedbyandsharedwiththefreightandcommuterrailwaysinthe

TorontoandMontrealterminalareas,whichVIAcouldneverduplicate.

Thereisalsothecuriousrou=ngtobeconsidered.VIA’strainswouldexitMontreal

CentralSta=onandproceed46.7milesalongtheexis=ngCNcorridortotheVIA-owned

por=onoftheAlexandriaSubdivisionnorthofCoteau,Quebec.ThisVIAlinesegmentto

OKawaUnionSta=onconnectsdirectlywithVIA’sex-CNSmithsFallsSubdivision,which

underwent$19millioninupgradingaspartofthe2007-2012capitalrenewalproject

and,liketheVIAsegmentoftheAlexandriaSubdivision,handlesveryliKlefreighttraffic.

WestofSmithsFalls,VIA’strainswouldproceedfor15.5milesondedicatedtrackbuilt

alongsideCP’sMontreal-Torontofreightline.AtGlenTay,theVIAlinewouldveeroffon

theabandonedpor=onoftheCPHavelockSubdivision,withthe92milesofmissing

trackrebuiltto110-mphpassengerstandards.

FromHavelockwest,VIA’strackswouldbebuiltalongsideac=veCPfreightrights-of-way

throughPeterboroughtoLeaside,thendowntheDonValleytoUnionSta=onovera

mothballedex-CPlineownedbyGOTransit.

Intotal,theVIAHFRprojectwouldconsistof366routemiles,ofwhichmorethan200

mileswouldbenewandanaddi=onal107mileswouldbetrackpreviouslypurchased

fromCNandupgradedbyVIA.Exclusiveofmo=vepowerandrollingstock,thecostof

thisHFRprojectisanes=mated$2billion,onwhichVIAsaystheprivatesectorwill

demandadouble-digitreturnoninvestment.Es=matesofVIA’sannualopera=ngcosts

haven’temerged.The110-mphtrainsets,es=matedtocost$1billion,wouldbe

purchasedbyVIAwithpublicfunds.

Asfornewequipment,thiswouldbedesignedandorderedaOertheprivatesector

agreedtobuildtheline.With110-mphservice,VIAsaysthetrainshavetobe“fiKed”

carefullytotheinfrastructure.ThisignoresthefactthatmanyVIAtrainsnowrunatup

39

to100mphandAmtrakalreadyoperatesseveralconven=onal,diesel-hauledtrainsat

110mph.VIA’sLRCrollingstockis,infact,designedfor125-mphservice.

VIAisalsopromo=ngitsHFRconceptonthebasisthatitwillgenerate3.5=mesthe

currentridershipontheMontreal-OKawa-Torontoroute,whichhandled2.1million

passengersin2014.Theexpecta=onofaridershipincreaseofthismagnitudeisoverly

op=mis=c,especiallygiventhelevelofair,busandautomo=vecompe==onthroughout

theM-O-TTriangle.ItmustalsobenotedthatVIA’sridershipforecastsinrecentyears

havebeenhighlyunreliable.In2007,atthestartoftheCNKingstonSubdivision

upgradingproject–whichcameinover-budgetat$373million–VIAsaidtheinvestment

wouldboostridershiponitscorridorroutesby32percent.Infact,theseservicesshed

224,000passengersbetween2010and2014.

BeforetheVIAHFRprojectconsumesanymoremanagerialeffortandpublicly-provided

consul=ngdollars,somemajorques=onsneedtobeasked.Theseinclude:

⚫ WouldVIAcon=nuetoserveKingston,Bellevilleandotherhigh-volumepointson

thepreviously-improvedCNMontreal-Torontoline?

⚫ Wouldtherebeenoughrevenuegeneratedonthededicatedroutethrough

Peterboroughtocross-subsidizetheexis=ngroutes,iftheywereretained?

⚫ Whathappenstothemorethan$373millionVIAsankintoCN-owned

infrastructureimprovementsbetweenTorontoandBrockvilleaspartofthe

corridorcomponentofthe2007-2012capitalrenewalplan?

⚫ WouldVIAmakeuseofanyoftheimprovedCNinfrastructure?

⚫ Sinceitwouldn’tbepartoftheHFRroutenetwork,whyisVIAspendingan

undisclosedamounttoacquireCP’sSmithsFalls-Brockvilleline,inwhichit

previouslyinvested$21millionforsubstan=alupgrading?

⚫ Whatwouldthecostbetopubliclyfundthisprojectversustheprivatesector

approach,whichwillincludeadouble-digitreturnforinvestors?

⚫ HaveCNandCPbeenconsulted?

Confusingthesitua=onfurtherhavebeenrecentpressreportsindica=ngtheHFRplan

hasshiOedfroma$3-billion,diesel-poweredservicetoanelectrifiedone,whichwould

addatleastanother$1billionincapitalcosts.Thisnowmakesita$4-billionproject.

WhenVIA’sHFRplanwasfirstdiscussedpublicly,itsdependenceondieseltrac=onwas

promotedasoneitsvirtues.Thissuddenchangeintheplanthroughtheaddi=onof

electrifica=onisreasonforseriousconcern.Proposalstoelectrifythecommuterrail

40

servicesprovidedbyGOTransitinTorontoandAMTinMontrealwereturneddownby

CNandCP,bothofwhichhavestatedtheyarenotwillingtoallowthesuperimposi=on

ofelectrifiedserviceontheirinfrastructure.

HowdoesVIAproposeopera=ngfromtheeasternendofitsdedicatedline,near

Coteau,Quebec,toMontrealCentralSta=on,whenthiswillrequirethecon=nueduseof

CNinfrastructure?HasCNevenbeenconsulted?

Intheend,VIA’sHFRproposalisfartooreminiscentofotherlong-termschemesthe

corpora=onhasannouncedandneverbeenabletodeliver.Eachofthesepreviousplans

has=edupfundingandmanagerialaKen=onthatwouldhavebeenbeKerappliedto

moreprac=calandlessflashyplansthatwouldhaveimprovedservice,ridershipand

revenuewithinareasonable=mespan.

VIAcannotaffordtogothroughthisprocessagainifitisgoingtoberebuiltasamuch

moreusefulandcost-effec=vecomponentoftheCentralCanadiantransporta=on

systemintheshortest=mepossible.Somethingmuchmorerealis=cthanVIA’sHFR

proposalisrequired.

5.2 TheHigh-PerformanceRailAlterna;ve

Theprac=calalterna=veistheadop=onoftheconceptknownashigh-performancerail

(HPR)passengerservice.HPRisaprovenmiddlegroundbetweenhigh-cost,high-speed

rail(HSR)andVIA’scurrentconven=onalopera=on.HPRis,infact,whatEuropeand

AsiabuiltinadvanceoftheirimpressiveHSRsystems.There,itcon=nuestooperateon

manymainandsecondaryroutes,complemen=ngandfeedingtraffictotheHSRlines.

Inaddi=ontospeed,HPRisdefinedbyitsmul=pleserviceaKributes,including:

⚫ frequency;

⚫ pricevis-à-visothermodes;

⚫ comfortandonboardameni=es;

⚫ on-=meperformance;

⚫ sta=onconvenience;

⚫ connec=vitywithotherpublicmodes;and

⚫ door-to-doortravel=me.

AkeyfeatureinfavourofHPRisthatitisn’ta“bigbang”approachthattakesyearsto

deliverallinonego,asdoesHSR.Itgrowsincrementally,withinvestmentpeggedtothe

successofeachphase.Newlinesegmentsarebuiltonlywhentheoldonesreachtheir

speedandcapacitylimits.Aswell,HPRcanbeoperatedwithelectricordiesel-electric

trac=on,whereasHSRrequiresfullelectrifica=on.

41

HPRisaprac=calrealityfortoday,whileHSRisanadmirablevisionfortomorrow.Itis

alsoalogical,cost-effec=veplasormonwhichtoconstructHSRinthefuture.VIA’sHFR

proposalseemstofitneithermold.Withitslowerspeedsanddieseltrac=on,itis

somewhatlikeHPR.ButlikeHSR,itwouldbeunabletodelivermostofitsbenefitsun=l

thewholelinewascompleted,whichcouldtakeuptoadecade.VIAcannotwaitthis

longtobringaboutthesubstan=alimprovementsrequiredjusttosurvive.

TherearefourexamplesofHPRserviceinopera=oninNorthAmericanow.Theprime

exampleisAmtrak’sBoston-WashingtonNortheastCorridor(NEC),whichoffershigh

frequenciesandoperatesat150mphonsomesegments.Italsohandlesacomplexmix

ofslowerintercitypassengerandcommutertrains,plussomefreight.Connectedtothe

NECisthePhiladelphia-HarrisburgKeystoneCorridor,whichisoperatedat125mphand

provides14dailyroundtrips.Boththeseroutesareelectrified.

Aswell,theNewYork-Albanysec=onoftheEmpireCorridorandtheLosAngeles-San

DiegosegmentofthePacificSurflinerserviceareHPR.Botharedieselpowered,offer

mul=pledeparturesandconnectwithnumerousfeederbuses,urbantransitand

commuterrailservices,andotherAmtrakroutes.

HPRupgradingisalsounderwayonthePon=ac-Detroit-Chicago,Chicago-St.Louisand

Albany-NiagaraFallsroutes.ThesetwoMidwestprojectsarecomponentsofaplanned

ChicagohubnetworkofHPRandconven=onalservices,somedesignatedforHSR

upgradinginthefuture.Otherswillfollowasmul=-routeregionalsystemsarebuilton

thefounda=onofmanycurrentstate-supportedAmtrakroutesthroughouttheU.S.that

arenowbuildingtowardsanHPRlevelofservicefrequency,speedandintermodal

connec=vity.

Asmen=onedinChapter2ofthisplan,VIAdidseekgovernmentapprovalforaproject

thatwouldhavecompletelyrecastitsQuebec-WindsorCorridoralongthelinesofthe

HPRprojectsnowunderwayintheU.S.ThiswasVIAFast,whichwouldhavebeenbuilt

incrementallyoveraperiodoffourtofiveyearsatacostof$2.6billion.Theincreased

revenueandreducedcostsineachphaseoftheprojectwouldhavejus=fiedeach

successivesetofimprovements,aswellasreducedVIA’ssystem-widefunding

requirementsby$125millionannually.

Aswell,VIAFastwouldhavebuiltonthe$401.9millioninvestmentTransportMinister

DavidColleneKesecuredforVIAin2000.Althoughtheministerendorsedtheplan,it

wasshelvedwhenhesteppeddownin2003.

42

AmongtheVIAFastbuildingblockswere:

⚫ Upgradedfreightrailwaylinesegmentsoverthebulkofthecorridor;

⚫ DedicatedVIAtracksonsomepor=onsoftheexis=ngfreightrights-of-way;

⚫ 50milesofnew,VIA-onlyinfrastructure,includingaMontrealairportloopline;

⚫ Aconnec=onwestofChathamfromVIA’slinetoCP’stoserveanewdowntown

Windsorsta=onandenableanextensiontoDetroit.

⚫ Fleetmoderniza=onwithoff-the-shelf,diesel-hauledequipment;

⚫ Majorrunning=mereduc=onsandfrequencyimprovements;and

⚫ Improvedintermodalconnec=ons.

TheincrementalconversionoftheQuebec-WindsorCorridorintoanHPRopera=on

similartothoseemergingonseveralU.S.corridorsandtheonecontemplatedinthe

VIAFastproposaliscentraltoTheVIA1-4-10Plan.

AswiththeVIAHFRproposal,oneaimistocreatethemaximumamountof110-mph,

passenger-onlyinfrastructureaspossible.However,thiswouldbedonewithout

forfei=nganyofthevaluefromVIA’spreviousinvestmentsinCN’sKingstonSubdivision

betweenBrockvilleandOshawa.

ToreachthisHPRobjec=veaffordablyandwithinareasonableperiod,thereareseveral

infrastructureprojectsthroughouttheQuebec-WindsorCorridortobeundertaken,most

ofwhichhavebeenproposednumerous=mesinthepast.

5.2.1 Montreal-OXawaUpgradingProject

Twodaysbeforethewritwasdroppedforthe2015elec=on,VIAandtheprevious

governmentannounceda$102-millionprogramforawidearrayofinvestmentsinthe

Montreal-OKawaservice.Thelast-minutepressreleasefromthegovernmentsaidthe

projectstobefundedwouldinclude:

⚫ Reac=va=onofRenaissancecarstoprovideaconsistentlevelofservicewestof

Montrealbyreplacingolderequipmentandenhanceaccessibility;

⚫ ReplacementofculvertsandupgradebridgesinAlexandriaandtheOKawaarea;

⚫ AnewsidingandotherchangestoallowmorefluidityatBarrhaven;

⚫ Upgradingthecentralizedtrafficcontrolsystemandwaysidesignals;

⚫ UpgradingOKawaSta=oninfrastructure,mechanicalandelectricalsystems,and

buildhighlevelplasorms;and

⚫ Replacementofthejointedrailwithcon=nuousweldedrailonVIA’sBeachburg,

AlexandriaandSmithFallssubdivisions.

43

Whiletheideaofreac=va=ngtheproblema=cRenaissancecarsisques=onable,there

areseveralelementsofthisplanthatwouldappeartohavebothshort-andlong-term

valueaspartofarollingprogramofHPRinvestments.

However,thisprojectrequiresathoroughanalysisbythenewRailPassengerAc=on

Force(RPAF)beforeitisallowedtomoveforward.Ifapproved,itmustbepartofa

broader,long-rangeplanthatmaximizestheu=lityofeveryscarcecapitaldollardirected

toVIAandtheconsiderableinvestmentsthathavepreviouslybeenmade.

5.2.2 CoteauCapacityExpansionProject

Onelargeelementofthe2007-2012CNKingstonSubdivisionupgradingandcapacity

expansionprojectiss=lloutstandinganditmustbeundertakenattheoutsetofVIA’s

recoveryplan.ThisisatCoteau,Quebec,wherethelinesfromTorontoandOKawa

meetontheapproachtoMontreal.CoteauisthesiteofabusyCNfreightyard,which

cannotbeconstrainedbyVIA’sopera=ons,whichhasledtoCNdemandingextra

capacitybeforeitwillallowmoreVIAtrainsthroughthischokepoint.Theworkinvolved

includesreconfiguringCN’syardtrackageandthemainline,aswellastheconstruc=on

ofahighwayoverpasstoeliminateagradecrossingatthewestendoftheyard.

Withoutthecomple=onofthe$125-millionCoteauproject,VIA’ssubstan=al2007-2012

investmentintheKingstonSubdivisioncan’tbefullyrealized,asitwaspredicatedonthe

addi=onofmoretrainsonallthreeroutesthatmakeuptheM-O-TTriangle,notjustthe

OKawa-Torontoservice.Theaddi=onoftheMontreal-OKawaandMontreal-Toronto

frequenciesthatwerelargecomponentsofthatplancan’toccurun=ltheCoteauproject

iscompleted.Itis,therefore,apriorityinfrastructureproject.

Thatthiscrucialprojectwasnotincludedinthepre-elec=onannouncementofthe$102

millionMontreal-OKawainvestmentprogramisaclearindica=onthatthelaKerwillbe

insufficienttomakeVIAafaster,morefrequentcarrierinthismarket.Italsoexplains

whyitwillonlyallowforanincreasetosevendailyroundtripsfromthecurrentfive.

5.2.3 GananoqueCutoff

TherejectedVIAFastcontainedseveralHPRcomponentss=llworthyofimplementa=on

throughoutthecorridor.Aprimeexampleistheconstruc=onofa42-mileSmithsFalls-

GananoquecutoffforexpresstrainsontheOKawa-Torontorun.Thisrouteisoneof

VIA’sfewbrightspotsintermsofridershipandcostrecovery,anditnowhostseight

roundtripsdaily,includingtwoexpressfrequencies.

44

The110-mphGananoqueCutoffwouldbeusedonlybyanexpandedexpressservice,

withatleasteightlocal-serviceroundtripss=lloperatedthroughBrockvilleand

Gananoque.Itwouldcutupto15minutesfromtoday’sfour-hourexpressrunning=me,

makingVIAmorecompe==vewithairintermsofdoor-to-doortravel=me.

Construc=onoftheGananoqueCutoffwouldbesubjecttoafullenvironmental

assessment(EA)anditwouldlikelyrequireaminimumoffiveyearsforthecomplete

approvalandconstruc=onprocess.Basedonsimilarprojectsthathavebeenstudied

andcostedintheU.S.recently,itwouldcostapproximately$500million.

5.2.4 Shannonville-NewcastleLineConsolida;on

Thelargestcorridorinfrastructureprojectwouldconsolidateandexpandthecapacityof

theparallelCNandCPMontreal-TorontolinesfromShannonville,justeastofBelleville,

totheeastsideofNewcastle,attheCPsidingknownasLovekin.Theresultwouldbea

71-mile,passenger-onlylineforVIAandanadjacent,freight-onlylinesharedbyCNand

CP;bothwouldbedouble-tracked.

Thisprojectwouldalsoallowfortheelimina=onofCP’sroutealongBelleville’s

waterfront,shiOingtheCPfreighttraffictotheCNcorridornorthofdowntownand

elimina=ng18gradecrossingswithinthecitylimits.

Combinedwiththetriple-trackingVIAfundedontheCNKingstonSubdivisionaspartof

the2007-2012capitalprogram,thisprojectwouldgreatlyreducefreightconflictsand

removeseveralspeedrestric=ons.Withthesepara=onofthepassengerandfreight

traffic,andtheelimina=onofallgradecrossings,VIAwouldoperateat110mph.

Incombina=onwiththepreviousimprovementstotheKingstonSubdivisionandthose

tobeundertakenelsewhereunderTheVIA1-4-10Plan,theShannonville-NewcastleprojectwouldgreatlyassistinreducingVIA’sToronto-OKawaandToronto-Montreal

running=mesbyupto30minutes,makingthemmuchmoreaircompe==ve.

Thisprojectises=matedtocostapproximately$1billion,withthetotalcapitalcosttobe

bornebyVIA.AfullEAwouldberequired.Aswell,itwouldbecon=ngentongaining

theapprovalofCNandCP,whichwouldhavenoreasontocontemplateaprojectofthis

naturebasedpurelyontheirownfreightopera=ngneeds.

Oneofthepointsthatshouldhelpsellthisprojecttothetwofreightrailwaysisthe

poten=alreduc=onincoststhatbothwouldenjoybyconsolida=ngtheiropera=onsona

single,upgradedlinethatwillinvolvenocapitaloutlayontheirpart.CNwouldalso

benefitfromnothavingtodealwithanyVIA-relatedconflictsanddelaysonwhat

amountstoroughlyone-fiOhofitsMontreal-Torontoroute.

45

5.2.5 Bran^ordBypass

AsmallerprojectthatwouldhaveasignificantimpactonVIA’scompe==venessin

SouthwesternOntariowouldbethereconstruc=onofCN’s11.2-mileBransordBypass

betweenLyndenandParisJunc=on.Rebuildingthislong-abandonedroutewasoneof

theprojectsendorsedbytheMulroneygovernment’sRPAFin1985.Thebypasswould

beusedbynewexpresstrainsservingtheToronto-Londonroute,cuung10minutesoff

therunning=me.Withotherimprovements,thiswouldmakeaToronto-Londonexpress

scheduleoflessthantwohoursfeasible.

TheBransordBypasswouldalsoallowforthere-rou=ngofthroughCNfreighttrainsoff

theexis=ng16.9-milelinethatloopsthroughthecity.Thiswouldfreeupcapacityon

theexis=nglinesegmentforexpandednon-expressservice,whichwouldcon=nueto

provideBransordwithatleastsixroundtripfrequencies.

Becauserailservicewasabandonedonthisright-of-waydecadesago,reconstruc=ngand

reac=va=ngitwillbesubjecttoanEA.Itises=matedthattheBransordBypassproject

wouldcost$150million,whichwouldincludetheconstruc=onofanew,double-track

bridgeovertheGrandRiver.

5.2.6 Windsor-DetroitConnec;on

IthasbeenrepeatedlysuggestedthatVIAextenditsToronto-Windsortrainsbywayof

CP’sDetroitRiverTunneltotaptheSoutheasternMichiganmarket.Atrackconnec=on

totheCProutethroughthetwin-tube,double-tracktunnelwouldalsoallowforadirect

connec=onwithAmtrak’sexpandingPon=ac-Detroit-ChicagoWolverineCorridorservice.

Por=onsofthisstate-supportedroutearenowopera=ngat110mphandextensive

upgradingtoreducerunning=mesandexpandfrequencyisinprogress.

TheMichiganDepartmentofTransporta=on(MDOT)haslongproposedconnec=ngthe

WolverineCorridorwithVIAaspartofthemul=-statevisionknownastheMidwestHigh

SpeedRailIni=a=ve.However,nointeresthasbeenexpressedbytheGovernmentof

Canada,whichhasaggressivelypromotedthe$2.2-billionDetroitRiverInterna=onal

Crossingproject,whichwillincludetheGordieHoweInterna=onalBridge,major

expansionofthehighwaysystemontheCanadiansideoftheDetroitRiverandthe

construc=onofatollplazaontheU.S.sideatCanadianexpense.

TheVIAFastplanenvisionedaDetroitextension.Itcalledforaconnec=onfromVIA’sex-

CNChathamSubdivisiontotheCPWindsorSubdivisionwouldhavebeenbuiltat

Ringold,justwestofChatham,with45milesoftheCPlineupgradedandthe36-mile

VIA-ownedlineabandoned.AnewWindsorsta=on,closertodowntownthanthe

currentoneintheWalkervilleneighbourhood,wouldhavebeenbuiltontheCPline

southoftheDetroitRiverTunnelportal.

46

Sincethen,VIAhasinvestedapproximately$20millionimprovingitssegmentofthe

ChathamSubdivision;itwouldbedifficulttojus=fyabandoningthisinfavourof

substan=alinvestmentinanewroutebuiltontheCPright-of-way.Instead,underTheVIA1-4-10Plan,VIAwouldcon=nuetomakeuseofitsownlinetoapointjusteastof

theWalkervillesta=on,whereitconnectswiththeEssexTerminalRailway(ETR),ashort

lineindustrialcarrierthatalsoconnectswithCP’stunnellinethreemilestothewest.

Thesingle-trackETRlinewouldbeupgradedanddouble-trackedtoaccommodateVIA

withoutdisrup=ngfreightopera=ons.Thiswouldrequiretheconstruc=onofgrade

separa=onsatsomestreetcrossingsandanewVIAsta=onneardowntownWindsor.

VIA’strainswouldthenproceedthroughthedouble-trackCPtunneltoaconnec=onwith

theConrailandCNlinesleadingtoAmtrak’ssta=oninDetroit’sMidtownDistrictat

WoodwardAvenue.

AlsoincludedwouldbeasecureborderprocessingfacilityatAmtrak’sDetroitsta=on,

similartotheonenowinusefortheAmtrakCascadesatVancouver’sPacificCentralSta=onandtheoneproposedfortheextendedAmtrakVermonterserviceatMontreal

CentralSta=on.

WhilethisextensionwouldnotbesubjecttoanEA,itwouldundoubtedlyrequire

lengthynego=a=onswithAmtrak,theMDOT,CP,ETRandtheborderagenciesinboth

countries.Itises=mateditwouldcostaminimumof$200million.

5.2.7 IncrementalCorridor-WideProjects

ThereareseveralsmallerinfrastructureprojectsrequiredtotransformVIA’sQuebec-

WindsorCorridorintoanHPRserviceandincrementallyincreasespeed,frequencyand

reliability.

Oneofthemajorcontributorstothefreight-inflicteddelayshasbeentheadop=onby

CNandCPofopera=ngplansbasedontheopera=onoftrainsthatare10,000feetor

longer.Tobefullyeffec=ve,thisrequiresexpansionoftheoldsidings,whichwerebuilt

toaccommodatetrainsthatwereusuallynomorethan6,000feet.Bothrailwaysarefar

fromdoingthistotheextentnecessaryacrosstheirsystems,withtheresultthatVIA’s

shorttrainsareinvariablyputintothesidingstomeettheseover-lengthfreighttrains.

Inves=ngcoopera=velywithCNandCPinarollingprogramofsidingextensionswould

bemoneywellspentbyVIA.WorkofthisnatureneedstobeundertakenifVIAisgoing

toimproveitsperformanceandtheaKrac=venessofitsserviceonbusyfreightlinesthat

itcannotpossiblyaffordtoreplacewithnew,passenger-onlyinfrastructure.

