SUMMARY OF THE 2020 – 2024 CORPORATE PLAN AND 2020 OPERATING AND CAPITAL BUDGETS September 30, 2020 SUMMARY OF THE 2020-2024 CORPORATE PLAN / 1 Table of Contents EXECUTIVE SUMMARY ............................................................................................................................................... 4 OVERVIEW ........................................................................................................................................................... 8 1.1 Mandate and Public Policy Role ................................................................................................................... 8 1.2 Vision and Mission ........................................................................................................................................ 8 1.3 Activities and Financial Condition ................................................................................................................. 8 1.4 VIA Rail Markets & Services ......................................................................................................................... 9 1.4.1 Central Canada: Corridor Services ...................................................................................................... 9 1.4.2 Long-Distance Services ....................................................................................................................... 9 1.4.3 Regional Services .............................................................................................................................. 10 OPERATING ENVIRONMENT ............................................................................................................................ 11 2.1 External Environment ................................................................................................................................. 11 2.1.1 Competition in the Corridor ................................................................................................................ 11 2.1.2 Access to Toronto Union Station and Montreal Central Station ......................................................... 12 2.1.3 Railway Track Access and Relationship with Host Railways ............................................................. 12 2.1.4 Grade Crossing Regulations .............................................................................................................. 12 2.1.5 The Canadian and the Host Railway .................................................................................................. 12 2.1.6 The Ocean and the Halifax Rail Loop ................................................................................................ 13 2.1.7 Regional Services .............................................................................................................................. 13 2.1.8 Office of the Auditor General Special Examinations .......................................................................... 14 2.2 Internal Environment................................................................................................................................... 14 2.2.1 Labour Force...................................................................................................................................... 14 2.2.2 Enhance customer satisfaction and booking experience ................................................................... 14 OBJECTIVES, ACTIVITIES, RISKS, EXPECTED RESULTS, AND PERFORMANCE INDICATORS ................ 15 3.1 High Frequency Rail ................................................................................................................................... 15 3.2 Corridor Fleet Renewal ............................................................................................................................... 16 3.3 Heritage Fleet Modernization & Capacity Protection .................................................................................. 17 3.4 Station Access ............................................................................................................................................ 17 3.5 Track Access – Relationship with Host Railway ......................................................................................... 18 3.6 Exploring service delivery options and growth opportunities. ..................................................................... 19 3.6.1 Ensure viability of the Canadian and other services in Western Canada ........................................... 19 3.6.2 Explore improving services and access a strategic and rapidly growing market in the Quebec- Windsor Corridor ................................................................................................................................................. 20 3.7 Develop and obtain approval of appropriate reference level and multi-year funding .................................. 21 FINANCIAL OVERVIEW ..................................................................................................................................... 22 4.1 Overview of the 2020-2024 Financial Plan ................................................................................................. 22 4.1.1 Corridor .............................................................................................................................................. 22 4.1.2 The Canadian .................................................................................................................................... 22 4.1.3 The Ocean ......................................................................................................................................... 23 4.1.4 Regional Services .............................................................................................................................. 23 4.1.5 Capital Investment Plan and Ongoing Capital ................................................................................... 23 SUMMARY OF THE 2020-2024 CORPORATE PLAN / 2 4.2 Financial Operating Performance – 2018 to 2019 ...................................................................................... 24 4.2.1 Corridor ...................................................................................................................................................... 24 4.2.2 The Canadian ............................................................................................................................................. 25 4.2.3 The Ocean .................................................................................................................................................. 25 4.2.4 Regional Services....................................................................................................................................... 25 4.3 Other Revenues and Expenses .................................................................................................................. 26 4.3.1 Travel Policy Guidelines and Reporting ...................................................................................................... 26 4.4 Previous capital programs – 2014 to 2018 ................................................................................................. 26 2014 Federal Government Infrastructure Initiatives ............................................................................................. 26 2016 Federal Budget program ............................................................................................................................. 26 2017 Federal Budget program ............................................................................................................................. 26 2018 Federal Budget program ............................................................................................................................. 26 Audit Regime ....................................................................................................................................................... 26 ANNEX 1. MINISTERIAL MANDATE LETTER ............................................................................................................ 28 ANNEX 2. CORPORATE GOVERNANCE STRUCTURE ............................................................................................ 29 ANNEX 3. RISK AND RISK RESPONSES .................................................................................................................. 34 ANNEX 4. COMPLIANCE WITH LEGISLATIVE AND POLICY REQUIREMENTS ...................................................... 37 ANNEX 5. GOVERNMENT PRIORITIES AND DIRECTION ........................................................................................ 42 ANNEX 6. FINANCIAL STATEMENTS AND BUDGETS ............................................................................................. 45 SUMMARY OF THE 2020-2024 CORPORATE PLAN / 3 EXECUTIVE SUMMARY The role of VIA Rail has evolved through the years, adapting to the realities of society. We are again seeing the need for VIA Rail to adapt to the reality of Canadians; who they are, where they live and what they believe in. We are at a time where the older generation is looking for a safe, comfortable and accessible mode of transportation, where professionals and entrepreneurs are looking for a convenient and timely way to bring them from home to the city centers and back, and where the young generation is looking for a more sustainable mode of transportation. VIA Rail wants and can be all of this