Transport 2000 Canada Hot Line

28 September 2001

This is the Transport 2000 Canada Hotline, issue number 621, recorded on 28 September 2001, our 25th anniversary year, Bert Titcomb reporting for John Pearce.

In this issue...

1 - More air industry turbulence

The Airline industry has again dominated transportation news this week. Insurance issues became a problem when underwriters cancelled war risk insurance for NavCan (the air navigation system), airports, airlines and leased aircraft. Transport Canada stepped in to "top up" most forms of insurance for up to 90 days so that air operations may continue.

The plunge in air travel volumes has hit hard at other industries such as travel agencies and tour companies, hotels, resorts, and car rentals, and airplane manufacturing firms such as Bombardier and major layoffs are being announced daily. Air Canada, with much of its traffic volume in cross- border and overseas flights, announced Wednesday it will ground 84 aircraft or almost 25% of its fleet and lay off an additional 5,000 workers to stem losses estimated at $30 million per day. It lost 60% of traffic in the week following the terrorist activity and 30% in the following week.

Airports, with fewer flights to pay landing fees and fewer passengers to support concessions, may resort to increasing departure taxes.

Transport Minister Collenette appears ready to compensate air related industries for direct costs related to Sept. 11th terrorist activity, specifically the shutdown of flights for 4 days and the increase in airline security costs. However separating these costs from those due to a general downturn in the economy or to an increased public fear of flying will be a difficult task.

2 - Bus and rail busy

Meanwhile, on the ground, rail and bus services have been busy. The U.S. National Association of Railroad Passengers reported a daily increase in Amtrak passengers of 10 000 or 17% in the week following the terrorist attacks. Greyhound bus traffic was up 40%. In Canada, VIA traffic was up 30-40% in the corridor, and 60-70% on the Eastern Transcontinental service. In the west, (up 5- 10%) higher domestic rail travel was offset by cancellation of some Japanese tours due to air travel problems. VIA's traffic is still up by 15-20% overall this week. Unfortunately, as VIA Rail spokesman Malcolm Andrews noted this week, the 139 NightStock cars being refitted in Thunder Bay will not be ready for corridor use until "early next year" and not until the end of 2002 in the Maritimes, so equipment availability is very limited.

3 - Ottawa train may finally begin

Diesel Light Rail service in Ottawa finally seems likely to get underway on Saturday Oct. 13. Three Bombardier Talent Diesel trains will begin running over 8 km. of CP Rail freight track.

4 - Obesity as a disability

The question of whether "obesity" is a handicap is being discussed in a 2-week hearing taking place in Calgary. Air Canada maintains that obesity is NOT a handicap and requires payment for two seats if they required by an overweight. A passenger is claiming discrimination.

5 - Cape Breton VIA route grows

Traffic on VIA Rail's Bras d'Or cruise train in Nova Scotia has almost tripled this year versus the inaugural year in 2000. June to September traffic this year is about 90 eastbound and only 40 westbound. Many people take the 11-hour Halifax to Sydney trip but return to Halifax by tour bus or rented car after exploring Cape Breton. The once weekly train uses Budd stainless steel equipment from the Ocean which does not run on Tuesdays. VIA expects further growth in 2002 despite a threat to the future of the Rail America shortline in Cape Breton.

6 - Complications on former CP line

The western half of the former Canadian Pacific main line from Saint John, N.B. to Montreal is up for bankruptcy sale. The complex legal and financial case will be heard in Bangor, Maine, on Oct.25. The State of Maine, the Society Chemin de Fer du Quebec, and a Chicago consortium are interested in buying parts of the line west of Brownville, Maine. Meanwhile, Irving Corp.'s New Brunswick Southern has been granted running rights on the line through to Montreal, pending a resolution of the ownership problem.

7 - British Columbia transit turmoil

Meanwhile, on the west coast, the President and CEO of "Coast Mountain" Bus Company is resigning. Coast Mountain is an operating subsidiary of TransLink, Greater Vancouver's regional transportation agency, and operates the vast majority of bus service in Vancouver. David Stumpo's resignation may be linked to the recent 4-month strike at Coast Mountain and to continuing funding uncertainty. A strong supporter of electric trolley-buses, he previously worked for transit agencies in San Francisco and Philadelphia.

In a bid to resolve a funding crisis brought on by the previous B.C. government's failure to honour a signed commitment, TransLink is starting a 2-month consultation to assess two transportation options for Greater Vancouver. The first option sees a 2-cents/litre increase in the regional gasoline tax with modest transit fare and property tax increases to fund modest transit service increases and a doubling of regional road programs. The second option would see no new revenue sources with transit services slashed 15-20% and road programs severely curtailed.

8 - Ontario offers matching transit funds

Ontario Premier Mike Harris announced on September 27th that his government is offering to contribute $3 billion to transit funding over the next decade, contingent upon municipalities and the federal government providing similar funding. Federal Transport minister Collenette welcomed the news and intimated that federal funding would be available.

The province also plans to take back the regional GO Transit service from the Greater Toronto Area cities, meaning the annual $100 million in GO funding would no longer be a municipal responsibility.

9 - VIA Hamilton extension may be held up

A Toronto Star story on Sept. 21st suggests that plans for extension of VIA Rail's Oakville - Montreal/Ottawa service to Hamilton this fall may be in trouble. Negotiations with CP Rail to use a couple of miles of track leading into Hamilton's Hunter Street station used by GO Transit have become bogged down.

10 - New Alberta transit system

The town of Brooks, Alberta began a new transit system early this month. Two routes operate between 7 am and 5 pm Monday to Friday plus a shuttle from downtown to the suburban campus of Medicine Hat College. Fare is $2 for adults, $1 for concessions.

11 - Calendar

Here are some Transport 2000 related meetings coming up across the country:

Thank you for calling the Transport 2000 Canada Hotline. Also thanks also to Ken Wuschke for news material for this issue. For additional information, please contact our web site at:

www.transport2000.ca.