Forexample,thelengtheningofsomeoftheseveralshortsidingsonCN’ssingle-track

DrummondvilleSubdivisionbetweenCharnyandSte-Rosaliewouldallowforfrequency

increases,running=mereduc=onsandon-=meperformanceimprovementsonVIA’s

47

Quebec-Montrealroute.InSouthwesternOntario,asimilarprogramonthe49.8miles

ofCN’sfreight-heavyStrathroySubdivisionbetweenKomokaandSarniawouldyieldthe

samebenefitsforVIA’sToronto-Sarniatrains.

Astrategicsec=onoftriple-trackwillbebuiltatKingstonsoCNfreighttrafficmaypass

whenVIA’strainsarestoppedatthesta=on.Inser=ngthistriple-tracksegmentwill

requireshiOingtheplasormandtheshelterstructurethatnowservethesouthtrack.

Thiswillrequirethemodifica=onofthepassengertunnelthatconnectsthesouthside

facili=eswiththemainsta=onbuildingonthenorthsideoftheline.

Alsotoberesolvedatvariousloca=onsistheneedforVIA’strainstobeabletoserve

intermediatesta=onswithoutsnarlingthemixed-trafficopera=on.Onsingle-tracklines,

thesestopstodisembarkandboardpassengershalttheflowoffreighttrafficinboth

direc=ons.Ondouble-tracklines,theyoOencomplicateopera=onsduetothelackof

plasormsonthefarsideofthetracks.Thisrequiresthepassengertrainstocrossback

andforthtoservethesesingle-plasormloca=ons,ea=nguptrackcapacity.Evenwhere

narrowplasormsnowexistbetweenthetwomainlinetracksandcrossovermovesare

notmade,thisrequiresthehal=ngoftrainsontheothermainlinetrackduringVIA’s

sta=ondwell=meforsafetyreasons.

Thissitua=oncouldbeeliminatedatCornwall,Brockville,BransordandWoodstock–all

ofthemondouble-trackroutesegments–byrearrangingthetwomainlinetracks,

construc=ngplasormstoservethesideofthetracksoppositethesta=onbuildingsand

linkingthemwithfully-accessibleunder-trackpassengertunnelsoroverheadwalkways.

TobedeterminedbytheRPAFandVIAisthedesirabilityofundertakingsimilarprojects

atNapanee,Gananoque,PrescoKandIngersoll.Thesesta=onscurrentlyhavealow

levelofserviceandbuildingthesenewplasormsandconnec=ngtunnelsoroverhead

structuresmaynotbewarranted.Thedeterminingfactorwillbethelevelofserviceto

beprovidedaspartofthecorridorexpansionprogram.Iftheservicelevelincreases

significantly,thentheinfrastructurerevisionswillbejus=fiedintheinterestofpassenger

safetyandminimizingconflictswithCN’sfreighttraffic.

Similarsitua=onsatBramptonandGeorgetownonVIA’sToronto-LondonNorthMain

Line(NML)willberesolvedbyprovincially-fundedGOTransit,whichownsthesta=onsat

theseloca=ons.InBrampton,afully-accessible,far-sideplasormalreadyexists,

althoughitisnotusedregularlybyVIA.AtGeorgetown,far-sideplasormsalreadyexist

withinGO’slayoveryardforitsGeorgetown-Torontocommutertrains,butVIAwillnot

beabletomakeuseofthemun=lfurtherGO-fundedworkoccurs.Itisexpectedthese

improvementswilloccurbeforetheendof2016,whenGOisslatedtoincreaseits

Toronto-Kitchenercommuterservicetofourweekdayroundtrips.

48

Addi=onalsec=onsoftriple-track,lengthenedsidings,gradesepara=onsandmoresta=onimprovementprojectsat

strategicloca=onswouldeliminatechokepointsandspeedrestric=onsthroughouttheQuebec-WindsorCorridor

onaprogressivebasis.TheseinvestmentsmustbemadeifVIAisgoingtoimproveitsperformanceandincrease

servicefrequencyonbusyfreightlinesthatitcannotpossiblyaffordtoreplacewithnew,passenger-only

infrastructure.ImagescourtesyofVIARailCanada

49

OntheToronto-Sarniaroute,theconstruc=onofsignalledsidingsatStrathroyand

WyomingwouldallowVIA’strainstoexitthebusyCNToronto-Chicagomainlinefortheir

sta=onstops.Formerlyadouble-trackline,theCNStrathroySubdivision’sright-of-wayis

wideenoughtoaccommodatethiscapacityexpansion.

AtSarnia,amoresubstan=alimprovementcouldbeundertaken.Thecurrentheritage

sta=onisonthenorthsideoftheCNmainlineontheapproachtotheSt.ClairRiver

TunnelthatlinksSarniaandPortHuron,Michigan,andservesasavitalcomponentof

thisheavily-usedfreightcorridor.Thesta=onispoorlysitedinrela=ontoSarnia’smain

businessdistrictanditsdowntowntransithub.

Anewsta=oncouldbebuiltdowntownnearFrontandGeorgestreetsontheCNPoint

Edwardspurline,whichcurvesnorthwestfromthemainlinejustwestofthecurrent

sta=onandproceedsnorthalongthewaterfront.ThiswouldallowVIA’strainstoclear

theCNmainlineandprovideformoretransitconnec=onsatamorevibrantloca=on.

Inaddi=ontothesesite-specificHPRimprovements,afederalprogramofgrade

separa=onsandgradecrossingimprovementsshouldproceedacrossthecorridor.In

manycases,gradecrossingsimposerestric=onsonbothpassengerandfreighttrains,

oOenbecauseofobstructedsightlinesthatrequirethetrainstoreducespeedforsafety

reasons.ByliOingthesespeedrestric=onsthroughaconcertedprogramofgrade

separa=ons,crossingsafetyimprovementsandtheclosureoflightly-usedcrossings,=me

canbewrungoutofVIA’sschedulesprogressively.Anaddi=onalbenefitthroughoutthe

corridorwillbeaconsiderableimprovementinpublicsafety.

5.2.8 VIA/GovernmentofOntarioCoordina;on

AlocalizedissuethatmustbepartoftheHPRcorridorapproachismutually-beneficial

coordina=onbetweenVIAandGOTransit,oneofthethreeopera=ngdivisionsofthe

ProvinceofOntario’sMetrolinx.GOhasexpandedthroughouttheGreaterTorontoand

HamiltonArea(GTHA)overthelastdecadeandmuchmoregrowthisscheduledto

occur.TheagencyhasalsoacquiredaconsiderableamountofCNtrackage,whichVIA

usesatsomepointforallofitsToronto-basedservices.

Asitisnowbeingconducted,GOexpansionisadouble-edgedswordforVIA.Onthe

onehand,dealingwithGOratherthanCNforsomeofitstrackaccessisgenerallyan

advantage.ButthisexpansionhasalsocutintoVIA’sridershipanddestabilizedits

servicetoNiagaraFallsandontheToronto-LondonNorthMainLine(NML).

Evenwithitslongerrunning=mesandthelowercomfortlevelsofitsshort-haul

commuterrollingstock,GO’slowerfaresandoff-peakbusserviceshaveaKractedsome

formerVIApassengers,par=cularlyontheNMLasfarwestasKitchener,whereGO

serviceterminates.ThishasalsooccurredonVIA’sNiagaraFallsline,whereGOnow

operatesregionalbusconnectorstoitsrailserviceatBurlingtonandsummerweekend

50

trainsoverthefullroute.Thelossofthesepassengerswasoneofthejus=fica=onsfor

VIA’s2012servicereduc=onsonbothroutes.

Atthesame=me,GO’sridershiptoandfromcertainpointshasbeenlowandacquired

atgreatcost.TheextensionoftwoGOweekdayrush-hourtrainsfromGeorgetownto

KitcheneronVIA’sNMLroutehasonlyaKractedabout250dailypassengers.The

summerweekendrailservicetoNiagaraFallshasalsogeneratedlowridershipandis

reportedlyonlycovering20percentofitshighmarginalopera=ngcosts.

Boththesemovesbytheprovincehaveuninten=onallydamagedVIA’su=lityandcost-

effec=venessinSouthwesternOntario.Inessence,onepublicly-fundedservicenow

competeswithanotherpublicly-fundedservice–andnottotheadvantageoftaxpayers

intermsofmobilityorfinances.

Complica=ngthisfurtherisOntario’srecentinterestinHSRforSouthwesternOntario.

Justbeforethe2014provincialelec=on,thegovernmentofPremierKathleenWynne

announcedthat,ifre-elected,itwouldcoupleitsGOToronto-Kitchenerexpansionplan

withaToronto-LondonHSRproject.Acostof$6billionandanes=mateof10to12

yearsfortheservicelaunchweregiven.

ThisHSRproposalwasreconfirmedandexpandedfollowingtheelec=on.Premier

Wynneannouncedthegovernmentwasadvancingtheenvironmentalassessmentsand

planningforahybridroutecombiningexis=ngrights-of-wayandnewalignments

betweenToronto,PearsonInterna=onalAirport,Kitchener,LondonandWindsor.The

premieralsosaidshehopedthefederalgovernmentwouldcontributetotheHSRplan,

inasmuchasitisalreadyfundsconven=onalVIAserviceinthesamemarket.

Thepublic,mediaandmunicipalresponsewasmixed.Somemunicipalrepresenta=ves

inthelargecommuni=eswelcomedtheconceptofbringingbeKerrailservicetothe

region,whileotherspointedouttheHSRplanwouldn’tdeliverserviceforadecadeor

more,ifitevenproceeded.

Aswell,becauseofphysicalconstraintsontheexis=nglineusedbyVIAandGO,itwould

bypassdowntownGuelphinfavourofanewsta=onsouthofthecity.Thelinewould

alsouseanewalignmentfromKitchenertoLondon,excludingStrasordandSt.Marys.

Theprovince’ssketchypre-feasibilitystudysuggestedsomelower-speedservicecould

bemaintainedonthecurrentNMLtoconnectwiththeHSRtrains.

OntopoftheproblemsthathaveresultedfromGOexpansionwithoutcoordina=onwith

theexis=ngVIAservices,theOntarioHSRplanrepresentsyetmoreduplica=onof

publicly-fundedac=vi=eswithnoprospectofasolu=onthatimprovesrailserviceinthe

neartermandatareasonablecosttotaxpayers.Whyembarkonaprovincially-driven

intercitysolu=onwhenVIAalreadyservesthesemarketsandcouldplayamajorrolein

solvingthemobilityproblemsofSouthwesternOntarioandNiagara?

51

Ajointsolu=on,similartothosetakenbyseveralregionaltransitagencies,state

departmentsoftransporta=onandAmtrak,wouldreducecostsforbothGO,VIAand

taxpayers,aswellasprovidebeKerservicewithinashorter=meframe.Witha

delinea=onofwhichmarketseachoperatorwouldserveaspartofacoordinated,

jointly-fundedplan,VIAandGOcouldthentoplaylogicalandcomplementaryroleson

theNMLandintheNiagaraRegionatreducedpubliccost.

TheopportunitytoimplementthisjointVIA-GOapproachtotheNMLandNiagara

situa=onswilloccurin2016,whentheMetrolinxActundergoesitslegislated,10-yearreview.WiththismaKerseKledthroughVIA’spresenta=onofastrongbusinesscasefor

coordinatedimprovementonthetworoutesmostaffectedbyGOexpansion,mutually-

beneficialimprovementswillproceed.TheresultwillbethatVIAwillbeabletoplaya

structured,sustainableroleinconjunc=onwithMetrolinx.Thiscouldalsobeaworking

modelforanexpandedpartnershipwithAMTintheGreaterMontrealArea.

5.2.9 ImprovedIntermodalLinks

ForVIA’sHPRcorridorservicestosucceedfully,thereisaneedforacloserworking

rela=onshipwithnotjustGO,butallofthetransitagenciesthatserveitssta=onsand

providepassengerswiththenecessary“firstandlastmile”iftheyaregoingtomake

seamless,car-freejourneys.Partoftheproblemtodatehasbeenthegenerallylow

levelofVIAserviceandthefeelingthatitsfuturehasbeenfarfromsecure.Working

withlimitedbudgetsthatarestretchedthin,ithasbeendifficultfortransitoperatorsto

jus=fymakingchangestoexis=ngroutesoraddingnewonestoconnectwithanintercity

servicethatmayvanishandrendertheirinvestmentswasted.

Withastrongpublicpolicystatementbythenewgovernmentanditscommitmentto

theVIArenewalplan,thatno=onwouldbegintoretreat.Theincreasedlevelofservice

woulddemonstratethepolicystatementsarenothollowandVIAwillbeanintegralpart

ofCanada’stransporta=onsysteminthefuture.

VIAnowhassomedegreeofconnec=vitywiththreeregionaltransitagencies:

⚫ RéseaudetransportdelaCapitale(RTC)inQuebec;

⚫ Agencemétropolitainedetransport(AMT)intheGreaterMontrealArea;and

⚫ MetrolinxintheGreaterTorontoandHamiltonArea(GTHA),whichoperatesthe

GOTransitrailandbussystems,andtheUPExpressairportraillink.

Addi=onally,VIAhasaninterlineagreementwithRobertQAirbusinSarniaandLondon.

TomakeVIAthecoreoftheQuebec-WindsorCorridor’spublicgroundtransporta=on

system,theexis=ngpartnershipsmustbeimprovedthroughbeKerpromo=onofthese

interconnectedservicesandincreasedeaseofuse.VIAserviceincreaseswillcontribute

bymakingmoreconnec=onspossible.

52

Aseeminglysmallbutsignificantcomponentofthisprogramwouldbeimprovedsignage

andwayfindingaidsatthesta=onswhereVIAconnectswiththeseandotheroperators.

Atloca=onsstaffedonlybytheothertransporta=onproviders,employeeswouldreceive

trainingatVIAexpensesoastobeabletoprovidepassengerinforma=onandassistwith

=cke=ngatVIA’selectronicself-servekiosks.

Wherenecessary,capitalinvestmentswouldbemadeatsta=onstoenabletransitand

intercitybusoperatorstomoreefficientlyuseVIA’sfacili=es.Insomeloca=ons,the

degreeofpoten=alconnec=vityisalreadyhigh,withthesta=onsVIAshareswithGOin

theGTHAandAMTintheGreaterMontrealAreabeingtheprimeexamples.In

Quebec,VIAandOrléansExpresssharetheGareduPalais,althoughthisintercitybus

operatordoesnotcurrentlyhaveaninterlineagreementwithVIA.

InToronto,amajoropportunitytoconnectVIAwithbusoperatorswilloccurwiththe

construc=onofthenewterminalonthesouthsideofUnionSta=on.Inaddi=onto

servingtheGOregionalbusesthatnowmakeuseofatemporaryfacilityatUnion

Sta=on,theinten=onistoincludethefiveintercitybusoperatorsthatnowusethe

TorontoCoachTerminalatDundasandBaystreets.Theintercitycomponentofthe

$106-millionprojectremainstobeseKledbyMetrolinx’sprivate-sectordevelopment

partner,butitisexpectedthenewterminalwillbeopenin2018.

Whilethecondi=onsandopportuni=eswillvarybyloca=on,directlyconnec=ngasmany

exis=ngintercitybusandtransitserviceswithVIAwillbeanimportantpartofthe

intermodalpartnershipdevelopmentworkVIAwillundertake.

5.3 TheMissingCorridor:Calgary-Edmonton

Thereisanotherpoten=alCanadianrailpassengercorridorthathasbeenomiKedfrom

TheVIA1-4-10Planstrictlybecauseithastradi=onallybeenregardedasaprovincialmaKer.ThisistheCalgary-Edmontonroute.

Interestindevelopingthiscorridordatesbacktothelate1970s,whenVIAwass=ll

opera=ngtheremnantsoftheformerCPserviceandprovidingtworoundtripsdaily

usingself-propelledBuddraildieselcars(RDCs).RidershipontheCPservicedeclined

greatlyinthe1960sduetoinvestmentintheparallelHighway2,whichhassincebeen

four-lanedandchristenedtheQueenElizabethII(QE2)Highway.WhenVIAplacedits

secondorderforBombardierLRCtrainsetsin1981,thefederalgovernmentsaidsomeof

themwouldbedeployedontheCalgary-Edmontonroute,butthisneverhappened.

TheroutewasexaminedinVIA’sfirstHSRreportin1984,butitwasdeterminedthat

“thetotaltravelmarketfromwhichrailpassengerswouldhavetobeaKractedwas

foundtobeinsufficienttorecover,onacommercialbasis,theinvestmentnecessaryto

provideahigh-performancerailservice.”NotonlywasCalgary-Edmontondroppedfrom

53

VIA’ssubsequentaKemptstosellHSRtothefederalgovernment,butthemeagreRDC

serviceitwasthenprovidingontheroutewasterminatedin1985.

Attheprovinciallevel,aseriesofinves=ga=onsofthepoten=alforHSRwasconducted

between1980and1985,allofwhichconcludeditwastechnicallyfeasible,butthehigh

costsandrisksmadeilladvisedatthe=me.Thesameconclusionswerereachedina

1995provincialre-examina=onoftheissue.

In2004,Calgary’sVanHorneIns=tute(VHI)receivedfederal,provincialandrailindustry

assistanceforastudyoftheCalgary-EdmontonCorridorthatconsiderednotjustan

electrified,200-mphHSRapproach,butalso125-mphdiesel-poweredHPRserviceon

upgradedCPinfrastructureand150-mphdiesel-orturbine-poweredserviceonthe

samegreenfieldrouteproposedforelectrifiedHSRop=on.

TheresultsoftheVHIstudyweremoreencouragingthanthoseintheearlierHSR

studies,butnoac=onwastakenbythefederalorprovincialgovernments,ortheprivate

sector.VHIproducedthefollowingupdatedcos=ngandrevenueprojec=onsforthe

threeop=onsinDecember2013:

125MPHNON-ELECTRICONUPGRADEDCPLINE

150MPHNON-ELECTRICONGREENFIELDLINE

200MPHELECTRICON

GREENFIELDLINEAverageTravelTime 2:00 1:45 1:35

RoundtripsDaily 8 10 14

2021Ridership(Low)

2021Ridership(High)

1,200,000

2,200,000

2,000,000

3,600,000

3,300,000

5,600,000

CapitalCost $2,576,600,000 $3,925,400,000 $5,186,300,000

AnnualOpera=ngand

MaintenanceCost

$92,600,000 $125,100,000 $128,700,000

2021Revenue(Low)

2021Revenue(High)

$60,600,000

$119,200,000

$105,300,000

$223,000,000

$328,200,000

$485,300,000

TheviabilityofCalgary-EdmontonHSRwasexaminedyetagainin2013-1014bythe

Legisla=veAssemblyofAlberta’sStandingCommiKeeonAlberta’sEconomicFuture.The

commiKee’soverridingconcernwasthatanynewrailserviceshouldbeledbythe

privatesectorwithasliKlepublicfinancialinvolvementaspossible.Onthatbasis,the

commiKeedeterminedthattheprovince“shouldnotinvestinahigh-speedrailtransit

systemintheEdmonton-Calgarycorridoratthis=mebecausethepopula=onofthe

corridorisnotsufficienttosupporttheprofitableopera=onofsuchasystem.”

Thatrecommenda=onseemedtoonceagainpushtherailpassengersolu=onfaroffinto

thefuture.However,recenttransporta=ondevelopmentsinAlbertaarenowaffec=ng

thissitua=oninwaysthatmayreviveitsoonerthanexpected.InearlyOctober2015,

theGovernmentofAlbertaannounceditwasgoingtoinves=gatethegrowing

conges=onproblemsontheQE2Highway,whichisnowhandling80,000-90,000vehicles

54

dailybetweenCalgaryandEdmonton.PremierRachelNotleyalsosaidthatexpanding

theQE2tosixlaneswillnotbetheonlyop=onunderinves=ga=on;railwillbepartof

theanalysis.

WhilethismaKeriss=llonlyinthepreliminarystagesofinves=ga=on,itdoesrepresent

yetanotheropportunitytoexaminethebenefitsoffast,frequentandmodernrail

passengerserviceinacorridorthathasalwaysseemedideallysuitedtoit.Amongthe

manysellingpointsofaCalgary-Edmontonrailpassengerserviceisthefactthatitwould

offerconvenientdowntown-to-downtownservicelinkedatbothendstothrivingand

growingurbanlightrailtransitsystemsandcouldcontributesignificantlytoareduc=on

inautomo=vetravel.Furthermore,theCPright-of-wayonwhichtheHPRop=onwould

bebuiltisquiteclosetotheinterna=onalairportsinbothci=esandcouldeasilybe

designedtoservethemdirectly.

WhilenotacomponentofTheVIA1-4-10Plan,thepossibilityofaCalgary-Edmontonrail

planmustbeacknowledged.IfitproceedsfurtherunderAlberta’sstewardship,thereis

liKledoubttheprovincewouldseekfederalpar=cipa=onanditshouldreceiveserious

considera=onfromCanada’snewgovernment,ifitsinvolvementisrequested.

55

THISPAGEINTENTIONALLYLEFTBLANK

56

6.0 AnEquitableOff-CorridorVision

Noonewouldeverques=onthefactthattheQuebec-WindsorCorridorisandalways

willbetheheartofVIA.Itcaterstothelargestmarketinthecountry,generatesthe

mostridershipandrevenue,andoffersastrongalterna=vetopublicinvestmentinother,

lessefficientformsofintercitytransporta=on.Forallthesereasonsandmore,itis

impera=vethatthecorridorfunc=onatmaximumefficiency.

However,thecorridorcannotbetheonlymarketthatreceivesmanagerialaKen=onand

publicinvestmentifVIAistobeana=onalservice.Ontoomanyoccasions,thelong-

haulandremotetrainshavebeenregardedbygovernmentandVIAasnuisancesthat

distractfromwhattheyperceivetobeVIA’ssolefunc=on,namelyservingCentral

Canada.VIAmusthenceforthbeproperlyviewedasapublicly-fundedcorpora=on

mandatedtodeliverappropriateandaffordablelevelsofservicena=onwide.

Therefore,inunisonwithaclearplanforthefutureoftheQuebec-WindsorCorridor,

theremustbesimilarplansforthelong-haulandremotetrains.Theseplansmustbe

imbuedwithasinceredesiretoimproveandmaximizetheiropera=onwithinadequate

budgets;theymustnolongerbetreatedasproblemchildrencompe=ngwiththe

corridorformanagerialaKen=onandpublicfunding.

6.1 RevitalizingtheLong-HaulNetwork

IfVIAistohavena=onalrelevancy,stepsmustbetakenearlytoreducethecostand

improvetheeffec=venessofVIA’slong-haulnetwork,whichconsistsoftheCanadian,theOceanandthetemporarilysuspendedChaleur.

Inthepast,someVIAmanagementteams,seniorcivilservantsandMPshavetakenthe

viewthatthelong-haultrainsshouldbereducedfurtheroreveneliminated;thecurrent

lowlevelofserviceisalegacyofthatapproach.However,therearemanyvalidreasons

fornotjustretainingthesetrains,butexpandingthemusingmodernequipmentand

reformedopera=ng,cos=ngandmarke=ngprac=ces.

Thera=onaleformaintainingandimprovinglong-haultrainssuchastheOceanandtheCanadianiswellstatedbyAmtrakinitsFY2015BusinessandBudgetPlanpointsout:

“Amtrak’sLong-Distanceroutesarethebackboneofourna=onalsystem.

TheyprovidetheonlyAmtrakservicetomorethanhalfoftheStatesand

sta=onsweserve.Theyconnectthena=on’smajorregions,providea

founda=onofintercitypassengerrailservice,andpreserveintercity

mobilityforunderservedcommuni=esandpopula=ons.Thesetrainsare

heavilypatronized,andincreasinglyimportanttothecommuni=esand

peoplealongtheirroutesthathavebeenlosingbusandairservices.

57

“Congressexpresseditssupportformaintainingthisna=onalpassenger

railnetworkwhenitstatedinPRIIASec=on228(b):

“SENSEOFTHECONGRESS.—ItisthesenseoftheCongressthat—(1)long-distancepassengerrailisavitalandnecessarypartofourna9onaltransporta9onsystemandeconomy;and(2)Amtrakshouldmaintainana9onalpassengerrailsystem,includinglong-distanceroutes,thatconnectsthecon9nentalUnitedStatesfromcoasttocoastandfrombordertoborder.”

