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VIA Rail

Then I have misunderstood the scope of the project.

For the record - the explanation of who's who is here.

However - you can be forgiven for not getting the whole picture - when Ottawa makes statements such as here...

Later that year, VIA HFR – VIA TGF Inc. was created as a new wholly owned subsidiary operating at arm's length from VIA Rail to manage the development and delivery of HFR and act as a dedicated project office.

In whose version of corporate governance would a wholly-owned subsidiary operate at arm's length from its owner?

Clearly, the softly spoken rules of the road are, VIA people are to keep their noses out of HFR unless asked. Another slightly different version of the arrangement is available in the VIA HFR FAQ's - which very much aligns to what @kEiThZ was saying.

To develop and implement the HFR project, Canada incorporated VIA HFR – VIA TGF Inc. on November 29, 2022 as a wholly owned subsidiary of VIA Rail.

VIA HFR will oversee and manage the implementation and delivery of the Co-Development Phase. It will act as the project authority and a strong public sector counterparty to the eventual private-sector development partner (PDP). As it scales up, VIA HFR will take over the leadership of key project activities and will work collaboratively with the private partner to co-develop and optimize the HFR project.

VIA HFR, a Crown corporation, reports directly to Parliament through the Minister of Transport. It operates at arm’s length from the government with the flexibility, independence and corporate agility required to advance this large infrastructure project.

Once HFR is in service, VIA Rail is expected to continue operating its long-distance services from Toronto to Vancouver and from Montreal to Halifax.

PS - I love the "at arm's length from government" claim. Some of us were born at night, but it wasn't last night.

- Paul
 
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For the record - the explanation of who's who is here.

However - you can be forgiven for not getting the whole picture - when Ottawa makes statements such as here...



In whose version of corporate governance would a wholly-owned subsidiary operate at arm's length from its owner?

Clearly, the softly spoken rules of the road are, VIA people are to keep their noses out of HFR unless asked. Another slightly different version of the arrangement is available in the VIA HFR FAQ's - which very much aligns to what @kEiThZ was saying.



PS - I love the "at arm's length from government" claim. Some of us were born at night, but it wasn't last night.

- Paul

That does not sound like it will be a completely separate entity.
It sounds more like the Chevrolet of the GM situation. If this is the case, it aligns with what I figured.
 
That does not sound like it will be a completely separate entity.
It sounds more like the Chevrolet of the GM situation. If this is the case, it aligns with what I figured.
Youre both right and wrong. The analogy you used is bad.

To the average customer, it will seem like VIA, but operationally it will be separate in various ways.
 
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Good news.
 
Clearly, the softly spoken rules of the road are, VIA people are to keep their noses out of HFR unless asked. Another slightly different version of the arrangement is available in the VIA HFR FAQ's - which very much aligns to what @kEiThZ was saying.

VIA has no authority (or even much of a relationship beyond some advisory role) over VIA HFR. They're two separate entities and each answer to the Minister (through TC) directly.

I read the all the pre-RFP docs. It's pretty clear that the Corridor will be broken out and handed over to the contractor. VIA will be substantially reduced in size and scope to run what's left. And the only obligation the new Corridor contractor will have is facilitate their operations. The new operator doesn't even have to use the VIA branding, loyalty programs, etc.
 
VIA has no authority (or even much of a relationship beyond some advisory role) over VIA HFR. They're two separate entities and each answer to the Minister (through TC) directly.

I read the all the pre-RFP docs. It's pretty clear that the Corridor will be broken out and handed over to the contractor. VIA will be substantially reduced in size and scope to run what's left. And the only obligation the new Corridor contractor will have is facilitate their operations. The new operator doesn't even have to use the VIA branding, loyalty programs, etc.
Everything says that VIA HFR is a subsidiary of VIA. So why wouldn’t it use VIA branding, even if its arms length? Cuz WestJet really needed their Swoop flanker brand? Well that’s gone now.
 
Youre both right and wrong. The analogy you used is bad.

To the average customer, it will seem like VIA, but operationally it will be separate in various ways.

Would it be like Metrolinx and GO transit?
If not, can you give me any real world examples in Canada?

Everything says that VIA HFR is a subsidiary of VIA. So why wouldn’t it use VIA branding, even if its arms length? Cuz WestJet really needed their Swoop flanker brand? Well that’s gone now.
That is my thinking too.
 
VIA will still need a fleet to operate the current local services. Hopefully that business is expanding.

I would not spend much time worrying about stranded assets.

If other corridors are proposed, an additional equipment order to cover its needs should be part of the plan.

- Paul

HSR and Intercity rail serve very different customers. HSR competes with those who would otherwise fly and Intercity Rail competes with those would otherwise either drive or take the bus. The fact that HSR is stealing customers from the airlines would do little to reduce demand for intercity service. If anything, since intercity trains could likely run on the same tracks as the HSR trains, the improved frequency and reliability could increase the demand for intercity service.
 
Would it be like Metrolinx and GO transit?
If not, can you give me any real world examples in Canada?
The MTO has three Crown agencies: Metrolinx, Ontario Northland Transportation Commission and the Owen Sound Transportation Company (ferries). GO Transit is division/operating entity within Metrolinx.
 
The MTO has three Crown agencies: Metrolinx, Ontario Northland Transportation Commission and the Owen Sound Transportation Company (ferries). GO Transit is division/operating entity within Metrolinx.
Am I safe to assume that Via is Metrolinx and Via HFR is GO? Ifthat is the case, I do not see how this is bad. Good to get the clarification though.
 
