steveintoronto
Superstar
I see the inevitable eventuality, and sooner than later, that 'HF Service' is a separate entity to the VIA services we have today. VIA is at odds with itself. There's the Corridor Service, including local stops, that comes closest to 'breaking even'. And the rest which come nowhere close.Can the local service (which no longer receives revenue from the through passenger load that has moved to the new line) cover its own avoidable cost, plus these added fixed costs, and now do so without subsidy? (I expect Ottawa will withdraw subsidy of the route, that's part of the HFR pitch). Will the Peterboro route cross subsidise the Lakeshore local service? Can't see that happening if private money is involved.
https://www.theglobeandmail.com/rep...perating-loss-by-12-per-cent/article29913520/Via Rail's ridership rose in 2015, helping Canada's national passenger train service cut its annual operating loss by 12 per cent to $280-million.
The Crown corporation said passenger-miles rose by 1.7 per cent last year and revenue climbed by 6 per cent, the first time in seven years both categories have increased.
Total government funding declined to $378-million while on-time performance fell to 71 per cent from 76 per cent, a deterioration Via Rail blamed on the freight railways that own the tracks.
Taxpayer subsidies for every Via Rail passenger were $73 in 2015, compared with $83 in 2014. The subsidies are lowest – $42 – in the Southern Ontario and Quebec corridor. Long-haul subsidies were almost $500 per passenger while regional services were subsidized at $607, Via Rail said in its annual report released on Friday.
[...]
Yves Desjardins-Siciliano, Via Rail's chief executive officer, is spearheading an effort to buy and build dedicated passenger tracks in the busy Toronto-Montreal-Ottawa corridors. The $4-billion proposal, which will require $2-billion from private-sector pension funds, would allow Via Rail to improve on-time performance and boost revenue by running more trains.
"Our plan to build infrastructure dedicated to passengers will eliminate over five million car trips annually," Via Rail said in its report. "This means a reduction of 10.8 million tons of CO2 equivalent, over the life of the project. This represents 1.5 per cent of Canada's total GHG emissions or 13 per cent of all car emissions."
[...]
I believe that ratio has improved even further since 2015. The point is that Corridor Services, which might need further definition, do have a business case to be made to allow...to *attract* private enterprise investment. You don't have to make more than cost for it to do so, as transit investment clearly shows. There's hidden advantage to private investors.
What does have to happen is that the *non-Corridor* operations are continued to be run by Government largess. VIA has a stone around its neck otherwise, and will never achieve anything greater in terms of being competitive and healthy. That's as political as it is business.
This is extremely important. One only has to think if airlines weren't dependable, how bookings would plummet. Getting to New York from Toronto, for instance. You can fly prop from Toronto Island and arrive at your destination as fast as taking a jet from Pearson, for all intents and purposes. But that advantage would immediately disappear if it's not reliable. It's what you base all your connections on.The most important to me is the 3rd one. If I cannot count on the train to be reasonably on time, why would I take it?