TRANSPORT ACTION NEWSLETTER% JANUARY-FEBRUARY 2014 Ontario Report Transport Action Ontario ( Formerly Transport 2000 Ontario)

✧✧✧✧✧✧✧✧✧ cuts Feds axe Algoma Cen- TRANSPORT ACTION ONTARIO deal with CN that will tral’s Sault-Hearst train ANNUAL GENERAL MEETING kill VIA’s Ocean Is this a step to abandon yet (combined with an AGM for NB municipalities and Transport more track in Northern Ontario? Transport Action ) Action Atlantic release study of ! On January 24, the public SATURDAY, APRIL 26, 2014, METRO HALL, regional rail revitalization learned that CN will end its three- 55 John Street (at King), Toronto days a week passenger train between ! They couldn't be more different, Sault Ste.Marie and Hearst, a 330 km ➣ Transport Action AGMs 10 am -noon, Rm 308/9. the two reports on what to do re- journey (206 miles). This is the third ➣ Lunch break noon to 1:30 pm. garding the rail situation on New train in Ontario's northland to be Brunswick's north shore. It came to cancelled in the past year-and-a-half! Afternoon public forum: a head when CN announced it ➣ 1:30-3:00 pm; Metro Hall, Rm 308/9 % It turns out that the sitting MP wanted to abandon 224 km of track for the riding of the Sault, Bryan Union Station revitalization: between Moncton and Campbellton, Hayes (Conservative), and CN, have a key link in the regional freight rail been sitting on this information its progress to date system and the route of VIA's since November 18 when Transport ➣ Speaker: Michael Wolczyk, V-P Capital Infra- Montreal-Halifax Ocean. Canada decided to cut its $2.2 mil- % On January 21, Transport Action structure (Acting), GO Transit (Metrolinx) lion annual subsidy as of March 15, Atlantic’s report “Revitalizing New 2014. Interestingly, on November 19, ➣ Tour of Union Station following presentation Brunswick’s Rail Sector” was publicly ....More details on Page 8 CN then announced that its Agawa ...continued on PAGE 2 ...continued on PAGE 4

FROM THE PRESIDENT - Ontario and the Maritimes to raise pub- lic, political and media awareness about 's 2013-2017 PETER MIASEK the benefits of rail and the challenges Corporate Plan Passenger rail in Ontario - Let a thou- and solutions. However, the town hall Transport Action's National Dream sand voices speak! program came to a temporary halt in ! April, 2013, due to lack of continued Renewed campaign put forward proposals that would expand the role of passenger rail % VIA Rail Can- funding. (The program revived in Febru- across Canada to insure sustainable intercity ada’s passenger ary, 2014 with three events in Northern mobility into the future. We have warned service cuts in June Ontario to support advocacy for restora- that VIA is on a path of contraction and caught most Cana- tion of passenger service on the Algoma likely extinction at the hands of the current dians by surprise. Central Railway.) federal government. Reading VIA’s recently In Southern On- % Despite this setback in 2013, activity released 2013-2017 corporate plan sum- tario, service cuts on passenger rail continued throughout mary doesn't offer hope of changing this occurred to many ...continued on PAGE 2 ...continued on PAGE 4 mid-sized communities, including Sarnia, London, Stratford, Kitchener, Niagara In this Issue Falls, Port Hope/Cobourg, Belleville and New Brunswick cuts deal with CN that will kill the Ocean....Pages 1, 2 and 3 Cornwall. The VIA cuts were followed Feds axe Algoma Central’s Sault-Hearst train...... Pages 1 and 4 in September by the cancellation of most VIA Rail’s 2013-2017 Corporate Plan...... Pages 1 and 4-6 of Ontario Northland Railway’s passen- Rail and transit feature in opposition party platforms...... Page 3 ger rail service. Danger ahead: working without a (rail) net (by Greg Gormick)...... Page 6 % Transport Action responded quickly. Welcome to Sochi!...... Pages 7 and 8 Between September 2012 and April 2013, we held 15 town hall public meetings in Recent key Transport Action Ontario documents/membership info.....Page 8

WWW.TRANSPORT-ACTION.CA Advocating for sustainable public and #eight transportation% PAGE 1 TRANSPORT ACTION ONTARIO NEWSLETTER% JANUARY-FEBRUARY 2014

FROM THE PRESIDENT and . Promotes public (Moncton) to Nelson Junction on the and political awareness. Their request south side of Miramichi, and 41 km from ...continuied "om PAGE 1 for a VIA schedule change was success- Nepisiguit (Bathurst) north to Irvco. the year. In April, Transport Action On- ful. Proposing two year pilot for en- CN will match these funds. The agree- tario (TAO) presented to the Standing hanced Sarnia-London service. ment is to last 15 years with some return Committee on General Government ● Save VIA (St. Mary’s): Petition with of funds to the province if business is (Queen’s Park) on increasing the provin- over 3000 signatories. “Chair In” at St. brisk. But it appears CN can still pro- cial role in intercity passenger rail and Mary’s VIA station. Extensive political ceed to abandonment if business is not bus transportation. In June, consultant advocacy with MP’s and MPP’s. sufficient. Details of the financial ar- and ally Greg Gormick completed a re- ● Southwest Economic Alliance rangements between CN and the prov- port for Bruce Hyer (MP, Thunder Bay), (SWEA): An alliance of municipalities, ince are confidential. partially funded by TAO, titled “A Wed- businesses and civic groups in SW On- % Back in 2012, the province suppos- ding Band of Confederation: Restoring tario. Conducted a well-attended Pas- edly formed a Strategic Rail Asset Com- Rail Passenger Service to Ontario’s senger Transportation Summit. mittee that included CN, VIA and the North Shore and Across Canada.” It % These diverse groups have different federal government. It is doubtful that again summarized the challenges and strengths – railway expertise, political this group ever went forward. The just- solutions for passenger rail in Northern connections, business contacts, commu- announced deal was the result of confi- Ontario and Canada. nity contacts, media skills, organizing dential meetings between the province % Most encouraging in 2013, however, skills. What is exciting is that each is and CN. So much for public participation. was the formation during the summer mounting a campaign pointed in the % CN has indicated it would