TheAmtrakapproachtodeliveringthislong-haulserviceismarkedlydifferentthanVIA’s.

Amajoraspectofthisisservicefrequency.WhenAmtrakwasforcedtocutlong-haul

frequenciesasaresultofdras=cbudgetcutsinthemid-1990s,thenetwork’scostswere

reducedmarginally,butridershipandrevenuefellevenmore.Thishassincebeen

correctedandallbuttwoAmtraklong-haultrainsnowoperatedaily.

Initscongressionally-mandatedimprovementplanforitsNewYork-Cincinna=-Chicago

Cardinal,Amtrakoutlinedthefactorsthatinherentlyhamperthetrainnowbecauseof

itstri-weeklyopera=on:

“Tri-weeklyserviceisamajordriverofinefficiencyinthecurrentCardinalservice.Attheendofmosttrips,andontwoofthefiveroutesegments

onwhichtrainandenginecrewswork,theCardinal’semployeesand/or

equipmenthaveaonetotwodayturnarounddelayduringwhich

employeesreceiveheld-awaypayandequipmentsitsidlewithout

genera=ngany=cketrevenues....

“DailyserviceresultsinbeKeru=liza=onbecauseiteliminatesthe=me

thatequipmentsitsidleatendpointsbetweenalternatedaydepartures.

Muchofthemaintenancecostassociatedwithlocomo=vesandcarsis

calendarbased.It,therefore,cons=tutesafixedcostthatcanbe

allocatedovermorecarandlocomo=vemiles.”

UnderAmtrak’splantoincreasetheCardinaltodailyopera=on:

⚫ Ridershipincreases96%;

⚫ Revenueincreases123%from$7.3millionto$16.3millionannually;

⚫ Costrecoveryincreasesfrom27%to35%;

⚫ Lossperpassenger-miledecreases31%from$0.42to$0.29;

⚫ Passenger-milesincreases122%,buttrain-milesriseonly93%;and

⚫ Passenger-milespertrain-mileimprove15%from109.1to125.5.

58

Thisincreasehasarela=velylowpricetag.Conver=ngtheCardinalfromtri-weeklyto

dailywillonlyincreaseitsannualopera=ngcostfrom$19.5millionto$21.6million.So,

foraninepercentincreaseincosts,thepublicwillreceivemorethantwicetheservice.

Themul=plebenefitsofdailyserviceareclearlydemonstratedbycomparingthe

performanceoftheCanadianwithAmtrak’sChicago-SeaKle/PortlandEmpireBuilder,whichtraversesaslightlyshorterroutethantheCanadian’s,butencountersverysimilar

geographic,clima=canddemographiccondi=ons.

Amtrak’sEmpireBuilderVersusVIA’sCanadian–2013

KEYINDICATOR EMPIREBUILDER(DAILY)

THECANADIAN(BI-/TRI-WEEKLY)

ROUTEMILES Chicago-SeaKle:2,205

Chicago-Portland:2,255

2,775

RUNNINGTIME Chicago-SeaKle:46’10”

Chicago-Portland:45’55”

86’42”

AVERAGESPEED Chicago-SeaKle:48mph

Chicago-Portland:49mph

32mph

ROLLINGSTOCKTYPE Bi-LevelSuperlinerIandII Single-LevelBuddHEP1

ROLLINGSTOCKBUILT 1978-1981and

1993-1996

1946-1955

Rebuilt1989-1993

TRAINSETSREQUIRED 5 4

ONE-WAYTRIPSOPERATED 730 264

TRAIN-MILESOPERATED 1,884,860 707,520

RIDERSHIP 536,391 99,171

PASSENGER-MILES 365,161,290 118,100,000

REVENUES $72,900,000 $45,252,000

EXPENSES $129,500,000 $99,807,000

OPERATINGLOSS $56,600,000 $54,555,000

SUBSIDYPERPASSENGER $105.52 $550.11

SUBSIDYPERPASSENGER-MILE 15.5¢ 46.2¢

COSTPERTRAIN-MILE $68.70 $141.06

REVENUEPERTRAIN-MILE $38.67 $63.96

SUBSIDYPERTRAIN-MILE $30.03 $77.10

COSTRECOVERY 56% 45%

Withmodernbi-levelequipmentandthelowertrackaccesschargesmandatedby

Amtrak’slegisla=on,thedailyEmpireBuilderdeliversnearlythree=mesasmuchservice

andcarriesmorethanfive=mesthepassengersasthebi-weekly/tri-weeklyCanadianforonlyslightlymorepublicfunding.Thereisnoreasontobelievesimilarmeasures

59

appliedtotheCanadian,theOceanandtheChaleurwouldn’tmorethanjus=fythe

investmentinnewequipmentandanincreasetodailyservice.

ThismaKerneedstobeaddressedquicklybytheRPAFbecauseofanominouswarning

containedinVIA’sSummaryofthe2013-2017CorporatePlan:

“ThemarketsforVIA’stwo(sic)long-distancetrainservices–the

CanadianandtheOcean–arehighlyseasonal.TheCanadianaKractsbothdomes=candinterna=onaltouristsduringthepeakseason,namely

fromMaytoOctober.Inmorefavourableeconomicclimates,the

Canadianhasbeenfinanciallyviableonapartlyallocatedbasis.Duringtheoff-peakseason,demandisnotsufficienttojus=fycurrenttrain

frequenciesfromacommercialperspec=ve.

“ThisisalsotrueoftheOcean,wherecostrecoveryislowevenduringthepeakseason,andissteadilydecliningduetocompe==onfromroadand

airtravel....”

Theimplica=onisclear:Tolivewithinitsexpectedopera=ngfundinglevel,VIAislikely

tofurtherreducethefrequencyoftheOceanandtheCanadian.Asthereduc=onsof2012demonstrated,thisyieldsmeagresavings,butdamagesridershipandrelevancy.

Thisnega=vemindsetmustbereplacedwithaproduc=veonethataimstoincrease

long-haulfrequency,wheredemandwarrantsitandresourcesallowforit.

AlsotobeguardedagainstincraOinganeffec=veandposi=velong-haulvisionisthe

influenceofaprivateoperatorthathasstatedonmanyoccasionsitwouldpreferVIAto

vanishfromthewesternlong-haulmarket:RockyMountaineerRailtours(RMR).

WhenthegovernmentorderedVIAtocutitsroutenetworkin1990,italsocompelledit

topriva=zetheseasonalRockyMountaineertouristserviceitlaunchedatveryliKlecostonadual-prongedVancouver-Calgary/Jasperrou=ngin1988.ItwastransferredtoRMR

(thenknownasGreatCanadianRailtours),whichboughttherequiredequipmentfrom

VIAandstartedopera=onsforthe1990touristseason.

RMRhasgrownthisbusinesstremendouslyandevenaddedtwoaddi=onalroutes,one

ofwhichoperatesovertheeasternpor=onofVIA’sJasper-PrinceRuperttrain.RMR

deliversahigh-qualitytourismproduct,butitisnotabasictransporta=onservicelike

VIA.WhiletheCanadianobviouslyaKractsalargenumberofpassengersfromthesame

discre=onarytourismmarket,italsoprovidesayear-roundservicethataccommodates

travelerswithen=relydifferenttransporta=onneeds.Despitethat,RMRtakestheview

thatVIAisunfairlydilu=ngamarketwhichisitsexclusivedomain.Thisisnotthecase.

60

AseriesofTransportCanadastaffbriefingnotespreparedin2010-2011inadvanceof

mee=ngswithRMRexecu=vesandtheirlobbyistsfromGlobalPublicAffairsin2010-

2011,andobtainedundertheFreedomofInforma9onAct,state:

“WhileRMRhasbeencri=calofthegovernment’scon=nuingrolein

subsidizingVIA’sopera=onsinthisarea,RMRwasunderaclear

understandingthatVIAwouldbeopera=ngtheToronto-Vancouvertrain

overthesameroutewhenitpurchasedtherightstoVancouver-Calgary

andVancouver-JasperfromVIAin1990andstarteditsbusiness.”

TheRMReffortsactuallyderailedVIA’sownexpansionplansfortheCanadian,asthebriefingnotesestablish:

“VIAhadalsoaKemptedonseveraloccasionstoincreasefrequencyon

theexis=ngJasper-Vancouverroute.However,whileasalesagreement

betweenthetwoserviceproviders[VIAandRMR]specificallyallowedVIA

toincreasethefrequencyontheJasper-Vancouverlegofits

transcon=nentalroute,RMR’slobbyingeffortsin1997and2005were

influen=alinpreven=ngproposedfrequencyincreasesfrombeing

approved.”

ThismustchangeifCanadaistohaveatrulyna=onalrailpassengerservicethatrequires

long-haultrainssuchastheCanadian,whethervestedinterestslikeitornot.BecauseoftheirlongstandingstatusasVIA’sflagshiptrainsandtheirimportancetomany

communi=esacrossthecountry,stabilizingthelong-haultrainsmustbetreatedasa

priorityearlyinVIA’srecovery.

Thereisoneotherconsidera=onthatfactorsintotheadop=onofanewlong-haulvision

atVIA.Inaddi=ontoalltheprac=calreasonsAmtrakgivesformaintainingitslong-haul

network,Amtrakmanagersalwaysmakeitclearthattheyaren’tlikelytoreceivelarge

andcrucialinvestmentsfortheeight-stateNortheastCorridor(NEC)iftherestofthe

na=onalsystemisscrappedandtheotherregionsaredeprivedofrailpassengerservice.

Astheypointout,itcanneverbeforgoKenthatthetaxand=cketdollarsofAmericans

na=onwidesupporttheen=reAmtraksystem,includingitscoreNECroute.Thisisno

lessthecasewithVIA.

6.2 TheRemoteServiceReality

VIA’sremotetrainsservelow-densitymarketslackingotherformsoftransporta=on,

includingall-weatherroads.Theycanbeimprovedandtheircostsreducedmarginally,

butthefacthastobefacedthattheywillremainthemostcostlytrainsintheVIA

system.Whatisrequiredisanenlightenedpolicydecisionthatrecognizesthesetrains

aspartofasocialcompactwiththoseCanadianswholivealongthelinestheyserve;

discon=nuanceisnotanop=on.

61

Inlate1989,whenVIA’s50-per-centcutbackplanwasannounced,ninetrainswere

designatedasessen=alremoteservicesthatwouldbemaintainedinthepublicinterest.

Thesewere:

⚫ Montreal-Jonquiere;

⚫ Montreal-Senneterre;

⚫ Senneterre-Cochrane;

⚫ Sudbury-WhiteRiver;

⚫ Sudbury/Capreol-Winnipeg;

⚫ Winnipeg-Churchill;

⚫ Wabowden-Churchill;

⚫ ThePas-LynnLake;and

⚫ Jasper-PrinceRupert.

Sincethedeclara=onofthemandatorystatusofthesetrainsin1989,theSenneterre-

CochranetrainhasbeendroppedduetoCN’sabandonmentofapor=onoftheline,the

servicefromThePastoLynnLakehasbeentransferredtoFirstNa=onsopera=onbythe

Keewa=nRailwayusingVIAequipmentandtheothertwonorthernManitobaservices

havebeenrearrangedtocon=nueprovidingthelong-haulservicefromWinnipegto

Churchillonatwice-weeklybasisandanaddi=onalweeklyrunnorthfromThePas.

ShiOingtheCanadianin1990fromtheCProutetotheCNCapreol-Winnipeglinewas

saidtobepar=allyduetoaneedtoprotectthatremoteroute.Toreducecostsand

beKerservelocalneeds,theJasper-PrinceRupertSkeenawasconvertedin1996froma

throughtrainequippedwithcoaches,sleepersandadiner-loungecartoalower-cost

daylighttrainrequiringanovernighthotelstayinPrinceGeorgeforpassengerstravelling

thefull721-mileroute.

OnefactortobeweighedinseungasensiblecourseforVIA’sremotetrainsisthehigh

costofreplacingthemwithnewhighwaysorairservices.A1991TransportCanada

studyoftheSudbury-WhiteRivertraines=matedthecapitalcostofreplacementroads

as$62.24million,plus$2.15millioninannualcosts.Atri-weeklyairservicelinkingfour

pointswithSudburyandWhiteRiverwouldhaverequiredacapitalinvestmentof$23.7

millionandanannualsubsidyonly$90,000lessthanthetrain.

Con=nuingtheSudbury-WhiteRivertrainwasmorecost-effec=veanditdidn’thavethe

unknownenvironmentalcostsofthehighwayandairalterna=ves.Alsotobeconsidered

wasthedisrup=veimpactthatseverewinterweatherwouldhaveondrivingandair

travel,butmuchlesssothetrain.

Inseungamoreproduc=vecourseforVIA’sremoteroutes,eachshouldbesubjectto

extensivecommunityconsulta=onbyVIAstaffandelectedofficialstoensurethey

deliverthemaximumservicepossibleforthefundingavailable.TheWinnipeg-Churchill

62

andJasper-PrinceRuperttrainsbothhavetourismappealandstepsneedtobetakento

maximizetheirfullridershipandrevenuepoten=al.

Onelonger-termissuethatneedstobeinves=gatedbytheRPAFandVIAconcernsthe

equipmentusedontheNorthernQuebec,NorthernOntario,ThePas-Churchilland

Jasper-PrinceRuperttrains.Thisisacapitalinvestmentdecisionthatwouldhavea

posi=veimpactonopera=ngcosts.ItisdiscussedinChapter9.5ofthisplan.

Asforthethrough,full-serviceWinnipeg-Churchilltrain,itshouldul=matelybere-

equippedwithbi-levellong-haulrollingstock,whichwouldimproveitscostrecoveryand

tourism-relatedmarketability.

63

THISPAGEINTENTIONALLYLEFTBLANK

64

7.0 VIA’sNeedforGrowth

WhentheCanadianTransportCommission(CTC)conductedits1976transcon=nental

passengertrainhearingsinadvanceofVIA’sforma=on,themembersofthecommiKee

notedtheprevailingviewofthepublic:

“[T]hemostgeneralandpersistentthemeswerethatthereshouldbeno

furtherreduc=oninrailpassengerservicesinviewoftheuncertain

energysitua=on,becauseairandhighwaymodeshavereceivedlarge

indirectsubsidies,andbecausethepresentleveloftranscon=nental

serviceswasfeltbymanytobeatanirreducibleminimum.”

OneisleOtowonderhowthoseCanadianswhospokeattheCTChearingswould

characterizethelevelofrailpassengerservicetodayiftheyconsideredittobeatan

“irreducibleminimum”in1976.Atthat=me,thecombinedCNandCPpassenger

systems–whichhadalreadybeguncontrac=ngintheearly1960s–totalled17,714

route-miles.Sincethosehearings,thefollowingreduc=onshaveoccurred:

⚫ TheCNandCPnetworkswereshornofseverallighter-densitytrains

priortoVIAtakingovertheremainingtrains,beginninginOctober1978;

⚫ Thegovernment-orderedcutsofNovember1981removed20percentofthe

three-year-oldVIAsystem’sroute-miles;

⚫ Anotherroundofgovernment-orderedcutsinJanuary1990eliminatedhalfof

VIA’strain-milesonits11,100-milesystem,includingsomeservicesitordered

reinstatedinJune1985;and

⚫ Furtherpruningbetween1994and2012eliminatedtheHalifax-Montreal

Atlan9c,theToronto-ChicagoInterna9onalandsomefrequenciesonVIA’s

remaining7,500-milenetwork,whichis58percentlessthanwasbeingoperated

in1976.

Thesecutshavebeenonlypar=allyoffsetbyafewaddi=onalfrequenciesoncorridor

routeseastofToronto.ItisdifficulttodisagreewithformerAmtrakPresidentandCape

BretonresidentDavidGunn’scommenttoaMonctonreporterin2014:“Allofthe

ac=onsfromVIAhavebeenbasicallyreducingservicesinceitwassetup.”

Whilethefullna=onalnetworkthatexistedin1976didhaveseveralroutesthatwere

unsustainablebecauseoflowridershipandextremelyhighcosts,somethatvanishedby

governmentedictcouldhavebeenretainedhadVIAbeenmodernizedtobringdownits

unitcosts.Synergiesthatonceexistedbetweencertainlong-haul,intercityandregional

routeshavebeenlost.Withitsgeographiccoverageandthefrequencyofmanyroutes

reduced,VIAhasbecomeirrelevanttoalargepor=onofthepopula=on,par=cularlyin

WesternCanada.

65

IfVIAistobecomemorerelevanttomoreCanadians,twotypesofgrowthmustoccur.

Thefirstisintermsofservicefrequencyandridershipontheexis=ngnetwork,wherea

keydisincen=vetotakingthetrainisthelowfrequencyoftoomanyroutes.Thiswill

needtobedealtwithfirsttoensureVIAstrengthensitsexis=ngcorenetwork.Inthe

absenceofnewandmorecost-effec=veequipmentforatleastfouryears,thisisgoingto

requirethekindofinnova=onthathasbeenshowninsimilarcircumstancesbyother

passengerrailways.

Thissitua=onisnotuniquetoVIA.EvenonthevauntedrailwaysofWesternEurope,

certainpassengerserviceshavebeenallowedtosag,par=allyduetothestrongfocuson

thedevelopmentoftheirextensive,mul=-na=onalhigh-speedrail(HSR)system.With

poli=calbacking,thishasnowcausedpublicly-ownedrailwayssuchastheSociété

na=onaledescheminsdeferfrançais(SNCF)todevelopplansfortherevivaloftheir

regionalandlonger-distancetrains.

Thethree-pointSNCFplaninvolvesastrategicrearrangementoftheservices,frequency

increasesandinvestmentinnewequipmenttoimproveefficiencyandmarketability.

ThisisexactlywhatneedstobeundertakenattheoutsetbythenewRailPassenger

Ac=onForce(RPAF)andVIA.

7.1 RidershipGrowthIni;a;ves

ItisoOensaidtherearethreekeystosuccessinpublictransporta=on:frequency,

frequencyandfrequency.VIA’slowfrequencyonmostroutesispar=allyafunc=onof

itsper-train-milecosts,whicharehighbycomparisonwithAmtrak.

ToomanyofVIA’sphysicalandhumanresourcessitidlefortoomanyhourseveryday.

Trainsandcrewsthataren’tatworkaren’tproducingrevenue.Ittakes28trainsetsof

varyingtypesandlengthstooperateVIA’sQuebec-WindsorCorridorservices.Intotal,

thosetrainsandtheircrewslogatotalof17,786train-milesperday.Theresultisthat

theaverageforthewholecorridorfleetisonly563.8train-milesdailypertrainset.By

railindustrystandards,thisisaverylowrateofu=liza=on.

Withacombina=onofbeKerscheduling,improvedopera=ngprac=ces,sometweaking

ofthecurrentfleetandamoreperformance-basedrela=onshipwiththefreight

railways,VIAcouldoperatemoretrainsdailyonitscorridorroutes.

AdmiKedly,increasingfrequencyonmostroutesoutsidethecorridorwillbedifficult

un=lnewequipmentarrives.However,theremaybenear-termgrowthopportuni=es

throughbeKerequipmentandcrewu=liza=ononsomeroutes,suchastheHalifax-

MontrealOcean.

66

Intheshort-term,VIAmustmaximizetheuseofitsexis=ngresourcesthroughoutits

systemtoincreasefrequencyonrouteswherelatentdemandnowexists.Thiswilllay

thefounda=onforalonger-termgrowthstrategybasedontheefficienciesderivedfrom

newequipment,beKercontractualagreementswiththefreightrailwaysandimproved

on-=meperformance.Stepstakennowtos=mulatemuch-neededridershipand

revenuemustleadtoandinterlockwiththatcomprehensive,long-rangeplan.

Asaresult,theRPAFwillneedtoassessonesketchyproposalVIAunveiledonJune16,

2015,ataStrasordChamberofCommerceluncheon.Inresponsetodecliningridership

andpubliccallsformoreandbeKerserviceinSouthwesternOntario,VIAannounceda

slateofimprovementswithoutanyapparentbusinesscaseanalysisorevenafirm

delivery=metable.Theseincluded:

⚫ AnewStrasord-TorontomorningtrainwithalateaOernoonreturntrip;

⚫ ShiOingtheToronto-SarniatrainsfromtheNorthMainLinethroughStrasordto

theSouthMainLinethroughBransord;

⚫ IncreasingtheToronto-Sarniafrequencyfromonetotworoundtrips;and

⚫ ShuKletrainsfromLondontobothWindsorandSarniausingtheBuddraildiesel

cars(RDCs)fromtheSudbury-WhiteRiverserviceandthosethatarestored

pendingtherestora=onoftheVancouverIslandservice.

Inannouncingtheseplannedserviceincreases,VIAalsorevealedtherehadnotbeen

anydiscussionswithCN,GOTransitandtheGoderich-ExeterRailway,whichownthe

infrastructureonwhichthesetrainswouldoperate.Theridershiptargetwillbea

minimumof120passengerspertraintocovertheaddi=onalout-of-pocketopera=ng

costs,althoughVIAhasdonenoanalysisofthisproposedthreshold.

Aswell,thecommuni=esweregivenno=cethattheymustleadthecampaignto

s=mulateridershipandastrict“useitorloseit”rulewillapply.Asforimplementa=on,

VIAwouldonlysaythattheinten=onwastorolloutthenewtrains“maybebytheend

oftheyear,probablyearlynextyear,butdefinitelybytheendof2016.”

ThesuggestedSouthwesternOntariogrowthstrategymustbeanalyzedcarefullybythe

newRPAFtoensurethisplanistechnicallyfeasible,ithasareasonablechanceof

succeedinganditwon’tconsumeresourcesthatwillbeinshortsupplyun=lthenew

equipmentarrivesoramodestamountcanbeleasedonashort-termbasis.

7.2 Longer-TermNetworkExpansion

ExpansionofVIA’sroutenetworkmustproceedcau=ously.Itwilltake=meforthefleet

improvements,thenewcos=ngarrangementwiththefreightrailwaysandothercost

containmentmeasurestosignificantlyreduceVIA’sopera=ngcosts.

67

WhentheMulroneygovernmentorderedthe1985reinstatementofhalfoftheroutes

cutin1981,itwaswarnedbytheRPAFthatthiswouldcomewithhighopera=ngcosts

becauseoftheobsoleteequipmentthathadtobeusedini=ally.Itwouldalsotake=me

torecapturetheridershiplostwhenthetrainswerecutin1981.

Whenthenewequipmentwasn’torderedandmanyofthereformsrecommendedby

theRPAFdidn’toccur,thiscreatedasitua=onthatwasusedtojus=fytheVIAcutsof

January1990.Thegovernmentsaidthetrainsfailedthe“useitorloseit”testbecause

theridershipwastoolow.Thehighcostofthereinstatedtrainswasalsohighlighted.

Thenewgovernmentmustguardagainstinadvertentlycrea=ngasimilarsitua=onbynot

promisingthequickrevivalofseveralabandonedroutes,eveniftheywillbedesirable

addi=onstotheVIAnetworkinthefuture.OnebrakeagainstthisisthatVIAsimply

doesn’thavetherequiredequipmenttoquicklylaunchnewroutes.Ifanyshort-term

leasingofalimitedamountofequipmentcanbeundertaken,itwillonlybeenoughto

slightlyincreasethefrequencyofsomeoftheexis=ngcorridorservices.

ThereareobviousgapsinthecurrentVIAnetwork,mostofthemduetotheroute

elimina=onsthatoccurredin1981,1986,1990,1994and2005.Othersdatebacktothe

periodjustbeforeVIAstartedtakingovertheopera=onoftheCNandCPservicesinthe

fallof1978.Theseabandonedservicesfallintothreecategories:

⚫ Long-haultrainsprovidingacombina=onofintercityandtourism-relatedservice,

suchastheHalifax-SaintJohn-MontrealAtlan9c,theToronto-KapuskasingNorthland(operatedjointlywiththeprovincially-ownedOntarioNorthlandRailway)andtheCanadianonitsoriginalCProu=ngontheLakeSuperiorNorthShore,acrosstheSouthernPrairiesandontoVancouverviaBanff;

⚫ Short-andmedium-haultrainsoncurrentlyunservedcorridorssuchasCalgary-

Edmonton,Toronto-Peterborough,Sudbury-SaultSte.MarieandMontreal-

QuebecCityviaTrois-Rivières;and

⚫ Day=me,coach-onlytrainsonsegmentsofthelong-haulroutes,suchas

Moncton-CampbelltonandMont-Joli-QuebecCity.

