MASK-WA OO-TA-BAN BEAR TRAIN
PASSENGER TRAIN SERVICE BUSINESS PLAN TABLE OF CONTENTS
MASK-WA OO-TA-BAN BEAR TRAIN
PASSENGER TRAIN SERVICE BUSINESS PLAN
CONTENTS
06 Executive Summary 56 Economic, Employment & Tax 08 First Nations Reconciliation Generation Impact Initiative 58 Appendix 1 10 Benefits of the Bear Train 60 Appendix 2 Service 62 Appendix 3 Impact of the Lack of 12 64 Appendix 4 Passenger Rail Service 66 Appendix 5 16 Impact on Local Business 68 Appendix 6 17 Remote Communities 69 Appendix 7 20 Mitigating Climate Change 72 Appendix 8 21 Governance & Management of Mask-wa Transportation 74 Appendix 9 Association Inc. 76 Appendix 10 26 Operations Plan 77 Appendix 11 35 Inter-Community Travel 78 Appendix 12 36 Tourism 80 Appendix 13 48 Events 84 Resolutions of Support 50 Marketing 98 Addendum – Weekend Only Services 52 Five Year Financial Projection 103 Glossary of Acronyms
MISSANABIE CREE FIRST NATION 726 Queen Street East, Sault Ste. Marie ON P6A 2A9 T: 705-254-2702 | [email protected] | www.missanabiecreefn.com
2 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE Cover photo: Virgil Knapp LETTER: RICHARD LANDE
LETTER FROM RICHARD LANDE LANDE LANGFORD AVOCATS/BARRISTERS & SOLICITORS TRANSPORT LAW
Richard Lande, B.A., LL.L. F.C.I.T., Ph.D. Honorary Consul General Union of the Comoros 5375 Blind Line, Burlington, ON L7P 0B1 phone: 905-319-1244 fax: 905-331-8580 email: [email protected] Michel Langford, LL., B. 6020 Jean Talon East, 700, Montreal, QC H1S 3B1 phone: 514-257-9999 fax: 514-257-7339
To the Bear Train Working Group: Our firm has reviewed and updated the financial analysis and business plan which was provided by BDO in 2018. We have also reviewed the corporate strategy plan which was drafted with the assistance of Al Errington in 2016. In fulfilling this more recent mandate, our firm’s railway and accounting expertise included:
Gerry Gionet who has worked in railway operations for over 40 years and is presently CEO of GIO Rail and Trillium Railway which operates short line trains in Port Colborne and Orangeville. He worked as a trainman, conductor and locomotive engineer, road foreman, manager of road operations and then superintendent at CP Rail from 1971 to 2014.
Richard Lande, railway lawyer who has worked for BNSF, CN, CP, Wisconsin Central and Soo Line for 44 years. He was President of Quebec Central Railway and Massawippi Railway. For the past 20 years he has been the Administrator of the Orangeville to Brampton Rail Access Group which operates twice a week on what was the former CP Rail Owen Sound Subdivision.
Frank Lekivetz is a financial expert who has decades of experience in analyzing financial statements and preparing economic forecasts. Frank has his MBA from Queen’s University and worked for multinational accounting firms such as Arthur Andersen and Deloitte and Touche from 1988 to 2015.
The Missanabie Cree First Nation (MCFN) hired Kevin McKinnon who was formerly with the Railway Association of Canada to lead the project of successfully applying for a Railway Operating Certificate (ROC). Kevin started his railway carrier in 1977 with CP in Sudbury, Ontario and served as a conductor, engineer, train master and instructor of operating practices in North Bay. He then served as the general manager of the Goderich Exeter Railway and the regional manager of safety and operating practices for Rail America (Eastern Canada region). He was the director of regulatory affairs for the Railway Association of Canada until 2015.
Under Chief Gauthier’s instructions, Mr. McKinnon worked with CN and Transport Canada in 2017 and 2018 to obtain the ROC. Therefore, as soon as the Missanabie Cree First Nation receive the necessary funding from Transport Canada, the Algoma passenger train service will be ready to commence operations in Northern Ontario.
The Missanabie Cree First Nation also engaged the services of Ken Bitten who has been the president of Northern Central Railway, Indian Head Central Railway and Mid Atlantic Rail Car. He has also worked MISSANABIE CREE FIRST NATION for the Iowa Pacific as a passenger car mechanic, locomotive engineer, director of passenger services 726 Queen Street East, Sault Ste. Marie ON P6A 2A9 and general manager. Ken contributed the sourcing for the passenger equipment which is available for T: 705-254-2702 | [email protected] | www.missanabiecreefn.com purchase or lease in the summer of 2019.
Cover photo: Virgil Knapp BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 3 LETTER: RICHARD LANDE
Chief Gauthier has met several times with senior executives at CN Rail, who have assured him that CN respects the rights of the First nations and will cooperate with regards to the transition to reactivate the Algoma passenger service, provided their requirements regarding insurance and the selection of an experienced GM are met.
This rail line between Sault Ste. Marie and Hearst is already operating for CN freight trains every week. Therefore, it is not necessary for the Missanabie Cree First Nation to maintain the track, signals, bridges, crossings. By paying CN the rental of the right of way, this would therefore forego any of the requirements for the Missanabie Cree First Nation to oversee the capital expenditures on the line as well as to manage the safety requirements of the line such as evaluating the results of a track geometry car, replacing ties, inspecting bridges, and complying with Transport Canada safety regulations pertaining to the track.
We have vetted the financial and business plan of BDO, and we have further reviewed the train schedule which was included in the corporate strategy plan as well as the operations plan. We are of the view that the Algoma passenger rail service can be reinstituted according to the attached report. There is no technical or structural reason why this service which existed 102 years, cannot be revived as soon as the federal government gives the necessary funding.
The Algoma Passenger Train provided an essential public service for Canadians in Northern Ontario for 102 years. It was originally owned and operated by the Algoma Central Railway until 2000, then by Wisconsin Central, and since 2003 by CN. When CN purchased Wisconsin Central, they acquired all the obligations to provide regular rail services which were an integral part of Wisconsin Central and formerly Algoma charter. If the charter of the ACR required it to provide passenger service in exchange for land grants, then CN retains those same legal obligations.
There is no other way, other than by the rail line, of accessing a multitude of remote Northern Ontario communities along this corridor. Residents of these communities depend upon the rail line to get their food and supplies and to access their properties and businesses.
CN received a Remote Rail Subsidy of $ 2.2 million per year to support their passenger operations on the Algoma line from Sault Ste. Marie to Hearst. In addition, CN would have received all the revenues of the passengers. It is important to consider that CN currently operates a profitable freight service on the Algoma line. Therefore, they are maintaining the line according to the Canadian Transport Agency and railway safety regulations irrespective of whether there is a passenger service.
It would clearly be in the better interests of the stake holders of Northern Ontario to have an operator who had the requisite experience and long-term motivation to operate this service which is essential to the community of First Nations and other residents and communities of the affected regions.
Since the discontinuation of the Algoma Passenger Train in 2014, there have been hundreds of people who have been disenfranchised. Some have had to abandon their homes; others have had to risk unsafe passage on the logging roads to get to their properties. The commercial lodges and outfitter businesses have been decimated. Those who venture to use the private industrial roads often have to travel in on an all-terrain truck and carry buzz-saws with them, since the logging companies do not regularly maintain their roads. In fact, use of these private industrial roads is not open to the public. They are marked with “No Trespassing” signage.
The Provincial and Federal governments have exhibited an inconsistent support for passenger traffic in Northern Canada. For example, VIA Rail has this year been given $2.5 million to support the rail line from Mattawagan to The Pas in Manitoba. Ironically, a government contribution of $5 million was recently authorized for a new rail passenger station in Sault Ste. Marie. This begs the question of why a new passenger rail station is being subsidized by Canadian taxpayers if there is no passenger service, other than a seasonal tour train to Agawa Canyon.
4 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE LETTER: RICHARD LANDE
The five-year budget which has been presented herein, has been drafted in an intentionally conservative manner. For example, the ridership on the Algoma Passenger Service is only estimated to commence at an average of 15 passengers paying $100 for a round trip. By contrast, the VIA Passenger Service between Sudbury and White River, Ontario reported 6,312 passengers last year, generating revenues of $233, 000. Both lines are almost identical in length (the VIA line is 480 km and the Algoma line is 476 km) and travel through very similar remote territories.
This in turn prompts two questions. First, why would a similar line also in Northern Ontario, exhibit such popular usage, if not for the demand of residents, tourism, Indigenous communities and mining and forestry workers being the same as the discontinued Algoma Passenger Line? Second, why should these communities have rail access when the Indigenous First Nations on the Algoma line have none?
In summary, the burgeoning demand for rail service between Sault Ste. Marie and Hearst is estimated in the BDO Economic Impact charts which are found at the end of this report.
There are several factors which would lead us to predict higher ridership than what is estimated in the 5-year budget. They include:
• Indigenous culture and representation and • Mining and forestry workers and alternative Indigenous Tourism Market back-up transportation (for example, if the Dubreuilville mine were to close due to road • Equipment which is accessible to people shutdown) with disabilities and seniors favourable to the Accessible Tourism Market • The resurgence of lodges and outfitters dependent upon the Algoma trains (several • Environmentally committed tourism Sault Ste. Marie hotels have suffered since they • Overseas tourists (last year represented 2% could not offer Northern packages on of visitors, but 20% of revenues) the passenger train.) • Recently developing Group of Seven • Franco-educational and tourist programs Tourism Market (Hearst and Dubreuilville are 95% francophone)
Many of these ridership generators are highlighted in greater detail in our attached report. However, it should be remembered that the overriding purpose of re-instating the Algoma passenger train is to achieve an expression of reconciliation with the four First Nations whose members live in this region and whose ancestral lands are dependent upon access to other parts of Canada. Public passenger transportation is not intended to earn a profit. It is a basic human right. Although there may exist premium rail passenger service such as the Orient Express or the Japanese bullet train or the Rocky Mountaineer, which cater to an audience who can afford to pay thousands of dollars for a rail vacation, the great majority of rail passenger service around the world (and including VIA Rail and Amtrak) are subsidized by their respective governments.
Therefore, this 5-year business plan is intended to provide a realistic overview of the costs and revenues of continuing the Algoma passenger rail service in a safe and professional manner, by the Missanabie Cree First Nation. Our firm has been assisted by an advisory group of railway operations experts in the vetting and support of the attached implementation plan. This advisory committee includes Gary Schlaeger, former Vice President of Burlington Northern Railway, Travis Smith, Vice President of the Genesee & Wyoming Railway, Francois Prenovost, Executive Vice President of Rail Term and Aaron Degodny, President & Chief Operating Officer of Rand Logistics Inc.
Richard Lande (Lande Langford)
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 5 EXECUTIVE SUMMARY
Executive Summary
Mask-wa Oo-ta-ban, the Bear Train, is an initiative of the Missanabie Cree First Nation, with the support of the Algoma Passenger Train Working Group (APTWG) or Bear Train Working Group (BTWG), to re-establish the Algoma passenger train service. This service will support the social, economic, employment and remote access needs of the First Nations, communities, residents, businesses and socio-economic stakeholders of the Algoma Passenger Train corridor.
The operators of Mask-wa Oo-ta-ban are committed to safe, reliable, efficient and effective passenger train operations guided by the First Nation values taught by the Seven Grandfathers; Wisdom, Love, Respect, Bravery, Honesty, Humility and Truth:
check To cherish knowledge is to know wisdom;
check To know love is to know peace;
check To honour all of Creation is to have respect;
check Bravery is to face the foe with integrity;
check Honesty in facing a situation is to be brave;
check Humility is to know yourself as a sacred part of Creation;
check Truth is to know all of these things.
Photo: Destination Northern Ontario
6 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE EXECUTIVE SUMMARY
We follow and support the mission of Transport Canada:
Transport Canada Mission Statement:
To serve the public interest through the promotion of a safe and secure, efficient and environmentally responsible transportation system in Canada.
The Missanabie Cree First Nation, with The Operations Plan explains how the the assistance of the Bear Train Working service will operate, what equipment Group has developed a not-for-profit will be needed, how scheduling will organization—Mask-wa Transportation optimize operations, ticket pricing and Association Inc.—to operate the Algoma stations. passenger train. The Corporation will A unique tourism attraction using be under the direction of a Board of First Nations branding will be created, Directors of First Nations individuals, promoted and marketed in Canada, comprised of communities, residents, the United States and overseas. businesses and socio-economic
stakeholders. Management positions are Five-year financial projections are clearly outlined, with job descriptions for detailed and comprehensive. key employees.
PLEASE REFER TO OUR GLOSSARY OF ACRONYMS (PAGE 99)
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 7 FIRST NATIONS RECONCILIATION INITIATIVE
First Nations Reconciliation Initiative
The Algoma Central Railway (ACR) corridor passes through the traditional territories of Missanabie Cree First Nation and the territories of other First Nations between Sault Ste. Marie and Hearst, including Constance Lake First Nation and Michipicoten First Nation. These traditional territories have been used for many generations by First Nations people for hunting, fishing, trapping and other socio-cultural activities. More recently, these have become areas in which First Nations are developing eco and Indigenous tourism businesses, as well as forest management plans and other resource-based undertakings.
The Algoma Central Railway was built over The colonial relationship continued when in 105 years ago on land acquired with no First late 2013 the Federal government decided to Nation consent or compensation. The colonial cancel the passenger train subsidy with no relationship continued through the entire history free, prior and informed consent as required of this rail line. Missanabie Cree children were under the United Nations Declaration on the taken on the ACR passenger train to Shingwauk Rights of Indigenous Peoples (UNDRIP), and Residential School. Former Shingwauk student, no consultation in support of discharging MCFN member and now Chancellor of Algoma the need to accommodate Indigenous rights University, Shirley Horn, recalls: in cases of infringement, as supported by numerous Supreme Court of Canada rulings. "…as children we took the train from our home The Northeast Superior Regional Chiefs Forum in Missanabie to Shingwauk Residential School wrote to Transport Canada at that time, on in Sault Ste. Marie. In the fall, we left from March 4, 2014, pointing out that cancelation Missanabie Station on the CPR line and got off of the subsidy was an infringement of the at Franz where the CP line crosses the ACR. We UNDRIP created by virtue of the fact that would stay there overnight with relatives and Indigenous people used the ACR service to have one last good meal until after the school access traditional areas for harvesting and term ended. The next morning, we would board other purposes. Following their letter of March the southbound ACR train at Franz and go to the 4, 2014, the chiefs’ forum played an important Sault and Shingwauk.” leadership role with the Algoma Passenger — (Shirley Horn, April 3, 2013). Train Working Group.
8 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE FIRST NATIONS RECONCILIATION INITIATIVE
The Mask-wa Oo-ta-ban Passenger Train (Cree The initiative is an opportunity for the for Bear Train) is an economic development Federal government to help to correct the initiative of the Missanabie Cree First Nation unjust acquisition of land and building of the to re-establish the essential passenger service Algoma Central Railway by ensuring that the from Sault Ste. Marie to Hearst to support the passenger service plays its important role as economic, employment, social and remote essential transportation infrastructure now access needs of the First Nations people, as well and in the future for the regional economic as to support other communities, residents, development of the First Nations through businesses and others along the rail line. whose territories it passes.
The Mask-wa Oo-ta-ban Train operators will The initiative puts Missanabie Cree First be guided by the First Nation values taught Nation in a leadership and managerial by the Seven Grandfathers: Wisdom, Love, role for an important regional service Respect, Bravery, Honesty, Humility and Truth. that was previously an instrument of The Algoma region is a distressed area for their colonization – an essential service employment and economic opportunity. The for the local Indigenous, Anglophone $40-$50 million in economic benefits (BDO, and Francophone communities. This is in 2014) and the 100s of jobs the passenger train the spirit of Truth and Reconciliation to supported directly and indirectly are vital to the which the current federal government is Algoma region’s economic sustainability. committed and Prime Minister Trudeau's statement in Transport Minister Garneau's This employment is particularly needed by the mandate letter that "no relationship is Indigenous people of our region whose rates of more important...than the one with unemployment are significantly higher than the Indigenous Peoples". rest of the population.
CHIEF JASON GAUTHIER
WISDOM, LOVE, RESPECT, BRAVERY, HONESTY, HUMILITY & TRUTH
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 9 BENEFITS OF THE BEAR TRAIN SERVICE
Benefits of the Bear Train Service
This is not a complete list of all the benefits of this passenger train service. However, it provides an indication of how important this service is to people in the Algoma region.
