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VIA Rail

Be *very careful* you don't blow your whole campaign on something as unrealistic as "0% operating subsidy". Private investors will also find it realistic, some will expect and require it in their calculations. The question is "how much" and "is it sustainable over the length of our investment?"

The VIA pages have a disclaimer that this is all VIA's thinking, and not Ottawa's. I take some comfort that those pages appear at all. One has to assume that they were vetted in some high place.... no Crown agency would blindside its masters on this kind of proposal. As frustrating as the 3-year study period is, it's a pretty good job of firewalling the Cabinet against the opposition while letting the proposal get air time and grow momentum.

I agree that at the point where Ottawa puts itself behind this thing, the numbers have to be transparent. But a proposal that from the outset is positioned as running in the red would not attract investors. The headines would read "VIA asks for subsidy to build train line". Note that the claim is "no operating subsidy". If we truthfully don't believe that, this thing is likely dead in the water. It's the better way to proceed while we do the detailed study.

- Paul
 
If we truthfully don't believe that, this thing is likely dead in the water. It's the better way to proceed while we do the detailed study.

- Paul

If we truly believe that public/mass transit needs to be in a zero operating subsidy position or be "dead in the water" we can shut down a whole lot of studies/plans/expenditures across the province/nation.
 
Paul:
I've got to disagree, looking for the actual legal language, and *of course* a private investor would welcome an operating subsidy if it meant the difference between the infrastructure (which is what the private sector is investing in , not the operation of carrying passengers itself) being used or not. Do you think for a moment that Eurotunnel and HS1 in the UK/France don't appreciate the subsidies their clients receive to keep running trains?

[...][Via expects the route would turn a profit and ultimately eliminate the taxpayer-funded subsidy for the railway’s operations in the corridor.][...]
http://news.nationalpost.com/news/c...nger-car-upgrade-in-toronto-montreal-corridor

"Expects"!

Here's a VIA report, "subsidy" occurs many times as a search word, as does "deficit":
https://www.viarail.ca/sites/all/fi...ate-plan/Summary_2014_2018_Corporate_Plan.pdf

Before digging deeper, I'm scanning Siciliano's interviews (one here: http://business.financialpost.com/e...hat-it-takes-to-be-successful?__lsa=32c9-eeeb ) so far, not one mention of "subsidy"....but also no mention of "profit".

lol...curious...I'll keep digging...

Edit to Add: The UK HS1 example, now owned (at least in part) by some of the potential investors in the VIA HFR scheme: (there's reams on-line on this, I purposely chose Christian Wolmar as he is clearly 'to the left' in the UK. The UK 'right' have absolutely slammed this):
[...][Consequently, by late 1997 it was apparent that the scheme was not viable (as I predicted at the time in a Rail column a couple of weeks before it collapsed) and the consortium brought out the begging bowl, asking for more subsidy. Ministers refused to bail it out, and instead, after much negotiation, a revised scheme was thrashed out in 1998, with the government providing the backing for the borrowing needed to complete the scheme. Even then, the budget was not adhered to. The NAO report shows that the original estimated cost after the renegotiation of £5.2bn was exceeded by 18 per cent in the final bill of £6.2bn. The project has, in fact, according to the NAO cost taxpayers more than £10bn (at 2010 prices) if financing costs and the various other types of support to the original bidder is included.][...]
http://www.christianwolmar.co.uk/2012/04/rail-694-the-myths-around-hs1/

I have to repeat, I'm *in favour* of the VIA HFR proposal (albeit remain skeptical), but already I see the pre-requisite mirages and smoke and mirrors on what is really necessary to approach this proposal realistically.

Let be be very blunt here: *In light of so much else being subsidized* (highways immediately come to mind, and thus bus and coach competition)...then *what is wrong with a sustainable and expected subsidy?*
 
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The VIA pages have a disclaimer that this is all VIA's thinking, and not Ottawa's. I take some comfort that those pages appear at all. One has to assume that they were vetted in some high place.... no Crown agency would blindside its masters on this kind of proposal.
On the off-chance I've completely misunderstood your stance...are you making a claim that this has nothing to do with VIA?

