Transport 2000 Canada Hot Line

18 July 2001

This is the Transport 2000 Canada Hotline, issue number 610, recorded on 18 July 2001, our 25th anniversary year. Harry Gow reporting for David Jeanes who was unavailable last weekend. Please accept our apologies for the delay!

In this issue...

In this issue, rail, air, and other items; but first a big one, in a text by Post Time, to whom we owe our thanks.

1 - Gas Taxes should benefit mass transit, report says

A federal report on Canada's transportation laws will recommend that gasoline taxes be earmarked for roads and mass transit, instead of being mixed into general government coffers. The proposal, one of more than 90 recommendations in a sweeping report to be released on July 18th by Transport Minister David Collenette, would provide new federal funding for cash-starved municipal transit systems. The panel will also recommend that Ottawa gradually privatize the country's airports and that it allow foreigners to invest more money in Canadian airlines, according to a source familiar with the recommendations.

2 - Canada Transport Act Review completed

Copy of letter received from Brian Flemming, Chairman, Canada Transportation Act Review.

On July 1, 2000 the Minister of Transport, the Hon. David Collenette, appointed my colleagues and myself to undertake a comprehensive review of the Canada Transportation Act and other acts pertaining to the economic regulation of transportation in Canada. As you participated in the Review process, you will be interested to know that the Panel submitted its final report to the Minister.

This report is the result of extensive consultations held by the Panel. Our goal was to receive input from the broadest possible spectrum of interested parties. Over the past nine months, the Panel conducted meetings in 16 cities with more than 180 interested parties in all provinces and territories, and has also considered over 200 submissions.

The panel wishes to thank you for your contribution. The participation of all interested parties, through submissions, meetings, workshops and symposium, was instrumental to ensure balance in the Panel's deliberations.

The panel has thus completed its mandate and the CTA Review secretariat has begun winding down its operations. However, our web site (www.reviewcta-examenltc.gc.ca) will remain on-line.

3 - Bombardier wins big jet order

Bombardier Inc. has scored a controversial $2.6 billion order for 75 regional jets from Northwest Airlines Corp. with the help of cut-rate financing from Ottawa, raising the stakes in the Canada-Brazil trade dispute. The value of the order could top $8.5 billion if Northwest exercises options to buy another 175 jets. The deal confirms Bombardier's dominant position in the regional jet market over Embraer SA. Ottawa has agreed to extend between $1.8 billion and $3.6 billion in cut-rate loans to Northwest Airlines through the Export Development Corp's Canada Account.

4 - CP may sell Delaware and Hudson

Canadian Pacific Railway Co. is reviewing options for its Delaware & Hudson subsidiary, fuelling speculations that the historic U.S. railway may soon be sold. Industry observers say that if CPR decides to spin off the 1000 kilometre D&H line, it could go to either CSX or Norfolk Southern Corp. of Norfolk, Va. Or be split between the to U.S. railways. It is also possible that a smaller regional railway, or even Montreal's Canadian National Railway Co. could be interested if the price is right, observers say. CN bid on the line in 1991, but lost out to CPR.

5 - CN/WC takeover approval

Regulator Oks CN takeover of Wisconsin Central. Canadian National Railway Co.'s US $1.2 billion takeover of Wisconsin Central Transportation Corp. has been approved by the federal Competition Bureau. The positive ruling was no surprise and it is also expected the deal will be approved in the United States by the Surface Transportation Board, which is expected to rule by Sept. 7th. The purchase of the midwestern railway, announced in January, will improve CN's access to Chicago from the northwest. In Canada, Wisconsin Central Railway operates Algoma Central Railway Inc., which runs to Hearst, Ont.

6 - Bombardier to supply Paris Transit parts

Bombardier has revealed that it will provide bogies, carbodies and other equipment to a value of $300 million in a joint order with ALSTOM for the RATP (Paris Transit) earlier announced. Work will be done at the Crespin factory in France.

7a - India-Bangladesh cross-border rail returns

The first train in 36 years has rolled on a line between Bangladesh and India says the Associated Press.

7b - Australia rail line upgrade

In other news, the rails and ties has been ordered for the Darwin - Alice Springs line in Australia.

8 - Cape Breton rail line threatened

Stop the Press Item.

The Cape Breton rail line could soon be abandoned unless new traffic is won soon. Currently, CN ships intermodal traffic by road to Sydney; coal companies now ship by truck, and a gypsum mine plans to operate huge trucks every few minutes down the main highway. More on this emergency which would affect VIA's Bras d'Or, in the next Hot Line.

Thank you for calling the Transport 2000 Canada Hotline. For additional information, please contact our web site at:

www.transport2000.ca.