Cost-effec=vegrowthwillbedifficultun=lnewequipmentisreceivedtorevitalizethe

exis=ngtrains,whichmustbeapriority.Themoderniza=onofthosetrainswould,asa

minimum,allowfortheolderequipmenttobeusedtotestthemarketonnewroutes

undertheexperimentalserviceprovisionsoftheVIARailCanadaAct.

OnlyaOertheseexperimentaltrainsmeettheirtargetsandareaddedtothelegislated

BasicNa=onalNetworkwouldconsidera=onbegiventore-equippingthem;op=ons

builtintotheoriginalpurchaseagreementswouldprotectforthisfleetexpansion.And

onlywhentheexis=ngVIAcoresystemisrevivedandputonasolidfoo=ngcannetwork

expansionoccur.

68

7.3 Interna;onalServiceExpansion

Alsotobeaddressedisthelowlevelofinterna=onalserviceoperatedinconjunc=on

withAmtrak.TheonlytraininthiscategorytodayistheToronto-NewYorkCityMapleLeaf,whichisalsothelasttrainservingNiagaraFalls,Ontario.TheToronto-Sarnia-ChicagoInterna9onalendedin2004duetovariouscomplica=ons,whichVIAwasn’table

toaddressinamannersa=sfactorytoAmtrakandtheStateofMichigan,whichpaida

percentageofitscoststoprimarilyservethePortHuron-Chicagoroutesegment.

Amtrakandsomeofthepro-railpassengerstatesalongtheborderhavebeenmuch

moreeffec=veandenthusias=cpar=cipantsintheinterna=onalmarket.TheMapleLeafcon=nuestooperateonlybecauseofthefinancialsupportitreceivesfromAmtrakand

theNewYorkDepartmentofTransporta=on.

WithoutanyVIApar=cipa=on,theNewYorkCity-MontrealAdirondackandtheSeaKle-VancouverCascadesarefullysupportedbyAmtrakandthegovernmentsofNewYork

andWashington,respec=vely.ThankstoAmtrakandtheStateofVermont,theNew

YorkCity-St.AlbansVermonterisslatedforextensiontoMontreal,althoughCN’shigh

trackaccessfeesremainacomplica=on.

Therehavealsobeenstudiesofotherinterna=onalservicesbyvariousBorderStates.

AmongthemareproposalsforservicelinkingMontrealwithbothBostonandPortland,

Maine.Aswell,MichiganandtheothereightstatesthatcomprisetheMidwestHigh-

SpeedRailIni=a=ve(MWHSRI)arekeentore-establishcross-borderservice,preferably

throughWindsor-Detroit,aspartoftheir3,000-mile,mul=-statenetworkradia=ngfrom

Chicago.Morethan$2billioninfederalfundinghasalreadygonetoincreasingthe

frequencyanddecreasingtherunning=mesofthestate-supportedAmtrakserviceson

someoftheseroutes,withmoretofollow.Pluggingintothisgrowingnetworkwouldbe

advantageoustoCanadianandAmericantravelers.

Theseandotherinterna=onalroutesneedtobeexaminedbytheRPAFandVIAto

determinehowtheycanbeestablishedincollabora=onwithAmtrakandthestates.All

ofthosemen=onedabovehavestrongpoten=alintermsofbothintercityu=lityandasa

meansofencouragingtwo-waytouristtravel.

7.4 Tourism-RelatedServiceExpansion

NewservicestobolsterCanada’stourismsectorshouldalsobeinves=gated,aswas

doneaspartofVIA’s1989ReviewofPassengerRailTransporta9oninCanada,(ortheVIA’89Review).ThereportanalyzedeachaspartoftheVIAsystem,asitthenexisted,

toproducea20-yearvisionbasedonaseriesofop=ons.Theserangedfromstatusquo

tosubstan=alrestructuringandinvestment.Onitslong-haulroutes,par=cularlyinthe

West,maximiza=onoftouristrevenuewasakeyconsidera=on.

69

TheVIA’89Reviewnotedtherapidgrowthofnew,for-profittouristtrainsworldwideandtheirimpactonoff-traintouristoperators.Theyearbefore,VIAhadlaunchedits

two-day,coach-onlytouristservicefromVancouvertoJasper,BanffandCalgary,then

knownastheRockyMountainsbyDaylight.Begunonashoestringusingsurplusrollingstock,thetwo-prongedservicewasanimmediatehit,provingtherewasanuntapped

marketonthewesternsegmentsoftheCanadianandtheSuperCon9nental,whichregularlysoldoutduringthepeakseason.RenamedtheRockyMountaineer,itgeneratedanopera=ngprofitofapproximately$1millionin1989.

IntheVIA’89Review,oneop=onwasextensionoftheRockyMountaineer’sserviceperiodandtheaddi=onofaluxurycruisetrainontheVancouver-Calgaryroute,both

usingrefurbishedBuddrollingstock.ThelaKerwouldhaveoperatedafullsummer

serviceandareduced,off-peakschedule.Bothtrainswouldhavegeneratedaprofitand

helpedreducethelossesontheyear-roundlong-haultrains.

TheVIA’89Reviewes=matedtherewerethen25milliontouristsperyearfromtheU.S.,

Japan,GreatBritain,WesternEuropeandCanadawhowereinterestedinlong-distance

travelinCanada.Withinthismarketsegment,10millionwerespecificallyinterestedin

thetypeoftravelexperienceVIAcouldprovidethroughtheCanadianRockies.Thisisa

marketthatneedstobeanalyzedbythenewRPAFandVIAtodeterminewhatcanbe

donetomaximizetheuseofthecurrenttrainsinaKrac=ngmoreofthesetravelers.

Aswell,thereistheques=onofwhichaddi=onalroutesorservicescouldcontributeto

trafficgrowthnotjustintheWest,butna=onwide.Onecomplica=oninthewestern

marketwillbeprivately-ownedRockyMountainRailtours,whichacquiredVIA’sRockyMountaineerin1990,whenthegovernmentcompelledVIAtopriva=zeit.Thisissueis

dealtwithinmoredetailelsewhereinthisplan.

VIAmustdomoretoaKracttouristsfortwoverygoodreasons.First,thoseaddi=onal

passengersandrevenuearegreatlyneededata=mewhenVIA’sridershipisundeniably

sta=c.Justasimportant,Canada’stourismindustryrequiresthekindofassistancethat

VIA’suniqueservicescanprovide.TourismisatopCanadianemployer,suppor=ngmore

thanonemillionjobsandgenera=ng$84billionineconomicac=vityannually.

Furthermore,studieshaveestablishedthateverydollarspentbytouristsforrailtravel

generatesthreeormore=mesthatamountinoff-trainspendingforlodging,mealsand

otherac=vi=es.

Moreengagementwithtourismoperatorsmustbepartofthiscampaign.VIAoncedid

anexcellentjobinpartneringwithtourismoperatorstoofferrail-basedpackagetripsto

uniquelyCanadianaKrac=ons,rangingfromwhalewatchingintheGulfofSt.Lawrence

toskiinginJasper.Aggressivedevelopmentofthesemarketsincollabora=onwiththe

70

tourismoperatorsisagivenifVIAistobuildridership,revenuesandrelevancy,and

increasetheroleitplaysinsupportoftheCanadiantourismsector.

7.5 FeederBusServices

Anotherini=a=vethatwouldcontributesignificantlytoVIA’strafficbaseandexpandthe

impactofitsnetworkistheaddi=onoffeederbusroutes.Thelackofsuchasystemhas

longbeenamajorgapinVIA’sopera=on.Coordinatedfeederbuses,connec=ngdirectly

withthetrainsatsta=onsmodifiedtoaccommodatethem,andwiththrough=cke=ng

andbaggagehandling,isaconceptemployedbyrailsystemsaroundtheworld.

Whiletherehavebeenalimitednumberofinterlinearrangementsinthepastbetween

intercitybusoperatorsandVIA(aswellasthepredecessorCNandCPpassenger

opera=ons),theywereneverworkedwithmuchenthusiasmbyanyofthepartners.For

avarietyofreasons,thepartnershipsreachedsince2012byVIAhavealsobeenless

thanadequateinofferingpassengersaneffec=vemeansofmakingseamless,car-free

trips.

Onceagain,VIA’sworkingexamplemaybefoundatAmtrak,whichhasbenefitedgreatly

fromitsThruwaybussystem.OneofthesebusroutesnowlinkspointsinBri=sh

ColumbiawiththeAmtraktrainsservingcommuni=esjustsouthoftheborder.

Priortotheforma=onofAmtrakin1971,therehadbeenagreementsbetweenthe

railwaysandbusoperatorsinnumerousloca=ons.However,ashadbeenthecasein

Canada,theseinterlineservicesoOenweren’tdeliveredwithmuchenthusiasmbecause

oftheanimositybetweentherailandbusoperators,whichsaweachotheras

compe=tors.

Whilethemodesobviouslydocompeteinmanymarkets,therealcompe==onforboth

railandbusismoretheautomobileandairservice.Privatebusoperatorsinboth

CanadaandtheU.S.haveoOentriedtoportrayVIAandAmtrakasunfair,subsidized

compe==on,buttheelimina=onofrailserviceinmanymarketshasnothaltedthelong

declineinbusprofitabilityandservicethathasbeenoccurringsincethe1970s.

PriortotheAmtrakThruwayprogram,somestatesbroughtaboutlimitedcoopera=on

andcoordina=onthroughfundingtoconvertAmtraksta=onsintointermodalterminals

forrail,intercitybusandurbantransitservices.Somealsoprovidedassistanceto

strugglingbusoperatorstomaintainservicetocommuni=esthathadlongbeforelost

theirpassengertrains.Inthis,MichiganandCaliforniawereleaders.

MainlythroughtheeffortsandinvestmentsmadebytheCaliforniaDepartmentof

Transporta=on(Caltrans),thebrandedThruwayservicegrewrapidly,providinga

workingmodelforotherU.S.regions.ItssuccessinCaliforniaspreadandAmtrak,in

conjunc=onwithitsstatefundingpartners,privatebusoperatorsandregional

71

transporta=onagencies,nowoffersThruwayservicethatextendsthereachofitstrains

onmorethan100routesacrosstheU.S.

WhiletheAmtrakThruwaynetworkappearstobeahomogenousopera=on,itisnot.It

isactuallycomposedoftwotypesofservice,definedas“dedicated”and“coordinated.”

Thededicatedservicesareoperatedtotallyinconjunc=onwiththerailserviceasfeeders

thatareavailableonlytothosemakingcombinedrailandbusjourneys.Thecoordinated

Thruwayservicesareroutesoperatedbymunicipalagenciesorthroughstate-supported

programsprimarilyaslocalorinterurbanservicesintheirownright,butdoingdouble

dutyascoordinatedcomponentsoftherailservices.Inbothcases,Amtrakanditsstate

partnersarenotbusoperators;theycontractfortheprovisionoftheservice.

EstablishingthistypeoffeederserviceshouldbeanimportantpartoftheVIA1-4-10Plan.Intercitybusestopointsthatcan’tbeservedbyrailbecauseoflowpassengervolumeortheabsenceofrailinfrastructurewoulddrawridershipbybroadeningVIA’s

catchmentarea.Thisservice,combinedwithbeKerlocaltransitconnec=vity,wouldact

astheso-called“firstandlastmile”ofrailjourneys,makingcar-freemobilitypossible.

Thefirststepinbuildingthisfeedernetworkonana=onalscaleshouldbegreater

engagementwithVIA’sexis=ngbusandregionaltransitpartners.Improvementand

expansionofthisbasicnetworkofintermodalfeederswouldbefollowedwithnew

routesthatcandodoubledutyasregionalservicestobeginfillingthelargegapsin

Canada’sdecliningnetworkofruralandintercitybusservices.

Fartoomanysmallercommuni=es–andevenwholeregions–arebeingregressively

slicedoutofthepublictransporta=ongrid,deprivingthemoftheaccessandmobility

thatensureseconomicandsocialsustainability.ArevivedVIAwithacoordinatedand

connectedbusfeedersystemwillreversethistrend.

Oneofthecomplica=onsintryingtoprescribethescopeoftheVIAfeedersystemis

causedbytheregula=onsthatapplytointercitybusservice,whichvarybyprovince.In

someprovinces,itwillbepossibleforVIAtoworkwithexis=ngoperatorstolaunchnew

servicessimplybycontrac=ngwiththem.Inothers,theregula=onsgoverningintercity

busopera=onswillmakethataverycomplexmaKer.

InOntario,forexample,routesarelicensedtoindividualcarriersandhead-to-head

compe==onisnotallowed.Ifanexis=ngbusoperatorholdsalicenseforarouteand

doesn’twanttopar=cipatewithVIA,anothercarriercannotbeautoma=callycontracted

byVIAtoprovideit.

However,thereareexis=ngbussystemsthatcouldeasilybecoupledwitharenewedVIA

system,ifonlytherailservicewasfrequentenoughtoplayitsrole.InVancouver,bus

operators(andAmtrak’sCascadestrainstoSeaKle)shareVIA’sPacificCentralSta=on.InHalifaxandMoncton,Mari=meBususestheVIAsta=onsasitscityterminalsandalready

72

hasaninterlinepartnershipwithVIA.OrléansExpressalsosharesQuebec’sGaredu

Palais,althoughitdoesn’thaveapartnershipwithVIA.

Atotherloca=ons,connec=vityispoordespiteinterlinepartnershipsbetweenVIAand

busoperators.PassengersarrivinginEdmontonmustusetaxistoreachRedArrow’s

downtownterminalfromthepoorly-locatedVIAsta=oninthenorthwestsec=onofthe

city,whichlacksanypublictransitservice.AsurprisingdevelopmentisGreyhound

Canada’sneedtovacateitscurrentterminalclosertoEdmonton’sdowntownandits

interestinatleasttemporarilyren=ngspacefromVIA.

Anotheropportunityforintermodalcoopera=onandcoordina=onexistsintheformof

theprovincially-ownedSaskatchewanTransporta=onCompany(STC),whichoperates

busesthroughouttheprovinceandserves11communi=esalsoservedbyVIA.STC

wouldbealogical,ready-madefeederforVIA,butitwon’thappensolongas

Saskatchewan’srailserviceconsistsoftheinfrequentCanadianandasmallpor=onof

therouteofVIA’sless-frequentWinnipeg-Churchilltrain.

TheneedforaVIAfeedernetworkthatmakesthebestuseofexis=ngbusservicessuch

astheseisamaKerthatmustreceiveconsiderableaKen=onbytheRPAFin2016and

follow-upbytheVIAboardandmanagementteam.Italsorequirestheinvolvementof

thefederalandprovincialagenciesthathavethestatutoryresponsibilityforvarious

aspectsofCanada’sdisjointedanddecliningnetworkofbusservices.Thisisaques=on

ofpublicpolicyandsocialresponsibility,whichVIAcannotdecideorsolveonitsown.

BeyondtheobviousbenefitstoVIA,thedevelopmentofanequivalentofAmtrak’s

ThruwaynetworkcanhelpstabilizeCanada’sdecliningintercitybussystem.Thereare

somewithintheindustrywhofearallCanadianintercitybusservicecouldvanishwithin

adecade.Theescala=ngreduc=onofthena=onwidebussystemoverthelastdecade

underscoresthatpossibility.

ArevitalizedVIAisthelogicalpublicagencytodeliveronsuchaposi=vechangein

transporta=onpolicyna=onwide.Asastrengthenedtranscon=nentalservicethatits

poten=alpartnersnolongerfeelmayvanishjustwiththesigningofanorder-in-council

inOKawa,itcanbethefocalpointandthedriverforthisoverduechange.

AshasbeendemonstratedintheU.S.andmanyotherna=ons,makingtrainsandbuses

partnersintheprovisionofseamlessservicewillpaydividendsforall.Itisespecially

urgentifinjec=ngadegreeofregionalfairnessismadeaprioritybyboththefederaland

provincialgovernmentsacrossCanada.

73

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AC

R (C

N)

KR

KS

VIA Rail Canada

VIA (service suspended)

Amtrak

Joint VIA/Amtrak service

Other rail passenger services

Other rail passenger services (suspended)

THOMPSON

KS Kaoham SchuttleKR Keewatin RailwayACR Algoma Central Railway (CN)ONTC Ontario Northland Transportation Commission

TRT Tshiuetin Rail Transportation

Seasional tourist trains not shown

Other Rail Passenger Services:OTTA

WA

SAULT STE. MARIE

MONTREAL

QUEBEC CITY

JONQUIERE

MONT-JOLI

SENNETERRE

CHICAGO

8.0 Ini;a;ngVIA’sRecovery:2016

ThephasesofVIA’srecoveryshouldbethree.Thefirstwouldbethecoordinatedwork

bythenewRailPassengerAc=onForce(RPAF),therecons=tutedVIAboardandthe

redirectedmanagementteam.Theseeffortswouldbuildafounda=onforthenewVIA,

par=cularlyintermsofitslegisla=onanditsrela=onshipwithitshostfreightrailways.

Theremustalsobeno=ceableimprovementsforpassengers.VIAisgoingtohaveto

becomeamorefrequent,reliableandtrustedtravelop=onasrapidlyaspossibleifit’s

goingtojus=fyitsexistencewiththepublicandgovernment.ThehardrealityisthatVIA

haslostmuchofitsrelevancetoCanadiansandtheirelectedrepresenta=ves.Whereit

operates,itisnolongerviewedasaservicewithafuture.Whereitnolongeroperates,

ithasvanishedfromthepublicandpoli=calmindsets.

Althoughitwillnodoubtberesisted,asitwasin1984-1985,theRPAFmustbegiven

sweepingauthoritytoreview,alter,approveorrejectVIA’scurrentplans.Thelimited

fundingthatwasapprovedbythepreviousgovernmentmustbeappliedcarefullytothe

maintenanceofthecurrentopera=ononaday-to-daybasisandthefirststagesofthe

capitalrenewalprogram.Henceforth,allcapitalinvestmentsmusthavelas=ngvalue

thathelpsbuildVIAincrementallythroughthethreephasesofitsfullrecovery.

TheRPAFmustundertakeanimmediateanalysisofVIA’sfinancialandopera=onal

status,itsabilitytos=mulateridershipandrevenue,andthemeasuresnecessaryfor

costcontainment.AsdiscussedinChapter2ofthisplan,VIA’sSummaryofthe2013-2017CorporatePlancontainsawarningabouttheoutlook,ifmajorstepsaren’ttaken

soon.TheRPAFmustdeterminetheseriousnessofthissitua=onandwhatstepswillbe

takentopreventfurtherhemorrhagingofrevenues,ridershipandpublicfunds.

TherearealsothreemajorVIAprojectsinunknownstagesofdevelopmentthatmustbe

turnedovertotheRPAFforreview.Nobusinessanalysishasbeenputforwardpublicly

todemonstratethatanyoftheseprojectswillbringlas=ngandsubstan=alvaluetoa

currentlynon-existentlong-rangerenewalplan.Thethreeprojectsare:

⚫ Thelast-minute,pre-elec=onannouncementofthe$102-millionVIAMontreal-

OKawaproject,whichinvolvesinfrastructureandequipmentinvestmentsthat

willhavetobecompa=blewithalonger-rangeQuebec-WindsorCorridorhigh-

performancerail(HPR)improvementplan;

⚫ Theexpansionandreconfigura=onofserviceinSouthwesternOntario,which

wasannouncedinStrasordonJune16,2015;and

⚫ Thehigh-frequencyrail(HFR)projectthathasbeenpromotedwithout

suppor=nganalysisanddocumenta=onsincelate2014.

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TheRPAFmustdecidewhichcomponentsoftheseplans,ifany,meshwithitslonger-

termstrategyandwhethertherearemorecost-effec=veop=onsavailable.VIAcanno

longerdependonprojectsthatareeithercostlyBand-AidswithliKlelas=ngvalueor

require=meandfundsitcanillaffordtowasteonplansthatmayormaynotproduce

posi=veresultsfaroffinthefuture.

8.1 ImprovedFleetU;liza;on

Anotherini=a=vetheRPAFmustinves=gateearlyistheoutcomeofVIA’s2015callfor

short-termleasingofmo=vepowerandrollingstockforitscorridorservices.Thepool

ofavailable,service-readyintercityequipmentinNorthAmericaislow.Amtrakis

makingextensiveuseofitsen=refleetanditcon=nuesto“backshop”damaged

equipmenttomeetitsgrowingridershippendingthearrivalofnewsingle-andbi-level

cars,soitwillnotbeinaposi=ontoassistVIAtoanygreatextent.

Themosturgentac=onrequiredisthemodifica=onofVIA’sunidirec=onalcorridorfleet

forbi-direc=onal,push-pullopera=on.Facedwithasimilarsitua=on,Amtrakdealtwith

itinalow-costfashionbyremovingthedieselenginesandtrac=ongearfrom

locomo=vesslatedforre=rementandturningthemintoinexpensivecab-baggagecars.

ToduplicatethisAmtrakapproach,theop=onsformodifyingVIA’scorridorfleetforbi-

direc=onal,push-pullserviceinclude:

⚫ Posi=oningVIAlocomo=vesonbothendsofeachtrainset,withoneunit

servingasadefactocabcar;

⚫ Leasingsecondhandlocomo=vestoservethesamepurpose;

⚫ Purchasingandrebuildingsecondhandunitsasnon-poweredcabcars;and

⚫ LeasingAmtrakcab/baggagecars,ifavailable.

VIAbrieflyusedtwolocomo=vesonsomeofthetrainsetsitthrough-routesbetween

QuébecandOKawa.Inthisfashion,thetrainsenteredMontréalCentralSta=on

northboundwithonelocomo=veleadingandthenexitedsouthboundwiththeother

leading,whicheliminatedtheneedtoturnthetrain.

Anotherop=onistheleasingof23fully-rebuiltpush-pullcommutercarsfromthe

MichiganDepartmentofTransporta=on(MDOT).Thestateagencyissearchingfora

lessorforthesebi-level,gallery-stylecoachesandcabcars,whichwereacquiredfortwo

commuterprojectsthathavebeenseriouslydelayed.Althoughnotasspaciousand

luxuriousasVIA’ssingle-levelcars,theMDOTcarswouldboostcapacityandallowfor

push-pullopera=onontheshortercorridorroutesinSouthwesternOntario.Seungthe

faresslightlylowerforthetrainsassignedthegallerycarswouldbealogicalwayto

compensateforthereduc=onincomfort,whilealsos=mula=ngridership.Thereare

enoughMDOTcarstoformsevencompletetrainsets.

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Theuseoftwolocomo=vesoneitherendofVIA’scurrentcorridortrainsets(top)andtheleasingofpush-pullbi-

levelcommutercarsfromtheMichiganDepartmentofTransporta=onareamongtheshort-termop=onsfor

improvingVIA’scorridorequipmentu=liza=onservicespendingthearrivalofnewequipment.PhotosbyRay

Farand(above)andtheMichiganAssocia=onofRailroadPassengers(below)

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Yetanotherop=onmightbeleasing13formerVIABuddraildieselcars(RDCs)from

TrinityRailwayExpress(TRE)inDallas-FortWorth.Thesebi-direc=onalcarswerefully

remanufacturedbyCNinthemid-1990sforthecommuterservice’slaunch.Since

replacedbyBombardierbi-levelpush-pulltrains,theRDCsarenowinstorage.

Acomplica=onwiththissolu=onisCN’sprohibi=onontheuseofRDCsatspeedsgreater

than50mph.AlthoughtheyoperatedextensivelyonCNlinespriortothe1990VIAcuts,

CNmaintainstheydon’treliablytriprailtrafficcontrolandgradecrossingprotec=on

trackcircuits.IftheproblemsCNallegescanberesolved,thentheshort-termuseofthe

13TRERDCswouldprovideanotherequipmentop=onforVIA.Theywouldprovide

extracapacityandtheirabilitytomakequickterminalturnaroundswouldmakepossible

theintroduc=onofaddi=onalfrequenciesoncertaincorridorroutes.