maintain and fall of numerous local citizens groups same general direction – restoring and enhancing passenger rail. In aggregate, the 71 km gap – the portion to be pulled in Ontario, particularly in regions where up under the present agreement – if an- we had conducted town halls. More the reach of these groups is substantial. % TAO is acting as a common bridge other $10 million were paid, really a pal- about them later. try sum for transport infrastructure. % Some of these groups were influen- between these groups – passing intelli- gence, new ideas and support between Some see the province's agreement to tial in supporting Bill Walker (MPP pull up track -- which could be saved for Bruce-Grey-Owen Sound) as he success- them. So let a thousand voices speak on en- hancing intercity passenger rail in Ontario! ■ only $10 million -- as a strategy to embar- fully proposed a resolution at Queen’s rass the federal Conservatives, who are Park in November to form an all-party not officially a party to the present deal. Rural and Northern Ontario Transporta- New Brunswick cuts deal with The feds would ride in on a white horse tion Committee. The government has CN that will kill VIA’s Ocean pronouncing preservation of the whole yet to act on this, but it is a step forward. ...continued #om PAGE 1 of the Newcastle Subdivision rather than % Greg Gormick continued his activi- dismemberment. It is quite evident this ties, producing a report in January, 2014, launched. This 177-page study by con- sultant Greg Gormick grappled with is not going to happen. together with Transport Action Atlantic, % Gormick's report is an outcome of on “Revitalizing New Brunswick’s Rail three issues: keeping and developing rail for freight; bringing back the Oceanas a grassroots activism. After Transport Ac- Sector.” It received huge media coverage tion's National Dream Renewed cam- in the Maritimes. And a more recent daily train serving the large population between Moncton and 's Gaspé; paign in the Maritimes in late 2012, the Op Ed newspaper article by Greg enti- public began to ask how the Oceancould tled “Fixing Canada’s Ailing Rail System” and restoring Moncton's rail equipment remanufacturing industry. be brought back as a daily train, and how has been picked up by numerous Cana- the track on the North Shore could be dian newspapers. % The second report event, on January 24, was the announcement by the Prov- kept? Responding to these concerns, the % There are at least 6 non-government municipalities of Bathurst, Dieppe, Mi- organizations in Ontario, in addition to ince and CN of a financing deal that would upgrade some of CN's track for ramichi, Moncton, and Riverview joined TAO, advocating for passenger rail. Here forces with Enterprise Greater Moncton is a brief summary of their recent activities: freight service, but would sacrifice the 71- km mid-section between Miramichi and and Transport Action Atlantic to under- ● Coalition of Algoma Passenger take a fact-finding study by Gormick, Trains (CAPT): Conducting public Bathurst, effectively killing the Oceanand ending a passenger service through this tasking him to look at solutions that are meetings and political advocacy to fore- region that harks back to Confederation. best practices in North America. stall closure of ACR passenger service. New Brunswick Premier David Alward % In late 2013, this study and some of ● Getting There (Stratford): Public (Conservative) is hailing the deal with its advice were getting substantial atten- awareness campaign with film night. CN as saving rail freight for this area and tion in the media as a result of the re- ● Northern and Eastern Ontario Rail paving the way for future growth in the lease of some advance drafts of parts of Network (NEORN): Obtaining munici- freight sector. But many others, includ- the report. A key recommendation of pal resolutions supporting passenger rail. ing this editor, are not convinced and see the Gormick study is that the province, Met with Ontario Ministry of Northern the deal as a setup for failure. with help from the feds, acquire CN's Development/Mines and Ministry of % New Brunswick has offered $25 mil- North Shore track to be leased to a short Transportation. line railway operator. A short line would ● lion to CN to maintain 129 km of track Rail Action in Lambton (RAIL): in two parts, 99 km from Catamount have the incentive to grow its freight This Sarnia-based group met with VIA

WWW.TRANSPORT-ACTION.CA Advocating for sustainable public and #eight transportation% PAGE 2 TRANSPORT ACTION ONTARIO NEWSLETTER% JANUARY-FEBRUARY 2014 business by offering quality customer North MP Bruce Hyer, boarded the % The disingenuous actions planned by service, and would want to keep the Oceanin Halifax for a whistle-stop tour the Province to rip up track which will track in a condition that would allow for of towns and cities affected by the VIA kill the Oceanare plain to see. The the further operation of VIA's Ocean. cuts and the coming possible abandon- Oceanpays track usage fees for CN's Taking this alternative would still have ment of passenger train service to the North Shore. No Ocean, less revenue for required some government assistance Maritimes, which could come as early as any operator of any remaining North with upgrading the track. This grass- July. In Moncton he was joined by New Shore track. What's left is two stub- roots idea for rail revitalization appears Brunswick Green Party leader David ended branches with limited revenues. to have made no impact on the province Coon. Hyer's message is that Canadians Why would a short line even consider whatsoever. should take a stand on keeping its trains. the very limited possibilities of the piece % The paramount goal of killing the Hyer told the media that the planned 71- to be abandoned if it is denied the traffic Oceanwas apparent to MP Yvon Godin, km track abandonment can be halted by on the on the adjacent pieces? What is representing Acadie-Bathurst (NDP). an investment of $10 million, the cost of the value of the hole in the doughnut? On Feb. 6, in Parliament, Godin blamed three kilometres of highway. Though the Minister Raitt proclaims that the aban- New Brunswick's eight Tory MPs (the Harper government doesn't care about donment process is an