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Annual Report 2019 2019 Milestones

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Annual Report 2019 2019 Milestones Annual Report 2019 2019 Milestones January May VIA Rail increases revenues over the VIA Rail welcomes its new President 2018-2019 holiday season, registering its and CEO, Cynthia Garneau, for a five-year best financial performance in the past mandate, as well as three new 10 years. board members. A study by the University of Victoria’s February Gustavson School of Business ranks VIA Rail in the 50 most trusted brands in Canada. VIA Rail unveils the modernized and now (p. 34) fully accessible Ottawa station, which garners us the President’s Award from the Canadian Council of the Blind. (p. 20) June Fleet Replacement Program: Kick-off of Announcement that $71 million in new project activities with different internal funding has been allocated to further VIA Rail teams and Siemens Canada explore VIA Rail’s Quebec City to Toronto High Frequency Rail (HFR) project (p. 11) March Creation of a Joint Project Office (JPO) between VIA Rail and the Canada VIA Rail and Veterans Affairs Canada mark Infrastructure Bank (CIB), which will focus 75 years since the Battle of Normandy by on HFR-related activities (p. 11) placing combat boots on a train travelling from Vancouver to Halifax, stopping for ceremonies in communities along the way. July For the first time in ten years, the number April of VIA Rail passengers exceeds six figures for Canada Day long weekend. (p. 15) VIA Rail is honoured with the Veterans Employment Transition Award (p. 35) August VIA Rail brings 200 young students from Toronto to Parliament Hill in celebration VIA Rail wraps up a summer of Pride events of Black History Month. (p. 26) in several Canadian cities. (p. 26) Milestones Contents 02 VIA Rail at a Glance 04 Message from the Chairperson 06 Message from the President 08 September Year at a Glance VIA Rail maintains its commitment to public safety by partnering once again 10 with Operation Lifesaver during Rail Review of Operations Safety Week. (p. 18) VIA Rail launches the Locomotive Engineer 34 Apprenticeship Program. (p. 32) Awards and Recognition VIA Rail’s hosts a pilot project at Ottawa station testing potential service animal 36 relief stations. (p. 17) Our Sustainability VIA Rail is awarded Gold certification Ambition by Women in Governance. (p. 35) 40 November Key Performance Four new police constables are sworn in as Indicators members of VIA Rail’s Police and Corporate Security team. (p. 18) 42 Governance and December Accountability VIA Rail announces positive results from its media buying strategy focused on 54 Canadian content producers. (p. 23) Management Discussion and Analysis VIA Rail welcomes the federal government’s renewed support for its High Frequency Rail project. (p. 12) 72 Financial Statements 136 Corporate Directory 1 VIA Rail Canada VIA Rail at a Glance Who We Are VIA Rail operates Canada’s national passenger rail service on behalf of the Government of Canada. An independent Crown corporation established in 1977, VIA Rail provides a safe, cost-effective, and environmentally responsible service from coast to coast in both official languages. The Corporation operates 454 train departures weekly on a 12,500-km network, connecting over 400 Canadian communities. With 3,234 employees at the end of the calendar year, VIA Rail carried more than 5 million passengers in 2019. Where We Operate Passenger Revenues Passenger Trips Per Train Route Per Train Route 81% 96% 400+ of passenger revenues of passenger trips are from inter-city travel consist of inter-city communities served (in the Corridor) travel (in the Corridor) across Canada 81% 96% Inter-City Travel Inter-City Travel 18% 3% Long-Distance Long-Distance 1% 1% Regional Regional Inter-City Travel Long-Distance Regional (in the Corridor) Travel and Tourism Services In the densely populated Corridor In Western and Eastern Canada, VIA Rail provides passenger between Quebec City, QC and VIA Rail’s trains support Canada’s service in several rural and Windsor, ON, VIA Rail trains provide tourism industry by attracting remote regions of Canada. travel between the downtown travellers from around the world. Mandated by the Government cores of major urban centres, as The Canadian, VIA Rail’s western of Canada to meet essential well as between suburban centres transcontinental train, provides transportation needs, these and communities. service between Vancouver and trains serve many communities Toronto. In Eastern Canada, the where alternative, year-round Ocean runs between Montréal transportation is limited and Halifax. or unavailable. * Services on Vancouver Island and Gaspé are suspended due to infrastructure availability. 