Finally,thereistheop=onofpurchasingthetwo14-carTalgoSeries8trainsbuiltfor

Chicago-Milwaukee-Madisonservice.ThisprojectwasaxedbyWisconsinGovernor

ScoKWalkerwhenhetookofficein2011andtheequipmentwas=edupbyalawsuit

againstthestate.ThecasewasrecentlydecidedinfavourofTalgoandthetwo,service-

readytrainsarenowitsproperty.

TheTalgosare110-mphtrainsetsthatincludecabcarsandmaybepoweredbyany

NorthAmericanmainlinepassengerlocomo=ve,suchasVIA’s100-mphGeneralElectric

P42units.TheycouldbeusefulastemporaryshowcasetrainsononeofVIA’sprimary

corridorroutes,suchasToronto-WindsororToronto-OKawa.

WhiletheTalgoswouldbeorphansinVIA’sfuturefleet,theywouldgivepassengersa

tasteofmodernizedrailpassengerservice.Theywouldalsolikelyhaveresalevalue,

perhapsasaddi=onstotheseven-trainTalgofleetontheAmtrakCascadesCorridorin

thePacificNorthwest.

TheboKomlineisthatVIAneedssomeshort-termequipmentreliefifitisgoingto

improveservicefrequency,reducecostsandaKractmorepassengersandrevenue.The

opportuni=esarefew,buttheydoexist.ItwillbeuptotheRPAFtodeterminethebest

methodfordoingthispendingthedeliveryofVIA’snewfleet,whichwon’tlikelybe

completeun=l2023.

8.2 Service-DrivenPricingandProductRedesign

Justasimportantasshort-termfleetmaximiza=onmustbemarke=ngini=a=vesthat

s=mulateridershipandrevenue.Therehavebeenpersistentpubliccomplaints

na=onwidethatVIAistooinfrequent,itdoesapoorjobofpromo=ngitsservicesandits

faresaretoohightomaketraintravelanaKrac=vealterna=vetodriving.

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Thetwo110-mphTalgotrainsetsbuiltforthecancelledWisconsinhigher-speedrailpassengerprojectshouldbe

consideredforpurchaseorleasetoaugmentVIA’scurrentcorridorfleet.WhiletheTalgoswouldbeorphansinthe

futurebi-levelcorridorfleet,theirshort-termusewouldgivepassengersatasteofmodernrailpassengerservice

earlyinVIA’srecovery.TheywouldalsolikelyhaveresalevalueintheU.S.PhotoscourtesyTalgoAmerica(above)

andAmtrak(below)

79

VIA’shighfaresarealegacyofthe1990cuts,whichcamewithinstruc=onsfromthe

governmenttoincreasefarestohelpmeetthehighercostrecoverytargetsitgaveVIA.

Despitethelargecostreduc=onsmadebyVIAinthe1990s,furtherbudgetreduc=ons

havecomplicatedaKemptstoholdthelineonfares.Airline-styledemandyield

managementandunpredictableseatsalesdon’tappeartohavechangedthepublic’s

viewthatVIAisaninfrequent,high-costtravelop=on.

Witha2014averageloadfactorof60percentand131passenger-milespertrain-mile

(lessthantwofullcarloads),toomuchexis=ngcapacityisgoingtowaste.Theearly

stabiliza=onplanforVIAmustincludemorecrea=ve,targetedpromo=onand

experimenta=onwithpricingthatisaimedatsellingVIA’sunsold“inventory,”which

evaporatestheminuteatraindeparts.Theremustbemoreeffec=veeffortstofillthose

emptyseatsandceaseforfei=ngcapacitythatcan’tbestoredforsaleatalater=me.

Thecost-effec=veaddi=onoffrequenciesonrouteswheremarketresearchdetermines

thereislatentdemandshouldbepartofthisstrategy.Inthecorridor,moreemphasis

mustbeplacedonthecommuni=esbetweenthemajorendpointsthatanchorthe

routes,especiallygiventhecon=nuingdeclineorlossofalternatebusservicetomanyof

them.Therearetoomanycorridorloca=onsthatarenowservedbyabareminimumof

trains,withtoomanythroughtrainsbypassingthem.

IntheabsenceofthenewequipmentthatwillaKackVIA’shighopera=ngcostsandput

anewfaceonitsproduct,therewillneedtobeaheavyrelianceoninnova=vepricing

andmarke=ng.Inareaswherethepubliccontendsthathighfaresandlowfrequency

preventthemfromusingthetrainmoreoOen,VIAmustdetermineifalower-priced

servicewills=mulateridershipandyieldhigherrevenue.Forexample,theshort-term

useoftheMichiganDOTpush-pullgallerycarstoprovidemorefrequenciesonsome

corridorrouteswouldbeaccompaniedbylowerfaresthatwouldreflectthelower

comfortofthesecars.

Itislikelythatmanyoftheresidentsincommuni=esthathavecalledforincreased

servicewouldrespondtotheprovisionofthese“discounttrains.”Theincreased

ridershipandrevenuewouldbesufficienttocoverthemarginalcostoftheaddi=onal

trains,buildingalargermarketforthesetrainswhentheyarere-equippedwithnew

rollingstockandthefarescanberaisedtoreflecttheirimprovedcomfort.

Therearealsosomespecializedmarketsthatremainuntapped.Oneisthegrowing

popularityofcyclingvaca=onsandtheuseofbicyclesforthefirst-and-last-mile

componentofintercitytrips.ThishasbeenrecognizedintheU.S.andaddressedon11

state-supportedcorridorsandrecentlyonAmtrak’sWashington-PiKsburgh-Chicago

CapitolLimited.ThisservicehasprovedpopularanditisbeingrolledouttootherAmtrakroutes.WhilepassengerscantransporttheirbicyclesonsomeVIAtrains,the

serviceislimitedanditisnotwellpromoted.Thisisalostopportunitytoappealtoa

nichemarketthatisaperfectfitwithrailtravel.

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8.3 RebuildingtheVIABrand

VIA’smainstreampromo=onaleffortshavebeeninfrequentanderra=cinrecentyears,

withlukewarmcampaignstobuildVIA’soverallbrandnameandotherstargeung

servicesthathavebeenslipping,suchastheOceanandtheCanadian.ThesepalebycomparisonwiththecampaignsofthebeKerpassengerrailwaysaroundtheworld,

whichcapitalizeonthedis=nc=veandappealingcharacteris=csofrailtravelthat

dis=nguishitfromthecompe=ngmodes.

Whatisespeciallydisconcer=ngisthatVIA’srecentpromo=onofitsvariedserviceshave

blanchedthemofanyevoca=ve,rail-relatedcolour.ExceptinthecaseoftheOceanandtheCanadian,trainnameshavebeendropped.Aswell,theindividualityofVIA’sroutes

hasneverbeenestablishedandevenitsaccommoda=onshavebeenrelabelledusingthe

colourlessjargonemployedbyairlinesandcruiseshipoperators.

ThisshouldbecomparedwiththeU.S.,whereAmtrakanditsstatepartnershave

appliednames,logosandroute-specificmarke=ngcampaignstoeachpartofthe

na=onalsystem.Thishasbuiltalocaliden=tyandaprideofownershiponmanyroutes,

contribu=ngtotheirgrowth.Asimilarapproachaimedatcrea=ngapublicexcitement

aboutrailtravelmustbeadoptedbyVIA.

VIAmustalsobuildbeKercommunityrela=onshipsthroughanongoingoutreach

program.Insomeregions,suchasSouthwesternOntario,VIAhaschallengedci=zens,

communitygroupsandlocalpoli=cianstotaketheleadinboos=ngridership,employing

a“useitorloseit”threattomo=vatethem.Thisisnowaytoengageci=zens.

Anini=a=veVIAshouldborrowfromAmtrakisitsna=onwideTrainDayscelebra=on.

Thisprogramhasgrownintoatwo-=eredcampaignhighligh=ngtheongoingroleofthe

passengertraininAmericanlife.Insomecommuni=es,theAmtrakExhibitTrainserves

asthefocalpointoftheevents,whicharestagedonarota=ngbasisbetweenMayand

November.Inaddi=ontothelarge-scaleeventsusingtheexhibittrainandwhich

Amtrakorganizes,therearenumerousothereventsstagedbysmallercommuni=es,in

whichAmtrakandlocalhistoricalandserviceorganiza=onspar=cipate.

InCanada,thedevelopmentofsuchaprogrambyVIAmightlogicallybelinkedwith

Na=onalRailwayDay,whichisNovember7,theanniversaryofthedrivingofCP’slast

spikein1885.Proclaimedbythelastgovernment,itisintendedtocommemoratethe

roletherailwaysplayedinCanada’sdevelopment.Annualpro-railcelebra=onslinkedto

theobservanceofthisna=on-buildingeventwouldresonatesoundlywithCanadians.

Crea=ngapro-railpublicmindsetmustbepartofVIA’srenewalplan.Asotherrailways

aroundtheworldhavediscoveredtotheirprofit,ci=zenswhounderstandandare

enthusias=cabouttheuniqueroleofthepassengertrainsaremorelikelytonotjustuse

them,buttomaketheirsupportknowntotheirelectedofficials.

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8.4 ServiceRestora;onandStabiliza;on

TwoVIAservicesarecurrentlysuspendedandrequireurgentaKen=onfromtheRPAF,

VIAandthenewgovernment.ThesearetheChaleurandtheVancouverIslandservicefromVictoriatoCourtenay.Whilevariouspar=eshavebeeninvolvedinthesesitua=ons,

noonehassteppedforwardtotakechargeandbringabouttheconsensusand

leadershipnecessarytogetthemopera=ngagain.

Underlyingthesetwoservicesuspensionsisasitua=onthatmustbedealtwithona

system-widebasis.TheGaspéandVancouverIslandshutdownsarepartofalooming

infrastructurecrisisiden=fiedintheVIA2013-2017CorporatePlan:

“ThemajorityofVIA'sregionalandremotetrainservicesdependonshort

linesfortrackaccess,andtrainperformancehassteadilydeteriorateddueto

deferredmaintenanceandlackofinvestmentintheinfrastructure.

“Mi=ga=onmeasuresaredependentuponspecificcircumstancesand

condi=ons,butarelargelyrestrictedtoscheduleadjustments.However,

mi=ga=onmeasurescan,ifnecessary,includeservicetrunca=on,temporary

alternatetransporta=onorservicecancella=on.”

Thesitua=onsintheGaspéandonVancouverIslandarenotgoingtobethelastones

withwhichVIAwillhavetocontend.ThisissuemustbedealtwithquicklybytheRPAF,

VIAandthenewgovernmentifmoreremoteservicesarenottobecancelled,stranding

residentswithouttransporta=onalterna=ves.

8.4.1 GaspéServiceRestora;on

TheChaleur’ssuspensionstartedonapor=onoftheMatapédia-Gaspésegmentofits

routeinDecember2011andithasbeentotalsinceAugust2013.Thislossisaffec=ng

Gaspéresidentsandtheregion’stourismsector.Areduc=onintheparallelOrléans

Expressbusserviceinearly2015hascompoundedtheproblem.

Atissueisthedeteriora=onoftheformerCNline,whichsufferedfromdeferred

maintenanceevenbeforeCNsoldittoashortlineoperatorin1996.The202-mileline

wassubsequentlysoldtothenot-for-profitSociétédechemindeferdelaGaspésieInc.

(SFG),formedbyfourregionalcountymunicipali=es.Moreinfrastructureproblemsled

tothesuspensionofallservicebyacontractoperator.TheSFG-ownedlinewasrescued

inMay2015whenitwastakenoverbytheGovernmentofQuebec.Theprovince

intendstorestoreonlytheeasternandwesternendsoftheline,withthe85-mile

Caplan-Percésec=onleOinplace,butoutofserviceindefinitelyduetoawashoutat

PortDanielandfourbridgesrequiringextensiverepairs.

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Rus=ngbridges,roung=esandotherinfrastructuredeteriora=onaredisrup=ngVIAservicesna=onwide,

especiallythoseoperatedoverstrugglingshortlinerailwaysintheGaspé(above),northernManitobaand

onVancouverIsland(below).PublicinvestmentisrequiredtomaintainVIAserviceovertheseroutes,two

ofwhicharealreadysuspended.PhotosbyDennisJarvis(above)andAlasdairMcLellan(below)

83

BringingtheSFGlineuptoafullstateofgoodrepairforsafefreightandpassenger

opera=onoveritsfulllengthmayrequireinexcessof$100million.Quebec,whichhas

previouslyprovidedfinancialassistance,saysitcan’taffordtorestoretheen=relinein

lightofthefactthattherearenoac=vefreightcustomerseastofNewRichmond.

Althoughthefederalgovernmentdidfundsomerehabilita=onincoopera=onwith

Quebecin2009,nofurtherassistancehasbeenprovidedorevendiscussed.

Thisisajointna=onal/provincialpolicyissuethatisnotVIA’ssoleresponsibility.

However,federalinvolvementiscrucialiftheChaleuristoberestored.Determining

howtoproceed,thetotalfundingrequiredandwhoshouldtakechargeoftheprojectis

anothermaKerfortheRPAFtoanalyzeandhelpresolve.Theobjec=veshouldbethe

restora=onoftheinfrastructuretoenabletheChaleur’srelaunchby2017.

Intheinterim,considera=onshouldbegiventoopera=ngatemporarybusservicethat

connectsinbothdirec=onswiththeOceanatMatapediaorCampbellton.VIAdidoffer

areplacementbusoverthepor=onsoftheroutethatweresuspendedbetween

December2011andSeptember2012,butthenwithdrewit.Thisemergencyservice

couldeasilyberevivedun=lsuch=meastheraillinecanbemadeopera=onalandthe

Chaleurrestored.

8.4.2 VancouverIslandServiceRestora;on

InthemaKerofthesuspendedVIAservicebetweenVictoriaandCourtenayon

VancouverIsland,responsibilityisnowdividedbetween:

⚫ Thefederalandprovincialgovernments;

⚫ Thenon-profitIslandCorridorFounda=on(ICF),apartnershipoffiveregional

districts,14municipali=esand12FirstNa=onsterritories;

⚫ TheSouthernRailwayofVancouverIsland(SVI),whichmaintainsthelineand

operatesthefreightandpassengerservicesfortheICF;and

⚫ VIA,whichcontractswiththeICFandSVItoprovidethepassengerserviceusing

itsequipmentandotherresources.

Thedeteriora=onoftheICF-ownedinfrastructureledVIAtohaltitsserviceduetosafety

concernsonMarch19,2011.A$20.4-millionrehabilita=onagreementhassincebeen

reachedbetweenthetwoseniorlevelsofgovernments,butaprovincialconsul=ngstudy

revealedthisamountwouldn’tbeenoughtogetthelinetoalong-termstateofgood

repairandrelaunchthepassengerservice.Thestudypeggedtheline’sfullrehabilita=on

at$103million,althoughthatamounthasbeenques=onedbytheICF.

TheVancouverIslandissueisaCatch-22situa=onthatneedstoberesolvedbyhaving

onepartytakecharge.Thepriorityrelaunchingofthisserviceisataskthatshouldbe

assignedtotheRPAF.

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8.4.3 SecuringNorthernManitoba’sServices

StepsmustbetakentoensureVIA’sWinnipeg-Churchilltrain,formerlyknownasthe

HudsonBay,doesn’talsowindupsuspendedduetoinfrastructuredeteriora=ononthenorthernpartoftheformerCNline,whichisnowownedbytheHudsonBayRailway

(HBRY).Servicehasbeendisruptedonseveraloccasions,themostseriousoccurrences

beinginthesummerof2014duetotwofreightderailments.Acontributorhasbeen

increasedthawingandheavingofthetundra,whichhascreatedseveretrackproblems.

Along-termsolu=onisrequiredand,withtheHBRYstrugglingtodealwithabacklogof

infrastructureissues,itisobviousthatsomeformoffederaland/orprovincialassistance

willberequired.FurtherVIAsuspensionswouldleavemanyresidentsinisolated

loca=onsalongtheremotelinestranded,aswellasaffec=ngthatpor=onofChurchill’s

seasonaltourismsectorthatdependsonVIA’sservicetoaKractvisitors.Thepassenger

andfreightservicesonthisrouteformaregionallifelinethatmustbemaintained.

8.4.4 AlgomaCentralServiceRestora;on

ThereisanotherrailpassengerservicesuspensionnotrelatedtoVIA,buttheRPAFand

VIAshouldbeassignedtocorrectthissitua=ononbehalfofthegovernment.Thisisthe

federally-fundedAlgomaCentralRailway(ACR)passengerservicefromSaultSte.Marie

toHearstoverthe296-mileformerACRlinenowownedbyCN.

Theabrupttermina=onoftheACRserviceoveritsremoterouteonJuly15,2015,was

theculmina=onofnearlytwoyearsofindecisionandinac=on.Thefederalsubsidythat

haskepttheservicerunningsince1977wastoendonMarch31,2014,butwasgivena

one-yearextensionatthelastmoment.Undercommunitypressure,itwaseventually

renewedatalowerrateforthreeyears,effec=veApril1,2015.

However,CNannounceditwasnolongerwillingtooperatetheACRserviceandathird-

partyoperatorwouldhavetotakeover.Thiswastobedonethroughacontractwiththe

CityofSaultSte.Marie,whichhadfoundedtheACRStakeholdersCommiKeeandits

PassengerServiceWorkingGroup.ThecommiKeeincludesFirstNa=ons,affected

communi=es,coKagers,touristoperatorsandotherbusinesses.

Inapprovingthesubsidyrenewal,thegovernmentshiOedresponsibilityforthefunds

andoversighttotheCityofSaultSte.Marie.However,thethird-partyopera=onfailed

andCNcon=nuedopera=ngtheHearsttrainun=lJuly15,2015,whenitmadeitslast

run.Un=lOctober12,2015,CNcon=nuedtheAgawaCanyonTourTrain,whichhasa

majortourismimpactontheSoo.Nowthattheseasonhascometoanend,thefuture

ofthisserviceisalsoupintheair,asCNhasmadeitclearithasnointerestinresuming

itforthe2016season.

85

InanAugust13,2014,studyfortheACRPassengerServiceWorkingGrouppreparedby

BDOCanada,itwases=matedthatthedirect,indirectandinducedeconomicimpactof

thetwoACRpassengerservicesrangedfrom$38,136,000to$48,072,000annually.

Thetermina=onoftheACRservicehasstrandedresidentsoftheisolatedcommuni=es

alongtheline,whohavenoroadorairaccess.Ithasalsofrustratedtheremotelodge

operatorswho,aOermanyslowyears,hadhopedthiswouldbeamorelucra=ve

summerseasonthankstothefavourableexchangerateenjoyedbyAmericantourists.

OnAugust14,2015,theACRStakeholdersWorkingGroupissuedarequestforproposals

fromprivateoperatorsqualifiedtorestarttheservice,subjecttoapprovalbyCN.Anew

operatormaybeinplacebyDecember.Havinggonethroughasimilarexercisethat

resultedinthecollapseoftheACRpassengerservice,itmaybeoverlyop=mis=cto

expectadifferentresult.

Intheinterestofrestoringopera=onsnowandbringingsomeassurancethatthetwo

ACRserviceswon’tbesuspendedinthefuture,thenewgovernmentshouldturnthe

maKerovertotheRPAFandVIA.Asaqualifiedintercityoperator,VIAcouldrestartthe

serviceunderanemergencydirectedserviceorderfromthegovernment.Whetherit

wouldbebeneficialtotransfertheACRservicestoVIAonalong-termbasisissomething

fortheRPAFtoexamineandthenewgovernmenttodecide.

8.4.5 StabilizingtheOcean

Oncewellpatronized,theOceanhadbeenlosingridershipfornearly20years.From254,146passengersin1997,itdropped48percentto132,704in2011.Deep-discount

airfares,Atlan=cCanada’seconomicwoes,theconversionfromBuddrollingstocktothe

lessappealingandcrampedRenaissancecars,andvariousotherfactorscombinedto

thwartsincereeffortsbythepre-2010VIAmanagementteamtoreversethedecline.

AOerboKomingoutat128,737in2010,theOcean’sridershipincreased,butthe2012cutputitbackindecline.Thisalsodamageditsfinancialperformancefurther.Withhalf

oftheservicegone,ridershipdropped45percentandthelossperpassenger-mile

increasedfrom$0.55in2011to$0.93in2014.Asaresult,theOcean’sopera=ngsubsidyhasremainedrela=velyunchanged,totaling$35.6millionin2014.TheOceanisnowcos=ngasmuchtooperatetri-weeklyasitdidwhenthetrainwasdeliveringtwice

asmuchservice.Aswell,ridershiphascon=nuedtodecline,fallingfrom76,337in2013

toanall-=melowof74,175in2014.

TheOcean’sproblemhasbeencompoundedbyVIA’slong-haulequipmentsitua=on.

TheRenaissancecarsthatreplacedtherebuiltBuddequipmentonthetrainin2003

havenotperformedwellorpleasedpassengers.Oneoftheissueswiththeuseofthis

equipmentontheOceanisthelackofthesleepingcarspacesthatweremostdesirable

inthismarket,namelytheopensec=ons.TheRenaissancesleepersofferonlyenclosed,

86

two-passengerbedroomsand,althoughthesespacescanbepurchasedatareduced

rateforsingle-passengeroccupancy,thisishigherthanwhatwaschargedfortheupper

andlowerberthsintheopensec=onsinthepast.

TheRenaissancetrainsetsusedontheOceanhavealsocomewithhigheropera=ngand

maintenancecoststhantheBuddrollingstocktheyreplaced.Thisequipmentwasbuilt

foropera=onintheU.K.andWesternEurope,andithasnotadaptedwelltoCanadian

clima=candtrackcondi=ons.

ReplacingtheRenaissancecarsontheOceanwiththemoreefficientandmarketable

Buddequipmentwouldbealogicalsolu=on,butthisisnotcurrentlypossibleonayear-

roundbasis.BecauseofthelengthenedschedulefoistedonVIAbyCNfortheCanadianin2008,itnowrequiresanaddi=onalBuddtrainset.Inthepeakseason,thisconsumes

VIA’sBuddfleet,makingitimpossibletoassigntherequiredequipmenttotheOcean.

However,therearemeasuresthatcanbeundertakeninthefirstyearofVIA’srecovery

planandcon=nuedun=lthenewlong-haulequipmentarrives.Firstandforemost,the

Oceanneedstoberestoredtodailyopera=on.Thiswouldrequirethereac=va=onofthethirdRenaissancetrainsetthatwasdeployedontheroutepriortoOctober2012,

whenservicewasofferedsixdaysweekly.

BecausetheRenaissanceequipmentismoreexpensivetooperatethantheBuddrolling

stock,thelaKershouldbesubs=tutedfromlateOctobertoearlyMay,whenitisnot

requiredtomeettheCanadian’speak-seasonneeds.TheBuddequipmentwillreduce

costs,offeraccommoda=onsthataretradi=onallymorepopularinAtlan=cCanadaand

providegreaterflexibilityinexpandingandcontrac=ngtheOcean’sconsisttomeetany

fluctua=onsintraveldemand.

8.4.6 StabilizingtheCanadian

TheCanadian’ssitua=onisequallyserious,especiallysinceitgeneratesthemostper-

trainrevenueandthelargestper-trainlossintheVIAsystem.Thelengthenedschedule

foistedonVIAin2008andthe2012reduc=onfromtri-weeklytobi-weeklybetween

mid-OctoberandearlyMayhaveseriouslyunderminedtheCanadian’sperformance.

TheCanadian’sreputa=onwithinterna=onaltouroperators,whogeneratemuchofits

high-revenuetraffic,hasalsobeenharmedbyitson-=meperformance(OTP),whichhas

dippedbelow25percentduringseveralmonthlyrepor=ngperiodsoverthelastthree

years.Thisnotonlyleavespassengersdissa=sfied,itaddsmorecoststotheCanadian’sopera=on.ItssuspensionbetweenTorontoandWinnipegfromFebruary17and21,

2015,andbetweenMarch10andApril10duetothreeCNfreightderailmentsin

NorthernOntariorepresentedthenadiroftheCanadian’sdeteriora=ngOTP.

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Beyondtheurgentneedtore-equiptheCanadianwithbi-levelrollingstock,otherstepsshouldbeadvancedbytheRPAFandimplementedin2016.Theseinclude:

⚫ Re-rou=ngbetweenSudburyandWinnipegontheCPmainlineviatheLake

SuperiorNorthShoreandThunderBay,DrydenandKenora;

⚫ Implementa=onofamorelocally-usefulserviceontheCNmainline;

⚫ Re-establishmentofayear-roundtri-weeklyschedule,followedbydailyservice

aOeritisre-equipped;and

⚫ AnincreasetodailyserviceonthepopularVancouver-Edmontonroutesegment

attheearliestopportunity.