opportunity for province has 10 MPs) of "sitting on their the rail system being dismantled, he others to step into the breach. But the hands" and allowing the North Shore to noted that the public sees the value and planned deal will actually have the oppo- lose "this service that they rely on." Go- benefits of rail as the most economic and site result: there are no incentives what- din noted that ending the Oceanwould environmentally sustainable way to move soever for any short line. Raitt knows make travel much more difficult for the people and freight. "We are the only that the Province won't step forward on 350,000 to 400,000 people that the country in the G20 that doesn't have a the $10 million. That leaves the munici- train serves in Eastern New Brunswick national rail strategy," he said. palities to come up with the funds to and parts of Quebec. The Tory response % New Brunswick's deal to lift the rail save the rail, the one level of government was strident. Transport Minister Lisa line between Miramichi and Bathurst has across Canada with the least ability to Raitt responded to Godin, explicitly stat- been presented as being efficient and take on responsibilities that are truly ing the feds are not willing to pay $10 cost effective. Hardly! The absence of federal. After the dismemberment, million to maintain the Miramichi- on-line customers for 40 miles is given as watch the customers fade away. CN will Bathurst stretch of track, adding, “It's up the reason to pull up this particular pull the plug on the deal, and industrial for private sector cooperation, it's also track, but long stretches of track be- and tourist development, along with the there for the province or for the munici- tween customers is the norm in the rail basic passenger rail transport for the sig- palities to purchase the line. If there is industry. An efficiency gain in this case is nificant population of the North Shore, passenger and freight service, I'm sure laughable. Railways are efficient when will be lost. Yes, there is something really somebody will step up and take advan- they form a network. With the gap in wrong with this picture. ■ - Tony Turrittin tage of the opportunity." Other New the network at Miramichi, customers (A copy of the Gormick report is available at Brunswick Tory MPs have reiterated that north of Miramichi and into Quebec will //atlantic.transport-action.ca.) the government is willing to consider have to ship their freight hundreds of other options but will not "buy the track." kilometres west to Rivière-du-Loup be- Fundy Royal MP Rob Moore (Conscrva- fore it can be shipped back east to Rail and transit feature in tive) noted the option of running the Moncton for onward destinations in opposition party platforms Oceanthrough Edmunston to Moncton, a , New Brunswick and Maine. % As the federal election of 2015 ap- route Godin observed that goes through That will drive customers away, not en- proaches, and rail and transit become the woods with very little population. This courage them to ship by rail. ever more pressing public concerns, op- route is CN's busy short-cut freight line to % Furthermore, CN has been notori- position political parties are taking note. Moncton from Rivièr-du-Loup, Quebec. ous for not providing customers with the Here’s what has happened: % Transport Action Atlantic Acting- freight cars they need on a timely basis. % At the biennial Liberal convention in President Ted Bartlett pointed out that This situation will also be made worse by Montreal Feb. 20-23, priority resolution VIA has already cut the Oceanfrom six the planned track abandonment. Cut- #1 addressed the need for a national to three days-a-week and that not serving ting the track south of Miramichi has transportation strategy which includes the North Shore and Eastern Quebec stranded at least one customer and the addressing VIA Rail’s declining and er- will drive down ridership further. "They wharves on the north side of the Mi- ratic funding. cut the frequency in half, the schedule ramichi River, not very consistent with % On March 3, NDP MP Olivia Chow was made more inconvenient, there were the Province's claim that their deal is introduced Bill C-577, a VIA Rail Act. This hundreds of millions of dollars spent on designed to attract freight business long private member’s bill is comprehensive. It upgrading CN track in Ontario for VIA term. Finally, only upgrading track to the requires the maintenance of VIA’s route trains, now they won't invest $10 million south side of Miramichi (Nelson Jct.) system prior to the 2012 cuts, it gives VIA in this region," he said, adding "Now, there's threatens the two long railway bridges in trains scheduling and operational prefer- something wrong with that picture." the city of Miramichi itself. They could ence over freight services, and more. % On March 2, deputy-leader of the end up being scrapped at some signifi- % The Green Party’s platform is strong Green Party, Thunder Bay-Superior cant profit for CN. on rail and transit, and more position pa- pers on rail will roll out starting in April. ■

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Feds axe Sault-Hearst train % Editorial comment: MP Bryan track in the U.S. in the 1980s, and it ac- Hayes asked the government to delay the quired in addition the ACR in 1995. The ...continued "om PAGE 1 train cut for a year so that stakeholders ACR and quite a bit of WC track in Wis- Canyon Snow Train would cease running could search out alternative funding, but consin are clearly marginal to CN in (this train was not covered by the afore- this request has brought no result. How- terms of traffic. Many thousands of mentioned federal subsidy). ever, CN has now agreed to extend the kilometres of better performing track % According to the press, Hayes is not train's life one more month to April 29. than that of the ACR, and even strategi- taking responsibility for failing to an- % Why cut the train? It is a cost to the cally located track (CPR in the nounce the fed's decision claiming that feds. The problem stems from the Con- River Valley, for example) have already CN had to decide what to do next, add- servative's goal of reducing the size of been pulled up across the country. While ing that CN makes huge profits and government so