Rail line needs to make business sense in 2010
Posted By MORGAN IAN ADAMS
Posted 2 days ago
Next year could mark the last stop for the Barrie- Collingwood Railway.
On Monday night, councillors OKed an 18-month contract extension with the operator, Cando Contracting; however, the approval came with a caveat from CAO Kim Wingrove that a business case needs to be developed for the line after Collingwood poured more than $200,000 into its operation this year in order to balance the books.
"There needs to be additional discussion with the operator and the businesses (served by the line) to see if work can be done on a business case," Wingrove told councillors. "If it's determined a business case can't be strengthened, in the next six months it will have to be determined where we go next."
She also noted that would give businesses using the rail line to "adjust their business model" should a decision be made to stop operations.
The municipality struck a deal, in partnership with Barrie, to buy the former Meaford Subdivision from CN in 1998. At the time, local officials touted the deal as a 'win-win', as the purchase price would have been covered by the scrap value of the steel rails should the shortline venture fail. Collingwood also found another use for the rail corridor in 1999, using it as a direct route to build a water pipeline to Alliston.
A multi-use trail beside the line has also been developed between Collingwood and Stayner.
The line started out serving Nacan and Canadian Mist in Collingwood, and several industries in Barrie. In 2001, the idea of reviving the 'ski train' was briefly contemplated; however, the condition of the line limits train speeds to 16 kilo-metres (10 miles) per hour, and there are no longer any passenger facilities. Wingrove's report to council indicated infrastructure improvements to support a passenger train into Barrie would be about $4.9 million.
In her report to council, Wingrove also pointed out that a bridge management plan completed for the Collingwood section of the line identified another $200,000 in required repairs and maintenance.
"The reality is we may have to shut the line down," noted Councillor Tim McNabb, during the discussion.
However, Councillor Ian Chadwick reminded councillors of a similar debate that took place on the future of the airport; politicians at the time raised the spectre of shutting the facility down, without determining the importance of the airport to local industry.
"I would like to thing there are other opportunities with the railway," he said. "We have to think broader scale.
"We know it costs money, but it is also a benefit to local industry."
In 2008, three industries were using the Collingwood end of the line, representing 155 carloads. Wingrove's report indicated traffic in 2009 is estimated to be 109 carloads.
"Although BCRY has managed to increase their number of clients, due to the economic climate, the number of cars is down significantly from projections," she wrote in her report.
She said the railway may be eligible for federal infrastructure funding.