Then why is VIA's CEO all over it in the press?

Via Rail boss speaks about a $1 billion investment, high-speed trains and what it takes to be successful
http://business.financialpost.com/e...hat-it-takes-to-be-successful?__lsa=32c9-eeeb

Still searching and digging, and Desjardins-Siciliano, from all that I've reviewed so far, is incredibly *guarded* on any substantive claims.
[...][Desjardins-Siciliano said that if the project did increase ridership by his expected 3.5 times to more than seven million riders a year, it would eliminate the deficit of Via Rail’s operations.

He said that if the initial project is profitable, in a second phase the tracks could be extended east from Montreal towards Quebec City, and west from Toronto to London.][...]
http://business.financialpost.com/n...n-dedicated-passenger-track-says-via-rail-ceo

This is looking more nebulous than my initial impression weeks ago.

Paul: I'd be interested to see these "VIA dislaimers". Links? Page and doc reference?


 
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If we truly believe that public/mass transit needs to be in a zero operating subsidy position or be "dead in the water" we can shut down a whole lot of studies/plans/expenditures across the province/nation.

It always amazes me that they can still say it straight faced...pay us $4b and then we may not need any more money. Frankly I don't care if it is an operating or a capital subsidy.... $4b @ 5% means that I expect a $200M/yr return on investment before it should even be considered. And even worse a lot of this is rolling stock which is not indefinite life...more like 30 years (amortizing it straight line means we have to add another $40M/yr). So the additional subsidy we are paying them is $240M

We are saving $120M in costs.

So where does the other $120M come from? (i.e. our taxes)

This is equivalent to a $30/ride subsidy.

Is it worth it? If the government created a process to compare various transit priorities (similar to how Metrolinx is looking at electrification) and we could compare apples to apples it would make it much easier to figure out if the Via proposal is better than GO or an LRT line. All levels of government have limited budgets so why are they not creating a real comparison to get rid of the empire building mentality of some public institutions?
 
All levels of government have limited budgets so why are they not creating a real comparison to get rid of the empire building mentality of some public institutions?
There's a real oddity in Canada though to allowing that to happen, and it's down to the failure of the federal government, outside of the Trans-Canada Hwy (which is barely supported by the feds anyway) to fund highways, unlike most other nations. Even the US undertook a massive national hwy program, albeit under the guise of 'defense' (US spelling). So for the feds to now publish 'comparative cost figures' of subsidizing VIA', they'd have to use provincial figures....and no wonder they're not doing that!

The UK makes an interesting study in how the Thatcherites 'sold-off' most of BR to 'save taxpayer subsidies'. They even sold off the rolling stock to five major 'holding companies' (ROSCOs) and even tried to privatize the track ( a whole discussions in itself). One doesn't have to be 'left' or 'right' on this issue to see what a disaster it was. The UK Government now pays *multiples more* in subsidies to private operators to run the system, considered now the worst in Europe. London itself is now buying back a number of operations to run The Overground is a very successful operation, albeit with shared PFI. They learned from a litany of dire mistakes, not the least PPP (P3 as I believe Cdns call it)

It seems we're unable to, the debate is so early in our national evolution. I thoroughly agree with your point on comparative benefit. Since most of this VIA proposed operation involves only two provinces...one really has to question if this isn't a case for the two provinces to form an agency to oversee it? Think PATH in New York/NJ or NY/Connecticut, or many other cross state line collaborations in the US. Even AMTRAK does collaborations with states, Caltrans being an obvious one.

I don't stand behind that for or against, but wonder if we're going about this the right way? Perhaps Trudeau et al should 'make us an offer' of a one-time massive federal investment to cascade the Windsor-Quebec Corridor to the two provinces? (Edit to Add: And crucial changes to the Railway Act to grant federal level powers to such an agency) Certainly we have to stop the overlapping jurisdiction of train travel in this nation. The status quo won't go.
 
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Paul: Whoa! Sorry to have questioned your recall...I'm at a bit of a loss to explain what's happening here. Your qualifying words are more than apt:
[I take some comfort that those pages appear at all. One has to assume that they were vetted in some high place.... no Crown agency would blindside its masters on this kind of proposal.]

