High-speed rail studied to death, time for decision: Via Rail report
Dean Beeby, THE CANADIAN PRESS
OTTAWA - The benefits of high-speed rail service in the Toronto-Montreal corridor have been demonstrated repeatedly and it's time to stop studying the concept and make some decisions, says a new report for Via Rail.
"The merits of high-speed passenger rail have been clearly established," says the report, obtained under the Access to Information Act.
"The question is not to ask whether it is worth government support, but rather where it stands with respect to competing mega-projects on the priority list of decision makers. More studies are of no use in this regard."
The Aug. 14 report was prepared by a consulting engineer for Via Rail's board of directors as they revisit the issue of a high-speed rail link connecting Toronto, Ottawa and Montreal.
The document reviews seven major studies since 1984 that examined the feasibility of building the link, at a cost ranging up to $11.1 billion. It also reports on a 2004 study looking at a similar link between Calgary and Edmonton, estimated to cost $3.4 billion.
The analysis, by Andre Gravelle of the firm UMA Engineering Ltd., notes that every Canadian study to date has concluded that significant government investment is required to build the infrastructure for high-speed rail, as has been the case in other such projects in Japan, France and elsewhere.
"These studies have also indicated that, like roads and airports, public investment is required to finance the construction of the required infrastructure."
But once the link between Montreal and Toronto is built, passenger volumes are forecast to be high enough to turn a profit for any firm operating the service.
Gravelle cites one 1991 study that indicated almost a third of high-speed rail passengers would be snatched from the airlines, and suggests the airline industry helped kill the proposal.
"The results of this study created considerable concern among the airlines, given the huge public investment required to implement high-speed rail.
"It is believed that the ensuing lobby was a major factor in the lack of support for follow-up action on HSR (high-speed rail) proposals."
The report also generally faults the "Canadian bureaucracy, suspicious of demand and revenue forecasts" for allowing high-speed rail proposals to wither on the vine.
A spokesman for Via Rail said the report was ordered by the board because many of them are new to the job and want to be briefed on issues facing the Crown corporation.
"Via's board of directors is to a large degree newly constituted and has, quite naturally, been going through the process of familiarizing themselves with Via's history, current performance and prospects," said Malcolm Andrews, head of corporate communications.
He cautioned that Gravelle's report does not necessarily reflect the views of the corporation, and "any opinions expressed therein are his own."
Last week, the federal government announced it would spend $692 million on Via Rail over five years to help rebuild crumbling infrastructure. Finance Minister Jim Flaherty said the new money would, among other things, help reduce greenhouse gas emissions by getting people out of their cars.
The corporation receives about $170 million each year to subsidize the travel of its 4.1 million passengers.
The announcement at Toronto's Union Station last Thursday drew immediate fire from the Canadian Airports Council, which said the rail sector should not be getting subsidies while the airline industry struggles with high costs and taxation.
"Canada's 100 million air travellers a year will pay nearly $300 million in rent this year while the government pours nearly $700 million to benefit Via Rail's 4.1 million passengers," said council president Jim Facette.
"This is a double standard that clearly must end."
The UMA report on high-speed rail is among the first internal documents released by Via Rail since the Crown corporation became subject to the Access to Information Act on Sept. 1.
© The Canadian Press, 2007