The Bear Train:
• Would be the first • Would provide • Is essential for the passenger train service employment survival of businesses operated by a First opportunities for along the rail corridor Nation in Ontario Indigenous people and others • Would provide year- • Would provide economic round access for development and • Would increase wilderness adventure tourism opportunities tourism revenue from and Indigenous for the Missanabie Cree snowmobilers, anglers, tourism (many of these and others ice and rock climbers, locations are otherwise tourist resorts/camps, inaccessible) etc. along the rail line • ReflectsReconciliation which have lost revenue with First Nations without a passenger train
10 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE BENEFITS OF THE BEAR TRAIN SERVICE
• Would provide transportation • Would offersafe, • Would allow for access for miners, forestry workers reliable and accessible to health care centres and fur managers travel for people with disabilities and seniors • Is better for the • Connects communities environment than air • Would be a way for and road travel students to travel to • Can offer special train and from colleges and events, such as the Group universities of Seven Train Event, the Searchmont North Pole Express, Indigenous events and additional seasonal or holiday trains for both residents and tourists
Photo: James Smedley
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 11 IMPACT OF THE LACK OF PASSENGER RAIL SERVICE
Impact of the Lack of Passenger Rail Service
Inaccessible Locations
A common concern brought forward by and other business properties via safe, stakeholders is the isolation of many reliable public infrastructure and services. communities along the rail line. In reality, First Nations people and fur managers 400 km of the 470 km Algoma rail line is cannot get to their traplines. not accessible by public road. Although there are some private industrial roads Based on the Stakeholder Survey into the rail corridor, built and maintained data, the BDO study determined that at the discretion of industry, they cannot approximately 75% of properties of be relied upon for reliable, safe, legal or the private residents should be deemed long-term access. “inaccessible” without the ACR passenger train. Individuals should not be expected "No trespassing” signs are posted at to travel on roads which are potentially entrances to the industrial roads. unreliable and dangerous. Industrial As a result of the discontinuation of the roads are not built or maintained to passenger train, a number of businesses, be reliable or safe for public use. BDO communities and residents have been concluded that properties with “fair” unable to access their residences, lodges access, or worse, were inaccessible.
12 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE IMPACT OF THE LACK OF PASSENGER RAIL SERVICE
We quote from the BDO report (2014):
BDO STUDY
Survey results were as follows: 3% Inaccessible 32% Extremely Poor to Inaccessible 17% Poor to Extremely Poor 22% Fair to Poor 14% Good to Fair 12% Good
Also, to be considered with the above information is that many of the roads which provide access to these properties are privately owned logging roads. These roads are not consistently or regularly maintained and are not public thoroughfares. Therefore, one can conclude that our assumption that 75% of these properties are inaccessible is conservative.
It should be reiterated that industrial roads In fact, industrial roads are private and are not public roads, even though they may use of them by those other than their be open to public use. Industrial roads are not employees is illegal. maintained for safe, reliable public access. They are built and maintained to a standard that People rely on the passenger service to meets that industry’s needs at the time. That access their residences, travel to and from standard is often not considered safe for many work, educational institutions, health care passenger vehicles, and when these roads are not facilities and for social purposes. As well, maintained adequately, they could be unsafe or the Algoma Passenger Train provided impassible indefinitely. The costs to upgrade and a regular mail service to communities, maintain industrial roads for safe, reliable public residents and businesses in the Algoma access would be exorbitant on an ongoing basis. Passenger Train corridor.
Poor road conditions on access roads
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 13 IMPACT OF THE LACK OF PASSENGER RAIL SERVICE
Based on the Stakeholder Survey data, the BDO study determined that approximately 75% of properties of the private residents should be deemed “inaccessible”.
Flooding on access road (2018)
1 Flooded Access Roads 2 Highway closure (train provides alternate access) 3-4 Poor road conditions
1 2 3 4
14 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE IMPACT OF THE LACK OF PASSENGER RAIL SERVICE
SEPTEMBER 2018
These two photos show how water levels can fluctuate and cause considerable damage to roads and bridges. These photos were taken only a few weeks apart. This bridge has since been removed.
OCTOBER 2018
1 Flooded Access Roads 2 Highway closure (train provides alternate access) 3-4 Poor road conditions
Flooding has damaged many bridges along access roads, making them impassable.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 15 IMPACT OF THE LACK OF PASSENGER RAIL SERVICE
Impact on Local Businesses
The lack of passenger train service has Some of the smaller lodges on the rail significantly impacted many local businesses corridor are no longer in business and in Sault Ste. Marie, Hearst, Wawa and the larger lodges have had to make other Dubreuilville, as well as Indigenous businesses. arrangements for transportation into their locations (primarly float planes), resulting Dean Anderson, Manager of the Catalina Motel in lost business or additional costs for in Sault Ste. Marie, has calculated how much tourists. business he has lost due to the lack of access by tourists to snowmobile opportunities alone The Economic Development Corporation which were previously available on the Algoma in Hearst constantly receives inquiries Passenger Train. from people wanting to know when the train will be running again and expressing He also sold many packages for tourists to their disappointment that there is no train travel to and from Hearst year-round. at this time. This has had a big impact on
(See Appendix #2 for these statistics) their hospitality sector.
16 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE Photos: James Smedley / Virgil Knapp REMOTE COMMUNITIES
Remote Communities
There are different types of remote communities along the Algoma rail corridor: officially recognized communities such as Franz and Oba, non-recognized but essentially functional communities with councils, cooperative funding structures etc., and ancestral First Nations communities that the First Nations are interested in re-establishing to support cultural and historic values.
Photos: James Smedley / Virgil Knapp BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 17 REMOTE COMMUNITIES
Some of the communities inhabited by residents who require the passenger train include:
• Norris Community • Franz also serves as the • Eton Community connecting point between the • Oba which has a designated • Agawa Canyon Community CP east-west rail corridor and postal code (POM 2P0) and is used the ACR. This location functions • Frater Community as a voting location by Elections as a critical rail transportation Ontario, providing evidence of the • Speckled Trout Lake Community junction for many stakeholders, activity in this community. Serving • Montreal Falls-Hubert Community as well as First Nations rights as the connecting point between holders including the Missanabie • Rand/Pike Lake Community the CN east-west rail corridor and Cree First Nation as Franz is in the ACR, this location functions as • Summit/ Wart Lake Community the Missanabie Cree First Nation a critical transportation junction • Spruce/Quintets Community traditional territory and many for many stakeholders. Missanabie Cree have a historical • Trout Lake Community – This • Oba Lake/Price Lake Community residence in Franz. community is incorporated, has a board of directors and legal bylaws. • Wabatongushi Lake Community • Goudreau • Ogidaki Lake Community • Scully Lake • Anjigami Community • Achigan Lake Community • Sand Lake Community
Residents of all of the above communities, as well as others not listed, are seasonal and year-round residents. For many, the Algoma passenger train service is the only safe and reliable means of reaching the public road network.
18 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE REMOTE COMMUNITIES
HEARST (MILE 296)
Norris (mile 253)
Oba (mile 245)
Oba Lake / Price Lake (mile 210-221)
Wabatongushi Lake (mile 206)
Scully Lake (mile 201)
Franz (mile 195) Goudreau (mile 178)
Anjigami (mile 148)
Sand Lake (mile 138)
Eton (mile 120) Agawa Canyon (114-118) Frater (mile 102) Speckled Trout Lake (mile 100) Montreal Falls-Hubert (mile 92-96) Rand / Pike Lake (mile 87) Spruce Quintets (mile 71) Trout Lake (mile 57) Ogidaki Lake (mile 52) Achigan Lake (mile 43)
SAULT STE. MARIE
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 19 MITIGATING CLIMATE CHANGE
Mitigating Climate Change
The Federal government has worked Using Northeastern Ontario’s hard over the last 4 years to help existing rail-beds, such as the CN- Canada meet the GHG reductions ACR line, to run passenger trains set out by the Paris Accord. Carbon over Northeastern Ontario’s vast pricing is intended to encourage land mass is arguably the fastest people to opt for less polluting forms way to mitigate climate change. of transportation. This requires Since there are no roads into this the reinstatement of passenger rail corridor float plane travel is the train service in Northern Ontario to only alternative to passenger rail provide an alternative to the most since the Algoma Passenger Train polluting forms of transportation, service ended in 2015. Much of the namely by road and air. environmental tourism market has been lost for the tourism resorts According to the Environmental that can now only be accessed by Commissioner of Ontario’s 2016 float planes—a very polluting form report, “Transportation is responsible of transportation. for the largest and fastest growing share of Ontario’s greenhouse gas emissions. These emissions have grown by 28 per cent since 1990.”
Photo: Destination Ontario
20 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE GOVERNANCE AND MANAGEMENT OF MASK-WA TRANSPORTATION ASSOCIATION INC.
Governance & Management of Mask-wa Transportation Association Inc.
(BEAR TRANSPORTATION INC. IN CREE)
The Missanabie Cree First Nation, with This Corporation will work closely with the assistance of the Bear Train Working CN, will pay them the required access Group has developed a not-for-profit fees for the use of the tracks and will organization—Mask-wa Transportation meet all the requirements to operate Inc— to operate the Algoma passenger a passenger rail service. This includes train. Appendix #3 explains the purchasing liability insurance. composition of the Algoma Passenger Train Working Group (APTWG) and the This passenger train service needs to Bear Train Working Group (BTWG) which be in operation as soon as possible replaced the APTWG. and will optimize long-term operations to address remote access, economic, Mask-wa Transportation Association Inc. employment, cultural and social needs of will collaboratively address the remote all stakeholders access and socio-economic needs of the Algoma rail corridor with a Board The Corporation will be under the of Directors of First Nations individuals, direction of a Board of Directors of representatives of communities First Nations individuals, comprised along the rail line, tourism business of communities, residents, businesses representatives, residents and socio- and socio-economic stakeholders of the economic stakeholders. Algoma Passenger Train corridor.
Mission Statement: To support the social, economic, employment and development needs of the First Nations, communities, businesses and people of the Algoma region by providing safe, effective, efficient, reliable and affordable railway passenger services.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 21 GOVERNANCE AND MANAGEMENT OF MASK-WA TRANSPORTATION ASSOCIATION INC.
Future Development
The organization will optimize Algoma passenger train services and operations:
• Engage with core ridership to • Invest in technologies and services understand and optimize ridership that optimize safe, efficient and passenger service needs. effective delivery of passenger train services to the Algoma rail corridor. • Support and partner with event, destination and ridership • Provide education, training and development initiatives compatible mentoring for First Nations people with the Algoma passenger train and others to support skills, operations and purpose. development for employment opportunities in rail operations • Actively promote the Bear Train as and management both within and safe, accessible and reliable all-season outside the corporation. transportation.
First Nations Employment
• Mask-wa Transportation Association • First Nations and First Nations people Inc. will actively recruit, train will also be actively supported in and mentor First Nations people developing economic, employment, in all aspects of operations and cultural and social opportunities management. where Algoma passenger train access and services can be beneficial.
22 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE GOVERNANCE AND MANAGEMENT OF MASK-WA TRANSPORTATION ASSOCIATION INC.
Governance
Board of Directors Advisory Committee
President To provide insight and vet the Chief Jason Gauthier operational and financial plans and Chief of Missanabie Cree First Nation implementation of the passenger train.
Treasurer Advisory Committee (Non-voting Dr. Derek Rice advisors to the Board of Directors): Economist; Indigenous Economic • Legal (Lawyer with significant Development Consultant and Analyst; experience in rail and First Nations part-time professor Algoma University issues) – Richard Lande
Secretary • Rail logistics, policy and regulation Dr. Linda Savory-Gordon (suggested people: Corina Moore, Ken Associate professor emerita, Algoma Bitten, Harry Gow, Howie Wilcox) University; research associate NORDIK institute
Members Patricia Ann Owl Business Development Support at Indigenous Tourism Association of Canada
Dorothy Macnaughton Represents people with disabilities and Co-chair of Coaltion for Algoma Passenger Trains
David MacLachlan Executive Director, Destination Northern Ontario
Len Piccolo Chairperson of Mask-wa Residents' Association
Chad Beharriell Professor, Sault College and University of Windsor; passenger rail advocate
Photo: James Smedley
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 23 GOVERNANCE AND MANAGEMENT OF MASK-WA TRANSPORTATION ASSOCIATION INC.
Management
CEO (Chief Executive Officer) COO (Chief Operating Officer) The CEO works for, reports to, and is The COO is accountable to the CEO. accountable to Mask-wa Transportation Is responsible for Rail Operations, Association Inc. Board of Directors. Maintenance and Crews: • The CEO is responsible for organizational • Is responsible for crew training and planning, implementation and accountability scheduling to Board of Directors. • Is responsible for equipment maintenance • The CEO is in charge of and responsible and servicing for the management of all rail operations, services, staff, property and equipment of • Ensures that all operational policies and Mask-wa Transportation Association Inc. procedures are observed and followed and the Bear Train, as well as all employees • Must possess experience and expertise in and contractors affiliated with Mask-wa effective, efficient and safe rail operations, Transportation Association Inc. Mask-wa crew and maintenance management Transportation Association Inc.’s services include all rail passenger and freight services May also fill Sault Station Agent position which Mask-wa Transportation Association as needed: Inc. undertakes. • Sault Station maintenance
It is the CEO/General Manager’s • Sault ticket and baggage sales responsibility to: • Organizing efficient loading of passengers • Meet financial responsibilities as laid out in and baggage the operating budget. • Any staff or contractors needed to support • Meet all legal responsibilities related to efficient station maintenance, as well as passenger rail operations, employing staff and passenger and baggage processing operating a corporation that are required by the governments of Canada and Ontario. • Ensure that exemplary customer service is provided by every employee to all of Mask-wa Transportation Association Inc.’s customers, passengers and partners.
The CEO must possess: CE (Chief Engineer) The Chief Engineer is the senior engineer. • Business management expertise and experience to ensure the organization is • Must be a qualified, skilled and optimized and effective in achieving its experienced engineer purpose. • Must be able to evaluate and qualify • Governance expertise and experience to engineer recruits on their ability to support the Board of Directors’ due diligence operate the Bear Train safely and responsibilities and to ensure the organization responsibly while being professional and is focused, effective and accountable. courteous to passengers, partners and employees. • Algoma passenger rail knowledge and experience to ensure an understanding of Algoma passenger ridership needs.
Photo:Destination Northern Ontario
24 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE GOVERNANCE AND MANAGEMENT OF MASK-WA TRANSPORTATION ASSOCIATION INC.
Hawk Junction Station Agent Train Engineers & Crews The Hawk Junction Station Agent is • Because the Bear Train is carrying people accountable to the CEO. it is very important that only engineers The Hawk Junction Station Agent will be who represent the highest qualities of responsible for: professionalism, safety and courtesy are operating the Bear Train. Applicants • Hawk Junction Station maintenance to become Bear Train engineers will be • Hawk Junction ticket and baggage sales evaluated, and when approved, will be • Organizing efficient loading of on 3 months' probation before being passengers and baggage qualified as Bear Train Engineers (PTE). • Any staff or contractors needed to • Will need a minimum of 4 locomotive support efficient station maintenance, engineers to support the current as well as passenger and baggage schedule, as well as conductors, cleaners, processing maintenance personnel, etc. • May hire directly, recruit crew through the Teamsters or may contract with alternate company with Canadian Rail Operators Certificate that is able to supply crews and rail equipment maintenance services.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 25 OPERATIONS PLAN
Operations Plan
Following Minister Garneau’s suggestion, the for the development of the Mask-wa Missanabie Cree First Nation began to work Transportation Corporation Business and with Indigenous and Northern Affairs Canada Development Plan. While INAC assistance (INAC). INAC officials supported the proposed was essential and much appreciated, INAC Mask-wa Oo-ta-ban Passenger Train is not able to provide the transportation Service, seeing it as an important economic operational resources to operate the train. development opportunity, providing stable Acknowledged experts in the field of rail employment for Indigenous people, and as operations have provided their expertise. a clear example of a Reconciliation Project in the spirit of the "Truth and Reconciliation CN has stated that the Missanabie Cree First Calls to Action" which the Federal Liberal Nation will be considered as operators for government committed to implementing. To Algoma's Passenger Rail service once all that end, INAC provided financial resources CN's requirements are met.
