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Summary of the 2017 – 2021 Corporate Plan and 2017 Operating and Capital Budgets

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Summary of the 2017 – 2021 Corporate Plan and 2017 Operating and Capital Budgets SUMMARY OF THE 2017 – 2021 CORPORATE PLAN AND 2017 OPERATING AND CAPITAL BUDGETS 2017-2021 SUMMARY OF THE CORPORATE PLAN / 1 Table of Contents EXECUTIVE SUMMARY .................................................................................................................................. 5 1. MANDATE ............................................................................................................................................ 15 2. CORPORATE MISSION, OBJECTIVES, PROFILE AND GOVERNANCE ..................................................... 15 2.1 Corporate Objectives and Profile ................................................................................................ 15 2.2 Governance and Accountability .................................................................................................. 15 2.2.1 Board of Directors ............................................................................................................... 15 2.2.2 Train Services Network Changes ......................................................................................... 17 2.2.3 Travel Policy Guidelines and Reporting .............................................................................. 18 2.2.4 Audit Regime ....................................................................................................................... 18 2.2.5 Office of the Auditor General: Special Examination Results ............................................... 18 2.2.6 Canada Transportation Act Review .................................................................................... 19 2.3 Overview of VIA Rail’s Business .................................................................................................. 22 2.3.1 VIA Rail Services .................................................................................................................. 22 2.3.2 Canada’s 150th Anniversary ................................................................................................. 24 2.3.3 Centennial of the Battle of Vimy Ridge ............................................................................... 26 2.3.4 Assets Used to Support the Services ................................................................................... 26 3. THE BUSINESS ENVIRONMENT, STRATEGIC DIRECTION, RESULTS OVERVIEW ................................... 32 3.1 General ........................................................................................................................................ 32 3.2 Passenger Rail examples and the Canadian context ................................................................... 33 3.2.1 Recent Developments ......................................................................................................... 34 3.2.2 The Canadian Context: Dedicated High Frequency Passenger Rail .................................... 35 3.3 Corridor ....................................................................................................................................... 35 3.3.1 Financial Performance – 2012 to 2016 ............................................................................... 35 3.3.2 Business Environment, Threats and Opportunities, and Strategy ...................................... 36 3.3.3 Corridor Strategy ................................................................................................................. 39 3.4 Long-Haul and Regional .............................................................................................................. 46 3.4.1 The Canadian ....................................................................................................................... 47 3.4.2 The Ocean ........................................................................................................................... 49 3.4.3 Regional services ................................................................................................................. 50 3.4.4 Strategic Direction .............................................................................................................. 51 SUMMARY OF THE 2017-2021 CORPORATE PLAN / 2 3.5 Other Expenses ........................................................................................................................... 55 3.5.1 Unallocated Expenses Net of Other Revenues ................................................................... 55 3.5.2 Capital Expenditures ........................................................................................................... 55 3.6 Vision 2020 and Destination 2025 .............................................................................................. 56 4. OVERVIEW OF THE 2017-2021 OPERATING PLAN .............................................................................. 60 4.1 Revenues ..................................................................................................................................... 60 4.2 Operating Expenses .................................................................................................................... 61 4.3 Capital Expenditures ................................................................................................................... 61 4.4 New Federal Government Infrastructure Investments .............................................................. 61 4.5 New Grade Crossings Regulations .............................................................................................. 62 4.6 Additional Requirements for 2017 to 2021 ................................................................................ 62 4.6.1 Ongoing Capital ................................................................................................................... 63 4.6.2 Fleet Renewal ...................................................................................................................... 63 4.6.3 Station Renewal .................................................................................................................. 63 4.6.4 Infrastructure Investments ................................................................................................. 63 5. HUMAN RESOURCES ........................................................................................................................... 65 5.1 Workforce ................................................................................................................................... 65 5.1.1 Forbes 250 Best Employers ................................................................................................. 65 5.1.2 Employment of Veterans and Reservists ............................................................................ 65 5.1.3 Reservists ............................................................................................................................ 66 5.1.4 Apprenticeship Program ..................................................................................................... 66 5.2 Labour relations and collective agreements ............................................................................... 66 5.2.1 Unifor (formerly CAW) ........................................................................................................ 66 5.2.2 Teamsters Canada Rail Conference (TCRC) ......................................................................... 66 5.3 Compensation ............................................................................................................................. 67 5.4 Alignment with Government of Canada Pension Plans .............................................................. 67 5.5 Employee Engagement ............................................................................................................... 67 5.6 Succession planning .................................................................................................................... 68 6. FLEET CONDITION ............................................................................................................................... 69 6.1 Asset condition ........................................................................................................................... 69 6.1.1 Cars...................................................................................................................................... 69 6.1.2 Locomotives ........................................................................................................................ 70 SUMMARY OF THE 2017-2021 CORPORATE PLAN / 3 7. CORPORATE SECURITY STRATEGY ....................................................................................................... 71 8. ENTERPRISE RISK MANAGEMENT ....................................................................................................... 72 8.1 Safety of Passengers, Employees and the Public ........................................................................ 72 8.2 Employee Contribution ............................................................................................................... 72 8.3 Government and Strategy ........................................................................................................... 73 8.4 Operating Funding ...................................................................................................................... 73 8.5 Funding of Pension Plan Liabilities .............................................................................................. 73
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