that it can reduce corpo- the notion of a National Transit Strategy could have maintained the train paying rate taxes. The cut to the Sault-Hearst now gets a serious reception (though we for its losses itself ("CN and Feds knew" train complements what the feds have do not have such federal legislation), at www.sootoday.com, Jan. 28, 2014). done to VIA Rail. It's also a slap in the given the danger of closure of large parts % Transport Canada has stated that its face to the province. Under Canada's of the ACR, shouldn't the public also remote services subsidy program was constitution, railways are a federal juris- expect a National Railway Policy that reviewed in 2010 and that the ACR was diction. If the feds step away from their would protect and grow both freight and deemed to not qualify because the towns on the rail route have year-around road obligation, the transport problems still passenger rail? Such a policy is needed if access. That will be news to folks along remain, which in effect is a download to Canada is to retain a viable rail system the line, especially because this line the provinces as the next level of gov- for the future. ■ - Tony Turrittin ernment. In northern Ontario, passen- doesn't primarily serve towns. The Wawa ger train subsidies are not just for trans- News has found much evidence that the VIA 2013-17 Corporate Plan train does serve to provide access to re- portation, but also stimulate economic development for people and communi- ...continued "om PAGE 1 mote places, contradicting Transport ties. Unfortunately, for northern On- Canada's assessment. tario, the provincial Liberal's attitude has downward trajectory. Here are some % George Karasek is a trapper in the not been that different from the federal sobering highlights from this document. Oba Lake area. In the Wawa News he Conservatives. It was the provincial Lib- % Of VIA's route-miles, 70% use CN explains that he runs winter trap lines eral government that ended the North- track, 4% CP, 2% on VIA-owned track, that can only be accessed by trains as lander train service on the grounds of the and 24% on short lines. The figures for there are no roads available. His invest- cost of its subsidy, a train that clearly was train-miles are: 72% CN, 4% CP, 10% ment in three cabins and multiple boats. well patronized and added substantial VIA, and 14% short lines, reflecting the along with trapping and other equip- value to the region through which it higher number of trains on VIA's own ment, all worth $20,000 or more, will be passed in terms of economic activity. track compared to short lines, which stranded and lost as a result discontinu- % It should also be pointed out that generally host remote services. ing the ACR train. Many, many more the train cuts at VIA and in Ontario's % VIA's plan notes that in recent years individuals and businesses will also be north have been done with no input CN has experienced growth of freight hurt. In his Wawa News article Karasek whatsoever from the public. They have traffic and the running of longer freights names some 22 stops north of Hawk been stealth actions, presented as done which have eroded the on-time perform- Junction where people and businesses deals, though in the case of the Liberals ance of its transcontinental and Corridor will lose access. The cut will affect busi- in Ontario, while its train cut went trains. It indicates that in the past VIA nesses such as lodges and fish camps, through, the government has reconsid- has bought track to save certain routes cottagers, snowmobilers, many kinds of ered the fate of the ONR itself (no reso- and "is faced with the possibility that tourists, even the mail. Karasek com- lution of its fate as yet). further acquisitions may be necessary, ments that there are no private roads, % But there is now a very much more otherwise, train schedules may need to and that the old logging roads are mainly significant danger with taking away the be modified." No particular problem abandoned and often gated. At a dis- Sault-Hearst passenger train. It jeopard- routes are identified. tance is Hwy 17, closed often in winter at izes the ACR rail line itself. With no % The 2012 service cuts that have dis- least two days in a week. The railway, passenger train, revenues will be way rupted the lives of thousands of people - though, stays running. down. Look to CN to abandon a large regular and occasional travellers and em- % Residents are mobilizing to fight this portion of it, if not the whole of the ployees - and substantially reduced VIA train cut. The Coalition for Algoma ACR. That would be a major economic as a network have actually saved VIA Trains (CAPT) has held a series of three blow to the region and put future re- very little money. "Overall," the plan town hall meetings, in the Sault (Feb. 19), source development at risk, not to men- states, "the train service reductions that and in Wawa and Hearst (Feb. 20). Dis- tion even greater economic hardship for VIA implemented in 2012 are expected tinguished Canadian artist and environ- people in the region. to generate net savings (cost savings less mentalist Robert Bateman is urging % This scenario is not farfetched. The foregone revenues) of $10.8 million by keeping the train. A working group of FY 2014-2015." We submit that this is ACR came into CN ownership as a result stakeholders led by the city of Sault of buying the Wisconsin Central Ltd. peanuts compared to the social and Ste.Marie has been formed. A summary (WC) on October 9, 2001 in order to get transportation harm the public has sus- of actions to save the Sault-Hearst train ownership of its main freight line be- tained. can be found on the CAPT home page tween Duluth, MN and Chicago. The % VIA has discontinued train opera- website (//captrains.ca). WC was created to acquire Soo Line tions on Vancouver Island due to poor