Chief Gauthier has negotiated very successfully with CN and has met the following requirements:
i. Receipt of a Railway Operating Certificate
ii. Completion of a safety plan
iii. Options for an access agreement with CN
iv. Finalized business plan (to receive final approval by CN)
26 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE OPERATIONS PLAN
Equipment Short-term locomotives Required • Short term lease Iowa Pacific Holdings. One is HEP equipped, the other is not. Lease cost is $275USD/day each on contract or $250USD/day if paid up front. The two Locomotives locomotives Iowa Pacific is able to supply are To operate the Bear Train immediately, pictured below. Additional locomotives may with two train sets, a short-term locomotive also be available from Iowa Pacific. lease for two locomotives is needed until locomotives can be procured by purchase or • Other locomotive options will require an long-term lease and moved to the Algoma alternative source of 480 volt 3 phase power rail corridor. Smaller locomotives appropriate for the cars. This can be accomplished by to the size of the Bear Train are fairly leasing a power car or installing generators common and available in the current market. under one or several cars. Cost of power car Recommendation from expert sources lease varies with the length of lease period. favor the EMD/GMD GP38-2 (2000 HP) or • Wells Fargo has acquired over 1800 GP40-2 (3000 HP) with dynamic brakes. locomotives recently. GP38s with dynamic These models are lighter, reliable, have good brakes lease for $120USD/day (approx. visibility and are non-HEP. Given the prices of 150CDN/day). Wells Fargo is also developing leasing versus purchase so far leasing makes prices for lease-purchase and purchase more financial sense. options. Wells Fargo prices are the best The cost for leasing two locomotives at this lease prices so far from the many sources of time has been calculated in the financial motive power we have made inquiries to. statements at $225 per day (See Five Year • GATX Locomotive Group has offered two Financial Projection). GP38-2s with dynamic brakes for $160USD/ There is the possibility of building or day for both on a 1-year lease. That is modifying hybrid locomotives in Sault Ste. approximately $100 CDN each per day for a Marie. SIS Group already manufactures total of $73,000 CDN for the two locomotives locomotive chassis and other specialty for one year. Purchase options can be rail cars. Ontario Northland also has a negotiated prior to the lease end. refurbishment facility in North Bay.
Iowa Pacific Locomotives
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 27 OPERATIONS PLAN
Fuel Costs & Fuel Consumption
CN was operating 156 trains per year. Although the CN, because of their ability to buy fuel in bulk, generator car often did not work, between generator received substantial discounts on fuel. It is not cars and HEP the fuel consumption for powering the known whether MT Inc can negotiate to receive cars would be approximately 300,000 litres per year. similar discounts through CN or what type of By switching to under coach or shrouded baggage bulk fuel rate it will be able to negotiate. Being car generators there should be a saving of at least a First Nations operation may allow further 240,000 litres per year over CN Rail’s operations. discounts or tax considerations.
Fuel Consumption – GP 38 & 40 Fuel Consumption Chart per hour of operation If MT Inc can access the support, hybrid locomotives Throttle GP-38 gal/hr. GP-38 litre/hr. GP-40 gal/hr. GP-38 liter/hr. would be very frugal to Idle 5.0 19 5.5 21 operate with over 60% less Notch 1 7.0 26.5 7.4 28 fuel consumption. This would Notch 2 16.0 60.5 24.9 94 also translate into an even greater reduction of pollution Notch 3 31.4 119 41.4 157 because the generators work Notch 4 46.8 177 57.2 216.5 at optimum load charging Notch 5 63.8 241.5 79.0 299 batteries which means Notch 6 83.1 314 108.5 411 cleaner burning diesel engine that is operating for less than Notch 7 102.8 389 145.8 522 half the time. Notch 8 122.4 463 167.7 635
28 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE OPERATIONS PLAN
Generator Cars
Generator cars are substantially oversized. Generator cars produce 800 KW; the former Algoma Passenger Train equipment used approximately 80 KW maximum. Mounting of two new 100 KW generator under both coaches’ costs $145,000 and will save enough in fuel to pay for themselves in less than a year.
Because only one generator will be needed to run at any time, the power system will be backed up so heat and cooling can be maintained if one generator fails. Under coach generators may have a susceptibility to snow and ice buildup and damage in the winter. Mounting a regular generator in the baggage car would avoid this issue and save approximately $35,000. This would also provide some heat to the baggage car in winter. A modern 100 kw generator consumes approximately 20lt of fuel per hour.
With a wayside HEP power system at both Sault and Hearst the generator only runs up to 12 hours each side of a run from Sault Ste. Marie to Hearst. Return trip is 24 hours of operations x approximately 122 runs at 58,000 litres per year. 800 kw generator cars use conservatively 80 litres per hour at very low load. 122 runs at 24 hours operating time each would be at least 234,000 litres per year. This assumes use of Wayside HEP when passenger train is at terminus.
Photo:Tatnall Camp
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 29 OPERATIONS PLAN
Service Opitimization / Scheduling
Stage 01: Stage 02: Seasonal Schedule Trains both ways on train days In late fall and early spring, the passenger Real optimization of the Bear Train can only be train ridership is very low, essentially achieved by having trains operating both ways on mostly permanent residents of the rail train days so people attending events or travelling corridor and inter-community commuting. to various destinations can be accommodated on Operating three trains per week in those the same days. low ridership time periods is unnecessary.
One train per week is adequate to the Operating trains both ways requires a second ridership needs of the low ridership set of train equipment. A second train set would seasons and the savings can be applied to increase efficiency, ridership utilization of the ensuring effectiveness of the passenger service, and socio-economic impacts substantially, train in meeting the high ridership needs of while not increasing the operational, maintenance the summer and winter seasons. or crew expenses. Some expenses actually decrease with this type of service schedule. As well, proper maintenance is much easier to support.
Photo: Destination Ontario
30 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE OPERATIONS PLAN
Passenger Train Schedule 2020 Spring, Summer and Fall
Continue with current schedule model of running a train northbound one day then running southbound the next. Not efficient or very effective for tourism and events but need a second set of equipment to optimize ridership development. © Gar y & Jo an ie M c G u f f in 1 train per week from April 1 to May 14 2 trains per week May 15 to May 20 3 trains per week May 21 to September 30 2 trains per week October 1 to October 15 1 train per week October 16 to December 15
December 2020 through 2021
• Acquire and operationalize a second • Support of train events already developed at complete train set by mid-December with Searchmont, as well as new development of trained crews and maintenance in Hearst destinations and events and/or Constance Lake First Nation. This • Utilize trains to take skiers to and from will allow the operation of trains travelling Searchmont Ski Resort both ways on the same days to optimize the passenger train's ability to support • Plan for Snow Train excursions to Hawk ridership by allowing tourism and events Junction and return, from both Sault Ste. where people are going to and coming from Marie and Hearst accommodations and events on the same • Day trips from both Sault Ste. Marie and day. This will also support more ridership by Hearst for ice fishing, stream fishing, fly optimizing tourism ridership and utilizing the fishing, hiking etc. for tourism and recreation trains more effectively
Photo: Destination Ontario
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 31 OPERATIONS PLAN
Seasonal Schedule
3 trains per week December 16 to March 25 The schedule starts one 2 trains per week March 26 to April 1 hour earlier in summer to avoid conflicts with 1 train per week April 2 to May 13 the Agawa Canyon Tour 2 trains per week May 14 to May 20 Train and to avoid heat 3 trains per week May 21 to September 30 related slow orders south of Canyon. Repeat until ridership development warrants more train service
Hearst to Sault Ste. Marie to Hawk Junction Hawk Junction Winter (January to March) Winter (January to March) Operates Fridays and Sundays Operates Fridays and Sundays Depart Hearst 09:00 Depart Sault 08:00 Arrive Hawk Junction 13:40 Arrive Hawk Junction 13:50 Depart Hawk Junction 15:00 Depart Hawk Junction 14:50 Arrive Hearst 19:40 Arrive Sault 20:40
Summer (May to October) Summer (May to October) Operates Fridays and Mondays Operates Fridays and Mondays Depart Hearst 08:00 Depart Sault 07:00 Arrive Hawk Junction 12:40 Arrive Hawk Junction 12:50 Depart Hawk Junction 14:00 Depart Hawk Junction 13:50 Arrive Hearst 18:40 Arrive Sault 19:40
For April, November, and December, the trains will run on Fridays only which is a method of optimizing the seasonal fluctuations (i.e. these months are traditionally slower in terms of ridership demand).
32 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE OPERATIONS PLAN
Ticket Pricing
• First Class and Standard Seating serve • Pricing for Vista Dome/First Class will two distinct passenger audiences. initially be twice the price of standard The Vista Dome/First Class satisfies class and will increase to recognize demand. the discerning and demanding visitor • Pricing for baggage and special services with a premium view and food and will be evaluated to establish thresholds beverage service, retail merchandise and and opportunity for increases and return passenger amenities. Standard Class on investment. The pricing for new satisfies the price sensitive and essential product and flexible booking options service passengers while providing in conjunction with the tour train, and creature comforts of limited food and the destination and event experiences beverage service. The pricing differential to be developed deliver even greater combined with the food and beverage opportunities to increase revenue options drive incremental revenue. without sacrificing tour train revenue.
The core ridership of the Bear Train is residents and tourists. The Bear Train needs to recognize the value of core ridership by offering frequent and bulk ridership discounts:
• Residents of the Bear Train corridor should have a discount system similar to frequent users of toll bridges. Residents should be able to bulk buy train fares in advance at a discount or perhaps be able to purchase either monthly, seasonal or yearly passes. This will also help with cash flow for the Bear Train.
• Property owners who bring in large groups with them should also be considered for some type of additional fares discount.
• Lodges, outfitters and tourism agencies need to be able to package train fares in their rates. This requires a discount that both recognizes that the lodges are acting as a selling agent of the Bear Train and that the stops for the lodges usually embark or disembark large numbers of people making it a more efficient stop. All packaging needs to be tracked and evaluated to determine the economic and employment benefits being supported.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 33 OPERATIONS PLAN
Constance Lake Hearst First Nation Hearst does not currently The extra time on the north end operation could also allow for have a station. Opportunities the development of passenger train service to the Constance for developing a Hearst Lake First Nation, which is half hour west of Hearst via the Ontario Station and maintenance Northland tracks which the Algoma passenger train already facility will be explored. operated on for the last few miles into Hearst. Besides supporting the Constance Lake First Nation’s transportation needs by providing passenger train service, Constance Lake First Nation Hawk Junction also has substantial tourism potential because of the Eagle’s Earth CN is willing to sell the Hawk Junction facility and other development potential. Station building and to lease the adjacent parking area. Hawk Junction Station CONSTANCE LAKE FIRST NATION has been neglected but is structurally sound and operational. This is a heritage building and financial support to restore the building to its original and optimum
HEARST condition is being researched. Volunteers Stations are anxious to clean up the building, so it is ready for passengers as soon as possible. The previous Station Agent is Wawa ready to resume working at the station working for Mask-wa Transportation Wawa is 15 minutes from Hawk Association Inc. Junction Station and the Bear Train is important as reliable, all-season transportation for Wawa residents, especially those who cannot access DUBREUILVILLE Other Stations other means of transportation due The Algoma Passenger Train corridor to physical, mental or financial traditionally had a number of train circumstances. HAWK JUNCTION stations. Most have fallen into disrepair or have been destroyed. To support WAWA Sault Ste. Marie ridership development opportunities, redevelopment of train stations will Embarkation of the Algoma passenger be evaluated and pursued where train has been at the CN yard. This will appropriate. be continued in the short term and a temporary ticket office will also be set At this time, Searchmont and up in the CN yard. Dubreuilville have potential for stations SEARCHMONT that would support higher ridership. The Ontario government has provided And later possibly Oba and Franz. funding for a new train station for Sault Ste. Marie for the Agawa Canyon SAULT STE. MARIE Tour Train. When this new station is finished, it would make an ideal station for the Bear Train as well.
34 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE INTER-COMMUNITY TRAVEL
Inter-Community Travel
As noted in the benefits earlier in this not been considered a high priority document, many people prefer to travel and, therefore, not funded by federal or by train to get to other communities for a provincial governments. This especially variety of reasons. They may travel to visit affects those who cannot drive for family or friends, to health care centres, to physical, mental, psychological or colleges or universities. Travelling by bus can economic reasons. Passenger trains be cramped, inconvenient due to the lack of offer safe, all-season transportation that connecting buses, or it may not be possible is accessible to all. Travel between First because the bus is not accessible for people Nations communities and other locations with disabilities. (See Appendix #4) needs to be actively supported and Communities in Northern Ontario are promoted. This is particularly important becoming increasingly isolated because for travel to Northern Ontario’s highly support for safe, accessible and affordable regionalized health care and to post- all-season transportation options have secondary institutions.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 35 TOURISM
Tourism
The Bear Train corridor is an exceptional tourism asset for several of the trending tourism markets, namely: Indigenous tourism, cultural tourism (particularly Group of Seven focused), wilderness eco-tourism and Franco-Ontarian tourism.
Photo: Destination Ontario
36 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE TOURISM
Tourism Markets
INDIGENOUS CULTURAL FRANCO-ONTARIAN TOURISM TOURISM TOURISM
ECO / GREEN ACCESSIBLE WINTER / SUMMER TOURISM TOURISM TOURISM
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 37 TOURISM
Example of Indigenous artwork on the MS Chi-Cheemaun Ferry. Photo: Destination Northern Ontario
Indigenous Tourism
A rebranding of the passenger train as Mask- First Nations are interested in developing wa Oo-ta-ban (Bear Train) — Ontario's first tourism destinations and events along the First Nation run passenger train — with the line to showcase and support authentic rail consist painted in images created by local Indigenous culture and history. There Indigenous artists, will make the train a huge are numerous First Nations ancestral draw for international, as well as domestic communities along the Bear Train tourists. Many people are looking for corridor. First Nations are interested in authentic Indigenous tourism destinations re-establishing select traditional First and products. On the train itself, there is Nations communities to support teaching potential for the sale of Indigenous foods, of First Nations culture, language, history Indigenous arts, crafts, etc. and traditional skills to First Nations youth. These communities may have With an operating train, there will also be tourism components, but the primary many more opportunities for Indigenous focus will be facilitating First Nations tourism opportunities on the train corridor. people reclaiming their culture.
38 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE TOURISM
Constance Lake First Nation's Eagle's Earth One of the main reasons for Eagles Earth was built as an Indigenous tourism centre. It was failing to meet development expectations developed in partnership with the governments was a lack of connectivity to tourism markets, of Canada and Ontario. The main feature is an effectiveness of transportation issue. The the 11,000 square foot Eagle Feather building Bear Train can partner and collaborate with housing Indigenous multimedia experiences, the Constance Lake First Nation to support a 40-seat restaurant featuring unique and the success of Eagles Earth. This partnership authentic Indigenous cuisine, convenience store, and collaboration would include endeavoring authentic local arts and craft store, workshop to develop a shuttle service from Hearst to rooms, and reception area. Constance Lake First Nation.
Constance Lake First Nation’s Eagle's Earth Tourism Centre
Constance Lake First Nation's Eagle's Earth
Photos: Destination Northern Ontario BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 39 TOURISM
Algoma University students studying paintings in Group of Seven Field Course. © Gary & Joanie McGuffin
Particularly Cultural Group Tourism of Seven
The Bear Train service is essential for Group of Michael Burtch and wildlife adventurers Joanie Seven tourism development in Algoma. The train and Gary McGuffin conducted extensive, is the way that Group of Seven painters traveled unique research along the ACR line and located into the Canadian wilderness and creatively hundreds of sites of paintings made by various displayed those landscapes through their art. Group of Seven artists. This research is new to It was when several of them stayed in a boxcar the field of Canadian art history and their recent along the Algoma rail corridor that they decided documentary film,Painted Land: In Search of to become the Group of Seven. Their paintings of the Group of Seven, will draw many tourists to scenes along the Algoma Central Railway (ACR) the ACR tourism corridor. This would be a major have become Canadian cultural icons. When the boon to the tourist operators whose businesses passenger train was still running, art historian are accessed only by this special train.
40 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE TOURISM
Painted Land: In Search of the Group of Seven
Painted Land: In Search of the Group of Seven reaches of this country and the United States. shone a spotlight on Algoma and the region's The Bear Train could run multiple events of importance in the shaping of a vision of this sort so that cultural tourists would be Canada. During screenings of the film, people able to experience the landscapes painted by often ask if they can bring their canoes and the Group of Seven and travel to stay in rail- camping gear on the passenger train and to accessed lodges to fully experience Group of actually go to some of the painting sites while Seven landscapes. experiencing this unique opportunity. (See Appendix #5 - Letter of support It is interesting to note that Ontario has from environmentalist and artist written by Robert Bateman.) launched a new initiative to re-brand the province using the Group of Seven legacy. Destination Ontario has identified Algoma as one of three nodes for Group of Seven tourism development in Ontario—Ottawa, Toronto and Algoma.
