A Brief Look at the Effect of the ACR Passenger Train Subsidy Removal

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A Brief Look at the Effect of the ACR Passenger Train Subsidy Removal A Brief Look at the effect Of the ACR Passenger Train Subsidy Removal 1 Table of Contents Disclaimer ....................................................................................................................................... 3 Abbreviations/Glossary................................................................................................................. 4 Acknowledgements........................................................................................................................ 5 Executive Summary ....................................................................................................................... 6 Introduction History........................................................................................................................... 7 Scope of Report ............................................................................................................ 8 Train Users Passenger....................................................................................................................... 9 Stakeholders.................................................................................................................. 10 Comments..................................................................................................................... 33 Economics Promotional Efforts .......................................................................................................... 37 Economic Impact.............................................................................................................. 39 Conclusion ...................................................................................................................................... 40 Recommendations ......................................................................................................................... 41 2 Disclaimer Note that this report makes a very critical assumption. It assumes that passengers will be able to use the Agawa Canyon Tour Train to access properties/businesses from Sault Ste. Marie to the Agawa Canyon. There has been no confirmation that the Agawa Canyon Tour Train will offer “Whistle Stops” along the way to the Canyon and back, providing access to properties on the way. The Agawa Canyon Tour Train Summer/Fall Season currently is scheduled to run from Tuesday, June 24th to Monday, October 13th, 2014. After 40 years of offering service, the Snow Train was cancelled November 19th, 2013. The first snow train of that season would have run Saturdays from late January until early March. 3 Abbreviations/Glossary CN – Canadian National Railway ACR – Algoma Central Railway Mile Marker 10 – Each mile marker is counted from Mile 0 at the rail yard in Sault Ste. Marie. It allows for a set measurement to identify locations along the railway. CAPT: Coalition for Algoma Passenger Trains. CAPT was founded in the Spring of 2006 by those concerned with the deterioration of the Algoma passenger train service. The Coalition consists of tourist operators, recreationists, environmentalists, municipalities and First Nations along the Algoma Central Railway (ACR) line, ACR retirees and former employees and community economic development professionals. The vision of CAPT is point-to-point ACR passenger train service between Sault Ste. Marie and Hearst as a wilderness tourism rail corridor to facilitate regional economic development and to support and protect the area’s cultural and environmental heritage.1 SSM – Sault Ste. Marie, Ontario 1 http://usaskstudies.coop/socialeconomy/wp-content/uploads/Report_CL5_03_NO_opp3.pdf, Page 1 4 Acknowledgements I would like to thank the Municipality of Wawa and Mayor Linda Nowicki for this opportunity to present the following information in an attempt to provide another aspect into the importance of the ACR Passenger Rail Service to the Community of Wawa, Hawk Junction and most importantly, the people with vested interests along the ACR Railway. Brenda Grundt 5 Executive Summary On Monday, January 27th, media was informed by CAPT that CN had informed the Mayor of Hearst on Friday, January 24th that the Federal Government had ended the Passenger Rail Subsidy for the passenger rail service from Sault Ste. Marie to Hearst and as a result all passenger travel would cease on March 31st, 2014. On Monday, January 27th, in Sault Ste. Marie the CN employees and Mayor Debbie Amaroso were informed of that decision. As a result, a number of private leaseholders and landowners, commercial outfitters, trappers and other entrepreneurs have been affected by this decision. This is prime season for outfitters to be attending “Outdoor/Sportsman” shows in order to promote their