2 VIA Rail at a Glance Our key assets reflect the breadth of our business, from our stations and maintenance centres to the fleet of locomotives and train cars we operate, the passengers we serve, the buildings we occupy and the employees who work for us. — Frequency Train Departures 454 per week, of which 84% of our trains depart on time — Employees — Fleet — Passengers 3,234 430 5M Active Employees Train Cars as of the end of the calendar year (in and out of service) passenger trips covering Employee Locomotives close to Diversity 1.7 billion 34% 73 kilometres of our employees are women, of which 92% have been rebuilt 15% are visible minorities, for improved operational and across 2% are people with disabilities, and environmental efficiency 2% are Aboriginal People Canada, of which: 96% is — Buildings inter-city travel, 3% 121 9 4 is long- Train Offices Maintenance Stations 1 head office Centres distance of which 54 are 6 regional - Montréal heritage stations 2 satellite - Toronto - Winnipeg and 1% is - Vancouver regional. 3 VIA Rail Canada Message from the Chairperson I applaud and thank “VIA Rail’s more than 3,200 employees for their tireless efforts to ensure that our clients enjoy a top-quality travel experience.” — Françoise Bertrand, O.C., C.Q. Chairperson of the Board of Directors, VIA Rail 4 Message from the Chairperson Three years ago, I enthusiastically agreed to Technology wise, we are working to develop play a role in VIA Rail’s vision for 2020–2025. a reservation system that facilitates passenger This responsibility has given me a front-row choice and offers a top-quality user experience. view of Canadians’ evolving travel habits, Our teams are also working to improve our and VIA Rail’s vision has helped raise our services and operations as well as our logistical passengers’ environmental awareness. organization, information systems and market intelligence, as well as prioritizing the respect I remain convinced, as this year draws to a of security standards. close, that Canada’s passenger rail service is the way of the future, and that VIA Rail has As a result, 2019 was certainly a year of all the elements in place for its leadership in transition, but also one of great achievements. this field to be recognized. In terms of governance, the Board of Directors’ By continuously improving our operations committee structure will allow us to keep and transforming, VIA Rail will always be in track of multiple strategic projects. I want a position to better serve the needs of our to thank my fellow Board members for their passengers. In 2019, more than five commitment and unwavering dedication. million passengers chose the train for their In March 2019, we were fortunate enough inter-city travel. In doing so, these millions of to welcome three highly accomplished new passengers showed their appreciation for the members to the Board: Miranda Keating efforts put out by all our teams: those who Erickson (Vice President, Markets for the serve our customers on board our trains, those Alberta Electric System Operator [AESO]), who work in our maintenance centres and in Vianne Timmons (President and our stations, and the teams that manage our Vice-Chancellor of the University of Regina) administrative services. I applaud and thank and Grant Christoff (legal counsel for the First VIA Rail’s more than 3,200 employees for their Nations Health Authority in British Columbia). tireless efforts to ensure that our clients enjoy I also want to thank the Honourable a top-quality travel experience. Marc Garneau and all of Transport Canada This year was an important one for VIA Rail for their collaboration and trust. as we welcomed the arrival of a new President To all our current and future passengers, and Chief Executive Officer, Cynthia Garneau. on behalf of the management team and of all It is well-known that a change in leadership VIA Rail employees, I would like to reiterate is a special moment in an organization’s our commitment to fulfilling our duty to history. Using the extensive and deep connect Canadians from city to city, from knowledge garnered from her aerospace coast to coast. We are all dedicated to industry background, Cynthia Garneau joined offering a unique travel experience with the the VIA Rail team to help build its future with proud VIA Rail signature; an experience passion and determination. To clearly mark this that is environmentally friendly, efficient new era under her leadership, she has carried and enjoyable. out strategic planning for 2019–2024 in order to continue VIA Rail’s modernization, which is already well-underway thanks to government funding for the acquisition of a new fleet to better serve the Quebec City – Windsor corridor. Another flagship modernization project is High Frequency Rail, a project which would see us build dedicated tracks in this same corridor. The Government of Canada’s decision to grant funding through the Canada Infrastructure Bank for the analysis of de-risking activities is a welcome and highly encouraging sign for sustainable mobility. The government has created a Joint Project Office for VIA Rail and the Canada Infrastructure Bank to work together on this project.
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