The cancellation of the passenger train has also had a negative impact on educators who want to follow the lead that Algoma University established by offering art courses on the very locations that are now becoming familiar even to international audiences through the film. The cancellation has also curtailed the Group of Seven/Glenn Gould Train Event, an annual tour that attracted participants from far
Learn more paintedland.ca
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 41 TOURISM
Franco-Ontarian Tourism
The Algoma Central rail corridor Prior to the cancellation of the passenger service serves two Franco-Ontarian in 2015, plans were being made for children in municipalities: French immersion programs in Sault Ste. Marie to travel by train to Dubreuilville and Hearst. The Hearst, which is 95% Francophone, and number of children in French immersion in Sault Dubreuilville which is 100% Francophone. Ste. Marie is growing every year and many of Both municipalities have already developed their parents would prefer to have them travel and continue to develop Francophone by train to Dubreuilville or Hearst for French experiences designed to attract tourists. immersion summer camps and other events,
The Federal government recently announced rather than taking them to Quebec. Increasing $250,000.00 in funding for Northern Ontario numbers of retired seniors would like to travel Francophone Tourism. The Bear Train would by train to learn or refresh their knowledge be a perfect vehicle to bring people to the of French by being billeted with Francophone tourism destinations such as Hearst which families so they can attend such events as Le will receive this funding. Salon du Livre, Juste pour Rire, les fetes d’hiver etc. in Hearst and Dubreuilville.
42 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE Photos: Left: Larry Whalen Photos / Right: Virgil Knapp TOURISM
These tourism initiatives would be part of Destination Northern Ontario's strategy, as outlined in "A Francophone Tourism Plan for Northern Ontario" (2018):
"Indigenous and Francophone tourism experiences represent important opportunities for Ontario in a competitive global tourism environment. Along with offering authentic tourism offerings, cultural tourism also provides an opportunity to promote and celebrate the province’s rich diversity. The 2013 Ontario Travel Intentions Survey indicated that Indigenous attractions were among the top 10 type of attractions that would increase visitor interest to Ontario. In addition, as home to the largest Francophone community in Canada outside of Quebec, there is significant opportunity for the province to benefit from an increase in Francophone tourism experiences.
The ministry will collaborate across government and with industry partners to identify opportunities to advance multicultural, Francophone and Indigenous-led tourism in Ontario. This will include evaluating options that assess market readiness, capacity building and an authentic promotion of both past and current cultural connections".
Photo: Destination Northern Ontario
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 43 TOURISM
Accessible Tourism
Americans, who are used to accessible travel options being the norm, would be attracted to what Northern Ontario has to offer when accessible train travel is available. The Americans with Disabilities Act has been in place for over 20 years and ensures there are many accessible transportation options within the United States. American travelers also expect accessible travel options when they travel out of country.
Seniors and persons with disabilities from overseas are also accustomed to accessible Dorothy Macnaughton (low vision) finds train travel. A study titled, "Accessible travelling by train in Sweden is very accessible. Tourism - the Ignored Opportunity" (2018) by Souca Maria Luiza states: "according to the latest statistics, the market for accessible As noted in the report, "Older Canadians tourism is continuously growing, making it clear on the Move", there is reference to the that to ignore its potential is to actually ignore great potential for economic benefits from fruitful business opportunities." tourists who are older or have disabilities. "The growing demographic of older travelers On the rail corridor where the Bear Train represents a large economic opportunity for would operate, there is incredible natural the travel and tourism industry. Ensuring that beauty and so much to offer tourists. Resort the transportation system is inclusive for all and lodge owners are struggling to remain travelers and accessible to all could enable viable with no train service to their lodges more older adults to travel. In many ways, older at this time. They are able to offer fishing, adults are prime customers for the travel and hiking, snowmobiling and other outdoor tourism industry. Research suggests that they activities only to a limited number of tourists travel more often and spend more money on who must go to great expense to reach trips than other age groups. Retired travelers their destinations by float plane. This means may have the opportunity to travel frequently, many seniors and people with disabilities are for long stretches, and outside peak times." no longer able to travel to these lodges.
44 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE TOURISM
Eco / Green Tourism Tourists who wish to travel with a lighter carbon footprint are very attracted to "train- in" destinations. The Bear Train corridor will appeal to the increasing demand for eco/green tourism. Such tourists seek destinations in wilderness "off-the-road" locations. The Algoma rail corridor has over 400 km of that kind of setting. It crosses two watersheds and several major rivers flowing into either Lake Superior or James Bay that
fin canoeists access from the train. Others uf cG M take the train to remote tourist ie n a o J resorts. The eco/green tourists &
y r do not want to access those a
G
© resorts by float plane as that is a much more polluting mode of transportation.
Photo: James Smedley
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 45 TOURISM
Winter & Summer Tourism
With trains going both ways on train days, the Bear Train would be able to accommodate skiers travelling to Searchmont Ski Resort from Sault Ste. Marie, thus increasing business for the Bear Train and for Searchmont Ski Resort.
Snow machines or sleds were a high ridership in decades past. The sled capacity was decreased from over 70 to approximately 12 over the past decade in spite of increasing demand.
The Snow Train was a high ridership product in previous decades. With trains both ways on train days, the Snow Train could be re-established both out of Sault Ste. Marie and Hearst and local hoteliers could reap the benefits.
ATVs are the sledding experience of summer and another opportunity for increasing ridership on the Bear Train.
There are specific funds available for tourism development, such as Destination Northern Ontario and Destination Ontario which could help business owners and First Nations communities take advantage of tourism opportunities once the Bear Train is operating.
Photo: Tourism Sault Ste. Marie
46 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE TOURISM
Searchmont Ski Resort
Photo: Tourism Sault Ste. Marie
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 47 EVENTS
Events
Events allow a high number of riders for Established short, efficient train stops, generating Events significant revenue. • Group of Seven and Glenn Gould Train Events Facilitating events requires supporting adequate event • North Pole Express Train Event at Searchmont ridership capacity on the (North Pole Express Train Events could also be done Bear Train, as well as allowing between Coppell and Hearst, and between Wawa people to buy fares at bulk and Dubreuilville.) discounts. • Wabos Cross-Country Ski Loppet
48 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE EVENTS
Prospective Events
• Journey on the Iron Horse Event: • Mountain biking events at An Indigenous cultural event with Searchmont Ski Resort participants taking the train to Hawk • We are also in contact with a rail Junction and shuttle to Missanabie company that would like to partner on Cree First Nation. This event was event development. The company, Iowa developed by the Missanabie Cree Pacific Railway (IowaPacific.com), has First Nation and CAPT to take place considerable experience and resources in 2015, but the train service was in rail event development and sales. cancelled.
• Other ideas for events include: all • Agawa Canyon Fall Colour Season season day trips, theme events such sells out for most of its operations. as, "Harry Potter", "Easter Bunny", "The The Tour of the Line to Hearst can Little Engine That Could", music, dinner be promoted as an overflow for this theatre, a circus train and school trips. popular fall tour.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 49 MARKETING
Marketing & Promotional Assets
• The Bear Train, like the former Algoma Passenger Train, would be a unique wilderness access and travel experience that would be very attractive on the global tourism market. There are very few comparable or competitive products.
• The Bear Train would create a unique attraction with its First Nations branding. It will be important to fulfill that brand by supporting employment opportunities for First Nations in all areas of operations and management. Also, important to both branding and cultural support of First Nations is to ensure all information is available in Cree and Ojibwe, as well as French and English.
Photo: Destination Ontario
50 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE MARKETING
Marketing & Support Website Funding
• A marketing staff person would • Advertising Support - Partnerships with develop a website designed to Destination Ontario and Destination Northern promote all aspects of the Bear Train Ontario and other funding agencies. service for all four seasons. • Translation Services - Partnerships with • The website would be in all four FEDNOR, Indigenous & Northern Affairs Canada, languages; Cree, Ojibwe, English and Waubetek Business Development Corporation French. and other funding agencies to support translation services. Language and culture will be • The website also would support supported in Cree, Ojibway, English and French. online ticket sales. Algoma Kinniwabi Travel Association has access to very • Product Development - Partnerships with good software and technical support Destination Ontario and Destination Northern for online ticket and event sales. Ontario, FEDNOR, Indigenous & Northern Affairs Canada, Waubetek Business Development Corporation and other funding agencies.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 51 FIVE-YEAR FINANCIAL PROJECTION
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Ticket Revenue
Ticket Notes 2020 2021 2022 2023 2024
Revenue is calculated based on the estimated ridership for each category listed multiplied by the ticket price for each category of rider, as set out in footnotes 1 and 2 (see pages 52-54).
Base Ridership $175,000 $273,000 $301,000 $329,000 $357,000 Snow Train 17,200 25,800 34,400 43,000 51,600 Snow Train Dome Car Experience 10,750 21,500 32,250 43,000 53,750 Ski Searchmont 15,900 26,500 42,400 63,600 84,800 Event Train 10,000 40,000 80,000 160,000 240,000 Event Train Dome Car Experience 12,500 50,000 100,000 200,000 300,000 New Destinations 7,500 15,000 22,500 New Destinations Dome Car Experience 9,375 18,750 28,125 Sled Train 10,000 20,000 40,000 80,000 120,000 Sled Train Dome Car Experience 12,500 25,000 50,000 100,000 150,000 Tour of the line 8,300 16,600 24,900 33,200 41,500 Tour of the line Dome Car Experience 10,375 20,750 31,125 41,500 51,875 Merchandising and Food Services 10,000 20,000 30,000 40,000 50,000
Total Ticket Revenue $292,525 $539,150 $782,950 $1,167,050 $1,551,150
Expenses
Expenses Notes 2020 2021 2022 2023 2024 CN Access Fees 3 $1,155,584 $1,155,584 $1,155,584 $1,155,584 $1,155,584 Keewatin Railway 4 100,000 50,000 Locomotive Leases 5 164,250 164,250 164,250 164,250 164,250 Fuel – Motive Power/Locomotives 6 205,000 205,000 205,000 205,000 205,000 Fuel – Power Generations/Passenger Equipment 6 35,000 35,000 35,000 35,000 35,000 Insurance 7 150,000 150,000 150,000 150,000 150,000 Management, Labour & Benefits 8 627,375 639,922 652,721 665,775 679,091 Marketing 9 52,700 79,100 79,100 79,100 79,100 Materials 10 5,287 5,023 4,772 4,533 4,306 Locomotive, Passenger Car Maintenance 11 50,000 50,000 50,000 50,000 50,000 Purchased Services 12 79,591 53,060 53,060 53,060 53,060 Interest 13 19,000 19,000 19,000 19,000 19,000 Startup Costs 14 965,000 Purchase of Passenger Coaches & Baggage Cars 15 200,000 Program Administration 16 310,000 220,000 220,000 220,000 220,000
Total Expenses $4,118,787 $2,825,939 $2,788,487 $2,801,303 $2,814,392
52 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE FIVE-YEAR FINANCIAL PROJECTION
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Other Funding
Other Funding Notes 2020 2021 2022 2023 2024 Transport Canada RPSS Startup 17 $900,000 Transport Canada RPSS 17 2,200,000 2,200,000 1,900,000 1,600,000 1,300,000 INAC Planning and Startup Support 17 225,000 INAC/Waubetek/NOHFC/Trillium (Rail Equipment) 17 500,000
Destination Northern Ontario / Destination Ontario 17 200,000 200,000 200,000 200,000 Marketing and Tourism Product Development Support
Other 17 100,000 200,000 200,000 200,000
Total – Other Funding $3,825,000 $2,500,000 $2,300,000 $2,000,000 $1,700,000
Total Surplus / Deficit 2020-2024
Surplus / (Deficit) - Reserve Fund Notes 2020 2021 2022 2023 2024 18 -$1,262 $213,211 $294,463 $365,747 $436,758
Total Surplus / Deficit 2020-2024 $1,308,918
Notes:
(1) Based on the ridership projections provided by management, as summarized below:
Number of Trips
Number of trips 2020 2021 2022 2023 2024 Base Ridership 2,500 3,900 4,300 4,700 5,100 Snow Train 200 300 400 500 600 Snow Train Dome Car Experience 100 200 300 400 500 Ski Searchmont 300 500 800 1,200 1,600 Event Train 200 300 600 1,200 1,800 Event Train Dome Car Experience 50 200 400 800 1,200 New Destinations 400 600 800 New Destinations Dome Car Experience 100 200 300 Sled Train 100 200 300 500 800 Sled Train Dome Car Experience 50 100 200 400 600 Tour of the line 200 300 500 700 900 Tour of the line Dome Car Experience 100 200 300 400 500
Total Ridership 3,800 6,200 8,600 11,600 14,700
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 53 FIVE-YEAR FINANCIAL PROJECTION
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Notes:
(2) Prices per ticket are based on the following estimates by management:
Price per Trip
Price per trip 2020 2021 2022 2023 2024 Base Ridership 70 70 70 70 70 Snow Train 86 86 86 86 86 Snow Train Dome Car Experience 108 108 108 108 108 Ski Searchmont 53 53 53 53 53 Event Train 200 200 200 200 200 Event Train Dome Car Experience 250 250 250 250 250 New Destinations 75 75 75 75 75 New Destinations Dome Car Experience 94 94 94 94 94 Sled Train 200 200 200 200 200 Sled Train Dome Car Experience 250 250 250 250 250 Tour of the line 83 83 83 83 83 Tour of the line Dome Car Experience 104 104 104 104 104
The above prices are based in part on the length of trip. In addition, the prices assume a blend of ridership among adults (40%) seniors (40%), students (10%) and children (10%). Dome Car Experiences are priced at 25% premium above the regular trip.
(3) Access Fees are calculated by $16 per mile, 592 miles per trip, 122 trips per year = $1,155,584, based on fees charged by CN for previous operations. It should be noted that access fees are widely variable and discretionary. For example, Amtrak in the United States charges an access fee of approximately $1 per mile.
(4) Estimated.
(5) Locomotive leases calculated as 2 locomotives x $225 (Cdn) per day, x 365 days = $164,250, based on industry estimates for locomotives leases at $200 per day plus contingency of $25 per day.
(6) Fuel costs are calculated based on actual costs experienced in 2013 by the Algoma Train. The Mask-Wa Oo-Ta-Ban operation would have fewer anticipated runs and fuel costs are approximately 25% lower than in 2013. It is understood that CN may have had access to lower fuel prices due to their market position, therefore, fuel costs are conservatively assumed to be at the same level as experienced by CN.
(7) Locomotive leases calculated as 2 locomotives x $225 (Cdn) per day, x 365 days = $164,250, based on industry estimates for locomotives leases at $200 per day plus contingency of $25 per day.
(8) Management, labour and benefit costs are calculated based on actual costs experienced in 2013 by the Algoma Train, adjusted for fewer anticipated runs and then adjusted for inflation. It is understood that the figures in this financial plan incorporate the use of four engineers.
54 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE FIVE-YEAR FINANCIAL PROJECTION
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Notes:
(9) Based on estimates provided by management, adjusted for inflation. This cost includes production of all documents in Cree, Ojibwe, English and French.
(10) Materials costs are calculated based on actual costs experienced in 2013 by Algoma Train, adjusted for inflation and fewer anticipated runs.
(11) Based on estimates prepared by management. Leased locomotives are assumed to be in good operating order upon acquisition and therefore less maintenance will be required.
(12) Based on estimates prepared by management, adjusted for inflation.
(13) Estimated.
(14) Startup costs are estimated as follows:
Startup Costs:
Startup costs: Capital Operating
Consulting – Legal, financial, rail and governance consultants $100,000
Marketing – Website development for online ticket sale capability, development of brochures, timetable publishing $100,000
Translation Services – Production of all documents in Cree, Ojibwe, English and French $50,000
Supplies $50,000
Meals & Lodging $45,000
Vehicle Expense – To accommodate travel for management for administrative and goverment requirements $45,000
Travel Expense – To accommodate travel for meetings with First Nations communities and other stakeholders $20,000
Professional Services – For provision of legal and other professional services for contract negotiations $50,000 $25,000
Equipment & Real Estate Purchases – Purchase of Passenger rail equipment and stations $300,000
Baggage Car Generator Set & Installation – For purchase and installation of generator sets for powering $115,000 $5,000 passenger rail equipment
Rail Equipment Upgrades – For First Nations branding, accessibility, and baggage car loading improvements $50,000
Locomotive Transportation – For transportation of leased locomotives to Sault Ste. Marie $10,000
Total Startup Costs $965,000
(15) Based on information provided by management. These projections are based on the assumption that passenger coaches and baggage cars would be purchased. However, it is understood that premium passenger dome cars and lounge/dining cars may be available through leasing, which may result in savings as well as enhancing the passenger experience.