business in larger city centres attracting visitors for the upcoming season. As a result many deposits on bookings have been taken on the basis of the train providing service. Many citizens have also co-coordinated their vacation days at work and with other family members to make their trip(s) to their camps/cottages along the ACR. With a mere 64 days notice, this decision leaves many with equipment/belongings stranded; and the necessities to reschedule if possible, alternate access. This applies not only to private citizens, but also to the commercial establishments who will now have to rely on the limited local commercial aircraft services to coordinate their bookings. Winter has also been particularly harsh this year, with an above average snowfall and extreme slush conditions on lakes and trails – limiting any attempt to snowmobile in at this time. Since the decision to remove the passenger train subsidy was known in November, the delay by CN to inform its stakeholders was irresponsible and extremely inconsiderate. The two-month notice has the potential to lead to financial difficulty and heartbreak by many along the railway as they scramble to make alternate plans. “Lack of planning on CN’s part shouldn’t create a crisis for it’s customers.” This report sets out that many others are affected by the removal of the “Remote” designation, and that it should be redefined to account for the number of remote and historical seasonal residences and commercial enterprises along the ACR from Sault Ste. Marie to Hearst. 6 History The Algoma Central Railway operates between Sault Ste. Marie and Hearst. The ACR was originally built and developed by Francis H. Clergue, and chartered on August 11, 1989. In 1995 Wisconsin Central Transportation purchased the ACR. In 1998, the Algoma Ore Division was closed, the mine flooded, the sinter plant removed, and the branch line between Michipicoten Harbour and Hawk Junction was abandoned. Canadian National acquired Wisconsin Central Ltd. on October 9, 2001, whereupon the Algoma Central became part of Can’s Eastern Division. The Algoma Central was the first Canadian railway to fully dieselize, in 1952. In the 1960s, the railway began to promote the natural beauty of the District of Algoma to tourists, especially the Agawa Canyon, located at Mile 114 (183 km) and not accessible by road. A tourist destination was created in the Canyon and it proved to be a great success for the railway. Owing to the popularity of the Agawa Canyon excursions, the Algoma Central would run the longest passenger trains in North America, often up to 20 to 24 cars long. During the 1970s and 1980s, around 100,000 people per year would tour Agawa Canyon. 7 Train Users 8 Passengers There are a variety of people who use the ACR. Some travel to access their property; some to their business and their clients, snowmobilers, hikers, canoers, kayakers, trappers. The statistics collected do not differentiate between full fare passengers and those who only travelled partway. The author was unable to obtain passenger counts from 2010-2013. Table 4 – Passenger Counts1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total Count 12,640 10,646 7,843 6,970 6,093 44,192 2 Count 12,748 8,557 10,970 8,281 12,567 10,713 Factors which may have affected travel Service 11 2 0 4 Not 3 Interruptions Reported Service Service Winter Summer Reductions Reduction Service Service of 1 round Reduction Reduction trip per to 3 round Curtailing week trips per all 4 week weekend- only rail travel from 5 SSM USD vs CDN 1.55 1.55 1.40 1.25 1.2 1.15 1.05 1.1 1.12 Passports SARS Required 6 From May 2005 – August 2009 Arrival in Hearst was late 58% 7 From July 2004 – August 2009 Arrival in SSM was late 53% 1 http://www.tc.gc.ca/media/documents/corporate-services/RAIL_PASSENGER_STEWARDSHIP-ENG.pdf Page 15, Table 4 2 Opportunity Study, Algoma Central Railway:Wilderness Tourism by Rail, Page 18 3 http://www.tc.gc.ca/media/documents/corporate-services/RAIL_PASSENGER_STEWARDSHIP-ENG.pdf Page 20, Table 8 4 Opportunity Study, Algoma Central Railway:Wilderness Tourism by Rail, Page 18 5 Opportunity Study, Algoma Central Railway:Wilderness Tourism by Rail, Page 18 6 http://www.tc.gc.ca/media/documents/corporate-services/RAIL_PASSENGER_STEWARDSHIP-ENG.pdf Page 27 7 http://www.tc.gc.ca/media/documents/corporate-services/RAIL_PASSENGER_STEWARDSHIP-ENG.pdf Page 27 9 Stakeholders Making the assumption that access will remain for stakeholders at the Agawa Canyon and points south to Sault Ste. Marie from June 24th to October 13th, 2014; this section displays a series of maps showing the buildings visible at that property. In this fashion, readers of this report can get a “birds’ eye” look at the extent of the properties affected by this decision. It has proven impossible at this time to identify all as either a leaseholder or owner
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