One immediate scenario arises, and I might have hinted at it: 'VIA's future *in its present forum* is in jeopardy, and Desjardins-Siciliano has gone 'rogue'. He might be fighting for his institutional life. That's a wild projection, I have absolutely no substantiation....

Tried to copy and paste the latter part of that report....but it's a bit-map type of PDF....won't copy into text...I have to wonder why it was done that way? Can find no other web publication of the doc.

I wanted to quote directly, but will transpose:
"VIA Rail will soon be submitting its project for consideration by the Government of Canada".

Very curious....

Edit to Add:
Note the date mentioned by Garneau in the following:

NatPost (Ottawa Citizen) March 3, 2016
[...][Garneau said the government is taking “a little bit of time” to examine Via’s proposal and whether there’s a good business case, including the “all-important” element of how many people would transition from vehicles or air travel to the train. The government also wants to gauge the investment community’s potential interest.

Asked whether funding could be coming in the budget for Via’s request for new rail cars, Garneau said: “That’s something that will become apparent on March 22. I can’t say any more.”][...]
http://news.nationalpost.com/news/c...kes-sense-but-liberals-studying-cost-minister

The backgrounder? Dated March 29, 2016. "Apparent on March 22" - Garneau.

Something is very odd about the sequence of events.

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One immediate scenario arises, and I might have hinted at it: 'VIA's future *in its present forum* is in jeopardy, and Desjardins-Siciliano has gone 'rogue'. He might be fighting for his institutional life. That's a wild projection, I have absolutely no substantiation....

I have never been big on conspiracy theories .... but.....Former VIA CEO Denis de Belleval is the case study for your conspiracy theory. In one move, he attempted to increase the number of corridor trains per day - between Montreal and Quebec, IIRC. His premise was no added equipment was required, and the uptick in service would bring in more customers and more revenue than it would cost. He was told he needed Ministry approval to do that, and the Ministry refused to approve. He got the message.

I credit Desjardins-Siciliano with doing his homework and reading the lay of the land. The question any sane individual would ask before accepting the VIA CEO position...... "are you with me if I actually try to grow the business?" Or perhaps he's a real risk taker, and the business case is actually so good that he's daring Ottawa to shoot him down.

Asked whether funding could be coming in the budget for Via’s request for new rail cars, Garneau said: “That’s something that will become apparent on March 22. I can’t say any more.”][...]
http://news.nationalpost.com/news/c...kes-sense-but-liberals-studying-cost-minister
The backgrounder? Dated March 29, 2016. "Apparent on March 22" - Garneau.
Something is very odd about the sequence of events.

Well, new business for Bombardier's Transportation Division, with actual product received for money paid, might be more politically palatable than the direct handout that's said to be in the works. If I were looking for conspiracy theories, this is where I would take this one.

- Paul
 
Well, new business for Bombardier's Transportation Division, with actual product received for money paid, might be more politically palatable than the direct handout that's said to be in the works. If I were looking for conspiracy theories, this is where I would take this one.
- Paul

I'd meant to keep track of the number of times "Bombardier" had come up in the press, it keeps slipping my mind, and I had brought that up a week or so back to a retort that stated: (gist) "Well it isn't in any of the official releases" to which I really didn't have an answer at the time...but now it appears redundant anyway....as there are no "official" releases yet! (Or are there?)

No matter how this is spun, "Bombardier" is key, and I had mentioned prior (gist) "This might be Bombardier's consolation prize for "nix" on the CSeries". And as 'conspiracy theories' go, this would be an apt one. Let me surmise as to what might be happening, and dates getting mixed up, and you obviously allude to this too: There have been talks, and *sketches* of 'how to stone three birds with one kill' and one of the players got a bit carried away with enthusiasm, albeit I see Desjardins-Siciliano talking with the same gusto middle of last year...and like you state, he's let loose, but still on a leash, the 'loose-cannon' that can be 'thrown under a bus' (Ouch, that would be double agony for a rail exec) if this doesn't fly (triple agony). This whole thing is peculiar, but if the end justifies the means, so be it.