Therehavebeennumerouspublicandpoli=calcallstore-routetheCanadiantotheCPline.Thehigherpopula=onandscenicaKrac=onoftheroutemakeitamuchmore

logicaloneforatranscon=nentaltrainthatishighlydependentontouristtraffic.The

factthattheCPinfrastructureappearstobebeKersuitedtoreliablyaccommoda=nga

passengerserviceonlyaddstotheadvisabilityofalteringtheCanadian’sroute.

Implemen=ngthisre-rou=ngwould,however,requireareplacementserviceontheCN

NorthernOntarioroute.Theques=onofthepropertypeofserviceforthislinewas

inves=gatedonmanyoccasionspriorto1990,whentheCanadianwass=llontheCProuteandaseparateCapreol-WinnipegtrainwasoperatedontheCNline.TheVIA’89Reviewdetermined:

“Thecurrenttrainservesthreegeographicallydis=nctmarkets;thereis

veryliKlethroughtraffic.TheseasonaldemandfromWinnipeg-based

coKagerswestofFarlaneisconcentratedonsummerweekendsand

requiresconsiderablymorecapacitythanisrequiredeastofthere.

“ThesecondmarketisbetweenSiouxLookoutandHornepayne,mainly

comprisedoflocaltraffic.

“Thethirdmarket,betweenHornepayneandCapreol,islargelylocal

trafficwithsomeconnec=ngtrafficthroughtoSudburyandbeyond.

“Toprovidearestructuredservicemorecloselyalignedtotheactual

markets,threeseparatedaylighttrainscouldbecreatedusingself-

propelledvehicles:Capreol-Hornepayne,Hornepayne-SiouxLookoutand

SiouxLookout-Winnipeg.”

Withthere-rou=ngoftheCanadianbacktotheCPline,theopportunitywouldbecreatedtofinallyproduceasolu=onthatfullyaddressesthelocalneedsoftheresidents

andbusinessoperatorsontheCNline.Aspreviousstudiesdetermined,thiscouldbe

donebestwitheithertwoorthreeseparatedaylighttrainsgearedtotheroute’sdis=nct

88

markets.Alsotobeaddressedwouldbetheschedulesandtheques=onofconnec=vity

withtheCanadianatSudburyand/orWinnipeg.

Whicheverop=onischosen,thetrainsshouldconsistofalocomo=ve,abaggagecarand

oneortwocoaches.Thebaggagecarwouldneedtobeequippedtohandlepersonal

belongings,pets,provisions,construc=onsupplies,kayaksandcanoes,andflammable

fuels.

Tobemosteffec=ve,there-designoftheCapreol-Winnipegserviceshouldbedonein

consulta=onwiththecommuni=esitserves.ThisisamaKertheRPAFandVIAshould

addressearlyinordertohavethereplacementservicereadyforthere-rou=ngofthe

Canadianbylate2016.

Withasharpenedmanagerialfocusandamoreproduc=verela=onshipwithVIA’shost

railways,theseimprovementscouldbeimplementedbytheendof2016.Thiswould

allowtheCanadiantoservealargermarket,improveitsusefulnessasbothanintercity

transporta=onserviceandacontributortoNorthernOntario’stourismeconomy,and

generatemuch-neededrevenue.

Stepsmustalsobetakentoencouragegreateroff-peakuseoftheCanadian.Itsappealremainshighenoughtogenerateoverflowcrowdsathighfaresduringthesummer

peak,butridershipdeclinessubstan=allyintheperiodfrommid-OctobertoearlyMay.

Anaggressivemarke=ngcampaign,accompaniedbyevenmorereasonableoff-peak

faresthanVIAhasbeenoffering,shouldbetestedtodeterminetheridershippoten=al

throughouttheen=reyear.ThiswasdoneextensivelyonCN’seasternandwestern

transcon=nentaltrainsduringitspro-passengerperiodinthe1960s,boos=ngyear-

roundridershipveryquicklyandmakingbeKeruseofequipmentandcrewsthatwould

haveotherwisebeenidledforlongperiodsannually.

TheimportanceoffirmlyestablishingVIA’sna=onalmandatethroughtheseearly

improvementstotheCanadianandtheOceancannotbeunderstated.Beyondtheimprovedpublicu=litythatthesemeasureswillbringabout,therearealso

understandableandimportantpoli=calconsidera=ons.

89

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9.0 AdvancingVIA’sRecovery:2017-2019

Inthesecondphaseofitsrevitaliza=on,VIAwouldn’tyetbearailwayrecovered,butit

wouldbearailwayrecovering.Muchworkwouldremaintobedone,butVIAwouldbe

inbeKershapethanithaseverbeensinceitsfoundingin1977.

Bytheirverynature,someofthegainsmadeinthefirstphaseofVIA’srecoverywould

notbevisibletothepublic,suchastheimpactofthenewVIARailCanadaActandtheimprovedrela=onshipwiththehostfreightrailways.Alsooutofpublicviewwouldbe

themanufacturingofthenewfleetandthelong-rangeinfrastructureprojectsthat

wouldsecurelyposi=onVIAasasustainableandintegralcomponentofCanada’s

na=onalpublictransporta=onsystem.

However,thevisiblesignsofVIA’srecoverywouldbeclearerandmoreproduc=veinthe

secondphaseofTheVIA1-4-10Plan.Theseincludeitsmodifiedfleet,someupgraded

andimprovedinfrastructure,morefrequenciesonitsexis=ngroutes,restora=onof

suspendedservicesandthestrategicaddi=onstothenetwork.These“earlywins”

wouldprovideproofofVIA’sprogress,withthepromiseofmoretocome.

DuringthefirstphaseofVIA’srecovery,theRailPassengerAc=onForce(RPAF)wouldbe

thepartymostresponsibleforspearheadingtherequiredcourseofurgentac=onand

craOingthelong-rangeplan.Inthesecondandthirdphases,VIA’snewboardand

managementteamwouldbejointlyresponsibleforthecon=nuedadvancementofthe

long-rangeplan,aswellasprogressivelyimprovingservicequality,ridershipandcost

recovery.

9.1 EnhancedFleet

VIA’scurrentfleetlacksthespecializedcarsrequiredtoop=mizeu=liza=on,par=cularly

inthecorridor.Thekeyproblemistheunidirec=onalnatureofitslocomo=ve-hauled

fleet,withhigh=meandlabourcoststoreverseandposi=oneachtrainattheendofa

run.Thispreventsthequick“turning”ofthetrainsforpassengerboardingand

departureaOertheydisembarkpassengersattheirterminals.

Aspreviouslyoutlinedinthisplan,thepossiblemodifica=onsofVIA’sfleetforbi-

direc=onal,push-pullservicethroughouttheQuebec-WindsorCorridorinclude:

⚫VIAlocomo=vesposi=onedonbothendsofeachtrainasdefactocabcars;

⚫ Secondhandlocomo=vesservingascabcars;

⚫ Secondhandlocomo=vesrebuiltasnon-poweredcabcars;and

⚫ LeasedAmtrakcab/baggagecars,ifavailable.

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Otherop=onsincludetheleasingofU.S.push-pullcommuterrollingstock,adaptedfor

intercityuse,suchastheMichiganDOTgallerycars,orthe13ex-VIABuddRDCsnow

surplustotheneedsofTrinityRailwayExpressinDallas-FortWorth.Theleaseor

purchaseofthetwoTalgopush-pulltrainsetsfromthecancelledWisconsinhigher-speed

railprojectcouldalsobepartofthisprogram,ifitisdeterminedbytheRPAFandVIA

thatthisinvestmentisfinanciallyandopera=onallybeneficial.

Itisassumedthesefleetdecisionsandrevisionswouldbecompletedby2017andVIA’s

corridorfleetu=liza=onwillincreasesubstan=ally.Thiswouldnotonlyenablefrequency

increasesonthecorridorroutes,butitwouldalsoallowsomeBuddlocomo=ve-hauled

rollingstocktobecascadedtoalimitednumberofnewroutesduringtheperiodpriorto

thearrivalofthenewfleet,whichwouldallowforgreaterexpansion.

9.2 TheHPRCorridorTakesShape

AsdetailedinChapter5,VIA’sobjec=vemustbetoupgradeitsen=reQuebec-Windsor

Corridortohigh-performancerail(HPR)standards.Increasedfrequency,higheraverage

speeds,reducedrunning=mesandbeKerintermodalconnec=vitywouldallbeelements

ofthisapproach.Thiswouldrealizethefullpoten=aloftheinvestmentsmadepriorto

2016byVIAandthepreviousgovernment.

WhilethemajorHPRinvestmentsinthisplanwouldnotbecompletedun=lthethird

phaseofVIA’srecovery,smalleroneswouldbeatworkdeliveringsubstan=allyimproved

serviceduringthesecond.The$125-millionCoteaucapacityexpansionprojecttoallow

addi=onalVIAtrainsthroughthisbusyjunc=ontopsthe2017-2019worklist.Alsotobe

completedwithinthisperiodwouldbesomeelementsofthe$102-millionMontreal-

OKawainvestmentprojectannouncedjustpriortothe2015dissolu=onofParliament.

Thecumula=veeffectofthevariousinfrastructureprojectsandimprovementsinfleet

u=liza=onwouldbetheaddi=onofmorecorridorfrequenciesandamajorrevisionof

thescheduling.Initsoriginalplanfortheserviceimprovementsthatweretoresultfrom

the$923-millioncapitalrenewalprogramof2007-2012,VIA’sobjec=vewastomove

towardaclock-facescheduleforthethreelegsoftheMontreal-OKawa-Toronto(M-O-T)

Triangle.Asprovenbyotherintercitypassengertransporta=onsystemsaroundthe

world,clock-faceschedulinghasaprofoundeffec=veonpassengerautudesandthe

aKrac=venessoftheservice.

Withtrainsdepar=ngatconsistentintervals,itiseasierforpassengerstomemorizethe

schedulesbecausedeparture=mesrepeatatthesamepointontheclockthroughout

theday.Appliedbynumerouspublictransporta=onoperatorsofallmodes,this

constant-scheduleconceptappliedoverthecourseofawholedayalsospreadsdemand

byaKrac=ngmorepassengerstotheoff-peaktrips,par=cularlyiftheyarepricedlower

thanthepeaktrips.

92

Aswell,fromanoperator’sperspec=ve,clock-faceschedulingisaKrac=vebecausethe

repea=ngpaKernmakesbeKeruseofpersonnel,infrastructureandequipment,whichin

turnmakesopera=onalresourceplanningeasier.

Today,VIA’scorridor=metablingisdrivenpurelybydemandandvariousopera=ng

constraints.ThisresultsinirregulardeparturesthatareoOenconfusingforpassengers.

VIA’sinabilitytoturnitstrainsquicklyattheirendpointsandtheconsequentlow

equipmentu=liza=onhavecontributedtoitsinabilitytoimplementclock-face

schedulinginthepast.

AppliedfirsttotheM-O-TTriangle,clock-faceschedulingwouldberolledout

progressivelytotheotherQuebec-WindsorCorridorroutes.Thiswouldcreateinter-

routeconnec=vity,makingitpossibleforpassengerstoreliablyandeasilytransfer

betweentrainsontheseven-routenetwork.Thisprecisionopera=onwoulddemand

highlevelsofon-=meperformanceandclosercoordina=onbetweenVIAanditshost

railways.

Withthereducedcostsandhigherequipmentu=liza=onresul=ngfromthepush-pull

corridortrainopera=on,frequencyincreaseswouldbemucheasiertojus=fyfinancially.

Theobjec=veshouldbeaminimumof12roundtripsoneachoftheM-O-TTriangle

routes.Thislevelofservicewas,infact,oneoftheobjec=vesofthe2007-2012capital

investmentprogram.

Theincrementaladdi=onofmoreserviceontheQuebec-MontrealandSouthwestern

Ontariorouteswouldnotonlyprovideincreasedu=lityalongtheirlengths,butthey

wouldalsoincreasinglyfeedtraffictothecoreM-O-TTriangleroutes.Evenslight

upwardadjustmentsinthecompara=velyinfrequentserviceseastofMontrealandwest

ofTorontowouldincreasethedesirabilityoftheen=recorridorandinduceridership.

IncreasedcorridorfrequencywouldalsoprovidebeKerservicetoseveralintermediate

sta=ons.Serviceisnowespeciallylowatsomepoints,makingday-returntripsdifficult

or,insomecases,impossible.Thiswouldchangeunderthecombina=onofincreased

frequencyandtheadop=onofclock-facescheduling.

Addi=onalfrequenciesontheprimeMontreal-TorontoandOKawa-Torontoroutes

wouldalsoallowfortheopera=onofmoreexpressservices,whichwillincreaseVIA’s

aKrac=venessvis-à-visairtravelforend-to-endjourneys.

93

9.3 ImprovedInterna;onalConnec;ons

By2019,thebenefitsofanimprovedandmoreac=verela=onshipbetweenVIAand

Amtrakwouldbearfruit.Thatthishasn’thappenedinthepastisnotAmtrak’sfault.In

partnershipwithBorderStatessuchasNewYork,MichiganandWashington,Amtrakhas

donefarmoretoimprovecross-borderservicethanVIAanditsfederalmasters.

Today,therearetwocross-borderservicesoperatedwithoutanyCanadiancontribu=on:

thedailyMontreal-NewYorkCityAdirondackandthedouble-dailyVancouver-SeaKleCascades.Aswell,thejointVIA-AmtrakToronto-NewYorkCityMapleLeafhascon=nuedlargelybecauseofU.S.fundingontheNewYorkpor=onoftherun.

Thecon=nua=onoftheproposedVIA-AmtrakWorkingCommiKeethatwouldbe

establishedbytheRPAFin2016wouldimprovethissitua=on,ensuringanongoingflow

ofideasandinforma=onbetweenthetwona=onalpassengercorpora=ons.Itwould

alsogreasethewheelsforanincreasingnumberofmutually-beneficialjointservice

improvements.BuildingontheinterestshowninthepastbyAmtrakanditsBorder

Statepartners,VIAwouldplayafullroleinexpandingthefewrailservicesthatlink

CanadaandtheU.S.in2015.

TheexpansionoftheEmpireCorridor(NewYorkCity-Buffalo-NiagaraFalls)providesan

opportunityformoreac=vepar=cipa=onbyVIAinthecross-bordermarket.Withthe

increasedfrequencyandreducedrunning=mesontheEmpireCorridor,expandedVIA

Toronto-NiagaraFallsservicecoulddirectlyconnectwiththesetrainsandoffertravelers

manymoreop=onsforrailtravelbetweenOntarioandpointsinNewYork.

The2017comple=onofthe$43-millionAmtraksta=onandHomelandSecurityfacility

ontheU.S.sideoftheWhirlpoolRapidsBridge,willimprovethebordercrossing

process,whichnowaddstwohoursormoretotheMapleLeaf’srunning=me.This

opportunityforcross-bordertrafficgrowthmakesitallthemoreimportantforVIAand

GOtocoordinatetheirservicestoceasecannibalizingthismarketathightaxpayercost.

Whilemoredifficulttoaddressinthe2016-2019periodbecauseofthecurrentlackofa

directrailconnec=on,VIAmustworkcloselywithAmtrakandtheMichiganDepartment

ofTransporta=on(MDOT)tobenefitfromtheexpansionandimprovementofthe

WolverineCorridor(Chicago-Detroit-Pon=ac).Nowservedbythreeroundtripsdailyand

operatedat110mphoverpartoftheroute,theWolverineCorridorwillgrowtoprovide

10Detroit-Chicagoroundtripsdailyusingnewbi-level,push-pullequipment.Further

infrastructureupgradingwillcuttwohoursfromitssix-and-a-half-hourrunning=me.

InadvanceofthemajorinfrastructureworkrequiredtodirectlyconnectVIA’sToronto-

WindsorservicewiththeWolverineCorridorinDetroit,adedicatedshuKlevanservice

couldsupplyatemporary,low-costlink.

94

AlthoughnotaVIAresponsibility,oneU.S.projectnowinadvancedplanningcanbe

madeopera=onalwiththeassistanceofthenewgovernment.Thisisthe69-mile

MontrealextensionofAmtrak’sstate-supportedNewYorkCity-St.AlbansVermonter.Thisservicerestora=onwillalsoprovideCanadianswithrailaccesstoBoston,thanksto

theworknowunderwaytosubstan=allyimproveserviceontheconnec=ngroutefrom

Springfield,MassachuseKs,toBoston.

TheVermonterdaylightserviceextensionisbeingfundedbyAmtrakandtheStateof

Vermont,anditincludestheconstruc=onofasecureborderpre-clearancefacilityat

MontrealCentralSta=on.VIA’splannedinvolvementwillconsistonlyoftheprovisionof

therequiredsta=onservicesandstablingthetrainovernightattheMontreal

MaintenanceCentre.

Whatiss=lllackingisanyassistancefromtheGovernmentofCanadainnego=a=nga

fairertrackaccessagreementthantheoneproposedbyCNandadvancingthecrea=on

oftheborderagencyfacilityatCentralSta=on.WithnumerousbenefitstotheCanadian

economyandtoVIA’sconnec=ngtrainsatMontreal,thegovernmentmustassistAmtrak

andthestateagenciesinrelaunchingthisservicebytheendof2016.

Otherprojectstoexpandcross-borderrailtravelinpartnershipwithAmtrakwouldoccur

inthethirdphaseofVIA’srecovery,whennewequipmentandreducedopera=ngcosts

wouldgiveittheflexibilitytoaddmoreserviceacrossthesystem,includingnewcross-

bordertrains.

9.4 GrowingtheLong-HaulMarkets

WiththefutureoftheOceanandtheCanadiandecidedintheirfavourascomponentsof

atrulyna=onalVIA,theseriousaKen=onthesetrainshavelongrequiredwouldfollow.

Theexis=ngsingle-levelfleetwilllimittheextentoftheimprovements,butthereare

somesignificantonesthatcouldbeundertaken.

AsoutlinedinChapter8ofthisplan,thestepstobeundertakenfortheOceanandtheChaleurin2016,andcon=nuedthroughthesecondphaseofVIA’srecovery,shouldinclude:

⚫ Temporaryreac=va=onoftheRenaissancerollingstocknecessarytoincreasethe

Ocean’scurrenttri-weeklyservicetodaily;⚫ Subs=tu=onofBuddequipmentfromlateOctobertolateApril,whenthis

equipmentisnotrequiredtomeettheCanadian’speak-seasonneeds;⚫ Implementa=onofaconnec=ngGaspébusservicependingtherestora=onofthe

tri-weeklyChaleurin2017.

95

FortheCanadian,theimprovementswouldinclude:

⚫ Re-rou=ngbetweenSudburyandWinnipegontheCPmainlineviaThunderBay;

⚫ Re-establishmentofayear-roundtri-weeklyschedule;and

⚫ DailyserviceontheVancouver-Edmontonroutesegment.

OnefurtherenhancementfortheCanadianwouldbere-rou=ngitbetweenTorontoandParrySound.Thecurrentrou=ngonCN’sBalaSubdivisionincludesnosta=onstops

beforeWashago,89milesnorthofTorontoUnionSta=on.Theuseofthislinealso

subjectstheCanadiantoheavyCNfreighttraffic,conflictsanddelays.

Thealternate,morepopulousroutewouldbenorthonGO’sex-CNNewmarket

SubdivisionthroughAurora,NewmarketandBradfordtoBarrie,agrowingregional

centreandTorontobedroomcommunityofmorethan130,000.Fromthere,the

Canadianwouldproceedwestonthemunicipally-ownedBarrie-CollingwoodRailwayto

CP’sMacTierSubdivisionnearColwellandthennorthtoBala,ParrySoundandSudbury.

UsingthisroutewouldenlargetheCanadian’spopula=oncatchmentareaby240,000

andreducethefreight-inflicteddelaysnowbeingexperiencedontheCNline.

InthethirdphaseofVIA’srecovery,therewouldbeaffordable,strategicgrowthinthe

frequencyandgeographiccoverageofVIA’slong-haulnetwork,asdetailedinChapter10

ofthisplan.Thatgrowthwouldbecon=ngentonthearrivalofthenewbi-levelfleetand

itsprioritydeploymentontheexis=nglong-haulservices.

9.5 RemoteServiceImprovements

WiththeacceptanceofthefactthatVIA’sremotetrainsaresocially-mandatedservices

cateringtosmallmarketswithlowrevenuegrowthpoten=al,workcouldbegintomake

themmoreeffec=ve.Torestate,thesixremainingVIAmandatoryremoteservicesare:

⚫ Montreal-Jonquiere;

⚫ Montreal-Senneterre;

⚫ Sudbury-WhiteRiver;

⚫ Sudbury/Capreol-Winnipeg;

⚫ Winnipeg-Churchill;and

⚫ Jasper-PrinceRupert.

AsdetailedinChapter8ofthisplan,thefirstopportunitytoimproveoneofthese

serviceswouldcomewiththere-rou=ngoftheCanadianthroughNorthernOntarioontheCPline,crea=ngtheneedforareplacementserviceontheCNlinefromtheSudbury

areatoWinnipeg.Greaterpromo=onoftheWinnipeg-ChurchillandJasper-Prince

Ruperttrainswouldalsobeexpectedtogenerateaddi=onaltourism-relatedridership

andrevenue.

96

However,thelargestopportunitytoimprovethecostrecoveryandservicequalityofthe

bulkofVIA’sremotetrainsconcernstheequipment.InproducingtheVIA’89Review,itwasfoundthattheonlymeansforcostreduc=onrestedinsystem-wideproduc=vity

gainsandnewremoteserviceequipment.ThelaKerwasontheagendaofthe1984-

1985RPAF,butthegroupwasshutdownbeforethisissuecouldbeaddressed.

Intheearly1980s,considerableinterestwasshownbyvariouspar=esindevelopinga

Canadianself-propelleddieselmul=pleunit(DMU)cartoreplaceVIA’sagingBuddrail

dieselcars(RDCs).Mostofthisinterestcentredonadesignthathadbeendeveloped

butneverbuiltbyHawker-Siddeley’sCan-CarDivisioninThunderBay,whichhaspassed

throughseveralchangesofownershipandisnowownedbyBombardier.

TheproposedDMUwouldhavebeenbasedonthebi-levelcommutercarsoriginally

builtforGOTransit.Thisdesignwasflexibleenoughtobeconsideredasthebasisfor

newintercitycoachesandself-propelleddieselandelectriccars.TheDMUversions

wouldhavebeenbuiltastwo-car,bi-direc=onal“marriedpairs”consis=ngofone

poweredcarplusanon-poweredtrailer.

ThisdesignaKractedtheaKen=onoftheRPAFand,intheirlong-rangefleetstrategy,

theyincludedaprovisionforthepurchaseof20ofthesecars.Thebi-levelDMUwould

havebeenadaptableforVIA’sremoteservicesanditslight-densityregionaltrains

elsewhere.

Withalackofinterest,thedevelopmentofthisdesignwasnotpursued.ThisisamaKer

thatshouldberevisitedbytheRPAF,VIAandBombardier.Therailindustryruleof

thumbisthatself-propelledequipmentislessexpensivetooperatethanlocomo=ve-

hauledtrainsoffewerthanfourorfivecars.Iffeasibleandaffordable,thedevelopment

andacquisi=onoftheseCanadian-builtcarswouldhaveanimpactonseveralofVIA’s

remotetrains.Thebi-levelDMUsmightalsobeapplicabletootherlight-densityregional

andcommuter-orientedroutesinCanadaandtheU.S.

Analterna=veisaninves=ga=onoftheadaptabilityofvarioussingle-leveldesigns,such

astheSumitomoDMUsnowbeingusedonToronto’sUPExpressairportservice.There

aresometechnicalandsafetyfactorsweighingagainsttheuseofthistypeofequipment

forremoteservice,buttheymayberesolvable.

SeventeenSumitomocarsiden=caltothoseusedonToronto’sUPExpressserviceare

nowbeingdeliveredforthenew,70-mileSonomaMarinAreaRailTransit(SMART)

servicebetweenCloverdaleandLarkspur,inNorthernCalifornia.Theini=al43-mileSan

Rafael-SantaRosasegmentisscheduledtoopeninlate2016.