(16) Estimated.
(17) External sources of funding are assumed to remain at levels assumed by management.
(18) Reserve Fund for non-profits should accumulate to a minimum of 3 months, and a maximum of 2 years of operating expenses.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 55 ECONOMIC, EMPLOYMENT & TAX GENERATION IMPACT
Economic, Employment & Tax Generation Impact
Total Annual Economic, Employment & Tax Generation - Base Year 2013 as calculated by BDO Canada in 2014 analysis Algoma Central Railway Passenger Rail Service Economic Impact Assessment April 11, 2014
Impact Type Low High Direct $2,760,000 $3,040,000 Indirect $13,130,000 $16,990,000 Induced $22,246,000 $28,042,000 Total $38,136,000 $48,072,000 Employment 170 220 Tax Generation $5,120,000 $6,450,000
Estimated Total Annual Economic, Employment & Tax Generation – 2016 Anticipate 40% drop from 2013 because of loss of winter and early summer travel & tourism as well as marketing opportunities
Impact Type Low High Direct $1,766,000 $1,945,600 Indirect $8,403,200 $10,873,600 Induced $14,237,440 $17,946,880 Total $39,282,000 $49,865,000 Employment 109 141 Tax Generation $3,276,800 $4,128,000
Estimated Total Annual Economic, Employment & Tax Generation – 2017 Anticipated recovery to base ridership plus growth in new ridership with resultant economic and employment impacts
Impact Type Low High Direct $4,000,000 $4,500,000 Indirect $19,500,000 $19,500,000 Induced $33,000,000 $42,000,000 Total $56,500,000 $66,000,000 Employment 215 278 Tax Generation $6,435,000 $8,160,000
56 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE ECONOMIC, EMPLOYMENT & TAX GENERATION IMPACT
Estimated Total Annual Economic, Employment & Tax Generation - 2018
Impact Type Low High Direct $5,500,000 $6,000,000 Indirect $25,500,000 $25,500,000 Induced $43,000,000 $54,500,000 Total $74,000,000 $86,000,000 Employment 247 320 Tax Generation $7,400,000 $9,380,000
Estimated Total Annual Economic, Employment & Tax Generation - 2019
Impact Type Low High Direct $7,000,000 $7,500,000 Indirect $33,000,000 $33,500,000 Induced $56,000,000 $71,500,000 Total $96,000,000 $112,500,000 Employment 284 368 Tax Generation $8,500,000 $10,700,000
Estimated Total Annual Economic, Employment & Tax Generation - 2020
Impact Type Low High Direct $8,500,000 $9,500,000 Indirect $41,500,000 $42,000,000 Induced $68,000,000 $89,500,000 Total $118,000,000 $141,000,000 Employment 319 414 Tax Generation $9,520,000 $11,990,000
Photo: Destination Ontario
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 57 APPENDIX 01
History of the Algoma Passenger Service
APPENDIX 01
Since the founding of the Algoma Passenger Train 105 years ago, the Algoma Passenger Train corridor has developed a non-traditional community of residents and businesses in the remote regions which the Algoma Passenger Train serves. Many residents are in clusters, neighbourhoods or hamlets, many others are completely isolated and independent.
The Algoma Passenger Train has been important residents in remote areas along the rail line to the economic, employment, social and remote safe, reliable access to their properties, as well access needs of the First Nations, communities, as business owners and their employees access residents, businesses and visitors of the Algoma to their businesses, and visitors and tourists region--- a distressed area for employment and unique access to one of the most beautiful economic opportunity. The $40 - $50 million in wilderness recreation areas in the world. The economic activity and the hundreds of jobs the remote wilderness regions of the Algoma Algoma Passenger Train supported directly and Passenger Train corridor were an inspiration indirectly are vital to Algoma region’s economic to the Canadian Group of Seven artists in their sustainability. The Algoma Passenger Train also early work and many of the sites for hundreds provided safe, reliable, all-season transportation of their paintings are not publicly accessible to and through the remote wilderness regions of except by the Algoma Passenger Train. It was Algoma, allowing First Nations rights-holders safe, when several of the painters lived in a boxcar reliable access to their traditional lands and socio- on the Algoma rail line that they decided to economic opportunities. The train has allowed become known as the Group of Seven.
1Algoma Central Railway Passenger Rail Service Economic Impact Assessment (August 13, 2014), BDO Canada
58 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE APPENDIX 01
Algoma Passenger Service Route Map Sault Ste. Marie to Hearst (296 miles)
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 59 APPENDIX 02
Catalina Motel Statistics SAULT STE. MARIE, ONTARIO (2019)
APPENDIX 02
Over the past two winters that the passenger train has not been operating we have seen a significant decline in our income that is directly related to the stoppage of the passenger train.
Catalina Motel Revenue (2012-2017) Catalina Motel Revenue (2012-2017)
Year February March 2017 $4,190 $5,106 2016 $4,071 $8,516 2015 $12,282 $11,928 2014 $10,490 $12,514 2013 $13.095 $10,377
With Passenger Service
60 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE APPENDIX 02
LETTER FROM DEAN ANDERSON MANAGER, CATALINA MOTEL SAULT STE. MARIE, ON
Over the past two winters that the passenger train has not been operating we have seen a significant decline in our income that is directly related to the stoppage of the passenger train. In the months of February and March, which are the primary months that snowmobilers would travel, here is a comparison of revenue with three years of train travel (2012-2015) vs. 2 years of no train travel (2016-2017).
For comparison sake, 2017 - $9,296, and It should be noted that when CN reduced the 2016 - $12,587 are significantly lower than capacity of the freight cars on the train there months that are directly related to the absence was a significant reduction in ridership as of the train, 2015 - $24, 210, 2014 - $22,418, the train could only hold 14 sleds compared 2013-$23,472. This is just two months and to 38 sleds when they reduced the fleet to does not reflect the absence of revenue 2 baggage cars. We also saw a reduction in for miscellaneous train packages through ridership, but my memory is not recalling the December/January or other months of the date that this happened. year, which are harder to attribute their These figures are actual figures and my impact. purpose in revealing these figures are to At least we see a decline of about $10,000 show that the absence of the train has comparing 2016 to 2014. At the most, we see impacted us directly in these months, but it a decline of about $15,000 comparing 2017 to is worth saying that revenue lost from the 2015 over the months of February and March. passenger train is greater than expressed. Over the past two years we can say that we I was averaging 250-300 - two-person have been impacted by at least $25,000 over packages through the summer/fall months two winters. If January is included it raises up which I have been able to replace, however, over $30,000. I have probably replaced them to someone else's disadvantage which could be an Throughout the summer season we build our additional $25,000-$30,000 in lost revenue Hearst train packages up to be as frequent as as a result of the passenger train not our Agawa Canyon train packages, however, operating, bringing the approximate total these numbers are more difficult to show as per year lost as a result of the passenger we have been able to replace the absence of train not operating, between $35,000- the Passenger Train with other business during $45,000/year. the summer months. The same cannot be said of the winter. There are very few opportunities This letter was written by Dean Anderson that encourage people to venture north in the and accurate to be the best of my winter, but the passenger train did. knowledge.
— Dean Anderson, Manager, Catalina Motel
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 61 APPENDIX 03
Algoma Passenger Train Working Group NOW THE BEAR TRAIN WORKING GROUP (BTWG)
Photo: Geri Turchet APPENDIX 03
The Bear Train Working Group (BTWG)
The Algoma Passenger Train Working Group (APTWG) was a cooperative coalition of First Nations, communities, residents, businesses and socio-economic stakeholders of the Algoma Passenger Train corridor dedicated to resuming and optimizing the Algoma passenger train service.
When notified of funding support cuts to the Algoma Passenger Train in the winter of 2014, the stakeholders quickly organized a collaborative effort that successfully convinced the federal government to re-instate the funding.
Some of the BTWG will transition into the Board of Directors of Mask-wa Transportation Association Inc.
62 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE APPENDIX 03
The Bear Train Working Group Steering Committee currently consists of:
BTWG Steering Committee
Chair Strategic Advisors Chief Jason Gauthier Legal Counsel Chief of Missanabie Cree First Nation Richard Lande has specialized in transport law for 44 years. Members • Worked in the legal department and Sault Ste Marie as manager of economic regulation for Dan Hollingsworth, CEO, CP Rail for 10 years Sault Ste. Marie EDC • Former president of Massawippi and Quebec Central Railways Wawa Maury O’Neill, CAO, Wawa • First Canadian to win British Railway Medal Hearst • Authored 9 books on transport law Yves Morrisette, CAO, Hearst • Inducted into Canadian Transport Louise Lacroix, Director of Economic Hall-of-Fame Development, Hearst • Worked as legal counsel for BNSF, Dubreuilville Orangeville Railway, Wisconsin Central, Melanie Pilon, Economic Development Soo Line, CP and CN Photo: Geri Turchet Officer, Dubreuilville Financial Consultant Algoma Kinniwabi Travel Association Frank Lekivetz Heather Bot, Executive Director of Algoma • Rail Operation Advisor and Kinniwabi Travel Association Organizational Mentorship Destination Northern Ontario David MacLachlan, Executive Director Algoma Rail Corridor Residents Mask-wa Residents’ Association (MRA) Len Piccolo, President Paul Makkonen
Ontario Fur Managers Federation Robin Horwath, CEO
Coalition for Algoma Passenger Trains (CAPT) Dean Anderson, Co-chair Dr. Linda Savory Gordon, Board Member
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 63 APPENDIX 04
Inclusive & Accessible Passenger Rail Service
Photo: Destination Ontario APPENDIX 04
According to a study commissioned by the government of Canada in 2017, entitled, "Older Canadians on the Move" 2,
"Older adults form a large and important Canadian demographic. Currently, one in six people in Canada is 65 or older, and the rate of growth of this demographic is higher than any other population subgroup. Older adults are a diverse group with unique transportation needs and preferences that are not currently being met by the Canadian transportation system. Adapting this system for an aging population has benefits for all travellers and for the travel industry itself.
An inclusive transportation system allows seamless movement between locations and transportation modes (e.g., from home to car to train to plane to hotel) so that all people, regardless of background, age, or ability, can easily reach their desired destination from the moment they start planning their journey.
An inclusive system supports social equity by providing universal access to transportation and enhances individual well-being. It also creates economic opportunities because more people are able to travel. Demand for an inclusive transportation system will only grow as the proportion of older adults in Canada continues to increase. Now is an ideal time to create such a system thanks to current infrastructure investments that offer opportunities for improvement, and to changes being made to transportation and accessibility governance."
2 Council of Canadian Academies, 2017. Older Canadians on the Move. Ottawa (ON): The Expert Panel on the Transportation Needs of an Aging Population. https://cca-reports.ca/wp-content/uploads/2018/08/transportaging_fullreport_en.pdf
64 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE APPENDIX 04
The report also notes that, "Canada’s geography and low population density contribute to unique transportation obstacles for older adults living in rural and remote regions." Certainly, the region from Sault Ste. Marie to Hearst is rural and remote, with few viable transportation options.
Not all seniors have disabilities, but the vast Reinstating the train from Sault Ste. Marie to majority of people with disabilities are seniors Hearst, operated by the Missanabie Cree First and many may have significant mobility, vision or Nation, is critical in ensuring that inclusive, hearing loss, or other challenges and may become accessible transportation options are available disabled over time. According to the Rick Hansen to all citizens in the region, including those on First Foundation, one in seven people have a disability. Nations lands where access to transportation In twenty years, that number is expected to grow is limited. to one in five. Planning now for the transportation Photo: Destination Ontario Why can the Bear Train's operating costs not be needs of seniors and people with disabilities is funded at this time by the Federal government? critical in order to be prepared for the aging This question is particularly relevant when Baby Boomers. the report which the Federal government At this time, in Northern Ontario, due to the commissioned on "Older Canadians on the Move", cancellation of the Greyhound bus service, states the following: persons with disabilities have few transportation "One important and powerful lever held by the options. Many people with disabilities either federal government is the provision of funding cannot drive a car or cannot afford to own a car, for transportation infrastructure and other nor can they afford air travel. Therefore, they initiatives. The federal government is therefore rely heavily on other forms of transportation to in a position to encourage the development of access services, such as health care, and to visit an age-friendly transportation system by tying family and friends. There are limited accessible infrastructure and other investments to projects services offered by Ontario Northland buses. It that support inclusive, multimodal transportation. is challenging for many people with disabilities Funding requirements need not be limited to to travel by bus, due to cramped seating and narrow accessibility provisions but could support lack of accessible washrooms. Only on some of inclusive transportation on a more general scale. their buses can Ontario Northland accommodate For example, the federal government has the people with mobility disabilities, including wheel opportunity to improve or develop transportation chairs but certainly not large electric wheelchairs. hubs that support intermodal travel. It can also use procurement to support the development of new For passengers with disabilities, train travel technological or other innovations that promote is much easier, more comfortable and more inclusivity within the transportation system." accessible. It makes sense to take advantage of the existing rail system to make passenger Consider the possibilities that exist for this area service available throughout the north to improve of Northern Ontario, especially when the the lives of people with disabilities and to offer Missanabie Cree already have their rail operating equitable, inclusive services that enable people certificate and are willing to operate the Bear to travel more easily. Train as soon as the appropriate funding for operating costs can be allocated.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 65 APPENDIX 05
LETTER OF SUPPORT FROM ROBERT BATEMAN ROBERT BATEMAN CANADIAN ARTIST/NATURALIST
May 15, 2017 The Honourable Marc Garneau Minister of Transport House of Commons Ottawa, ON K1A 0A6
Dear Minister Garneau:
Mask-wa Oo-ta-ban Passenger Train (Bear Train)
The fact that this is the third letter that I have that MCFN was developing at the time the train written in support of the Algoma passenger train was cancelled. I understand that you have been and the second one to you is indicative of the mandated by the Prime Minister with ensuring concern that I have for the reinstatement of the “that Canada’s transportation system supports passenger train service between Sault Ste. Marie [your government’s] ambitious economic and Hearst. My letter to Minister Lisa Raitt was growth and job creation agenda” and providing sent in 2014. The letter I sent to you was sent on Canadians with “a transportation system that June 23, 2016. is safe, reliable and facilitates trade and the movement of people and goods”. Since this I have been following the major efforts that passenger service is the only transportation into Chief Jason Gauthier of the Missanabie Cree the residences and tourism businesses along First Nation (MCFN) has taken to restore the 400 kilometers of the 470-kilometer rail corridor, passenger service in collaboration with the it is urgent that it be restored. passenger train stakeholders. Since this initiative is so consistent with your government’s goals of As stated in my June 2016 letter, as an artist I see economic development/ job creation, mitigating Transport Canada’s investment in this service climate change and developing a renewed as a way to use the unique art historical value relationship with First Nations peoples in the of the Algoma rail corridor as a way to develop spirit of reconciliation, I do not understand why eco/cultural tourism-cultural tourism. The train you have not restored funding for it. It is such a is the way that Group of Seven painters traveled small investment considering its annual economic into the Canadian wilderness and creatively impact of over 48 million dollars (BDO report, displayed those landscapes through their art. 2014). The Mask-wa Oo-ta-ban will particularly Their paintings of scenes along the Algoma provide job opportunities for First Nation Central Railway (ACR) have become Canadian members in both running the train service as cultural icons. Art historian Michael Burtch and well as through the Indigenous tourism products wildlife adventurers Joanie and Gary McGuffin
66 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE APPENDIX 05
conducted extensive, unique research along fragile ecosystems as it travels through areas the ACR, locating hundreds of sites of paintings such as the world's largest game preserve---the made by various Group of Seven artists. Chapleau Game Preserve. This research is new to the field of Canadian I support the Missanabie Cree First Nation art history, and their recent documentary led working group's proposal to Transport film, Painted Land: In Search of the Group Canada to reinstate the passenger service of Seven, will draw many tourists to the ACR between Sault Ste. Marie and Hearst. This is tourism corridor. This will be a major boon to a most urgent matter and I trust that given the tourist operators whose businesses are your government's mandate to address accessed only by this special train. climate change, Indigenous and Northern As an environmentalist I support public economic development, infrastructure, small investment in train-based tourism and train business and tourism needs, you will see the travel in general as it is a way to reduce importance of directing Transport Canada to pollution and climate change and their finalize negotiations with Missanabie Cree destructive effects on the planet. Enhancing First Nation to reinstate the passenger service. the Northern Ontario wilderness trains as That service is essential infrastructure as it eco-tourism rail corridors is a way for Northern is the only transportation to residences and Ontario to diversify its economy and lead to businesses along over 400 km of the line and sustainability of its local communities in an for the development of a rail tourism corridor environmentally respectful way. The Mask- through the spectacular Algoma wilderness. wa Oo-ta-ban will educate tourists about our
Sincerely,
— Robert Bateman PO Box 115 Fulford Harbour, Salt Spring Island, BC V8K 2P2 cc Prime Minister Justin Trudeau Chief Jason Gauthier, Missanabie Cree First Nation Minister of Indigenous and Northern Affairs Carolyn Bennett Minister of Environment & Climate Change Catherine McKenna Minister of Infrastructure & Communities Amarjeet Sohi Minister of Small Business & Tourism Bardish Chagger Minister of Innovation, Science & Economic Development Navdeep Bains Minister of Employment, Workforce Development and Labour Patty Hajdu Terry Sheehan, M.P. Carol Hughes, M.P. Coalition for Algoma Passenger Trains (CAPT)
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 67 APPENDIX 06 Michigan Association of Railroad Passengers, Inc. Office of the Chairman · 252 Carriage Way, Ypsilanti, MI 48197 www.marp.org
Michigan Association of Railroad Passengers,September 01, Inc. 2016 Office of the Chairman · 252 Carriage Way, Ypsilanti, MI 48197 The Hon. Marc Garneau www.marp.org Minister of Transport 347 Preston St, September 01, 2016 Ottawa,The Hon. ON Marc K1S Garneau 3J4, Canada HonorableMinister of Sir:Transport 347 Preston St, Ottawa,The Michigan ON K1S Association 3J4, Canada of Railroad Passengers urges you to restore passenger service on the Algoma Line, Sault Ste. Marie to Hearst. Honorable Sir: Several of our members have told me how they enjoyed travel on the line when it was in service. (I haveThe Michigan personally Association only been asof farRailroad as Agawa Passengers Canyon urgewiths my you wife to restore on the passenger“Snow Train” service – but on the the Algomadramatic Line, beauty Sault of theSte. landMarie is tounforgettable.) Hearst.