That being said...the more I think about it, the more the value to all concerned (esp Bombardier) if this can be downloaded to the provinces (Ont and Que) to run as a co-agency w/ federal powers (Edit: That may sound oxymoronic, so let me re-state: equivalent powers guaranteed under Federal law, e.g. a section added to the Railway Act) and a *one-off Federal bequeathment* of putting them up in a new business plan and other federal perks for now. Feds then state to the provinces: (gist) "We said we'd invest in infrastructure, we said we'd invest in Cdn high-tech, and we said we'd invest in efficiency of transportation and productivity. We also made promises to the cities, and half that budget was going to Ontario ones. The cities affected can apply to have infrastructure built to support this plan. Let's start talking..."

So the big 'if', especially in lieu of trade agreements, is preferential treatment for Bombardier...but there's excellent grounds to barter right there, esp with the US. All those "Buy American" clauses for federally (and sometimes state, about half of them) projects? Canada will do same unless we have a new trade agreement clause to neutralize that. By then stating "minimum Cdn content" companies like Siemens, Alstom and others would have to have assembly operations in Canada to bid on contracts. (They do now, but in a more permanent way to satisfy US regs too by reciprocity of agreements)

It would be difficult to see how this wouldn't go down extremely well with the public and business alike. And perhaps that's why Desjardins-Siciliano is allowed to run loose?
 
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[...] Also, The modal experience elsewhere is that systems don't break even on a full-cost basis. There may be exceptions, but that's the better bet.

I'm fairly confident that above-the-rail costs can be covered, but servicing the full capital cost may be the challenge. [...] Even with good numbers on paper, this project is high-risk simply because there are few precedents to point investors to. [...]
[...] To go to the public and make that claim is to set yourself up for a very embarrassing climbdown. We've seen a litany of these claims over the years, and just as you counsel caution as to the 'three years for the $3M"...you'd be wise to adopt latitude on the operating subsidy point. [...]

Be *very careful* you don't blow your whole campaign on something as unrealistic as "0% operating subsidy". Private investors will also find it realistic, some will expect and require it in their calculations. The question is "how much" and "is it sustainable over the length of our investment?" [...]
Even though VIA's cost-recover-rate is only 60.9%[1] in the Montreal-Ottawa-Toronto triangle and receives a subsidy of $44.31[1] per passenger, the fact that 8 departures are offered week-daily between Toronto and Ottawa (instead of 6 departures one the triangle's 2 other side) suggests that that route may be closer to break-even. The reason why rail infrastructure projects worldwide struggle with recovering their financial costs is that the respective passenger railroads usually increase their frequencies until the point where the line reaches its capacity and that this limit is then progressively increased through investments into better signalling, more sidings and tracks until the point where further upgrades are no longer economical compared to constructing a separate dedicated greenfield line, which makes most of the capacity improvements redundant.

In Canada, however, we are "lucky" enough that CN prevents us from reaching the capacity limit of their non-upgraded lines (or refused to guarantee any benefits for the limited upgrades we've already paid so far). This means that unlike in Europe, the marginal benefits which would have been achievable by increasing the capacity of the existing lines is also covered by HFR. Combined with the fact that the specifications of the dedicated tracks are considerably softer (176 km/h instead of 200+ km/h, single-tracked instead of double-tracked and not at last: underused or disused ROWs instead of greenfield alignments) and thus cheaper to build, this means that HFR will probably have a considerably higher Benefit-to-Cost ratio (even in purely financial terms of the operator's side only) and therefore be less risky than most dedicated track projects in Europe.

[...] You fail to consider what the term "at least" means. It's a cautionary proviso that you might be wise to adopt, and it revolves around the same point of "0% subsidy" that seems to be a sore point for you. [...]
Please forgive a non-native speaker some inaccuracies in his understanding of the nuances of certain expressions...