97

TheoneVIAroutewherenewsingle-levelDMUscouldbeappliedistherestored

VancouverIslandservice.Duetofactorsuniquetothisroute,DMUsmaymeetallthe

safetyandopera=ngrequirementsofthisrouteandimprovetheVictoria-Nanaimo-

Courtenayservice’scostrecovery,frequency,speedandpassengerappeal.

Adetermina=onoftheapplicabilityoftheseDMUstoVIA’sVancouverIslandserviceand

otherroutesshouldbeundertakenbytheRPAFandVIA’smechanicaldepartment.

9.6 ExperimentalRegionalRoutes

WithliKlesurplusequipmentpriortothedeliveryofthenewbi-levelrollingstock,route

expansionwillbedifficult.However,therearesomedaylightservicesthatcouldbe

testedinthesecondphaseofVIA’srecoveryusingtheexis=ngfleet.Therewouldbe

moreflexibilityinthislimitedpoolofequipmentfollowingtheintroduc=onofpush-pull

corridorserviceandtheimprovedu=liza=onitproduces.Inpar=cular,Buddcoaches

wouldbecomesurplustocorridorneedsandcouldbere-deployedtothenewroutes.

Threeexperimentalservicescouldbelaunchedbetween2016and2019.Asauthorized

undertheVIARailCanadaAct,theseregionaltrainswouldbeassessedthroughouttheirtestperiodoftwotothreeyears.TheywouldberequiredtoaKainasetlevelof

ridership,passenger-milespertrain-mileandcostrecovery.

Ifthesetrainsfailedtomeettheirtargets,buttheyhadareasonableprospectof

improvement,theycouldbeextendedbyministerialorder.Asthesetrainswouldbe

operatedwithVIA’scurrentequipment,whichwouldnotbeascost-effec=veoras

marketableasthenewrollingstock,thiswouldbefactoredintothescoringprocess.

Thethreenewservicesthatcouldbeimplementedinthe2016-2019periodare:

⚫ Montreal-Sherbrooke;

⚫ Toronto-NorthBay;and

⚫ Winnipeg-Regina.

Determiningwhichroutesshouldcomprisethefirstwaveofexperimentalregional

servicestobetestedfirstwasbasedonthreecriteria:

⚫ Istherequiredequipmentavailable?

⚫ Istheinfrastructureingoodenoughcondi=onthatitwill,atmost,requireonly

limitedimprovement?

⚫ Isthereadequatedemandtosupportrailservice,especiallywhere some

otherformofpublictransporta=onisnowprovided?

98

Thesethreeroutesmeetthosecriteria.Allaredaylightcoach-onlytrains,sotheir

opera=ngcostswouldbelow,evenwithVIA’sagingBuddsingle-levelfleet.

ThecaveatremainsthatVIA’sexis=ngcoreservicesmustreceivepriorityaKen=onand

beinrecoverybeforeanyrouteexpansionoccurs,includingthethreeexperimental

routesoutlinedhere.

9.6.1Montreal-Sherbrooke

SherbrookehasbeenwithoutrailservicesincetheDecember1994cancella=onofthe

tri-weeklyHalifax-SaintJohn-MontrealAtlan9c.PriortotheJanuary1990cuts,itwasalsoserveddailybyacoach-onlytrainthatoperatedroughlyonehourbehindthe

Atlan9cwestboundinthemorningandreturnedtoSherbrookeabout90minutesahead

oftheAtlan9cinthelateaOernoontoprovideacommuter-orientedservice.

Withapopula=onof202,000,Sherbrookeisthefourthlargestmetropolitanregionin

Quebec,withagrowingknowledge-basedeconomicsector.Sherbrookeisalsoan

educa=onalcentre,withapost-secondarystudentpopula=onofapproximately40,000

andeduca=on-relatedemploymentofabout11,000.

Witharunning=meoftwohoursand30minutes,the98-mileMontreal-Sherbrooke

servicewouldprovidefourroundtripsdaily,spacedthroughouttheday.Itwouldmake

same-dayroundtripspossibleinbothdirec=onsandsupportcommu=ngfrom

SherbrooketoMontréal.Connec=onstotheAMTcommuterservicewillbemadeat

Saint-HilaireandSaint-Lambert.

BetweenSherbrookeandSainte-Rosalie,theservicewouldusetheSt.Lawrence&

Atlan=cRailroad’sSherbrookeSubdivision,whichisasingle-tracklinecurrently

authorizedforamaximumpermissiblepassengerspeedof30mph.Limitedupgrading

wouldbenecessarytoincreasethespeedtotherequired60mph.

FromSainte-RosalietoMontréalCentralSta=on,theSherbrooketrainswouldoperateon

CN’sSaint-HyacintheSubdivision,whichisalsotherouteofVIA’sQuebec-Montreal

trains,theOceanandAMT’sSaint-Hilaire-Montrealcommuterservice.Thelineis

double-trackandequippedwithaCentralizedTrafficControl(CTC)system,witha

maximumpermissiblepassengerspeedof95mph.

Twotrainsetswouldberequired,consis=ngofalocomo=ve,abaggagecarequipped

withbikeracks,twotothreeBuddcoachesandasecondlocomo=veorcabcarforpush-

pullservice.Therearenoturningfacili=esatSherbrooke,sopush-pullopera=onwould

beessen=al.ThiswouldalsoallowforquickturningatMontrealCentralSta=on.

99

9.6.2Toronto-NorthBay

TheToronto-NorthBayroutewasservedun=lSeptember28,2012,bytheNorthlander,whichwasoperatedsixdaysweeklybetweenTorontoandCochranebytheprovincially-

ownedOntarioNorthlandTransporta=onCommission(ONTC).Parallelbusserviceby

theONTCwasmaintainedfollowingthecancella=onoftheNorthlander,whichwasfederallysubsidizedontheToronto-NorthBaypor=onofitsroute.

Priortothe1990VIAcuts,servicewasalsoprovidedonthisroutebytheovernight

Toronto-KapuskasingNorthland,whichwasjointlyoperatedbyVIAandtheONTC.TwoVIAweekend-onlyToronto-NorthBayroundtripswerealsoeliminatedin1990.

NorthBay,whichdescribesitselfas“TheGatewaytotheNorth,”isaregionalcentre

withametropolitanpopula=onof64,000.TheroutealsoincludesBeaverton,Washago,

Gravenhurst,Bracebridge,HuntsvilleandPowassan.ExcludingToronto,theroutehasa

catchmentareaofapproximately130,000.Theregionalsohasalargeseasonal

popula=onofcoKagersonthesegmentfromWashagotoNorthBay.

Thenew,228-mileVIAservicewouldbeoperatedtwicedailyineachdirec=on,with

earlymorningandlateaOernoondeparturesfrombothTorontoandNorthBay.The

running=mewouldbefivehoursandtheservicewouldbecoordinatedwiththeparallel

ONTCbusservicetoprovideawiderangeofschedulingop=onsfortravellers.

ThenewtrainswouldoperateoverCN’sBalaSubdivisionfromTorontotoWashago,

whichisalsotherouteofVIA’sCanadian.Itisasingle-tracklineequippedwithCTCandauthorizedforamaximumpermissiblepassengerspeedof70mph.AtWashago,the

trainswouldcrosstoCN’sNewmarketSubdivision.Thissingle-tracklinehasamaximum

permissiblepassengerspeedof60mph.

TheservicewouldoriginateandterminateinNorthBayattheONTCsta=on,whichis

locatedapproximatelytwomilesnorthoftheCNNewmarketSubdivisionontheONTC’s

TemagamiSubdivision.Connec=onswouldbemadeherewithONTCbusservicesfor

pointsnorth.

Twotrainsetswouldberequired,consis=ngofalocomo=ve,abaggagecarequipped

withbikeracks,twotothreeBuddcoaches(onemodifiedtoprovideatakeout

refreshmentandlightmealservice)andasecondlocomo=veorcabcarforpush-pull

opera=on.

100

9.6.3Winnipeg-Regina

TheCanadianservedtheWinnipeg-Reginaroutedailyinbothdirec=onsun=lthe1990

cutbacksshiOeditfromtheCPtranscon=nentalmainlinetoCN.Theroutehasbeen

withoutrailservicesincethen.InSeptember2015,Greyhoundannouncedareduc=on

inbusserviceontheroute,leavingonlyoneroundtripdailyandmanyques=onsabout

thefutureofitsserviceacrossthePrairies.

Includingitsendpoints,therestored357-mileWinnipeg-Reginaservicewoulddrawona

catchmentareaofapproximately1million.Includedinthismarketisthelargestudent

popula=onfromthenumerouspost-secondaryeduca=onalins=tu=onsinWinnipeg,

PortagelaPrairie,BrandonandRegina.

ThenewVIAservicewouldoperateonaseven-hourscheduletwicedailyineach

direc=on,withearlymorningandlateaOernoondeparturesfrombothWinnipegand

Regina.OnthedaystheCanadianoperates,across-plasormconnec=onwouldbemade

westboundinthemorningandeastboundintheeveningatWinnipegUnionSta=on.

Opera=onwestboundfromWinnipegwouldbeonCN’sdouble-trackRiversSubdivision,

whichistherouteoftheCanadianandtheWinnipeg-Churchilltrain.Itisequippedwith

CTCandithasamaximumpermissiblepassengerspeedof80mph.

AtPortagelaPrairie,thenewVIAtrainswouldcrossovertoCP’stranscon=nentalmain

line.Itisinexcellentcondi=on,equippedwithCTCandauthorizedforamaximum

permissiblefreightspeedof60mph.AlthoughtheCProuteislargelysingle-track,it

includesthreesec=onsofdouble-track,22sidingsandlongyardtracksatBrandon,

BroadviewandRegina.Withoutanymodifica=onstotheinfrastructure,thenew

passengertrainsshouldbeabletooperateatupto70mph;minorVIA-funded

upgradingwouldboostthisto80mph.

Twotrainsetswouldberequired,consis=ngofalocomo=ve,abaggagecarequipped

withbikeracksandtwoormoreBuddcoaches,oneofwhichwillbemodifiedtoprovide

takeoutrefreshmentandlightmealservice.Asecondlocomo=veorcabcarwouldbe

usedtoallowforquickturningofthetrainsinWinnipegandRegina.

101

102

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SUDBURYCanadian Rail Passenger Services in 2025

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KS Kaoham SchuttleKR Keewatin RailwayACR Algoma Central Railway (VIA)ONTC Ontario Northland Transporta- tion CommissionTRT Tshiuetin Rail Transportation

Seasional tourist trains not shown.

Other Rail Passenger Services:.

SPRINGFIELD

NEW HAVEN

SHERBROOKE

NORTH BAY

MONTREAL

QUEBEC CITY

JONQUIERE

MONT-JOLI

SENNETERRE

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CHICAGO

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SAULT STE. MARIE

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ST. JOHN

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PETERBORO

MINNEAPOLIS ST. PAUL

MILWAUKEE

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CROOKSTON

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AMTRAK/VIA Winnipeg-Minneapolis St.Paul AMTRAK/VIA

Montreal-PortlandAMTRAK toNYC & Boston

10.0 Comple;ngVIA’sRecovery:2020-2025

ThethirdandfinalphaseofVIA’srecoverywouldbeaperiodofdynamicchangethat

wouldbehighlyvisibleandincreasinglyrelevanttothetravellingpublic.Whilethefirst

twophasesofTheVIA1-4-10PlanwouldstabilizeVIAandbegintheturnaroundinterms

offrequency,ridershipandcostrecovery,thethirdphasewouldmakeitthemodernand

resilientpassengerrailwayithasalwaysneededtobe.

10.1 FleetRenewalandGrowth

ThemostsignificantphysicalfactorinVIA’sfullrecoverywouldbethenewbi-levelfleet,

forbothcorridorandlong-haulservice.Whilealltheotherelementsoftherecovery

planarecrucial,theacquisi=onofmodernequipmentwouldbethemaindriverofVIA’s

opera=onalrevival.Withoutthisnewmo=vepowerandrollingstock,VIAnotonlycan’t

grow,itcan’tsurviveinitscurrentstate.

By2021,thefirstphaseofVIA’sfleetrenewalprogramwouldbecomplete.Itwould

deliver:

⚫ 70SiemensChargerlocomo=vesforcorridorandlong-haulservice;

⚫ 160bi-level,push-pullcorridorcars;and

⚫ 140bi-levellong-haulcarstoprogressivelyandsequen=allyre-equipthe

Canadian,theOcean,theChaleurandtheWinnipeg-ChurchillandJasper-Prince

Ruperttrains.

BasedonthecurrentU.S.situa=on,thefirstcarsforrevenueservicecouldbedelivered

aOerayearofprototypetes=ngpriortothestart-upoftheproduc=onlinesforthetwo

typesofrollingstock.Thelocomo=vesareassumedtobedeliverableonaslightlyfaster

schedule,giventhattheywillcomeoffanestablishedproduc=onlineandservicetes=ng

willhavebeencompletedbyotherrailpassengeroperatorsintheU.S.Thisfirstphase

ofthefleetrenewalprogramwouldfullyre-equipallthecorridorroutes,thethreelong-

haultrainsandtworemoteservices.

Asthenewmo=vepowerandrollingstockentersservice,leasedequipmentwouldbe

returnedtoitsowners.Assumingthefirstexperimentalservices(Montreal-Sherbrooke,

Toronto-NorthBayandWinnipeg-Regina)mettheirridershipandcostrecovery,they

wouldbeaddedtotheBasicNa=onalNetworkmandatedintheVIARailCanadaAct.Thesetrainswouldthenbere-equippedwithnewbi-levelcorridorrollingstock,which

wouldrequiretheexercisingoftheop=onsontheequipmentorderstoacquiresixmore

completebi-levelpush-pulltrainsetswithlocomo=ves,atanes=matedcapitalcostof

$150million.

103

Releasedfromthecoreservices,VIA’sexis=ngfleetwouldcon=nuetoprovidesurge

capacityonthere-equippedBasicNa=onalNetworkandsupportthenextwaveof

experimentalservices.Itisessen=altoderiveeverylastbitofvalueandu=lityfromthis

equipment,especiallyinlightofthepastinvestmentinrefurbishmentandtheneedfor

VIAtopaceitsfuturecapitalrequirements.Aswiththefirstexperimentalservices,

thoselaunchednextwouldbere-equippedwithbi-levelrollingstockandnew

locomo=vesfollowingtheirtrialperiodsandtheywouldthenbeaddedtotheBasic

Na=onalNetwork.

10.2 TheHPRCorridorinFull

InthethirdphaseofTheVIA1-4-10Plan,thecombina=onofmodernandthemore

efficientequipmentandthecomple=onofthelargeandsmallinfrastructureprojects

wouldtransformtheen=reQuebec-WindsorCorridorintoahigh-performancerail(HPR)

service.

Theresultwouldbemorefrequencies,reducedrunning=mes,increasedridershipand

improvedcostrecovery.BeKerintermodalconnec=onswithlocaltransitandfeederbus

routeswouldhelptomakeVIAthestrongspineofthepublicgroundtransporta=on

systemfromQuebectoNiagaraFalls,SarniaandWindsor.

OntheroutesintheMontreal-OKawa-Toronto(M-O-T)Triangle,VIAwouldbeableto

offeracombina=onofexpress,semi-expressandlocalservicesonaclock-faceschedule

toprovideaminimumof12roundtripsoneachroutesegment.Therewouldbefive

VIA-ownedsec=onstotaling251milesinthiscorenetwork,whichwouldallowfor

opera=onatupto110mphwithnofreightconflicts.Thelinesegmentswouldbe:

⚫ DeBeaujeu-OKawa(69miles)

⚫ OKawa-SmithsFalls(40miles)

⚫ SmithsFalls-Gananoque(43miles)

⚫ SmithsFalls-Brockville(28miles);and

⚫ Shannonville-Newcastle(71miles)

Ontheremaining272routemileswithintheM-O-TTriangle,VIA-fundedupgrades

wouldexpandcapacityatkeyloca=onstominimizeconflictswithCNfreightandGO

commutertrains.

Thecombina=onoftheinfrastructureimprovements,largeandsmall,plusthepriority

treatmentaffordedpassengertrainsundertheVIARailCanadaActwouldreducetheexpressrunning=mesto1:45forMontreal-OKawa,3:15forOKawa-Torontoand3:40

forMontreal-Toronto.Thesemi-expressandlocalrunning=mesonthesethreeroute

segmentswouldalsodecreasesignificantly.

104

OnthecorridorroutesoneithersideoftheM-O-TTriangle,VIA’sinvestmentinstrategic

upgradingprojectswouldalsoreducerunning=mes,booston-=meperformanceby

minimizingfreightconflictsandincreasefrequency.Runningonclock-faceschedules

synchronizedwiththoseonthetriangleroutes,therewouldbesixroundtripsdailyon

theQuebec-MontreallineandtheroutesfromTorontotoNiagaraFalls,Londonviathe

NorthMainLineandWindsor,whiletheSarniaservicewouldbeincreasedtofour.

TheextensionoftheToronto-WindsorservicetoDetroitwouldaKractnewU.S.

passengerstoVIAand,throughitsdirectconnec=ontotheWolverineCorridortrainsto

Chicago,makepossibleawidearrayofrailop=onsforCanadianstravellingtoU.S.

des=na=ons.So,too,wouldtheextensionoftheexpandedToronto-NiagaraFallsservice

tothenewsta=onandborderprocessingcentreontheAmericansideoftheWhirlpool

RapidsBridge,whereadirectconnec=onwouldbemadewithAmtrak’sBuffalo-Albany-

NewYorkCityEmpireCorridor.

WithHPRlevelsofspeed,comfort,frequency,reliabilityandintermodalconnec=vity,

VIA’sQuebec-WindsorCorridorwouldofferaneconomically-pricedproductthatwould

beapowerfulalterna=vetodrivingorflying.Furthermore,itwouldbeasolid

founda=ononwhichtobuildahigh-speedserviceinthefuture,iforwhenthatmassive

investmentcanbejus=fied.

10.3 ExpandedNa;onalSystem

ThebenefitsofathrivingHPRcorridorsystemwouldbefeltfarbeyonditsimmediate

catchmentarea.WiththeQuebec-WindsorCorridor’srenewalcomplete,itscapital

needswoulddeclinesubstan=ally,itsopera=ngcostswouldbereducedanditsrevenues

wouldrise.Withtheselargebudgetaryimprovementsinthecorridor,VIAwouldfinally

beabletoallocatethefinancialandphysicalresourcesrequiredtoexpandandmaintain

itslong-haulandregionalservices.

ThisisanecessityifCanada’srailpassengersystemisgoingtoregainitsrelevancyona

broadergeographicbasisandcontributemorefullytotheeconomyandthena=on’s

qualityoflife.

AsAmtrakhasprovedwiththerenewalandpromo=onofitslong-haultrains,theycan

delivernumerousna=onalandregionalbenefitsiftheyareequipped,operatedand

promotedproperly.AstheCanadianintercitybusindustrycon=nuestoretrench,VIA’s

long-haulandregionaltrainswouldincreasinglybecomepublictransporta=onlifelines

formanycommuni=es.Thecorridorwouldalsobenefitfromaddi=onalconnec=ng

traffictoandfromtheimprovedlong-haulandregionaltrains.

105

10.3.1DailyTranscon;nentalService

Asthe140bi-levelcarsfromtheini=allong-haulorderarrived,theywouldfirstbe

assignedtothetri-weeklyCanadian,withitsBuddequipmentcascadedtemporarilyto

theOcean.ThenextstepwouldbeincreasingtheCanadianfromtri-weeklytodaily

overitsfullroute.Thiswouldoccurwhenasufficientquan=tyofbi-levelcarsare

receivedtoformeightcompleteCanadiantrainsets,plussparecarstoprovidepeak-seasonsurgecapacityandallowforprogrammedmaintenance.

Re-equippingtheCanadianmustbetheprioritybecauseitgeneratesthehighestcosts

andthemostrevenueofanysingletrainintheVIAsystem.Aswell,becauseofitshigh

profileinthetouristtravelmarket,theCanadian’scompletemoderniza=onwouldsenda

strongmessagedomes=callyandworldwideaboutVIA’srecovery.

ReleasingtheCanadian’slargepoolofBuddrollingstockwouldhavetheaddedbenefitofprovidingthethreefulltrainsetsrequiredtoreplacetheRenaissanceequipmenton

theOceanonayear-roundbasis,improvingitspublicu=lityandmarketability.

WiththeupgradingoftheCanadianwithbi-levelrollingstock,12Buddcarswouldcon=nuetooperateinitsconsisttri-weekly.ThesearetheeightChateau-seriessleeping

carsandfourPark-seriessleeper-lounge-dome-observa=oncarsVIArebuiltatacostof

morethan$20millionforthe2014launchofitspremium-pricedPres=geClassservice.

Bypurchasingasuitablenumberofbi-leveltransi=oncars,whichallowsingle-leveland

bi-levelcarstobecoupledtogethertoprovidepassengeraccessbetweenthem,the

BuddPres=geClasscarswouldoperateonthetailendofthere-equippedCanadian.

Asmorebi-levellong-haulcarsarrived,theOceanwouldbeprogressivelyre-equipped,followedbytheChaleurandtheWinnipeg-ChurchillandJasperPrinceRuperttrains.As

well,thetri-weeklyChaleurwouldbeincreasedtodailywhenitwasre-equipped.

Asformo=vepower,thelong-haultrainswouldcon=nuetooperatewithunitsfrom

VIA’sexis=ngfleetun=lallthecorridortrainswererepoweredwiththenewChargers.

Followingthat,thebalanceofthefirst70-unitChargerorderwouldbedeployedinlong-

haulservice.

WiththeCanadian,OceanandChaleurre-equippedandoperateddaily,andtheWinnipeg-ChurchillandJasperPrinceRuperttrainsupgradedwithbi-levelcars,VIA

wouldhaveahighlyeffec=vena=onalsystemfromtheAtlan=ctothePacifictoHudson

Bay.Thiswouldserveasthestrongfounda=onformorenetworkexpansionata

jus=fiablecostbetween2020and2025.

106

10.3.2Winnipeg-Calgary-Banff

WiththeCanadianre-establishedonitsoriginalCProu=ngbetweenTorontoandWinnipeg,andaconnec=ngdaylightservicelaunchedontheCPWinnipeg-Reginaline,

extendingservicefurtherwestwouldbethenextstepinrebuildingVIA’slong-haul

network.

Althoughtherehavebeennumerouspublicandpoli=calcallstorestoreserviceoverthe

en=reCPtranscon=nentallinetoVancouversinceitwasdroppedin1990,afullroute

revivalwouldbecomplexandcostlyatthis=me.TheCProutebecomesconstrained

westofGolden,B.C.,whereaheavyvolumeofwestboundexportcoaltrafficfromthe

EastKootenayRegionflowsontotheline,addingtothetraffictoandfrompointseast.

Inser=ngadailypassengerserviceintothismixwouldrequiremajorcapacityexpansion

investments,allofwhichwouldhavetobebornebyVIA.

However,aOerimplemen=ngthenewWinnipeg-Reginaserviceduringthesecondphase

ofVIA’srecovery,extendingitasfarasBanffwoulds=lldelivermajorintercityand

tourism-relatedtravelbenefitsalongalargepor=onoftheformerroutetoVancouver.It

wouldenlargeVIA’scatchmentareabymorethan1.3millionandreconnectCalgary–

thelargestCanadiancitydevoidofrailpassengerservice–tothena=onalnetwork.

Opera=ngasasec=onoftheCanadian,withthroughcarstoandfromTorontovia

Winnipeg,thisservicewouldreplaceoneofthetwoWinnipeg-Reginadaylighttrainson

thatsegmentoftheroute.ThewestbounddeparturefromWinnipegwouldbeinthe

morning,followingtheCanadian’sarrivalfromToronto,withanarrivalearlythenext

morninginCalgaryandinBanffbymid-morning.Theeastboundtrainwoulddepart

Banffintheearlyevening,makealateeveningcallatCalgaryandarriveinWinnipegthe

nextevening,whereitwouldconnectwiththeeastboundCanadianfromVancouver.