OurSeveral friends of our and members associates have in toldCanada me informhow they us enjoyedthat the travelrail line on has the been line whenclassified it was as in“not service. (I remote”,have personally and hence only not been eligible as far foras AgawaFederal Canyon funding. with Yet my they wife assure on the us that“Snow along Train” 75% – butof the the line accessdramatic roads beauty are privateof the land logging is unforgettable.) roads which are not open to the public and are not maintained in passableOur friends condition and associates year-round. in Canada inform us that the rail line has been classified as “not Itremote”, would appearand hence that not many eligible flourishing for Federal businesses funding. providing Yet they lodging, assure us food, that outdoor along 75% guides, of the line campingaccess roads, and are wilderness private logging supplies roads in this which region are willnot goopen out to of the business public due and to ar elack not of maintained access. It in wouldpassable be condition poor fiscal year policy-round. to let that happen, and force the people depending on these Itbusinesses would appear to move that to many cities flourishing like Toronto businesses already struggling providing withlodging, overcrowding. food, outdoor guides, Wecamping therefore, and callwilderness upon the supplies Minister in ofthis Transport region will to goput out the of Algoma business passenger due to lack train of back access. in It servicewould be in poororder fis tocal ensure policy the to missionlet that happen,of Transport and forceCanada the to people “serve depending the public oninterest these through promotionbusinesses toof movea safe toand cities secure, like efficientToronto and already environmentally struggling with responsible overcrowding. transportation system Wein Canada” therefore is fulfilled.call upon the Minister of Transport to put the Algoma passenger train back in Sincerely,service in order to ensure the mission of Transport Canada to “serve the public interest through promotion of a safe and secure, efficient and environmentally responsible transportation system in Canada” is fulfilled.
LaurenceSincerely, J. Krieg, PhD Chair Michigan Association of Railroad Passengers Laurence J. Krieg, PhD Chair Michigan Association of Railroad Passengers
Officers Regional Chairpersons At-Large Executives Chairman – Dr. Laurence Krieg Detroit Metro - Robert Patterson Kay Chase Vice-Chairman – Steve Vagnozzi East/Central Michigan – Jim Wallington John Langdon Secretary – open position Northern Michigan - open position Dan Platz Treasurer – Stewart Bolinger Western Michigan - Warren Fritz Adam Tauno Williams Officers Regional Chairpersons At-Large Executives Chairman – Dr. Laurence Krieg Detroit Metro - Robert Patterson Kay Chase Vice-Chairman – Steve Vagnozzi East/Central Michigan – Jim Wallington John Langdon 68 BUSINESSSecretary PLAN – open MASK-WA position OO-TA-BAN (BEAR TRAIN) PASSENGERNorthern SERVICE Michigan - open position Dan Platz Treasurer – Stewart Bolinger Western Michigan - Warren Fritz Adam Tauno Williams
APPENDIX 07
MUSHKEGOWUK COUNCIL P.O. Box 370 Moose Factory, ON P0L 1W0
Tel: 705-658-4222 Fax: 705-658-4250
Friday, June 3rd, 2016
The Honourable Marc Garneau, Minister of Transport
Transport Canada
330 Sparks Street Ottawa, Ontario Attawapiskat K1A 0N5 First Nation The Honourable Carolyn Bennett, Minister of Indigenous & Northern Affairs Terrasses de la Chaudiere Kashechewan 10 Wellingston, North Tower First Nation Ottawa, Ontario K1A 0H4
Fort Albany Dear Honourable Marc Garneau and Honourable Carolyn Bennett, First Nation As Grand Chief of the Mushkegowuk , I am writing to you with regard to an urgent matter affecting several Mushkegowuk First Nations who have been undertaking a Moose Cree very positive initiative under the leadership of Chief Jason Gauthier of Missanabie First Nation Cree First Nation. They are taking the lead in efforts to restore the Algoma passenger
train between Sault Ste. Marie and Hearst. This train provides (1) essential Taykwa Tagamou transportation through the traditional territories of the regional First Nations; and, (2) Nation important economic and employment opportunities for them.
Chapleau Cree The Algoma Central Railway (ACR) corridor passes through the Treaty No. 9, First Nation Robinson Superior Treaty and Robinson Huron Treaty areas, including the traditional territories of Missanabie Cree First Nation (MCFN) and territories of other First Nations between Sault Ste. Marie (Batchewana FN) and Hearst (Constance Lake FN) Missanabie Cree First Nation and other First Nations. These traditional territories are used by First Nations for hunting, fishing, trapping and other socio-cultural activities. These are also areas in which First Nations are developing ecotourism businesses, as well as forest management plans and other resource-based undertakings.
The ACR was built over 100 years ago on land acquired with no First Nation consent. Missanabie Cree children were taken on the ACR passenger train to Shingwauk Residential School. The colonial relationship continued through the entire history of this rail line. In late 2013 when the Federal Government decided to cancel the passenger train subsidy under the Remote Passenger Rail Program (RPRP), the regional chiefs forum wrote a letter with the following statements:
“The (forum) does not support this decision given that there was no free, prior and informed consent as required under the United Nations Declaration on the Rights of Aboriginal Peoples (UNDRIP), and no consultation in support of discharging the need to accommodate Aboriginal rights in cases of infringement, as supported by
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numerous Supreme Court of Canada rulings. The infringement is created by virtue of the fact that numerous Aboriginal people use the ACR service to access traditional areas for the purpose of harvesting.
We would like to specifically work collaboratively with Transport Canada and the Coalition for Algoma Passenger Trains in support of looking for ways to solve this problem. This would include consideration of the (forum’s) Conservation Economy research done to date for the Chapleau Crown Game Preserve (CCGP) that includes optimizing railway lines in the region in support of value-added tourism”.
Since that letter of March 4, 2014, the chiefs’ forum played in important leadership role in the ACR Stakeholders working Group, with Chief Jason Gauthier (MCFN) as its representative. In the fall of 2015, leadership of the working group was passed from Tom Dodds, Sault Ste. Marie, to Chief Gauthier. Under Chief Gauthier’s leadership a proposal was developed to create Mask-was Oo-ta-ban (Cree for Bear Train). This proposed initiative is an opportunity for the Federal government to help to correct the unjust acquisition of land and building of the ACR by ensuring that the passenger service plays its important role as infrastructure for the regional economic development of the First Nations through whose territories it passes.
Mask-wa Oo-ta-ban: Bear Train Mask-wa Oo-ta-ban, the bear train, is an initiative of the Missanabie Cree First Nation, with the support of the Algoma Passenger Train Working Group, to re-establish the Algoma passenger train service to support the social, economic, employment and remote access needs of the First Nations, communities, residents, businesses and socio-economic stakeholders of the Algoma passenger train corridor. This initiative is consistent with the mission of Transport Canada: “to serve the public interest through the promotion of a safe and secure, efficient and environmentally responsible transportation system in Canada”. The development and operations of Mask-wa Oo-ta-ban will be committed to safe, reliable, efficient and effective passenger train operations guided by the First Nation values taught by the Seven Grandfathers: Wisdom, Love, Respect, Bravery, Honesty, Humility and Truth”.
Socio-economic importance of the passenger train Since the founding of the Algoma Passenger Train 102 years ago, it has been extremely important to the economic, employment, social and remote access needs of the First Nations, communities, residents, businesses and visitors of the Algoma region. The Algoma region is a distressed area for employment and economic opportunity. The $40 - $50 million in economic activity and the 100s of jobs the Algoma passenger train supported directly and indirectly are vital to the Algoma region’s economic sustainability. The Algoma passenger train also provides safe, reliable, all-season transportation to and through the remote wilderness regions of Algoma allowing First Nations rights-holders safe, reliable access to their traditional lands and socioeconomic opportunity, allowing residents in the remote regions safe, reliable access to their properties, allowing business owners and their employees safe, reliable access to their
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businesses and work, and allowing visitors and tourists safe, reliable and unique access to one of the most beautiful wilderness recreation areas in the world.
In 2014, BDO Canada LLP Chartered Accountants and Advisors (BDO) conducted a socio-economic impact of the Algoma Central Railway Passenger Service. The report of this assessment is entitled “Algoma Central Railway Passenger Rail Service Economic Impact Assessment (August 13, 2014)”. As part of the impact assessment process, the ACR Passenger Service Working Group created and distributed an impact survey for stakeholders affected by the cancellation of the passenger service. A common concern brought forward by the stakeholder group whether through the stakeholder’s survey or the working group is the isolation of many communities along the rail line. 400 km of the 470 km Algoma rail line is not accessible by public road. Although there are some industrial roads into the rail corridor, they are built and maintained at the discretion of industry and cannot be relied upon for reliable, safe or long-term access.
As a result of a discontinuation of the passenger train a number of businesses, communities and residents have been unable to access their residences, lodges and other business properties via safe, reliable public infrastructure and services. Based on the Stakeholder Survey data, BDO determined that approximately 75% of properties of the private residents should be deemed “inaccessible” but for the ACR passenger train, given that individuals should not be expected to travel on roads which are potentially unreliable and dangerous because industrial roads are not built or maintained to be reliable or safe for public use.
Federal funding for the Mask-wa Oo-ta-ban: Bear Train (the Algoma Passenger Train) is essential to maintain the only form of transportation in this remote area for many First Nations” economic development and employment, tourism businesses and over $48 million for Algoma’s regional economy. This is extremely URGENT. This important economic development opportunity for First Nations under the leadership of Missanabie Cree First Nation will collapse without the Transport Canada funding.
Yours truly
Grand Chief Jonathan Solomon Mushkegwuk Council c.c. Chief Jason Gauthier, Missanabie Cree First Nation Deputy Grand Chief Rebecca Friday, Mushkegowuk Council Donna Seary, Executive Director
PageBUSINESS 3 of PLAN 3 MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 71 APPENDIX 08
June 13, 2016
The Honourable Marc Garneau [email protected] Minister of Transport House of Commons Ottawa, Ontario K1A 0A6
The Honourable Carolyn Bennett [email protected] Minister of Indigenous & Northern Affairs Terrasses de la Chaudière 10 Wellington, North Tower Ottawa, Ontario K1A 0H4
Re: Algoma Central Passenger Train | Mask-wa Ooo-ta-ban
Dear Honourable Marc Garneau and Honourable Carolyn Bennett:
As the Ontario Regional Chief, I would like to express my support to the proposed initiative of the urgent reinstatement of the Algoma passenger train service between the towns of Sault Ste. Marie and Hearst. The proposed service, entitled Mask-wa Oo-ta-ban (Bear Train) is a practical solution to a crisis situation. As you know, there has been no passenger service on that line since July 2015. Many residents along the line are not able to access their residences and businesses as the train is the only form of transportation that gives them access to their remote locations.
The Algoma Central Railway (ACR) rail line travels through the Treaty No. 9, Robinson Superior Treaty and Robinson Huron Treaty territories, including the traditional territories of Missanabie Cree First Nation and other First Nations between Sault Ste. Marie (Batchewana First Nation) and Hearst (Constance Lake First Nation). First Nations have used these traditional territories for hunting, fishing, trapping and also as areas in which they are developing ecotourism businesses, forest management plans and other resource- based initiatives.
A First Nation led initiative to operate the passenger train is highly appropriate considering the fact that the ACR was built over 100 years ago on the land that was acquired without First Nation consent. In late 2013 the Federal Government's cancellation of the passenger train subsidy under the Remote Passenger Rail Program (RPRP) was also decided without First Nation consent. The Missanabie Cree First Nation led initiative is a way to help reverse the colonial relationship between this rail line and the First Nations through whose territory it runs. This is a way that the current Federal Government can fulfill its mandate to First Nations by ensuring that the passenger service plays its essential role as infrastructure for the regional economic development of the First Nations through whose territories it passes.
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Since the founding of the Algoma Passenger Train, more than 100 years ago, Mask-wa Oo-ta-ban has been extremely important to the economic, employment, social and remote access needs of the First Nations, communities, residents, businesses and visitors of the Algoma region. The Algoma region is a distressed area for employment and economic opportunity. About $38 - $48 million in economic activity and 100’s of jobs are supported, directly and indirectly, by the Algoma passenger train, according to the 2014 BDO Canada socio-economic impact study (please see the link below).
Approximately, 400 km of the 470 km Algoma rail line is not accessible by public road. Although there are some industrial roads into the rail corridor, they are built and maintained at the discretion of industry and cannot be relied upon for reliable, safe or long-term access. Since the discontinuation of the passenger train a number of businesses, communities and residents have been unable to access their residences, lodges and other business properties via safe, reliable public infrastructure and services. According to the BDO study, approximately 75% of properties of the private residents would be deemed "inaccessible" without the passenger train.
I urge your government to immediately finalize negotiations with Chief Jason Gauthier so that the proposed Mask-wa Oo-ta-ban can return the only transportation to those along the remote ACR corridor. This important economic opportunity for First Nations under the leadership of Missanabie Cree First Nation will collapse without the Transport Canada funding. I, therefore, ask you to consider both, the reinstatement of the said train service and the proposal to make it a First Nation led initiative. I look forward to hearing back from you on this urgent matter.
Yours truly, CHIEFS OF ONTARIO
Isadore Day, Wiindawtegowinini ONTARIO REGIONAL CHIEF
CC: Chief Jason Gauthier
Link to the 2014 Socio Economic Impact study: http://www.algomapassengerrail.com/
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ALGOMA KINNIWABI TRAVEL ASSOCIATION 334 BAY STREET, SAULT STE. MARIE, ON P6A 1X1 TEL: 705- 254- 4293 • FAX: 705- 254- 4892
September 16, 2019
Hon. Marc Garneau Minister of Transport Ottawa, ON
Hon. Mr. Garneau:
On behalf of the Algoma Kinniwabi Travel Association, it is with grave concern that I write to you today with regards to the cancellation of the Federal funding for the Passenger Rail Service from Sault Ste. Marie, Ontario to Hearst, Ontario.
On January 28, 2014, Lori Johnston, on behalf of the Algoma Kinniwabi Travel Association, directed a letter to Minister Greg Rickford with regards to the cancellation of the Passenger Rail Service. Ms. Johnson foretold many grim outcomes due to this cancellation. I am sorry to say that these outcomes have occurred. The Algoma region finds itself in hopeless circumstances.
In her letter, Ms. Johnson advised that the loss of this vital transportation link would affect residents, tourism lodges and other businesses located along the rail line. This has occurred; there are no safe, reliable public roads into the area for residents and business owners to access their property. Although there are industrial roads, these are not built for public use. These roads are unsafe and only maintained as per the discretion of the industry that owns them.