[...] VIA must be judged on *transit* terms, and even GO, the highest fare-box return of any system in North Am (including Amtrak) still needs roughly a 25% operating subsidy. And it is an *excellent return* for the taxpayer at that in terms of saving money elsewhere.
Whereas VIA Rail's per-passenger mile subsidy for is still 50% higher than TTC's with $0.21[1] vs ($0.276/75%-$0.276)*1.609=$0.148, Amtrak's NEC operations easily recover their operating costs with CRRs of 139% for the Northeast Regional and 204% for the Acela Express. The North American precedent of passenger rail services with 0% operational subsidy is already there!

If we truly believe that public/mass transit needs to be in a zero operating subsidy position or be "dead in the water" we can shut down a whole lot of studies/plans/expenditures across the province/nation.
Nobody expects Public Transit or remote passenger rail service to make a profit, but in the case of an inter-city passenger rail service directly competing against commercially viable bus and air operators and year-round road access, this demand is not completely absurd and also present in most Western European countries, even though these modes are also subsidized...

[...] Here's a VIA report, "subsidy" occurs many times as a search word, as does "deficit":

https://www.viarail.ca/sites/all/fi...ate-plan/Summary_2014_2018_Corporate_Plan.pdf [...]
We've uploaded the 2015-2019 Corporate Plan Summary almost a year ago and we are currently finalizing the 2016-2020 Corporate Plan Summary, so the document you are referring to might not be as relevant in understanding VIA's current corporate strategy, especially given that Yves Desjardins-Siciliano had not been appointed when most of the 2014-2018 plan was written.

[...] Before digging deeper, I'm scanning Siciliano's interviews (one here: http://business.financialpost.com/e...hat-it-takes-to-be-successful?__lsa=32c9-eeeb ) so far, not one mention of "subsidy"....but also no mention of "profit". [...]
Again, I'm not very impressed by the depth of your research, as a simple Google News search with the key words "via rail siciliano profit subsidy" yields plenty of hits:

National Post, Feb 29, 2016
The Canadian Press, Jun 4, 2015
Ottawa Business Journaly, July 13, 2015

It always amazes me that they can still say it straight faced...pay us $4b and then we may not need any more money. Frankly I don't care if it is an operating or a capital subsidy.... $4b @ 5% means that I expect a $200M/yr return on investment before it should even be considered. And even worse a lot of this is rolling stock which is not indefinite life...more like 30 years (amortizing it straight line means we have to add another $40M/yr). So the additional subsidy we are paying them is $240M

We are saving $120M in costs.

So where does the other $120M come from? (i.e. our taxes)

This is equivalent to a $30/ride subsidy. […]
First, the capital cost of HFR is only $2B (i.e. its construction cost), as electrification (for $1B) is optional and fleet replacement has to take place independently from whether or not HFR is pursued. You are therefore looking for a return of $100M/year and that is roughly equal to the current subsidy for Toronto-Ottawa-Montreal.

[...] Since most of this VIA proposed operation involves only two provinces...one really has to question if this isn't a case for the two provinces to form an agency to oversee it? Think PATH in New York/NJ or NY/Connecticut, or many other cross state line collaborations in the US. Even AMTRAK does collaborations with states, Caltrans being an obvious one.

I don't stand behind that for or against, but wonder if we're going about this the right way? Perhaps Trudeau et al should 'make us an offer' of a one-time massive federal investment to cascade the Windsor-Quebec Corridor to the two provinces? (Edit to Add: And crucial changes to the Railway Act to grant federal level powers to such an agency) Certainly we have to stop the overlapping jurisdiction of train travel in this nation. The status quo won't go.
Quote from the CTA review (p.181): "The Review recommends that the Government of Canada act to improve the fluidity of passenger railway services by [...] collaborating now, and on a continuous basis, with provincial and municipal governments to plan for integrated commuter and other passenger rail networks and for dedicated passenger rail tracks that allow for eventual adoption of high-speed rail."

[1]=All financial figures for VIA taken from its 2014 Annual Report (p.9)
 
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Ottawa-Toronto is dramatically closer to break-even, i.e. the one line where we are able to provide 8 instead of 6 departures per day. The reason why rail infrastructure projects worldwide struggle with recovering their financial costs is that the respective passenger railroads usually increase their frequencies until the point where the line reaches its capacity and that this limit is then progressively increased through investments into better signalling, more sidings and tracks until the point where further upgrades are no longer economical compared to constructing a separate dedicated greenfield line, which makes most of the capacity improvements redundant.

