RedRocket191
Senior Member
Ah, deficits... 407 anyone?
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VIA Rail: New Funding
- Thread starter 299 bloor call control.
- Start date
TOareaFan
Superstar
but the 407 makes money....meaning that there are future profits to present value to reach a price.
Last I heard (and it was a long time ago).....VIA loses money, needs an annual subsidy so what would you pv to produce a purchase price?
RedRocket191
Senior Member
I mean it in a "we're going to regret it later" kind of paradigm.
waterloowarrior
Senior Member
VIA revenue/expenses ratio is 58.4%. Ridership went up from 3.887 million in 2004 to 4.605 million in 2008
TOareaFan
Superstar
oh....I thought you meant it in a "here is a way to fund a deficit kinda way"
TOareaFan
Superstar
Just to understand your post....so they cover 58% of their costs? doesn't sound like a candidate for privatization!
rbt
Senior Member
If you are going to treat it as a business then we need to do the 407 math for the governments side. Including payments on the $50B to $75B loan they would have taken out for land acquisition. No company lets capital funds sit around like that; not even CN or CP Rail whom Via is making payments to for use of their rails (I.e. Via is indirectly making these types of loan payments).
Ontario government would need on the order of $7B revenue from Highway 407 to reach a reasonable IRR. I can assure you the consortium who currently runs it only makes a profit because the Ontario Government took an enormous hit.
From a business standpoint, if it was IBMs project, IBM would be bankrupt right now and the shareholders would probably have a case for a class action against management.
Of course, we both know better and realize the indirect income (business, property, sales, and income taxes) are far higher for infrastructure than direct income has ever been.
Makes me wonder what the city could get if it sold off the land Gardiner is on but left Lake Shore. Could we build 4 new east-west subway lines, each with a carrying capacity several times that of Gardiner?
urbanfan89
Active Member
At least we're lucky there was no CCRAP majority in the last election.
We're also lucky CCRAP brought that constitutional crisis of last December on itself, making the majority parties vigilant over those proposals.
But hey, the government will have to *pay* to get rid of Via Rail given its current state.
We're also lucky CCRAP brought that constitutional crisis of last December on itself, making the majority parties vigilant over those proposals.
But hey, the government will have to *pay* to get rid of Via Rail given its current state.
jks
Continuous Lurker
Wow. Just look at that article! They were looking for crown corporations that specifically were NOT self sustaining, and wanting to privatize them. That's the stupidest thing I've heard all year! I am generally anti-privatization, especially of essential services such as post, transportation, etc, but this is especially ludicrous. And what does the Conservative party have against the CBC. They just seem to be waging a war against them. First the CBC lose the rights to broadcast the Olympics to CTV, then the Hockey Night in Canada theme song.
*sigh
Anyway, I always laugh when I see people write CCRAP (Conservative Canadian Reform Alliance Party). So true!
Really, they need to stop and think. Will this decision have a negative impact down the road? They just seem to put forward these ideas that are so mindless, it amazes me.
*sigh
Anyway, I always laugh when I see people write CCRAP (Conservative Canadian Reform Alliance Party). So true!
Really, they need to stop and think. Will this decision have a negative impact down the road? They just seem to put forward these ideas that are so mindless, it amazes me.
RedRocket191
Senior Member
I'm hearing rumblings on CPTDB that VIA Rail has purchased a set of like-new Budd RDCs for use on the Toronto - Kitchener - London - Sarnia routes. They will run in trains of three cars - two RDCs with a coach in the middle and VIA has acquired enough for 4 trainsets. There's supposed to be an announcement later this year for more departures.
Hurray for adaptive re-use?
Hurray for adaptive re-use?
kettal
Banned
We all know it won't happen in a minority government. This is just being fed to the media because it's the only way the Conservative party can portray any kind of conservatism these days.
All the loony stuff we read these days is just to bring wedge issues into the spotlight as this helps with political fundrasing.
nfitz
Superstar
Interesting. I'd think that this would strictly be on the Toronto-Kitchener section of the line.
jks
Continuous Lurker
Wow these things are hedious:
unimaginative2
Senior Member
If true, this is fantastic news and long overdue.