Transport 2000 Canada Hot Line

26 July 2002

This is the Transport 2000 Canada Hotline, issue number 664, recorded on 26 July 2002, Bert Titcomb reporting.

In this issue...

1 - BC roads move towards private sector

The Financial Post recently reported that British Columbia has identified the Coquihalla and the "Sea to Sky" highways for privatization and PPP upgrades. An upgraded Trans-Canada Highway through Kicking Horse Pass and the Fraser Canyon, as well as "Light Rail" from downtown Vancouver to the Airport.

2 - CN derailment in Wisconsin

A 107-car CN freight train, bound for Winnipeg with some hazardous goods, was derailed 65 km northwest of Milwaukee last week. No one was hurt when 34 cars left the tracks. Officials said at least three cars carrying lumber, waxes and plastics caught fire.

3 - Transit ridership drop in parts of Montreal region

According to an article in the Montreal Gazette, the number of transit passengers has dropped in some parts of the Montreal region for the first time in six years. Longueuil and Laval saw drops of 5 per cent and 1.9 per cent respectively. However, on Montreal Island and south of Longueil, TRAM pass sales were up by 4 per cent. Aggressive car sales and mild weather were blamed for the drop in passengers.

4 - Quebec reviews its urban transit

Quebec Minister of Transport, Serge Menard, has ordered a review of public transit in Quebec, calling for greater equity, in financing transit and a new cost sharing arrangement between the province, municipalities, transit users and motorists. "Public transit is an important part of any strategy for the economic and social development of urban areas" Menard stated.

5 - Quebec - Air Canada agreement may limit competition

In Quebec, a plethora of new start airlines have been organizing to fill the places left by the industry's fallen flags. Unfortunately for them, the Quebec Government and Air Canada have reached an agreement; the airline will lower a number of fares to regional and remote destinations, and Quebec will desist from subsidizing competitors. According to LaPresse, a class action for $5 million has been filed against Canada Air Charter in Quebec Superior Court. The company had not been authorized to fly but went ahead and sold tickets anyway.

6 - New group of discount airlines claim gains

Discount airlines claim they are gaining market share from Air Canada. WestJet and Jetsgo have gained 2.1 per cent from Air Canada from May to June and the major airline will remove Tango service from Abbotsford and Kelowna in B.C. and from Charlottetown, P.E.I. by early September. Overall, the drop in capacity will be about 15.5 per cent. Meanwhile, I.M.P.'s CanJet Airlines claims "wonderful" ridership numbers on the Toronto - Halifax - St. Johns route.

7 - CP profits up despite revenue drop

Canadian Pacific Railway Ltd. recently posted a 16 per cent increase in second-quarter profit, despite a small drop in revenue as grain shipments fell 17.6 per cent. Four of seven business segments experienced revenue growth in the quarter: 10.6 per cent for automotive, 4 per cent for intermodal which combines rail and truck traffic, 1.9 per cent for forest products, and 0.2 per cent for coal. Canadian National also reported an increase in net income of 17 per cent for the second quarter. Revenue rose 11 per cent, due primarily to the contribution of Wisconsin Central and increased traffic from the petroleum, chemical and automotive industries.

8 - Popular GO Transit can't expand

GO Transit, the country's fastest-growing transit system, has nowhere near the money it requires for proper growth. When the province took back responsibility for basic upkeep and operating expenses - about $115 million per year - it only assumed a third of GO's expansion bill. Now, Queen's Park unilateral decision to place the rest of growth costs on the federal government and GTA municipalities is coming back to haunt the rail and bus agency. Having gone cap in hand to Ottawa, GO was sent packing. Now, it seems that Toronto is giving it the same brush-off. GO's growth plans this year total $55 million, of which the province and the 905 regions have picked up their allotted share - about $28 million. But Toronto, which appears content to watch its own TTC plow smack into a projected $70 million operating deficit next year, has refused to offer GO one cent.

As a result, a number of major projects will go by the wayside. These include: expansion of the parking lot at the busy Mimico Station, a reconfiguration of the Oriole Station platform to connect with the new Sheppard subway, and a new Kennedy Station to connect with the subway and Scarborough Rapid Transit. In addition, the much-needed improvements to the Union Station concourse, which is perpetually overcrowded, will be placed on hold, as will the needed relocation of the Milliken Station, where trains currently block traffic on Steeles Ave.

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