I'll answer a lot of your points later, but I'm flummoxed by this statement. Perhaps you can explain what "frequency" means in HFR? You seem to be undoing the basis of your premise.

I wrote:
[...] Before digging deeper, I'm scanning Siciliano's interviews (one here: http://business.financialpost.com/e...hat-it-takes-to-be-successful?__lsa=32c9-eeeb ) so far, not one mention of "subsidy"....but also no mention of "profit". [...]

You answer:
[Again, I'm not very impressed by the depth of your research, as a simple Google News search with the key words "via rail siciliano profit subsidy" yields plenty of hits:]

I've dug a lot deeper than that in the last two days, believe me, and found that the last HSR proposal was actually from the provinces! I'll itemize later, but what is it you don't understand about: "Before digging deeper, I'm scanning Siciliano's interviews"?

"I'm not impressed" with your ability to understand prefacing. Btw: I think you need to research the NEC profit/subsidy *parameters* before quoting them ad-hoc. As some of the other posters have made clear, it all depends on what is considered "Operating Cost" "Capital Cost" and "Subsidy"....and again, many of us *favour* this fresh new approach to inter-city rail, but it has to be based on brutal facts. We're not the ones you have to convince, it's the investors.

This article is dated, I'm unaware of the NEC bettering their cost to return ratio since, but I'll look for the most recent stats later: (and there's three levels of passenger service carried on it, one termed...wait for it 'HFR')

https://www.washingtonpost.com/loca...ars-of-service/2011/04/28/AFOeNMqG_story.html
 
I don't think you can use the NEC for your argument, in either direction. On the one hand, it's so incredibly old that the capital costs just to modernise it are nowhere near comparable to what VIA needs. On the other hand, it's so well used that no one is talking about it as "money losing" anymore. And the issue of how many agencies use the NEC corridor, and the constant debate about what costs are attributable to what services, is more complicated (and never ending) than is relevant to the VIA debate. The Wash Post article is a good example, however, of how quickly "subsidy" can be spun as "losing money".

I get @Urban_Sky's point that VIA is operating below "capacity" for a rail corridor, and if freight interference were removed it could increase ridership and revenue faster than costs would increment, without requiring capital to push to a higher level of technology. I'm not sure that's the whole story, however. First of all, removing freight interference is not a hypothetical - it will have a real cost. That's an enabling capital expense even if it's not an "upgrade". Secondly, the corridor's capability at its current state is suboptimal. There will have to be new signalling, new rolling stock and locomotives, and some amount of grade separation even if it remains in the same speed range. That is a second 'enabling' expense. This has elements of paddling to stand still - in some respects a proposal to invest to reach higher performance levels could be argued to be more prudent than just kicking CN to the side (at whatever "minimal" cost) and running the line as is.

I'm a big fan of what is going on in Florida with Brightline. This may provide some credible ideas about how to finance the VIA concept without looking to the taxpayer. (And, while a what-trains-to-buy debate is the wrong place to spend mental energy just yet, I'm a lot more in favour of piggybacking on the Siemens orders for locos and cars than giving the business to Bombardier after their Toronto trolley failure, and all the past federal handouts). There may eventually be some investors left over from that startup with capital available and the right outlook as a result having considered investing in the Florida line.

- Paul
 
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Paul: Agreed on most if not all points. I spent a good hour digging on getting definitive NEC figures, let alone Amtrak altogether. There is no such thing! The more I searched, the more wildly differing answers there were, almost all down to "how do you define costs, profits, expenses, track costs, etc". MIT even has a report, and Don Phillips' Trains articles are referred to many times, the actual articles being behind a paywall. The predominant 'gist' is that Metroliner (not Acela, which is up for renewal right now, btw) is the heavy lifter for reducing losses of all of Amtrak's books. What Amtrak has in common with Via, in general, is that a few choice routes subsidize the rest, to reduce the overall operating subsidy. But it still all comes down to definitions. Indeed, as you allude to, the NEC is facing a massive infrastructure investment need again...