Everything says that VIA HFR is a subsidiary of VIA. So why wouldn’t it use VIA branding, even if its arms length? Cuz WestJet really needed their Swoop flanker brand? Well that’s gone now.
No, HFR is not a subsidiary of VIA. It is its own entity with its own board and executive with a different mandate than VIA... to deliver HFR (clean sheet). At some point VIA's corridor services are likely to be taken over by this entity but other than inheriting contracts and routes, the new way-of-working, the reservation system, and operating strategy will have been delivered by this new HFR board and executive. This is similar to how GO Transit was transformed... rather than GO transforming into Metrolinx, Metrolinx was clean sheet and took over GO Transit. It is a way of forcing a more rapid transformation of operating models from the top down.

If you look at the 1982 timetable from Montreal to Ottawa there were 6 trains running with odd train numbers from 29-39. Today, 40 years later, with a much larger population there is a similar number of trains, with similar train numbers, and similar travel times. If VIA was in charge of HFR they would find a way to have people wanting to use HFR need to book a trip from Montreal to Ottawa use a booking system that seems somewhat disconnected from the website, branded with the VIA double maple leaf logo that stuck the federal Canada logo into it, select between train numbers with 29-39 in their numbering (maybe 331, 333, 335, etc to differentiate), and serve lacklustre sandwiches on board. Not that there is anything specifically wrong with train number 33 being the number, but for that to remain true for 40 years is an potential indication of a "that is how we have always done it" mentality. Their view of what was done before may not allow them to reinvent everything clean sheet with some false need to tie back to what was done before continually surfacing in their plans. The private partner and somewhat independent board will allow this new creation to feel new and modern.
 
Effective 18 November 2023, you will need to pay $28.25 to bring a large suitcase onto a VIA train in the Corridor in Economy class. If you don't pay the fee in advance, you will receive a $56.50 fine.

https://www.viarail.ca/en/new-baggage-policy-preview
A new baggage policy will be introduced across our network and will apply to bookings made as of November 18, 2023.

We are making changes to the basic baggage allowance, additional baggage allowance, and accepted standard baggage sizes. Also, the new baggage policy will be differentiated by fare (Escape, Economy, Economy Plus, Business and Business Plus) rather than by class of service (Economy and Business).

Here is a preview of the size, weight and number of baggage you can bring on board as Carry-on baggage or Checked baggage. The complete policy will be available on our website on November 18, 2023.

Escape / Economy / Economy plus
1 personal item Item that must fit under the seat in front of you (purse, laptop bag, small backpack, etc.)
Max. size: 43 x 33 x 15 cm (17 x 13 x 6 in)
Max. weight: 11.5 kg (25 lb)

1 carry-on item One (1) MEDIUM bag
Max. size: 64 x 41 x 30 cm (25 x 16 x 12 in)
Max. weight: 23 kg (50 lb)

Additional carry-on (1) LARGE additional carry-on item.
Fee: $25 + tax per direction.
Max. size: 76 x 48 x 30 cm (30 x 19 x 12 in)
Max. weight: 23 kg (50 lb)

Each passenger is responsible for their own baggage. Please only bring baggage that you can carry and store under the seat in front of you or on the overhead shelf unassisted.
Please refer to the list of non-standard items that count as part of your carry-on allowance.

Business / Business plus

1 personal item Item that must fit under the seat in front of you (purse, laptop bag, small backpack, etc.)
Max. size: 43 x 33 x 15 cm (17 x 13 x 6 in)
Max. weight: 11.5 kg (25 lb)
2 carry-on items Two (2) LARGE carry-on items
Max. size: 76 x 48 x 30 cm (30 x 19 x 12 in)
Max. weight: 23 kg (50 lb)

Each passenger is responsible for their own baggage. Please only bring baggage that you can carry and store under the seat in front of you or on the overhead shelf unassisted.
Please refer to the list of non-standard items that count as part of your carry-on allowance.
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Outside of the Corridor, large suitcases will entirely forbidden aboard Economy coaches. Customers in Economy are required to check larger-than-carryon suitcases at a cost of $25/bag.

Via's "medium" carry-on item size is slightly larger than Air Canada's carry-on size. The width is the same, but the depth is 30cm instead of 23cm, and the height is 64cm instead of 55cm.

The policy is also internally contradictory:
  • They state that the baggage allowance will no longer be differentiated by class, but rather by ticket type - but then proceed to say that the groups of ticket types are [Escape/Economy/Economy Plus] and [Business/Business Plus]. How is that different than differentiating by class?
  • They state that all luggage must fit under your seat or in the overhead bins, but still allow you to bring 1 large suitcase in Economy (for $28.25) and 2 large suitcases in Business (for free), which definitely won't fit in under the seat or in the overhead bin.
My biggest problem with the new policy is that they will need to spend even more time micromanaging people's bags at stations than they already do. You thought the boarding process was slow now? Just wait until they also need to squeeze $56.50 out of all the people who intend to leave a suitcase in the shelves at the end of the car. And to make matters worse, I suspect that the cost of staff time it will take to examine people's bags and enforce the policy will exceed the amount of revenue they get from the new baggage fees. Keep in mind that the costs are not only the staff time directly spent scrutinizing people's bags, but also the staff time of all the employees on the train who need to work longer due to the longer dwell times, and the lost ridership (revenue) due to longer trip times and airport-style hassle at stations.

Via loves blaming CN for all of their problems, but in reality a large portion of the inconveniences and delays passengers experience are directly due to Via's own operational policies.
 

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