The Algoma Passenger Rail Service truly allowed Algoma to be home to one of the most unique wilderness opportunities in the province of Ontario. The eleven lodges located directly along the rail line, and additional business owners have been significantly impacted. Alternative transportation arrangements must now be made which has resulted in a direct loss of business and additional costs. This Association no longer markets the “Wilderness by Rail” experience, highly sought after by American consumers. The loss of the passenger rail service has affected winter tourism; snowmobile enthusiasts once “rode the rails” to access hundreds of kilometres of trail, which made the Algoma region a one-of-a-kind place to snowmobile in Ontario. Again, a highly sought-after product by American consumers. To this very day, the Association receives visitor inquiries with regards to the passenger rail service in hopes the service has been reinstated.
The cancellation of the train was far reaching. Railway jobs were lost. Fishing lodge operators were impacted. The businesses and small communities whose main industry is tourism have suffered a loss in revenue. These communities once catered to these riders prior to departure and on return from their remote lodge experience.
Ms. Johnson was correct in her evaluation of the grim outcomes due to the cancellation of the passenger rail service. This rail line DID give the Algoma region the opportunity to be unique because of the incredible wilderness adventures by rail, so genuinely sought after by American consumers.
www.algomacountry.com • [email protected]
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The impact on tourism has been far reaching; the cancellation of the passenger rail service has affected future developments in Indigenous, cultural and even, culinary tourism. These tourism products are high demand by International consumers from Europe and Asia. There are opportunities to develop, showcase and support authentic Indigenous culture and history along this historic rail line. The Group of Seven, Canada’s most famous art collective, used the Algoma Central Railway to access this region’s wilderness. Their most well-known works were painted at sites only accessible by this rail line. Again, opportunities exist to develop Group of Seven experiences along this rail line. Food-based experiences teach people to not only appreciate but consume food that reflects the history, heritage and culture of a place. Bringing fresh, locally grown foods into the far-reaching communities of Algoma where particular ingredients and products do not exist has been identified as an opportunity. But none of these opportunities even have a chance to be developed; the passenger rail service was canceled.
I must agree with Ms. Johnson, this decision to cancel the service was not based on common sense, nor was it based on the understanding of the ramifications that this decision would have on the businesses and economy of Northern Ontario. This decision has been detrimental to the tourism industry; it has stifled future growth.
We continue to take a stand on behalf of the Passenger Rail Service; we request that the subsidy be reinstated for the Passenger Rail Service from Sault Ste. Marie, Ontario to Hearst, Ontario.
Respectfully,
Heather Bot EXECUTIVE DIRECTOR, ALGOMA KINNIWABI TRAVEL ASSOCIATION
Cc Terry Sheehan Carol Hughes Seamus O’Regan Melanie Joly Justin Trudeau
Attached: Letter to Minister Rickford dated January 1, 2014
•
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28/01/2014
Minister Greg Rickford FedNor 25B Main Street South (Main Office) Unit 2 Kenora, Ontario P9N 1S8
Mr. Rickford:
It is with grave concern we write to you today with regards to the recent cancellation of the Federal funding for the Passenger Rail Service from Sault Ste Marie, Ontario to Hearst, Ontario. This passenger rail service is a vital transportation link not only for cottages but also for tourism and other businesses located along this remote and otherwise inaccessible line. Eleven lodges are located directly along the rail line and additional lodges utilize this rail link to offer additional unique experiences to consumers. This rail line truly allows Algoma to be home to one of the most unique wilderness opportunities in the province of Ontario. The link also allows snowmobile enthusiasts to ride the rails to access trails otherwise considered too remote. The Algoma Central Railway is utilized as a consumer draw as a full day wilderness adventure to the picturesque town of Hearst, Ontario where travelers nestle into the comforts of the train cars and immerse themselves in the Algoma wilderness.
The cancellation of this train will be far reaching. From the railway jobs that will be lost along the line to the impact of the worth of the fishing lodge properties, to the lost revenue into our already struggling small communities, whose main industry is now tourism, to the small businesses that cater to these riders within their communities prior to departure and on their return from their lodge experience. Imagine a lodge operator that has invested everything into their family business and the government through the stroke of a pen, has made this business literally worth nothing. This is a travesty and MUST be rescinded immediately. This decision is not based on common sense, nor is it based on an understanding of the ramifications this decision will have, it is just an opportunity for the Federal Government to once again desecrate the businesses and economy of Northern Ontario. Lodge operators as well as this Association have been in market for this upcoming season for the past few months without an inkling that this could happen. It is incomprehensible that this could be done with such short notice to operators whose livelihood depends on this rail service. It is quite obvious that this decision was made without any thought as to the ramifications this would have on the tourism in Algoma.
From a tourism perspective, this rail line, gives Algoma the opportunity to be unique by offering a plethora of opportunities located along the rail, in an industry that is finally beginning to feel growth with the return of American consumers. This decision will be detrimental to our industry, stifle future growth and will cause this area to once again suffer, this time at the hands of our own federal government. Tourism is affected by many factors that we do not control, the worth of our dollar, gas prices, the American economy, to name a few, we are a resilient industry, but this decision is one that will impact us forever, and will be more far reaching than anyone has considered when making this ludicrous decision.
With the slash of a pen, the Federal Government has successfully taken away a tourism product that allows this area to be unique. Today, we take a stand on behalf of the Passenger Rail Line, that stand that is simple; we request that you reinstate the subsidy that you slashed for the CN Rail service from Sault Ste Marie to Hearst.
Respectfully,
Lori Johnson President 76 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE Algoma Kinniwabi Travel Association
Algoma Kinniwabi Travel Association 485 Queen Street East Suite 204 Sault Ste Marie, ON P6A 1Z9 [email protected] www.algomacountry.com APPENDIX 11
Ontario Fur Managers Federation 531 Second Line E Sault Ste Marie, ON P6B 4K2 Phone: (705) 254-3338 Fax: (705) 254-3297 Website: www.furmanagers.com
October 18, 2016
Dear Sir/Madame,
The OFMF Board of Directors discussed the Resolution re: Algoma Passenger Train put forward by the Algoma Passenger Train Working Group at our Board of Directors meeting in Thunder Bay, Ontario. The Board of Directors passed a motion to support this Resolution as a whole. This was unanimously passed and supported by the 16 Directors representing 6,000 members across Ontario.
The OFMF Board believes that both the Federal Minister and Provincial Minister of Transportation should work quickly to reinstate Algoma passenger train service to the trappers, stakeholders and communities affected by the cancellation of rail service. This service is vital to the survival of businesses and commercial trapping in this area.
Sincerely on behalf of the OFMF Board of Directors,
Robin Horwath General Manager Ontario Fur Managers Federation
Cc: OFMF Board of Directors
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Michael Keenan Deputy Minister Transport Canada 330 Sparks St., Ottawa, ON K1R 7S3
Dear Mr. Keenan:
As Executive Director of the Art Gallery of Algoma (AGA) I am writing in support of the proposed Mask-wa Oo-ta-ban (Cree for "Bear Train") which would provide passenger train service between Sault Ste. Marie and Hearst, Ontario. This train service will be important transportation infrastructure for cultural tourism development in the Algoma region — in particular for the Group of Seven tourism development. The train is the way that Group of Seven painters traveled into the Canadian wilderness and creatively depicted those landscapes through their art. In fact, it was when several of them stayed in a boxcar along the Algoma rail line that they decided to become a group and the famous Group of Seven was born. Their paintings of scenes along the railway have become Canadian cultural icons and symbols of the Canadian landscape.
When the passenger train was still running local art historian Michael Burtch and wildlife adventurers Joanie and Gary McGuffin conducted extensive research along the line and located hundreds of sites of paintings made by various Group of Seven artists. This research led to a recent production of the documentary film, Painted Land: In Search of the Group of Seven, which was screened in many locations nationally and on TV Ontario. Based on that promotion alone, this train service will draw many tourists to the ACR tourism corridor. This would be a major boon to the tourist operators in Algoma whose businesses are accessed only by this special train. Visitors are often interested to explore the area and Group of Seven painting sites using their canoes and camping gear which is not possible since the passenger service was cancelled.
This service presents a huge tourism opportunity at a time when Ontario has launched a new initiative to re-brand the province using the Group of Seven legacy. Destination Ontario has identified Algoma as one of three locations for Group of Seven tourism development in Ontario--Ottawa, Toronto and Algoma.
Art Gallery of Algoma 10 East Street Sault Ste. Marie ON Canada
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BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 79 APPENDIX 13
Michael Keenan Deputy Minister Transport Canada 330 Sparks St., Ottawa, ON K1R 7S3
September 23, 2019
Re: LETTER OF SUPPORT FOR MASK-WA OO-TA-BAN (BEAR TRAIN)
Dear Mr. Keenan,
On behalf of Indigenous Tourism Ontario (ITO), it is my pleasure to provide this letter of support for the MASK-WA OO-TA-BAN project which would provide passenger train service between Sault Ste. Marie and Hearst, Ontario. This train service will be important transportation infrastructure support for Indigenous tourism development in the Algoma region. A rebranding of the passenger train as MASK-WA OO-TA- BAN, Ontario's first and only First Nation run passenger train.
We understand that First Nations along the rail corridor are interested in developing tourism destinations and events along the rail line to showcase and support authentic Indigenous culture and history. With the initial Indigenous Tourism Ontario strategy developed in 2008, ITO is positioned as the voice for Indigenous tourism in Ontario. ITO has been quickly growing the Indigenous tourism landscape in Ontario the last few years. We have forged some strategic and meaningful relationships with key organizations in the tourism industry that can support the success of this initiative.
ITO is an Ontario non-profit and membership association which focuses on creating aligning and forming partnerships between businesses, associations, organizations, government departments, and industry leaders from across Ontario and Canada to support the growth of Indigenous tourism in Ontario and Canada. All while addressing the demand for development and marketing of authentic Indigenous experiences.
Because of this mandate, we are particularly pleased to see this initiative. Fostering product and experience development for Indigenous entrepreneurs is critical to growing the tourism sector and growing the economy. Ontario’s Indigenous Tourism Strategy, being implemented by ITO, includes strategic tactics that align with other provincial and national-level organizations that support tourism promotion and product development. MASK-WA OO-TA-BAN will further add to the product offering and will spur additional Indigenous tourism experiences.
1300 - 4 Hwy 540, Aundeck Omni Kaning, ON P0P 1G0 (705) 368-1919 - phone (705) 368-0956 - fax www.indigenoustourismontario.ca
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Experiences that International markets are highly demanding.
We recently conducted a Foundation Research Study on Ontario’s Indigenous tourism business owner needs to successfully expand Ontario’s Indigenous Tourism sector. Some of the findings were as follows:
1. Indigenous Tourism Businesses, Communities, and Tourism Partners identified that investment will create jobs and expand businesses. Financing and training are barriers to growth. Partnerships and collaboration are of great interest. 2. Grassroots/community level support was deemed most successful for many Indigenous tourism associations. Capacity building, marketing support, experiences (product) development, business skills, and support mechanisms for entrepreneurs are key. 3. With an increased interest in Indigenous tourism on a global scale and its potential to grow Ontario’s provincial economy, partnerships and investment are most needed.
Currently, Ontario has over 550 Indigenous tourism businesses, which account for almost 13,000 jobs supported, which contribute over $622 M to the GDP annually. These impressive figures account for over 1/3 of the National Indigenous tourism contributions to the total industry, but we can still improve on them. Strategic investment into projects that grow Indigenous tourism help grow the industry as a whole.
The three findings from our Foundational Research Study which I’ve shared above highlight the need for partnerships, training, capacity building, marketing support, business skills, and financing – all of which are elements of MASK-WA OO-TA-BAN.
We believe that an investment by Provincial and Federal governments into the MASK-WA OO-TA-BAN will be another positive step to grow the Indigenous tourism industry. We feel the only pathway to future success will be through coordinated, strategic investment into projects either identified or are in alignment with Ontario’s Indigenous Tourism Strategy. With a strategic approach focused on efficiency, partnership and alignment, ITO and its partners are well positioned to grow our economy together.
This is an exciting time and demand for authentic Indigenous experiences in Canada and Ontario far surpass existing supply. We look forward to the working with MASK-WA OO-TA-BAN and all of our partners to ensure we all help Ontario and Canada grow together. Through partnerships and alignment, we can bolster the economy in the best interest of all partners.
Please do not hesitate to contact me at [email protected] or at 705-348-0179 to discuss further.
Respectfully,
Kevin Eshkawkogan President and Chief Executive Officer Indigenous Tourism Ontario
1300 - 4 Hwy 540, Aundeck Omni Kaning, ON P0P 1G0 (705) 368-1919 - phone (705) 368-0956 - fax www.indigenoustourismontario.ca
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 81 Algoma Passenger Train at Tatnall Camp (remote tourist lodge) Oba Lake
82 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE "This train service will be important transportation infrastructure support for Indigenous tourism development in the Algoma region." — Kevin Eshkawkogan, President and Chief Executive Officer, Indigenous Tourism Ontario
"This rail line DID give the Algoma region the opportunity to be unique because of the incredible wilderness adventures by rail, so genuinely sought after by American consumers. The impact on tourism has been far reaching; the cancellation of the passenger rail service has affected future developments in Indigenous, cultural and even, culinary tourism". — Heather Bot, Executive Director, Algoma Kinniwabi Travel Association
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 83 RESOLUTIONS OF SUPPORT
Resolutions of Support
84 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE RESOLUTIONS OF SUPPORT
RESOLUTION IN SUPPORT OF THE ALGOMA PASSENGER TRAIN SAULT STE. MARIE CITY COUNCIL
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 85 RESOLUTIONS OF SUPPORT
RESOLUTION IN SUPPORT OF THE ALGOMA PASSENGER TRAIN COALITION FOR ALGOMA PASSENGER TRAINS
WHEREAS the Federal Government decided WHEREAS Transport Canada's stated in late 2013 to cease its investment in the mission is "To serve the public interest Algoma Central passenger train service, an through the promotion of a safe and secure, investment which it continued for many years efficient and environmentally responsible to ensure safe and reliable access into many transportation system in Canada"; and remote areas between Sault Ste. Marie and WHEREAS a study completed in 2015 by Hearst, Ontario; and BDO Canada concluded that the Algoma WHEREAS the service was discontinued by passenger train is in the public interest in CN Rail as a result of the loss of the Federal that it supported: Government's investment in early 2014; and • $38-$48 million in direct and indirect WHEREAS, as a result of the cessation of economic impact this service, access has now been denied to • 170-220 direct and indirect jobs many residents, tourist business operators, trappers and First nations, and • $5.12-$6.45 million in tax generation; and
WHEREAS a Working Group has been formed WHEREAS this same study also concluded comprised of affected stakeholders, chaired that at least 75% of residents and property by Chief Jason Gauthier of Missanabie Cree owners of the Algoma passenger rail corridor First Nation, and do not have other safe or reliable year-round access to their residences or properties; and WHEREAS the group is moving forward on a plan to create a not-for-profit corporation to WHEREAS Mask-wa Oo-ta-ban (The Bear be led by Missanabie Cree First Nation and to Train) is an initiative of the Missanabie Cree include representation from the communities First Nation and the Algoma Passenger Train affected (Sault Ste. Marie to Hearst), and all Working Group to re-establish and optimize other stakeholders as identified; and the Algoma passenger train service to support the social, economic, employment WHEREAS the continued and ongoing and remote access needs of the First investment by Transport Canada is absolutely Nations, communities, residents, businesses essential to the successful return of and socio-economic stakeholders of the passenger rail service to the region as was Algoma passenger train corridor, an initiative recognized by the previous Government in that follows and supports the mission of 2015 when it reconsidered its position and Transport Canada; announced a further 3 years of funding; and
86 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE RESOLUTIONS OF SUPPORT
RESOLUTION IN SUPPORT OF THE ALGOMA PASSENGER TRAIN COALITION FOR ALGOMA PASSENGER TRAINS
BE IT RESOLVED THAT Federation supports BE IT FURTHER RESOLVED THAT the the efforts of the Working Group and lobby Federation lobby the Government of that the Government of Canada recognize Canada that future decisions concerning the mission of Transport Canada and support direction for the support, scheduling immediate resumption of the Algoma and maintenance of Algoma's passenger passenger train services by: train services be based on the economic, employment, environmental, social, 1. Requiring and compensating CN Rail to public safety and other needs dependent immediately resume scheduled service on the passenger train services along of the Algoma passenger train to support with consultation with First Nations, the social, economic, employment and communities, residences, businesses and remote access needs of the First Nations, socio-economic stakeholder interests, and communities, residents, businesses and socio-economic stakeholders of the Algoma BE IT FURTHER RESOLVED THAT passenger train corridor. the Federation lobby the federal and provincial governments to recognize the 2. Supporting the Missanabie Cree First Nation Algoma Central Railway passenger train and Algoma Passenger Train Working Group services and the rail access corridor it in their cooperative development of Mask- serves as a unique and valuable cultural, wa Oo-ta-ban, the Bear Train, to assume historic, recreational, environmental responsibility for, and optimize long-term and economic asset where Federal and operations of the Algoma passenger Provincial planning and investment need train in order to maximize the economic, to consider the value and viability of train employment, remote access and other travel and recreation, and public interests and values of the Algoma passenger train, and BE IT FINALLY RESOLVED THAT member locals also be encouraged to sign and circulate the CAPT petition and endorse the campaign.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 87 RESOLUTIONS OF SUPPORT
RESOLUTION MASK-WA RESIDENTS ASSOCIATION
This resolution is being submitted to the following persons in support of the Missanabie Cree First Nation and the resumption of the passenger train service between Sault Ste. Marie and Hearst Ontario.