WWW.TRANSPORT-ACTION.CA Advocating for sustainable public and #eight transportation% PAGE 4 TRANSPORT ACTION ONTARIO NEWSLETTER% JANUARY-FEBRUARY 2014 track conditions. The plan reports VIA % Under the presidency of Paul Côté, million for the LRC rehab is part of the is in negotiations with the Island Corri- VIA achieved a major capital funding diverted capital funds mentioned previously. dor Foundation, owner of the tracks, breakthrough with grants provided first % The story of the LRC rebuild deba- regarding "the terms and conditions by the Liberals and then by the Conser- cle is not a simple matter of IRSI de- whereby this service will be reinstated." vatives. VIA proposed a program of lo- faulting on its contract with VIA. There This is also the case for VIA's train to comotive and LRC coach rebuilding, was fault on both sides, such as IRSI not Quebec's Gaspé region. We believe that track upgrades in southwestern Ontario, having access to information on the ac- these are two cases that show the need on CN's Kingston Subdivision (Toronto- tual condition of each LRC car. Readers for provinces to help support short line Montreal) and Brockville-Ottawa-Coteau can read the more complex story by con- infrastructure. (mainly VIA own track), station im- sulting the recently published "Revitaliz- % VIA recognizes a tough travel mar- provements and replacements, and more. ing New Brunswick's Rail Sector" on the ket. After a solid rebound in 2010 from One main aim was to substantially im- Transport Action Atlantic website. the recession of 2008-2009, the domestic prove revenues in the Quebec-Windsor % A key element of VIA modernization economy softened in late 2011 and has Corridor by adding frequencies on faster in the Corridor is the Kingston Subdivi- remained lacklustre as consumers are schedules. Between 2007 and 2012, VIA sion upgrade. The corporate plan men- concerned over future income and job received $923 million for capital renewal. tions the agreement with CN to add four prospects. Even in these tough market % VIA's corporate plan for 2013-2017 sections of triple track, a total invest- conditions, though, the plan points out builds on the original breakthrough grant ment that "will be $373.1 million" plus $55 that airlines have offered increasing of 2007-2012. Given what is reported in million for station improvements. The competition in the Corridor. Air Canada VIA's new plan, we get the distinct im- triple tracking was to allow many more now offers 15 daily return flights between pression that the original program of VIA trains to use CN's line between To- Toronto Island airport and Montreal, and improvements aimed at transforming ronto and Montreal, yet not conflict with Porter offers 16 flights. Between Pearson VIA into an up-to-date rail system has freight movements. VIA has added a few and Toronto Island airport, travellers can gone seriously wrong. more frequencies Toronto-Ottawa. The choose from almost 100 return flights a % VIA's corporate plan reports that, of plan, though, does not acknowledge that day between Toronto, Ottawa and Mont- the 2007-2012 grants of $923 million, its train speeds have not increased, a re- real. This competition in the medium- there currently remains $115.7 million, sult of CN reluctance to see this done, distance market has especially affected which will be entirely spent by 2015. and problems that VIA has with its lo- its business class revenues, VIA says. VIA forecasts capital expenditures dur- comotives. Incredibly, according to the Airline seat capacity increases and dis- ing the plan period of $443.4 million. corporate plan, despite what VIA has count pricing "directly threaten VIA’s VIA is "seeking authority to reprofile paid to CN for the Kingston Subdivision end-to-end revenues, and these airline [sic]" $75.9 million to complete projects upgrade (it is completed), it will only in- tactics will substantially increase the cost authorized in 2007-2009 but not yet troduce new frequencies in 2016!! of securing and promoting future passen- completed. We take this as an admission % Close to the end of the plan, VIA ger growth." On a bright note, VIA says, that a large portion of VIA's capital grant admits it cannot complete the rehab of "In its short-haul markets, especially was diverted away from one set of pro- its LRC fleet without new capital fund- Montreal-Quebec City and Montreal- jects to pay for cost overruns on others. ing estimated as requiring $80 million. Ottawa, VIA’s financial results have im- % One particularly unfortunate project The plan comments, "As a result of the proved compared to 2011." Yet, we is the LRC rebuild. These lightweight project delays, the benefits expected would point out, in southwestern On- aluminum-bodied coaches, designed for from deploying the modernized rebuilt tario, short-haul markets have been de- speeds up to 125 mph, first went into cars will be deferred." Thus, we con- stroyed or abandoned by VIA, such as service starting in 1981. Rebuilding was clude, part of VIA's inability to improve Toronto-Niagara Falls, Toronto- intended to give these cars, the backbone service in the Corridor can be traced to Kitchener-London, London-Sarnia. of VIA's Corridor service, another 15 to the mismanagement of its fleet renewal. % For quite some time, VIA has raised 20 years of life. Originally, $120 million It is likely that cost overruns by CN in an alarm about its unfunded pension ob- was budgeted for the upgrading to be upgrading the Kingston Subdivision ligations. In this department VIA has done by Industrial Rail Services Inc. drained away funds originally designated been no different than many other public (IRSI) of Moncton, NB. for the LRC rebuild. This cannot be and private pension funds. Pension defi- % VIA's plan explains that IRSI de- firmly established from the cost figures cits have been a consequence of the eco- faulted on fulfilling its contract to rebuild that VIA has made public to date. nomic collapse of 2008-2009 leading to VIA's LRC cars, with the company sub- % Oddly enough, the new corporate very low bond interest and low stock sequently going bankrupt. IRSI com- plan reports VIA is spending $28 million dividends not matching required pay- pleted the upgrading of 10 LRCs. Work to upgrade the CN-owned North Main outs. The good news is that in 2013, was completed on another 10 cars by Line between Brampton-Guelph- bond and share yields have moved another company using the Moncton Kitchener-Stratford-London by installing higher; across North America pension shops of IRSI. VIA explains that it has centralized traffic control. Yet VIA has funds are returning to solvency. VIA's revised the scope of the upgrading, and cut service on this route to two trains a corporate plan acknowledges an easing to will tender the upgrading of 26 business- day. No mention is made in the plan of any its pension funding crisis, though it fore- class cars, and the remaining 52 coaches, future increase in service on this route. casts it will still need to top up its pen- for a cost of $106.5 million. Later in the % VIA's plan recognizes that the short sion plans for an accumulated $295 mil- plan, VIA indicates it does not have the line railways it uses for some of its trains lion to 2017. capital funds for this rebuilding program. have caused it serious problems. Poor We suspect most of the original $120 ...continued on PAGE 6