CP’smainlinebetweenReginaandBanffisinexcellentcondi=on,equippedwithaCTC

railtrafficcontrolsystem,numeroussidingsof10,000feetorlonger,andsomedouble-

tracksec=ons.Itiscapableofprovidingforpassengeropera=onatupto70mph.Some

trackandsignalmodifica=onswouldberequiredatMooseJaw,SwiOCurrent,Medicine

HatandCalgarytoenabletheVIAtrainstocleartheCPfreighttrafficduringsta=on

stops.SpaceforVIAfacili=esatMooseJaw,SwiOCurrentandMedicineHatwouldbe

leasedfromCP,whichcon=nuestouseallorpartofthesesta=onsforitsownpurposes.

TheformerVIACalgarysta=onfacility,whichwaslocatedinaleasedspaceina

commercialbuildingon9thAvenueSE,wasreleasedandreconfiguredforother

purposesfollowingthe1990cuts.Asmallreplacementfacilitywouldneedtobe

constructedeastoftheformersite,preferablynear9thAvenueSEandMacleodTrailSE,

whichiswithinashortwalkofCalgaryTransit’sCTrainLRTserviceatCityHallSta=on.

107

AtBanff,thenewservicewouldmakeuseofthehistoricsta=onbuilding,whichisowned

byCPandleasedtoalocalheritagepropertymanagementfirm.Itnowservesasthe

BanffVisitorCentreandasaterminalfortheRockyMountaineer’sseasonaltourist

trainsandvariousbusservices.TheBanffwyetrack,northeastofthesta=on,would

needtobeextendedtomakepossibletheturningoftheVIAtrainsduringtheirlayover.

Thenewservicewouldbeoperatedwithbi-levelrollingstockandwouldrequirethe

exercisingofanop=onontheoriginal140-carorder.Includingthethroughcoachesand

sleepershandledintheCanadianbetweenTorontoandWinnipeg,andthe“local”cars

solelyforWinnipeg-Banffopera=on,thiswouldrequireaminimumof30bi-levels,ata

costofapproximately$150million.Infrastructurecostsarees=matedat$50million,

includingCPplantmodifica=ons,thenewCalgarysta=onandtheBanfflayoverfacili=es.

10.3.3Montreal-Sherbrooke-Portland

The2014MaineStateRailPlancallsforananalysisofpassengerservicebetweenMontrealandPortlandbywayofSherbrooke.Theinterestinrestoringserviceonthis

295-milecorridorflowspar=allyfroma2009ConferenceofNortheastGovernors

(CONEG)visionplan,whichiden=fieditasafollow-uptotheextensionofthestate-

supportedAmtrakBoston-Portland-BrunswickDowneastercorridortoLewiston/Auburn,Maine.Basedonmarketsurveys,theMaineDepartmentofTransporta=ones=matesa

Montreal-PortlandservicewouldaKract600,000passengersannually.

TheMaineStateRailPlaniden=fiesMontreal-Portlandpassengerserviceasalong-range

projectthatwouldnotbeundertakenun=laOer2020,withotherintra-staterailprojects

takingpriority,includingtheDowneasterLewiston/Auburnextension.Withthe

par=cipa=onofVIA,thisprojectcouldbeadvancedinconjunc=onwithAmtrakandthe

StateofMaine;itsimplementa=oniscon=ngentonsuchajointfundingapproach.

FromVIA’sperspec=ve,thisroutewouldbeanextensionofitsMontreal-Sherbrooke

service.ItwouldoperatesouthofSherbrookebywayofIslandPond,Vermont,and

Berlin,NewHampshire,toDanvilleJunc=on,Maine,ontheformerCNlinenowowned

bytheSt.Lawrence&Atlan=cRailroad(SL&A).SouthofDanvilleJunc=on,itwould

operateonaPanAmRailwayslinesegmentthatwouldbeupgradedfortheproposed

DowneasterextensiontoAuburn/Lewiston.

ThisroutewouldrequireupgradingoftheSL&AinfrastructurefromSherbrooketo

DanvilleJunc=ontoprovideamaximumpermissiblepassengerspeedof60mph.The

infrastructureupgradingfortheDowneasterPortland-Lewiston/Auburnextensionhasbeenes=matedataminimumof$1millionpermile;similarcostsareassumedforthe

Sherbrooke-DanvilleJunc=onlinesegment.Aswell,aborderprocessingfacilitywillbe

requiredattheStanhope,Quebec/Norton,Vermontcrossing.

108

Servicewouldconsistoftwodailyroundtrips,withmorningandaOernoondepartures

fromMontrealandPortland,andarunning=meofapproximatelysevenhours.These

trainswouldbeintegratedintotheMontreal-Sherbrookescheduletomaintainfour

roundtripsonthatsegmentoftheroute.

ThetypeandownershipoftherequiredequipmentwouldhavetobedecidedbyVIA,

AmtrakandtheStateofMaine.Oneop=onwouldbeforVIAtoini=allyprovidethetwo

trainsetsaspartofitscontribu=ontotheproject.Anotherop=onwouldbeforVIAand

Amtraktoprovideonetrainseteach.Inallcases,push-pulltrainsetsofferingbaggage,

coachandcaféservicewouldberequired.

10.3.4Toronto-Peterborough

Forsevenyears,therehasbeenapoli=cally-drivenefforttorestorepassengerserviceon

the76-mileToronto-Peterboroughroute,butithasbeenfraughtwithcontroversyand

delays.Theprojectbeganasacomponentofa$6.2-billionBuildingCanada

infrastructureagreementbetweenthefederalandOntariogovernmentsin2008.At

federalinsistence,thisprojectwasincludedandOntariogrudginglyagreedtomatcha

federalcontribu=onof$150million,givingita$300-millionbudget.

ThePeterboroughservicewascutfromtheVIAsystembyonefederalgovernmentin

1982,restoredbyanotherin1985andcancelledagainin1990.In1982and1990,

aKemptsbythefederalgovernmenttogetGOTransittoassumetheroutewere

rebuffedbyOntarioonthegroundsthatthiswasanintercityserviceand,therefore,not

aprovincialresponsibility.

Whatwaslostrightatthestartofthelatestrestora=oneffortwasaproperviewofthe

mixedmarketitwouldserve.Itsadvocateshavevisualizeditlargelyasacommuter

service,whenitreallyneededtobeimplementedasahybridcateringtomul=pletravel

needs.Inthatcontext,itslogicaloperatorshouldbeVIA.Sugges=onsthatprovincially-

ownedMetrolinxtakeresponsibilitywerenotwellreceived,especiallysincethatagency

isgrapplingwithlargerandmorepressingGOcommuterrailprojects.

Anothers=ckingpointhasbeentheunwillingnessofitsadvocatestofacesomeserious

cos=ngissues.Theoriginofthe$300-millioncapitales=mateusedasthebasisofthe

2008intergovernmentalagreementisunknown,butitwasclearlyinadequate.A2010

provincially-fundedstudyrevealedthecostcouldbeanywherefrom$541millionto$1.5

billion.

Furthermore,theintergovernmentalfundingagreementwaspredicatedonthefalse

beliefthatthisservicewouldnotrequireanopera=ngsubsidy.Thesameconsul=ng

studyconcludeditwouldandpeggeditat$21-25million.

109

Variousopera=ngscenariostestedaspartoftheprovincialconsul=ngstudydetermined

aToronto-PeterboroughservicecouldaKract3,000passengersdaily.However,the

demandmodellingwasbasedontwoweekday-only,commuter-orientedfrequencies.

Weekendopera=onwasarbitrarilyrejectedbasedofthepoorridershipgeneratedby

GO’sseasonalweekendservicefromTorontotoNiagaraFalls.

Thefullinfrastructurerequirements,andthetotalcapitalandopera=ngcosts,needto

berefinedandupdatedtoallowthenextfederalgovernmentandVIAtodecideif

relaunchingtheToronto-Peterboroughservice–withorwithoutfurtherprovincial

par=cipa=on–isjus=fiable,especiallywhencomparedwithotherpressingVIAfinancial

needs.AmongthevariablestobeassessedaretherecentchangesinCP’sfreight

opera=onsthatmayreducethecostofsomeelementsoftheproject.Thefailureofthe

Ontarioconsul=ngstudytoassessridershiponthebasisofmorethanjustamorning-

in/aOernoon-outweekdaycommuteropera=onisalsoproblema=c.

IftheToronto-Peterboroughservicerestora=onproceedsunderVIA,itwouldprovide

fourroundtripsdailywitharunning=meofapproximatelytwohours.Thiswouldmake

long-distancecommu=ngandsame-dayreturntripspossibleinbothdirec=ons,and

convenientlyconnectwithotherVIAroutesatTorontoUnionSta=on.

Ini=allyusingBuddorLRCequipment,theToronto-Peterboroughservicewouldrequire

twothree-cartrainsetsconsis=ngofalocomo=ve,abaggagecarequippedwithbike

racks,twotothreecoachesandasecondlocomo=veorcabcar.Therearenoturning

facili=esatPeterboroughorTorontoUnionSta=on,sopush-pullopera=onwouldbe

essen=al.

10.3.5Toronto-NorthBay-Kapuskasing

Publictransporta=onacrossNorthernOntariohasbeeninseriousdeclinesincetheVIA

cutsof1990andthisisaccelera=ng.Intercitybusservicehasbeenreducedonseveral

occasionsandwhatremainshasprovedinadequate,especiallyforthosewithmedical

condi=onsandmobilitychallenges.

The2012elimina=onoftheprovincially-fundedOntarioNorthlandTransporta=on

Commission(ONTC)Toronto-NorthBay-Cochranepassengertrain,theNorthlander,worsenedthesitua=onforresidentsofNortheasternOntario.Airserviceislimitedand

expensive,andwinterweathercondi=onsfrequentlydisruptallairandroadtravel.This

situa=onalsounderminespublicandprivatesectoreffortstoaKracttouristsfrom

outsidetheregion.

110

Asdetailedpreviously,TheVIA1-4-10Planincludesthreeearlymeasurestoassistin

reversingthedeclineinpublictransporta=oninNorthernOntario,whichare:

⚫ Re-rou=ngtheCanadiantotheCPSudbury-Winnipegmainlineandincreasingit

todailyuponthearrivalofthenewbi-levelequipment;

⚫ Locally-focusedreplacementservicesontheCNSudbury-Winnipegroute;and

⚫ Implemen=ngatwice-dailyToronto-NorthBayday=meservice.

ThenextstepwouldberevivingtheovernightToronto-NorthBay-Kapuskasingtrain,

formerlyknownastheNorthland,whichwasjointlyoperatedbyVIAandONTCpriortothe1990VIAcuts.Thiswouldbeundertakeninconjunc=onwithONTCandthefunding

requirementssharedbythefederalandOntariogovernments.Forthepurposesofthis

plan,itisassumedtheprovincialgovernmentwillseethevalueinsuppor=ngthis

federalini=a=vetoimprovemobilityforNorthernOntarians.

ThenewovernightservicewouldoperateonthesameCN-ownedrouteastheToronto-

NorthBaydaytrains,con=nuingnorthtoCochraneontheONTCTemagami,Ramoreand

Devonshiresubdivisions,thenwestonONTC’sformerCNKapuskasingSubdivision.The

ONTCinfrastructureisadequatefor60-mphpassengerserviceandfreighttrafficis

moderate.

Thepassengerfacili=esthatun=l2012servedtheNorthlanderwouldbeusedatNorthBay,Cochraneandtheintermediatesta=onstops,whichwouldinclude:

⚫ Temagami

⚫ Cobalt;

⚫ NewLiskeard;

⚫ Englehart;

⚫ Swas=ka;and

⚫ Matheson.

AshelterandashortplasormwouldberequiredatSmoothRockFallsandapor=onof

theKapuskasingsta=on,whichnowhousesthetown’seconomicdevelopment

departmentandtourismbureau,wouldbeleasedtoservethenewovernighttrain.

Opera=ngonaschedulesimilartothatofthediscon=nuedNorthland,thenewservicewouldhavearunning=meofapproximately14hoursovera551-mileroute.The

northbounddeparturefromTorontoUnionSta=onwouldbeatapproximately9p.m.,

witharrivalinCochraneat9a.m.andKapuskasingat11a.m.Asinthepast,ashuKle

busorvanservicecouldbeoperatedfromKapuskasingtoHearst,60milestothewest,

withareturnserviceinthelateaOernoontoconnectwiththesouthboundtrain.The

departurefromKapuskasingwouldbeat7p.m.andCochraneat9p.m.,witharrivalat

TorontoUnionSta=onat9a.m.

111

ThisservicewouldrequiretwosetsofBuddsingle-levelequipmentini=ally.Eachwould

consistofabaggagecar,twocoaches,oneormoresleepersandacafé-loungecar,which

wouldprovidebeveragesandsnacksthroughoutthenightandlightbreakfastselec=ons

inthemorning.

10.3.6Sudbury-SaultSte.Marie

AfurtherenhancementofNorthernOntario’snow-deficientpublictransporta=on

systemwouldbeprovidedbyanewSudbury-SaultSte.Marieservice,whichwouldhave

atotalpopula=oncatchmentareaofapproximately250,000.Itisaroutewithstrong

tourismpoten=althatisnowservedbyasingleroundtripGreyhoundbusfrequency.

Thisdailyroundtripservicewouldoperateinconjunc=onwiththere-routedanddaily

Canadian,providinga=med,cross-plasormconnec=oninSudburytomakeToronto-

SaultSte.Marierailjourneyspossibleforthefirst=meinnearly40years.Aswell,it

wouldhaveconsiderabletouristpoten=althatisnotbeingtappedbythesingle

Greyhoundbusfrequencynowprovided.

FromSudburytotheSoo,opera=onwouldbeontheHuronCentralRailway(HCRY)

WebbwoodSubdivision,whichbranchesofftheCPCar=erSubdivisionjustwestofthe

municipally-ownedformerCPsta=on.Thisisasingle-tracklinethatisgenerallyonly

capableofsuppor=ngapassengerspeedof30mphandupgradingoftheexis=ng

infrastructurewouldberequiredtoallowfor60-mphpassengerservice.Basedonthe

upgradingofsimilarlinesintheU.S.andprevious,publicly-fundedrehabilita=onwork

ontheHCRY,itises=matedthiswouldrequireaninvestmentof$20million.Afactorin

favourofsuchaninvestmentisthatitwouldalsoimprovetheHCRYfreightservice,

whichhasasignificantregionaleconomicimpact.

Newpassengersheltersandshortplasormswouldberequiredattheintermediate

sta=onstops,whichwouldinclude:

⚫ Walden/Whitefish;

⚫ McKerrow/Espanola;

⚫ SerpentRiver;

⚫ BlindRiver;and

⚫ Thessalon.

AusefuladjuncttotherailservicewouldbeavanorbusshuKleroutelinkingthe

SerpentRiversta=onwiththeregionalservice,tourismandre=rementcommunityof

ElliotLake,whichis18milesnorthoftherailwayviaHighway108.Thiscouldbe

accomplishedinconjunc=onwiththeCityofElliotLake’stransitservice.

InSaultSte.Marie,theservicewouldoperatethroughanupgradedconnec=onfromthe

HCRYlinetoCN’sSooSubdivisiontoaccessthedowntownAlgomaCentralsta=onon

112

BayStreet,whichservestheseasonalAgawaCanyonTourTrainandtheSaultSte.Marie-

Hearstremotetrain.

Withafour-hourrunning=me,theSaultSte.MarietrainwoulddepartSudburyat

approximately8a.m.,aOerconnec=ngwiththewestboundCanadian,andarriveintheSooatnoon.Theeastbounddeparturewouldbeat7p.m.,withanarrivalinSudburyat

11p.m.tomaketheconnec=onwiththeeastboundCanadianforToronto.

ThisservicewouldrequireonesetofBuddequipment,consis=ngofabaggagecar,two

tothreecoaches(onemodifiedtoprovideatakeoutsnackandrefreshmentservice)and

asecondlocomo=veorcabcarforpush-pullopera=on.

Basedonitsridershipandcostrecovery,itmightbeadvisabletoexpandthesingle-train

servicetoprovideaseconddailyfrequencythatwouldmakeday-returntripstoSudbury

possible.ThiswouldoriginateinSaultSte.Marieintheearlymorningandreturnfrom

SudburyinthelateaOernoonorearlyevening.Thiswouldrequireasecondtrainset.

10.3.7Winnipeg-Minneapolis/St.Paul

Railpassengerservicehasbeenabsentfromthe500-mileWinnipeg-Minneapolis/St.

Paulroutefornearly50years.Althoughthereisconsiderabletravelinthiscorridor,

mostofitisdonebycarandsomebyair;nobusserviceiscurrentlyprovided.

Thereins=tu=onofserviceonthisrouteisincludedinthe2015MinnesotaDradStateRailPlanasalong-rangeprojectthatwouldfollowotherimprovementsthestateisnow

advancingonanincrementalbasis.Amtrakalsoexamineditaspartofa2012reviewof

itsChicago-St.Paul-SeaKle/PortlandEmpireBuilder.Asafirststep,Amtrakconsidered

addingaWinnipeg-GrandForks,NorthDakota,feederbusconnec=ontotheEmpireBuilder.Thedrawbackisthattheconnec=onsinGrandForkswouldbemadeat1a.m.

southboundand5a.m.northbound.ThisAmtrakThruwaybusop=onhasnotbeen

pursued.

RevivingtheWinnipeg-TwinCi=esroutewouldhavebenefitsonbothsidesofthe

border.ForCanadians,itwouldprovideausefullinkwiththeTwinCi=esanda

connec=ontonumerouspointsintheU.S.MidwestviaChicago.TheAmtrakstudy

notedthatAmericantravellerswouldbenefitfromaconnec=ontoWinnipegbecauseit

would“provideourcustomerswiththeopportunitytoconnectfromtheEmpireBuildertotwoofVIARail’smajorlong-distanceroutes(theCanadianandtheChurchillservice)formul=plewesterni=neraries.”

LaunchingthisservicewouldhavetobeajointprojectinvolvingVIA,theGovernmentof

Canada,AmtrakandtheStateofMinnesota,asisthecasewiththeothernewcross-

borderservicesproposedaspartofTheVIA1-4-10Plan.Thecapitalandopera=ngcosts

113

wouldbeassumedbythevariouspar=esonabasispropor=onatetothebenefits

realizedbyeach.

ThenewservicewouldoperatefromWinnipegUnionSta=ontotheEmerson,

Manitoba/Noyes,Minnesota,bordercrossingonCN’sLetellierSubdivision.Ithandlesa

moderateleveloffreighttrafficanditiscapableof60-mphpassengeropera=onwith

somemodifica=ons.Southofthebordercrossing,thenewservicewouldoperateto

GrandForks,NorthDakota,onaBurlingtonNorthernSantaFe(BNSF)linethatis

currentlyfreight-onlyandcanaccommodatepassengeropera=onat60mph.

FromGrandForkstoSt.PaulUnionSta=on,theWinnipeg-TwinCi=estrainwouldbe

coupledtothetailendoftheEmpireBuilder,whichwouldminimizeopera=ngcostsand

eliminatetheneedforanycapacityexpansioninvestmentintheBNSFinfrastructure.As

well,sta=onfacili=esareinplaceatfourintermediatecommuni=es.

Witha12-hourrunning=me,thenewservicewoulddepartWinnipegat8p.m.and

arriveinGrandForksaroundmidnight,witharrivalinSt.Paulat8a.m.Northbound,the

departurefromSt.Paulwouldbeatapproximately10p.m.andarrivalwouldbein

Winnipegat10a.m.

Therearevariousop=onsavailablefortheprovisionoftheequipmentrequiredforthis

service.Whenthejointly-operatedInterna9onalservedthenow-discon=nuedToronto-Chicagoroute,itwasoperatedatonepointwithoneVIAtrainsetandonefromAmtrak.

Later,Amtrakbi-levelrollingstockwasused,buthauledbyVIAlocomo=ves.Another

approachistakenwiththeToronto-NewYorkCityMapleLeaf,whichoperatesstrictlywithAmtraktrainsets.

Thepreferredop=onfortheWinnipeg-TwinCi=esservicewouldbetheassignmentof

bi-levelSuperlinerrollingstockfromAmtrak’sfleet,whichwouldbefactoredintothe

divisionofcostsandrevenuesbetweenVIAandAmtrak.Thiswouldrequiretwo

trainsetsconsis=ngofacoach-baggagecar,acoach-cafécarandasleeper.Asingle

locomo=vewouldbeadequatefortheWinnipeg-GrandForkspor=onoftheroute,

haulingthesouthboundtrainintheeveningandreturningwiththenorthboundtrainin

themorning.Thismo=vepowercouldbeprovidedbyeitherVIAorAmtrak.

Anotherop=onisthrough-rou=ngtheWinnipegtrain’sequipmenteastofSt.Paulonthe

EmpireBuilder,insteadoftermina=ngandturningitthere.Thiswouldprovideone-seat

servicetoandfromChicago,dispensingwiththeneedforpassengerstochangecarsin

St.Paul.BasedontheEmpireBuilder’sscheduleanditsequipmentcycle,thiswould

requireoneaddi=onalsetofrollingstock.

114

11.0 APassengerRailwayforCanada’sFuture

Anyplancallingforapublicly-fundedcapitalinvestmentof$5billionwillnodoubtbe

viewedskep=callybythosewhodon’tappreciatethevalueofamodern,na=onwiderail

passengersystem.That’sunderstandablewhenoneconsiderstheextenttowhichVIA

hasbeenallowedtoslidebysuccessivegovernmentsoveraspanofnearly40years.

Therearenoeasyorinexpensivesolu=ons.

Theques=onsthatneedtobeaskedtodayarethesameonesMinisterofTransport

DavidColleneKeplacedbeforetheHouseofCommonsStandingCommiKeeon

Transportin1998:

“WhatistheroleofpassengerrailserviceinCanada?Doweneeda

na=onalpassengerrailservice?Willtherebeagreaterneedfor

passengerrailserviceinthefuture?CanCanadaaffordpassengerrail?

CanCanadaaffordnottohavepassengerrail?”

VIA’sfutureisverymuchindoubtbecausetheseques=onshaveneverbeenanswered

andacteduponbygovernment.Asaresult,ithasneverhadthelegisla=on,thefunding

oreventhemandatetodomorethanjustsurvivefromcrisistocrisis.

ThemeasuresproposedinTheVIA1-4-10Planaren’trevolu=onary.Allthetechniquesandtechnologiesoutlinedherehavebeenemployedbyotherpublicly-fundedrail

passengersystemsinfacingcomparablechallenges.Butthisplancannotsupplytheone

elementthatisnowandalwayshasbeenrequired,whichispoli=calcommitment.

AswasaccuratelystatedinVIA’sown1989reviewofitsfutureop=ons,“Theroleof

passengerrailmustbedecidedinthecontextofalargerpublictransporta=onpolicyand

intheevenlargersocialandeconomicpoliciesofthena=onalgovernment.Becauseof

this,ul=matedecision-makingrestswiththeGovernmentofCanada.”

ThebenefitsofrevivingVIAareeasytocalculate.ThecapitalinvestmentdetailedinTheVIA1-4-10Planwouldgenerateasmuchas$20billionindirecteconomics=mulus,

suppor=ngthousandsofCanadianmanufacturingandconstruc=onjobsthroughoutthe

recoveryphase.

Inves=nginVIAwouldalsobeprudentgiventhehighcostofmaintainingthecurrent,

outdatedsystem.Therenewalofthefleetwouldpayforitselfinlessthan10years

throughthelargeopera=ngsavingsitwouldproduce.Beyondthat10-yearperiod,a

revivedVIAwouldcontributeonanongoingbasistotheeconomic,environmentaland

socialvibrancyofthena=on.Itsimpactonmobilityandproduc=vitywouldbelarge,

especiallyintheQuebec-WindsorCorridor,whereitwouldcomparefavourablywith

investmentsintheothermodes.

115

WhatalsomustbeconsideredisthefactthateverysingleG-7na=onwithwhichCanada

competeshasfullyrecognizedthebenefitsofmodernrailpassengerserviceandis

inves=ngaccordingly.So,too,areemergingglobalpowerhouses,suchasChinaand

India.AsU.S.SecretaryofTransporta=onAnthonyFoxxrecentlysaidregardinghis

country’sambi=ousrailpassengerimprovementprogram,“Thisisnotavisionwhose

=mehascome,butavisionthatislongoverdue.”

WhetherCanadawillbepartofthisenlightenedworldwideembraceofmodernrail

passengerserviceisadecisiontobemadebythenewgovernment.Un=lthen,VIA’s

fatehangsinthebalance.Andtheclockis=cking.

116