I accessed the three links that Sky posted that he/she claimed I missed: National Post, Feb 29, 2016, The Canadian Press, Jun 4, 2015, Ottawa Business Journaly, July 13, 2015.

One of them I'd already linked, the second I'd read, and the third had pretty much the same 'sketch' that the rest had. "If", "maybe" "when" etc. There was and remains no hard business case. The poster Muller was pretty harsh if not brutal, but he's right as that pertains to schemes of this sort. I like this scheme, make no mistake, but I also like the CSeries, it's a wonderful machine, I have a brother who designs wings for Airbus in Filton, great things are being said about the CSeries, but I wouldn't put a penny of my own money into it. Bombardier have tainted a lot of excellent products with disastrous management.

Which brings me back to the concept of the Feds downloading the Montreal-Toronto HFT (ostensibly via Ottawa at least in part) to the provinces, the obvious agencies co-operating being Metrolinx and AMT. *IF* there is a business case to be made, and the Feds back it (mostly to underwrite the rolling stock)(Desjardins-Siciliano speaks of 'double the present amount now running that service') I still think it might be better to hive it off from VIA for a number of reasons, not the least that the business operating model would be a lot more rational and applied to specific need of that corridor. The overlapping of jurisdiction Fed/Provincial immediately poses problems. VIA and GO work together in ways, but there's many others where they don't.

Some review of the provinces pushing this:
[On January 10, 2008, Dalton McGuinty (Premier of Ontario), and Jean Charest (Premier of Quebec) announced their two provinces will conduct a joint $2 million feasibility study into the development of high-speed rail in the Quebec City–Windsor Corridor. The federal government has agreed to participate in the study.[18][19] In February 2009, The EcoTrain Consortium, consisting of firms Dessau, MMM Group, KPMG, Wilbur Smith & Associates and Deutsche Bahn International, were awarded a contract to update the feasibility studies for high-speed rail (HSR) in the Quebec City-Windsor corridor. The study was expected to take a year,[20][21] but was delayed.[22] Michael Ignatieff, then-leader of the Liberal Party said in 2011 that he would agree to fund the Quebec corridor and described it as a means to unite the country, similar to early railway projects in Canada.[23] His NDP counterpart, Jack Layton, had also pledged to fund the route.[24] ]
https://en.wikipedia.org/wiki/High-speed_rail_in_Canada

Which morphed into this: (and the subtext is the change in Fed position)

Postmedia News | November 15, 2011

[The federal government has ruled out funding for a high-speed rail link in the Windsor-Quebec corridor.

Transport Minister Denis Lebel told the Windsor Star in an email Tuesday that the project is not on the government’s radar. “In these fiscal circumstances, a new project of this scope is not a priority for our government,” Lebel said.

A study released Tuesday said it would cost between $18.9-billion and $21.3-billion to build high-speed rail service in the Windsor-Quebec corridor, including Montreal, Ottawa and Toronto.

Ontario Premier Dalton McGuinty also suggested Tuesday that it’s a bad time to build a high-speed rail system. McGuinty said the Ontario government is already investing about $35-billion over the next three years in transportation projects.

Until recently, McGuinty was an unabashed proponent, calling the rail link a “game-changer” and boasting, in 2010, that “when we build this line here,” it would connect “16-million Canadians together, strengthening our regional economy, better protecting our regional environment.
[...]
On Tuesday he said “the world has changed, and at this point in time I think the responsible thing would be to sit down with (Quebec) Premier (Jean) Charest and Prime Minister (Stephen) Harper, and given our fiscal context, given that we’ve entered into a period of slower growth, given our commitment already to invest some $35-billion in capital over the course of the next three years, I think it’s time for us to pause and reflect on the merits of starting that kind of a project at this point in time.”][...]
http://news.nationalpost.com/news/canada/dalton-mcguinty-cools-on-high-speed-rail-link-with-quebec