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VIA 2013-17 Corporate Plan In the course of the preparation of a cent corridor projects and CSX’s Na- tional Gateway, all designed to expedite ...continued "om PAGE 5 major report on rail investment for Thunder Bay-Superior North MP Bruce the flow of traffic on main lines from track and bridge conditions lead to Hyer, I’ve had to go back through the Maine to Mississippi to Missouri. There’s slower speeds for its trains. In two cases, reams of material I’ve been stashing away the unsnarling of urban rail congestion Victoria-Courtenay, and the Gaspé, serv- over the past few years on railway plan- through schemes such as California’s ice has been suspended awaiting upgrad- ning and spending in the U.S. On closer Alameda Corridor and Colton Crossing, ing. The plan does not call for help for inspection, this data is frightening if you Fort Worth’s Tower 55 and the massive such railways. care about Canada’s national railway sys- CREATE project in Chicago. % No mention is made in the plan of Then, there’s BNSF’s targeting of its the critical condition of one of VIA's tem and the policies – or lack of them – premier trains, the transcontinental that have led to the current crises in three key corridors for public and private Montreal-Halifax Ocean. For now, all safety and the system’s ability to handle investment. Canadians should be con- that is required to keep this train running vital commodities such as export grain. cerned by two of them. The Mid- is a $10 million investment from VIA to While it used to be fashionable to Continent Corridor slinks down North pay for maintenance of 44 miles of track sneer at the failure of the U.S. to main- America’s spine from Winnipeg to the between Miramichi and Bathurst. VIA is tain a modern rail system, Canadians Gulf of Mexico. The Great Northern willing to invest $28 million for signalling should sneer no more. America has a na- Corridor sprawls across the continent, the 90 miles of single track Brampton- tional rail plan chugging swiftly down the often just a few miles south of the bor- London, and its corporate plan reports line to final delivery under the authority der, on its way from Chicago to Portland, quite a few examples of other capital of their Federal Railroad Administration. Seattle and Vancouver. fund diversions for small projects, but That plan is impressive in breadth and depth. Owned by Warren Buffett’s Berk- nothing is set aside for reversing the Not only does the soon-to-arrive U.S. shire Hathaway investment group, BNSF situation in the Maritimes. This aban- National Rail Plan sketch out Washing- has been taken off the high quarterly donment will result in terminating train ton’s role, it has compelled states desir- dividend treadmill by the Oracle of service to eastern Quebec and the North ous of federal funding for rail projects of Omaha and instructed to invest properly Shore of New Brunswick with many regional concern to produce their own in its plant for maximum long-term smaller cities with an estimated regional statewide plans. There are now 49 of benefit. Buffett views this as good busi- population of 350,000 to 400.000. these plans in existence or in the works; ness and calls it part of his “societal con- % All in all, VIA's summary corporate tract” for the provision of the infrastruc- plan 2013-2017 makes for dismal reading. the only absentee is Hawaii, which has no rail service. ture necessary to make America boom. It has no vision for VIA as a national Couple that enlightened corporate sustainable transportation alternative. On top of these detailed rail plans, There are signs of mismanagement of there is another with a bearing on them viewpoint with public bucks for those capital funds and of self-inflicted de- all. Undertaken in 2007 by the Associa- BNSF corridors and you’ve got a stealth struction of markets in southwestern tion of American Railroads, it identifies railway that can lure considerable traffic Ontario and eastern Canada. Transport the capacity and investment needs of the and revenue off two Canadian railways Action subscribes to the view that trains 52,340-mile national core rail freight sys- that aren’t investing properly and don’t are the travel choice Canadians want. tem through 2037. It quantifies the in- want government funds because they feel Those aspirations are not served by a dustry’s ability to fund the required $148 it will allow the public to meddle with VIA under the increasing constraints of billion capital investment and the private their businesses. Of the six largest North the current federal government. ■ sector’s $39 billion shortfall; Amtrak and American railways, CP and CN invest - Tony Turrittin commuter agency needs are on top of this. the least annually in capital renewal on a per-mile basis; BNSF’s reinvestment is The implication of that figure is almost twice that of CP. Op-Ed Analysis quite clear: Someone is going to have to pick up the tab and it will, no doubt, be Finally, add in governments in Ot- the public. That likelihood is excellent tawa and the provincial capitals with no Danger ahead: working interest in a national plan or funding rail without a (rail) net given U.S. rail spending habits of late. Despite what Canadians may think projects with both public and private by Greg Gormick benefits. You wind up with a nation that’s about the land of free enterprise’s atten- economically, socially and environmentally % Imagine a country with a national tion to public needs, many politicians heading for the brink of the cliff. Welcome plan