Transport 2000 Canada Hot Line

16 April 2002

This is the Transport 2000 Canada Hotline, issue number 649 and 650 combined, recorded on 16 April 2002, Harry Gow reporting.

In this issue...

We apologize for the late release of 649 which was due to the unavailability of an overworked volunteer. In this issue, rail, air and truck news.

1 - Globe and Mail supports E and N

Remarkably, an editorial in The Globe and Mail, usually anti-passenger rail, supports the continuance of the E & N.

Having lost most of its lucrative freight traffic, the railway's Florida-based owner, RailAmerica, now wants out of the people-moving business on the E & N without a much bigger subsidy from VIA Rail. So far, VIA has said no. As a result the E & N was set to close for good on Monday. But a last-minute federal bailout this week will keep it running for one more month, while the railway's many supporters scurry to find a way to save it. Still, prospects look bleak.

2 - BC Rail rumblings

Vancouver-based Rocky Mountain Rail Tours is considering taking over passenger rail service between North Vancouver and Prince George, which is being operated by B.C. Rail on the Cariboo Prospector. The crown corporation plans to take the self-propelled Budd diesel cars off the rails in October. The rail tour company has not yet made any decisions. "Certainly it's something we'd look at, because it involves tourism and trains, and that's what we do," says Graham Gilley, a company spokesman. "We've looked at opportunities in Canada and the U.S. and elsewhere, and it would be foolish not to look at this." The 46-year-old Budd cars are being retired because they are deteriorating, unreliable and B.C. Rail cannot afford the $35 million investment to upgrade them. Many small lodges and recreational outfits use the train as a low-cost way of bringing clients to the Prince George region. It is also an integral part of the Totem Circle tour, which fills to capacity each year and draws thousands of tourists to the province.

3 - Nova Scotia opposes shortline cuts

The Nova Scotia government is fighting planned cuts in rail service by the Cape Breton and Central Nova Scotia Railway. The railway wants to discontinue some freight service and is seeking permission from provincial regulators to make the cut. But the governments says the service between small communities must be maintained.

4 - CPR plans

Canadian Pacific Railway is aiming for big increases in revenue and earnings in the next two years to boost its defences against being taken over. The company has set its sights on a 4% growth in revenue, up from 2.2% - one of the most ambitious goals in the industry, said Robert Ritchie, chief executive. It's looking for a 20% rise in operating income and a 73% operating ratio - a measure of efficiency - by 2004.

5 - Opposition MPs oppose truck safety inquiry

The Canadian Alliance party has stymied an attempt to have MPs travel across Canada to hear what Canadians really think about Transport Canada's proposal to deregulate trucker hours. The alliance doesn't care about how many Canadians will be killed by tired truckers, but they are concerned about money!

Ambitious MPs were foiled when the Canadian Alliance denied unanimous consent to the travel, and the trip was off. James Moore, the Alliance transport critic, says it's "excessive and a waste." He noted the committee is not studying a piece of legislation, rather regulatory changes affecting the hours a trucker works. He says the issue has been studied for years and the committee should be looking at the airlines, the ports and the railways. Meanwhile, Commons officials say trips are always estimated higher than the actual costs.

6 - Groundbreaking imminent on suburban Ottawa VIA station

Construction is about to begin on the new $1.2 million VIA Rail station in suburban Barrhaven, several miles west of Ottawa Station, later this year. It is expected trains will begin stopping in south Nepean by late fall. The decision to proceed with the work is great news, says David Pratt, Nepean-Carleton MP, who has been working on getting train service in South Nepean since he was a councillor with the former City of Nepean. "It's been long awaited, but it's good to hear VIA is finally going ahead with the construction," he says. Pratt says the project would not be happening had th e federal and municipal levels not worked together.

"This project has required the co-operation of both federal and municipal governments. And Mayor Bob Chiarelli should be congratulated for his efforts." The station will be 2800 sq. ft. with a 600 ft platform. The parking lot will be able to accommodate 100 cars. Service will begin from Ottawa to Toronto and back and VIA officials say they will be looking to expand the service to include Montreal. "Not only is this going to be a huge benefit to the west end, but it will be a bigger benefit to South Nepean," says Pratt.

7 - Airline report warns of unrealistic expectations

Canadians and their politicians have unrealistic expectations of their airlines and unless they are prepared to pay a lot more, they should expect less, says a report by the federally appointed Independent Transport Observer of Airline Restructuring. "We're demanding a great deal, and may not be able to get everything we want," said Debra Ward in her third report on airline restructuring and her first assessment of the health of the industry since the Sept. 11th terrorist attacks.

"We want safe, reliable, reasonably priced, quality, competitive service no matter where we live or what local demand is like," she said. "We want an airline industry that supports regional development goals and enhances our communities" growth and well-being. At the same time, the airlines need to make money, and investors want to see their share values increase. We may not be able to achieve all of it, given the vast size of our country and the relatively few people who populate it."

Ms. Ward said politicians and consumers continue to yearn for the earliest days of state-managed airline transport on Canada's investor-owned airlines. She said Canadians must quickly decide whether they are willing to subsidize the less-profitable routes of Canada's air carriers in order to promote regional growth, or simply let market forces prevail.

8 - Security fee may arrest airline growth

The government's new security fee on passengers may be contributing to the ill health of the airline industry, says an independent expert hired by the federal Transport Department. "At this writing the jury is still out" on whether Canada will have "a competitive, healthy airline industry," Debra Ward warned in a report released this week. She blamed a combination of underlying economic weakness, Sept 11 and high costs for the woes of Air Canada and other carriers, with the notable exception of WestJet Airlines Ltd.

She said that the $12 one-way charge added by the government to pay for increased security at airports is one of the costs that could hurt the industry. "While the security measures taken in Canada are similar to those in the U.S.A., the additional cost here is far higher" than the U.S.$2.50 per flight charge south of the border, she noted. "For the first time, user-pay policies may lead to a decline in traffic, and a further reduction of capacity serving Canadians," the report said.

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