It would be interesting to know where the Newmarket Sub sits in life cycle - how much rail will need replacement over the next 15-20 years, how much additional tie replacement and surfacing will be needed to run pax faster than the current freight only service demands.
I can well imagine that CN is simply not interested in maintaining to a higher track standard to expedite passenger at any price - it's a distraction to their core business, and ONR may be able to achieve same quality for less than CN may have quoted. There may well be an attractive break-even point for ONR.
All the same, with the purchase price being as high as it is, that implies a pretty expensive rail line maintenance budget to obtain an overall cost benefit by buying the line.
Compare that to the 10 year cost of running a free bus service that only promises to operate 330 days a year and stands down in the worst weather.
- Paul
PS I can't help but wonder what CN would ask for the much shorter Kitchener-Stratfor-London line. Same freight traffic potential, same need for passenger improvements, much greater ridership and revenue potential, same potential to avoid highway investment.