that links its two senior levels of there have recognized that a fully func- to Canada and its current railway mess. government and its railways, and identi- tional rail system is vital to U.S. eco- fies its needs for the next 25 years. nomic and social prosperity. The proof is Those who understand the value of a It would be nice to report that this coun- the growing number of P3 railway pro- robust and modern national railway sys- try is Canada. It isn’t. What should be jects to boost the U.S. system’s ability to tem might, therefore, want to reverse the doubly concerning is that, while we don’t handle the growing freight, intercity pas- title of Bobby McFerrin’s 1988 hit record- have such a plan or even a desire on the senger and commuter traffic. ing and adopt the motto, “Don’t be part of our governments to create one, Just look at the long list of such pro- happy, worry.” ■ the process is well under way just south jects. On the long-haul scene, there’s the © 2014 by Greg Gormick of our border. Norfolk Southern Heartland and Cres-

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2013. On a 10-minute headway, the KP seating 62 on an upper level, and 12 on World News line can move 86,000 riders a day. the lower level. Superliner sleepers have % Siemen's Desiro RUS is a regional 5 bedrooms (2 person) and 10 roomettes Welcome to Sochi! electric train built for Russia's 5ft-gauge (2 person) on the upper level, and on the % For most of February, the Black Sea track (1520mm), with a floor level at 1.4m lower level, one family room (2 adults/2 city of Sochi (pop. 340,000) hosted the (55"), and a car width of 3.48m (11.5ft), children), 4 roomettes, and one accessi- 2014 winter Olympic and Paralympic seating 443 over five cars. Top speed is ble room (2 person) for a total of 44 pas- Games. Sochi became a fashionable re- 160 kph (100 mph) and these trains are sengers. By comparison, this new Rus- sort community under Stalin and has capable of climbing 4% grades. The first sian double-decker train is more spa- long been known as Russia's informal of the Siemens trains went into service cious. However, it lacks the greater pri- "summer capital" because of its popular- on Jan. 23, 2014. vacy of the Amtrak design. Compart- ity with high ranking government offi- % As in so many resort communities ment rooms for four sleep unrelated cials on holidays. Hosting the winter with a linear urban form, the few road adults in two bunks on either side of the Olympics was a personal project of Rus- corridors become clogged with cars and compartment. The new Russian bi-level sia's President, Vladimir Putin. trucks in high season. Such was the case has a cross-section of 3.2m (10.5ft) in % Sochi is an amalgamation of several in the Sochi area, with people reporting width, 5.25m (17ft 3in.) in height; Super- urban districts stretching at least 20km one to three hour drives to get to the ski liner cars are 3.1m (10ft 2in.) in width and along the Black Sea. Its international resorts. Now that trip is 30 minutes or 4.85m (15ft. 11in.) in height; GO bi-level airport is located in the most easterly less between Adler and KP. The Sochi commuter cars are 3.0m (9ft 10in.) in suburb of Adler next to the Mzymta region also has an extensive bus transit ...continued on PAGE 8 River. Population along this part of the system as well as the new fast regional rail. Black Sea is hemmed in by the Caucasus % Sochi of course is on the Russian Mountains rising here to roughly 2500m railway system. However, it is expected above seal level. Sochi is at the same that most Olympic visitors will fly to latitude as Nice, France, with an average Sochi. Russian Railways has instituted a daily temperature in February between new daily passenger train using double- 2C and 10C. deck cars between Moscow and Adler, % The winter games have generated leaving Moscow in the morning and tak- hundreds of infrastructure projects for ing 24.5 hours to reach Sochi. Russia is a Sochi including new game facilities, ho- large country, and this trip is 1,767 km tels, roads and highways, and more. long (1031 miles). This brand new train There are two clusters of Olympic facili- of 15 cars includes 12 compartment ties. The Olympic village and indoor coaches, one diner, one sleeping car, and event facilities were built east of the air- one crew car, with a total of 798 seats port in Adler, this cluster being known as (excluding the crew car). Each com- Olympic Park (coastal cluster). The out- partment car has eight four-person com- door event facilities and more hotels partments on each floor with the corri- were built some 40 km up the Mzymta dor being at the side of the coach. The River valley at Krasnaya Polyana (KP), sleeping car has eight two-person com- the mountain cluster. A ski resort known partments on the top, and six two-person as Alpika-Service was first developed compartments on its lower level, with a here in the early 1990s. The new moun- lower level disability compartment for tain cluster has been connected to two persons (total 30). Olympic Park, Adler airport, and Sochi % The Moscow-Sochi train service of by a new electrified railway built between 24 hours illustrates another feature of Adler and KP along with a new road par- Russian Railways. It carries an enormous alleling the railway. amount of freight. To maximize its ca- % A light rail metro with three lines pacity to keep freight moving, the rail- was originally planned for Sochi and its way operates all of its trains at the same Olympic venues. Eventually, it was de- speed, about 80 kph (50 mph), avoiding cided to redevelop existing rail lines with passing issues outside terminal areas. a commuter train style of operation. The Only recently have high speed passenger Russian Railways took on this project trains been introduced Moscow- and built the new rail line to KP which St.Petersburg, St.Petersburg-Helsinki has 6 tunnels, numerous bridges, and a (Finland), and Moscow-Nihzny Novgorod. Top photo: New Siemens Desiro RUS train top speed of 160 kph. Bombardier was % This first Russian double-decker pas- for the electrified regional rail network at to construct new trains for Sochi, but senger train owes much to U.S. passenger Sochi. Bottom two photos: new Russian Siemens eventually got the contract. trains development. Currently, Amtrak's Railways bi-level compartment passenger Some 38 Desiro RUS 5-car trains are now bi-level Superliner trains have coaches train for Moscow-Sochi (Adler) service. in service. The KP route opened Nov. 1, (www.russiantrains.com/en/page/moscow-sochi-train)

