Fair enough, but how do you put some of those points at the feet of the MTO? I'm not sure how the Ministry has a mandate involving freight rail. In terms of inter-urban and urban transit, the government writ large perhaps. Metrolinx, falling under the MTO, can only spend as much money as the government gives it.
I would argue that the MTO is the Ministry of Transportation (the movement of people and goods); not the Ministry of Cars.
How it goes about ensuring that people and things get to where they need to be, in a reasonable period of time, and at a reasonable cost, to both themselves and the state is for it to determine.
Mx, its worth noting, specifically carried out a 'Goods Movement' (freight) strategy for the Golden Horseshoe.
It inferred that its mandate included that; likewise, when an argument is made to expand Highway 69 into Highway 400, one of those arguments is the movement of trucks, which is, after all, freight.
To me the Ministry should, at best/worst be agnostic on the form of movement, if not show preference to those forms of movement that might further provincial goals be they economic, environmental, land-use or quality of life.
Worth adding here, Ontario Northland is a freight rail operator and is part of the MTO.
So they literally are in this line of business already, just within a fairly limited geographic zone of the province.
Here, I am not suggesting they can regulate CN/CP; at least not directly, but they can surely offer them a choice of making trucking more competitive, or accepting MTO money to improve their offer in exchange for certain guarantees to the public on how the money is used and the gains it must achieve.
It could, of course, also create Ontario Southland Railway and give the freight carriers something to really worry about; but I would not suggest that a serious course of action, at least not at this time.