Hon. Marc Garneau, Minister of Transport Hon. Bardish Chagger Minister of Transport, House of Commons, Minister of Small Business and Tourism, House Ottawa, ON K1A 0A6 of Commons, Ottawa, Ottawa, ON K1A 0A6
Michael Keenan Hon. Patricia Hajdu Deputy Minister Transport Canada MP Thunder Bay-Superior North and Minister of Place de Ville, Tower C, 29th Floor, 330 Sparks Status of Women, House of commons, Street, Ottawa, ON K1A 0N5 Ottawa, ON K1A 0A6
Hon. Carolyn Bennett The Right Honourable Justin Trudeau Minister of Indigenous and Northern Affairs, Office of the Prime Minister, House of House of Commons, Ottawa, ON K1A 0A6 Commons, 80 Wellington Street, Ottawa, ON K1A 0A2 Hon. Catherine McKenna Minister of Environment and Climate Change, Terry Sheehan House of Commons, Ottawa, ON K1A 0A6 MP Sault Ste. Marie, House of Commons, Ottawa, ON K1A 0A6 Hon. Amarjeet Sohi Minister of Infrastructure and Communities, Carol Hughes House of Commons, Ottawa, ON K1A 0A6 MP Algoma—Manitoulin—Kapuskasing, House of Commons, Ottawa, ON K1A 0A2 Hon. Navdeep Bains Minister of Innovation, Science and economic Martin McKay Development, House of Commons, Transport Canada, 330 Sparks Street, Ottawa, ON K1A 0A6 Ottawa, ON K1A 0N5
88 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE RESOLUTIONS OF SUPPORT
RESOLUTION MASK-WA RESIDENTS ASSOCIATION
SUBMITTED BY:
Len Piccolo Residents' Representative Spokesperson for the MASK-WA RESIDENTS ASSOCIATION
The MASK-WA (Cree for Bear) RESIDENTS ASSOCIATION was formed in support of the Missanabie Cree First Nations and the MASK-WA OO-TA-BAN Bear Train.
RESOLUTION:
The MASK-WA RESIDENTS ASSOCIATION belongs to those people who have a residence along the rail line between Sault Ste. Marie and Hearst Ontario. Many of our property owners are currently unable to access their residences without the passenger train service. We are asking that you extend your full support and assistance in restoring this critical passenger train service.
Here is just one quote from member Joan Johnston of Sault Ste. Marie, Ontario
“After 60 years of travelling to our camp by train we now have to travel and walk 18 miles of a horrible route with our one neighbour assisting us. It is either that or never see our cottage again. No one else on our lake has been there since last year when CN cancelled our train. Even our family living away cannot get in. It is a mess.”
We need this train back in operation now and we need you to help us.
Sincerely,
Len Piccolo
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 89 RESOLUTIONS OF SUPPORT
90 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE RESOLUTIONS OF SUPPORT
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 91 RESOLUTIONS OF SUPPORT
92 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE RESOLUTIONS OF SUPPORT
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 93 RESOLUTIONS OF SUPPORT
The Board of Director's of the Algoma Kinniwabi Travel Association Resolution for Support:
Motion to the floor by Betty Ann Dunbar, seconded by Mary Kaye Karhi
Be it resolved on the 14th day of July, 2016 that the Board of Directors of the Algoma Kinniwabi Travel Association supports the Missanabie Cree First Nation and Algoma Passenger Train Working Group in their cooperative development of Mask-wa Oo-ta-ban, the Bear Train, to assume responsibility for, and optimize, the long-term operations of the Algoma passenger train so the economic, employment, remote access and other public interests and values of the Algoma passenger train can be optimized and maximized.
Resolution duly passed by the Board of Director's of the Algoma Kinniwabi Travel Association July 15th, 2016.
Background Information:
Vision: The Algoma Kinniwabi Travel Association positions the Algoma region as an internationally recognized iconic Canadian travel destination.
Mission: The Algoma Kinniwabi Travel Association is a not for profit tourism industry organization that supports growth of tourism through partnership, product development, research, education and marketing.
This Association is a stand alone organization that has five full time employees. Our office is located in Sault Ste Marie, Ontario. Our geographic area is from the town of Spanish to Sault Ste. Marie to White River, up to Hearst to Elliot Lake. The geographic size is approximately 28,000 square miles.
Our membership is as diverse as the tourism product located here, from small privately owned motels, to branded full service motels, to fishing lodges and soft outdoor outfitters and both small and large attractions. We represent 16 communities, 140 businesses and organizations.
This Association has a representative on the Passenger Rail Working Group that represents the tourist operations located along the rail line from Sault Ste Marie to Hearst.
The Board recognizes that the Passenger Rail Working Group is moving forward on a plan to create a not-for-profit corporation to be led by Missanabie Cree First Nation that will include representation from the communities affected (Sault Ste. Marie to Hearst), and all other stakeholders as identified. The Board is also aware that the continued and ongoing investment by the Federal Government (Transport Canada) is absolutely essential to the successful return of passenger rail service to the region as was recognized by the previous Federal Government in 2015 when it reconsidered its position and announced a further 3 years of funding.
Mask-wa Oo-ta-ban (The Bear Train) is the Passenger Rail initiative of the Missanabie Cree First Nation and the Algoma Passenger Train Working Group which is working to re-establish and optimize the Algoma passenger train service.
94 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE Algoma Kinniwabi Travel Association 334 Bay Street, Sault Ste. Marie, ON P6A 1X1 705.254.4293 | 1.800.263.2546 www.algomacountry.com | [email protected]
RESOLUTIONS OF SUPPORT
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 95 RESOLUTIONS OF SUPPORT
96 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE RESOLUTIONS OF SUPPORT
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 97 ADDENDUM – WEEKEND ONLY SERVICES
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Ticket Revenue
Ticket Notes 2021 2022 2023 2024 2025
Revenue is calculated based on the estimated ridership for each category listed multiplied by the ticket price for each category of rider, as set out in footnotes 1 and 2.
Base Ridership $74,590 $116,361 $128,295 $140,230 $152,164 Snow Train 7,331 10,997 14,662 18,328 21,993 Snow Train Dome Car Experience 4,582 9,164 13,746 18,328 22,910 Ski Searchmont 6,777 11,295 18,072 27,108 36,144 Event Train 4,262 17,049 34,098 68,197 102,295 Event Train Dome Car Experience 5,328 21,311 42,623 85,246 127,869 New Destinations 3,197 6,393 9,590 New Destinations Dome Car Experience 3,996 7,992 11,988 Sled Train 4,262 8,525 17,049 34,098 51,148 Sled Train Dome Car Experience 5,328 10,656 21,311 42,623 63,934
Tour of the line 3,538 7,075 10,613 14,151 17,689 Tour of the line Dome Car Experience 4,422 8,844 13,266 17,689 22,111 Merchandising and Food Services 4,262 8,525 12,787 17,049 21,311
Total Ticket Revenue $124,683 $229,802 $333,716 $497,431 $661,146
Expenses
Expenses Notes 2021 2022 2023 2024 2025 CN Access Fees 3 $492,544 $492,544 $492,544 $492,544 $492,544 Keewatin Railway 4 100,000 50,000 Locomotive Leases 5 164,250 164,250 164,250 164,250 164,250 Fuel – Motive Power/Locomotives 6 87,377 87,377 87,377 87,377 87,377 Fuel – Power Generations/Passenger Equipment 6 14,918 14,918 14,918 14,918 14,918 Insurance 7 150,000 150,000 150,000 150,000 150,000 Management, Labour & Benefits 8 456,338 465,465 474,744 484,270 493,955 Marketing 9 53,754 80,600 80,600 80,600 80,600 Materials 10 5,393 5,123 4,867 4,624 4,392 Locomotive, Passenger Car Maintenance 11 50,000 50,000 50,000 50,000 50,000 Purchased Services 12 81,182 54,122 54,122 54,122 54,122 Interest 13 19,000 19,000 19,000 19,000 19,000 Startup Costs 14 965,000 Purchase of Passenger Coaches & Baggage Cars 15 200,000 Program Administration 16 310,000 220,000 220,000 220,000 220,000
Total Expenses $3,149,756 $2,500,000 $1,812,452 $1,821,704 $1,831,158
98 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE ADDENDUM – WEEKEND ONLY SERVICES
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Other Funding
Other Funding Notes 2021 2022 2023 2024 2025 Transport Canada RPSS Startup 17 $900,000 Transport Canada RPSS 17 2,200,000 2,200,000 1,900,000 1,600,000 1,300,000 INAC Planning and Startup Support 17 225,000 INAC/Waubetek/NOHFC/Trillium (Rail Equipment) 17 500,000
Destination Northern Ontario / Destination Ontario 17 200,000 200,000 200,000 200,000 Marketing and Tourism Product Development Support
Other 17 100,000 200,000 200,000 200,000
Total – Other Funding $3,825,000 $2,500,000 $2,300,000 $2,000,000 $1,700,000
Total Surplus / Deficit 2020-2024
Surplus / (Deficit) - Reserve Fund Notes 2021 2022 2023 2024 2025 18 $799,926 $876,403 $821,265 $675,727 $529,988
Total Surplus / Deficit 2020-2024 $3,703,309
Notes:
(1) Based on the ridership projections provided by management. The original projections were based on the equivalent of 122 round trips per year. The projections below have been adjusted to reflect the equivalent of 52 round trips per year.
Number of Trips
Number of trips 2021 2022 2023 2024 2025 Base Ridership 1,066 1,622 1,833 2,003 2,174 Snow Train 85 128 170 213 256 Snow Train Dome Car Experience 43 85 128 170 213 Ski Searchmont 128 213 341 511 682 Event Train 85 128 256 511 767 Event Train Dome Car Experience 21 85 170 341 511 New Destinations 170 256 341 New Destinations Dome Car Experience 43 85 128 Sled Train 43 85 128 213 341 Sled Train Dome Car Experience 21 43 85 170 256 Tour of the line 85 128 213 298 384 Tour of the line Dome Car Experience 43 85 128 170 213
Total Ridership 1,620 2,643 3,666 4,944 6,266
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 99 ADDENDUM – WEEKEND ONLY SERVICES
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
TicketNotes: Revenue
(2) Prices per ticket are based on the following estimates by management:
Price per Trip
Price per trip 2021 2022 2023 2024 2025 Base Ridership 70 70 70 70 70 Snow Train 86 86 86 86 86 Snow Train Dome Car Experience 108 108 108 108 108 Ski Searchmont 53 53 53 53 53 Event Train 200 200 200 200 200 Event Train Dome Car Experience 250 250 250 250 250 New Destinations 75 75 75 75 75 New Destinations Dome Car Experience 94 94 94 94 94 Sled Train 200 200 200 200 200 Sled Train Dome Car Experience 250 250 250 250 250 Tour of the line 83 83 83 83 83 Tour of the line Dome Car Experience 104 104 104 104 104
The above prices are based in part on the length of trip. In addition, the prices assume a blend of ridership among adults (40%) seniors (40%), students (10%) and children (10%). Dome Car Experiences are priced at a 25% premium above the regular trip.
(3) Access Fees are calculated as $16 per mile, 592 miles per round trip equivalent, 52 trips per year = $492,544, based on fees charged by CN for previous operations. It should be noted that access fees are widely variable and discretionary. For example, Amtrak in the United States charges an access fee of approximately $1 per mile.
(4) Estimated.
(5) Locomotive leases calculated as 2 locomotives x $225 (Cdn) per day, x 365 days = $164,250, based on industry estimates for locomotives leases at $200 per day plus contingency of $25 per day.
(6) Fuel costs are calculated based on actual costs experienced in 2013 by the Algoma Train. The Mask-Wa Oo-Ta-Ban operation would have fewer anticipated runs and fuel costs are approximately 25% lower than in 2013. It is understood that CN may have had access to lower fuel prices due to their market position, therefore, fuel costs are conservatively assumed to be at the same level as experienced by CN.
(7) Locomotive leases calculated as 2 locomotives x $225 (Cdn) per day, x 365 days = $164,250, based on industry estimates for locomotives leases at $200 per day plus contingency of $25 per day.
(8) Management, labour and benefit costs are calculated based on actual costs experienced in 2013 by the Algoma Train, adjusted for fewer anticipated runs and then adjusted for inflation. It is understood that the figures in this financial plan incorporate the use of four engineers.
(9) Based on estimates provided by management, adjusted for inflation. This cost includes production of all documents in Cree, Ojibwe, English and French.
(10) Materials costs are calculated based on actual costs experienced in 2013 by Algoma Train, adjusted for inflation and fewer anticipated runs.
100 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE ADDENDUM – WEEKEND ONLY SERVICES
SCHEDULE 1 Five-Year Financial MASK-WA OO-TA-BAN Projection BEAR TRAIN
Notes:
(11) Based on estimates prepared by management. Leased locomotives are assumed to be in good operating order upon acquisition and therefore less maintenance will be required.
(12) Based on estimates prepared by management, adjusted for inflation.
(13) Estimated.
(14) Startup costs are estimated as follows:
Startup Costs:
Startup costs: Capital Operating
Consulting – Legal, financial, rail and governance consultants $100,000
Marketing – Website development for online ticket sale capability, development of brochures, timetable publishing $100,000
Translation Services – Production of all documents in Cree, Ojibwe, English and French $50,000
Supplies $50,000
Meals & Lodging $45,000
Vehicle Expense – To accommodate travel for management for administrative and goverment requirements $45,000
Travel Expense – To accommodate travel for meetings with First Nations communities and other stakeholders $20,000
Professional Services – For provision of legal and other professional services for contract negotiations $50,000 $25,000
Equipment & Real Estate Purchases – Purchase of Passenger rail equipment and stations $300,000
Baggage Car Generator Set & Installation – For purchase and installation of generator sets for powering $115,000 $5,000 passenger rail equipment
Rail Equipment Upgrades – For First Nations branding, accessibility, and baggage car loading improvements $50,000
Locomotive Transportation – For transportation of leased locomotives to Sault Ste. Marie $10,000
$560,000 $405,000
Total Startup Costs $965,000
(15) Based on information provided by management. These projections are based on the assumption that passenger coaches and baggage cars would be purchased. However, it is understood that premium passenger dome cars and lounge/dining cars may be available through leasing, which may result in savings as well as enhancing the passenger experience.
(16) Estimated.
(17) External sources of funding are assumed to remain at levels assumed by management.
(18) Reserve Fund for non-profits should accumulate to a minimum of 3 months, and a maximum of 2 years of operating expenses.
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 101 THANK YOU
Miigwej (THANK YOU)
102 BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE GLOSSARY OF ACRONYMS
Glossary of Acronyms
ACR Algoma Central Railway APTWG Algoma Passenger Train Working Group Bear Train Mask-wa Oo-ta-ban (in Cree) BTWG Bear Train Working Group CAPT Coalition for Algoma Passenger Trains CN CN Railway CPR Canadian Pacific Railway GHG Green House Gases INAC Indigenous Northern Affairs Canada MRA Mask-wa Residents Association MCFN Missanabie Cree First Nation NOHFC Northern Ontario Heritage Fund Corporation ROC Railway Operating Certificate UNDRIP United Nations Declaration on the Rights of Indigenous Peoples
BUSINESS PLAN MASK-WA OO-TA-BAN (BEAR TRAIN) PASSENGER SERVICE 103 MISSANABIE CREE FIRST NATION 726 Queen Street East, Sault Ste. Marie ON P6A 2A9 T: 705-254-2702 | [email protected] | www.missanabiecreefn.com