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Welcome to Sochi! Recent Transport Action Ontario Advocacy Documents ...continued "om PAGE 7 width and 4.85m (15ft 11in.) in height. TAO’s advocacy includes preparing key Gardiner Expressway and Lake % On an historical note, it was in 1956 documents for presentation to committees, Shore Boulevard East Reconfigu- that the Santa Fe Railway first intro- agencies, staff and elected officials at all lev- ration EA March 2, 2014 duced stainless steel Budd bi-level cars els of government. Below are some recent TAO has participated in the stretched out for the all-coach El Capitan that ran key advocacy documents that are available Environmental Assessment about the future daily between Chicago and Los Angeles on TAO’s website: of the downtown portion of the Gardiner (2223.7 miles in two-nights and a day). ✧✧✧✧✧✧✧✧✧ % The Sochi winter Olympics, which Expressway. We support the City staff posi- were intended to showcase Russian Review of potential future safety tion to remove this elevated portion. The power, were to have cost $12 billion. zones at Toronto Island Airport Gardiner affects only 3% of downtown- Joshua Yaffe of Bloomberg Businessweek with...jets September 23, 2013 bound traffic which is manageable. Re- (Jan. 2, 2014) estimates that the real cost Stay tuned! This document is being revised was $51 billion, surpassing the $40 billion moval would free up land for other uses. to add more startling information to make Replacement by road frees up capital funds that China paid for the 2008 summer an even stronger case against the proposed Olympics. The cost of the rail-road link airport expansion to accommodate jets. for other uses such as transit infrastructure. ✧✧✧✧✧✧✧✧✧ Alder to KP alone was $9.4 billion. So- ✧✧✧✧✧✧✧✧✧ chi will host 2,500 athletes compared to 11,000 for the summer games, fewer Response to: Transport Canada events (86 vs. 300) and even fewer venues Needs Assessment study - Picker- MEMBERSHIP AND (15 vs. 40). The summer Olympics will be ing Lands, 2010 February 2014 CONTACT INFORMATION held in 2016 in Rio de Janeiro. The GTAA is again pushing for the con- % Putin's business friends have bagged Email and mailing addresses: struction of Pickering Airport northeast of [email protected]. many contracts for construction in So- Toronto. We dispute the need and make chi. When the Olympics are over, Sochi seven points - projections of need don’t Mailing address: Box 6418, Sta. A, will remain a top ski resort destination. consider the intercity rail option, etc. Toronto, ON M5W 1X3. The regional electric rail notwithstand- ✧✧✧✧✧✧✧✧✧ Telephone: 416.504.3934 or toll free ing, the privileged also have a brand new long-distance 1.866.542.1067 or con- fast highway to reach the slopes at KP in Presentation to Toronto Planning tact our President: 905.477.8636. their private cars. Green this is not: its and Growth Management Cttee on economic viability still rests on interna- Regional Rapid Rail Feb.26, 2014 Website: //transport-action-ontario.com TAO’s RRR plan highlights the benefits of tional air travel. At least Russia hasn't yet Join Transport Action to help us ■ electrification of GO Transit rail lines and ripped up great parts of its rail network. advocate for sustainable transportation. offering all-day two-way service with EMU ...continued from Page 1 By joining Transport Action Ontario, trains. Benefits for Toronto: 3 new GO sta- you also become a member of Trans- TAO Annual General Meeting: tions downtown; potential for TTC subway port Action Canada. Members receive Sat., April 26, 2014, Metro Hall, 55 John pressure alleviation, and more. Ontario Report as well as our national Street (at King), Toronto, Rm 308/9 Ontario Report is published by Transport newsletter TransportAction. ➣ TAO business meeting 10:00 am: Action Ontario, Box 6418, Sta.. A, Toronto, Reports by President, Treasurer, etc. Ontario, M5W 1X3. To join, send your name, address, Election of executive and directors: telephone number, email address (if Nominations are now open; they can any), and membership fee to our box ISSN 1923-1040 (Print) address above. Our annual member- be submitted to the Secretary, Bruce ISSN 1923-1059 (Online) Budd, at [email protected], or by ship fees are: introductory (1st year only) $20; regular $35; senior $30; stu- telephone at 416-690-3299. Editor: Tony Turrittin ➣ dent $25; low income $20; family $50; Lunch noon to 1:30 pm. Restaurants ([email protected]) non-profit affiliate $75; business $170. are numerous in the area. Members Ontario Report is published bi-monthly in Transport Action Canada is a registered and guests are welcome to join us at the Feb.,Apr., June, Aug., Oct. and Dec. charity and donations to it receive a tax- Aroma Restaurant, 121 King St. West Contributions of news and items are credit receipt. Its website address is welcome. We are looking for (2nd floor), across from Metro Hall, //www.transport-action.ca. serving an East Indian cuisine buffet. correspondents. Submissions, including ➣ Afternoon forum: See front page. articles and letters, are subject to Board meetings: first Thursday of ➣ Getting to Metro Hall: St. Andrew acceptance and editing. Statements in this the month except in May and July, in publication are those of the respective station one stop north of Union Station on downtown Toronto. If you wish to authors and are not official policy which is the University subway line. At St. Andrew approved by the Board of Transport Action participate, please contact Peter Mi- stay underground; follow signs to Metro Ontario. Thanks to all who helped out with asek at 905.477.8636 or by email at Hall. Or alternatively exit at King St. sta- this issue including volunteers at the National peter.miasek @rogers.com to confirm tion (on Yonge subway line); take the King Office in Ottawa. News to March 3, 2014. as date, time and location may change. streetcar west to John Street.

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