Obviously, things have changed at the Federal level, and it's time to revisit discussion with Quebec on this. Would it be problematic? lol...*inevitably*...but at the end of the day, it might suit both Que and Ont far better than to have to deal with this indirectly via the Hill. Electrification makes *much more sense* when both Metrolinx and AMT (the latter, just one line, but the advantage for the main corridor is obvious) share synergy. I like the private sector idea of RoW ownership a lot. (Edit: I'd suggest Metrolinx and AMT enter into an agreement to run a "joint" operation, a la Toronto Terminal Railways, common in the railway world, and private investors own the RoW)

But here's the $64B question: Why aren't private investors approaching the Feds and Provs with this idea?
There may eventually be some investors left over from that startup with capital available and the right outlook as a result having considered investing in the Florida line.

I think this is absolutely key! Perhaps it's Morneau on behalf of Transport that should be soliciting interest! Harper did this for Keystone. (no comment on his methods, the point is that it's perfectly acceptable and done)(Canada's railroads were built this way!)

I'll post a section on Brightline following:
 
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Brightline:
[All Aboard Florida is a passenger rail project that will connect Miami and Orlando through express intercity service while also building new passenger stations. A wholly owned subsidiary of Florida East Coast Industries (FECI),[3] the project will include stations located in downtown Fort Lauderdale and West Palm Beach. It will be the first time a privately owned company in the US has developed and operated an express passenger rail system in over 100 years. The service will use the existing FEC corridor between Miami and Cocoa, while also building a new 40-mile (64 km) stretch of tracks along the State Road 528 corridor between Cocoa and the Orlando International Airport. All Aboard Florida will serve the historic FEC rail corridor along the east coast of Florida, where approximately 50% of the state’s population—over 9 million people—currently live.

The cost of all construction is projected at $1.5 billion.[4] In March 2013, All Aboard Florida applied for a $1.6 billion Railroad Rehabilitation and Improvement Financing (RRIF) loan, which is administered by the Federal Railroad Administration.[5] In late 2014, the company announced it had applied for a $1.75 billion private activity bond allocation, with proceeds from the bond sale substantially reducing or replacing entirely the amount of the RRIF loan request.][...]
https://en.wikipedia.org/wiki/All_Aboard_Florida

It always amazes me that they can still say it straight faced...pay us $4b and then we may not need any more money. Frankly I don't care if it is an operating or a capital subsidy.... $4b @ 5% means that I expect a $200M/yr return on investment before it should even be considered. And even worse a lot of this is rolling stock which is not indefinite life...more like 30 years (amortizing it straight line means we have to add another $40M/yr). So the additional subsidy we are paying them is $240M
[...]

Muller: This might be railway music to your ears: (From an article on a NH private investment commuter rail scheme)
[...]
What is a PPP?

According to the Washington, D. C.-based National Council of Public-Private Partnerships, “a public-private partnership is a contractual arrangement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility.”

PPPs are nothing new globally or in the United States. The most significant and historic was construction of the Transcontinental Railroad in the 1860s. More recently, they have been used by cash-strapped states to meet a wide range of infrastructure needs.

Across the country, with $1 billion in private financing, a public-private partnership in Denver called the Eagle 3 Project was created to construct three new commuter rail lines.
[...]
R. Richard Geddes of Cornell University and the American Enterprise Institute, an expert on PPPs, says there is still too much misunderstanding about their purpose and function.

“Private investment not only invests vast amounts of capital into transportation system maintenance and expansion, but also introduces the sharp, focused incentives to operate, upgrade and expand key facilities efficiently,” Geddes wrote in his 2011 book, “The Road to Renewal: Private Investment in U.S. Transportation Infrastructure.”

“It’s interesting that we consider it the wave of the future when every other developed country is far ahead of the U.S. in the use of public-private partnerships,” Geddes told NH Business Review. “We are far behind the wave.”

He believes PPPs need to be properly understood and appreciated for their ability to solve a whole host of transportation infrastructure needs. They are tailor-made for large projects like those in Colorado and potentially for expanded rail in southern New Hampshire.

He said the Capital Corridor study is a small first step in a long journey to create a PPP, and he admits there are no guarantees for total success. Overall, he says, they are like marriage: some are good, some are bad but most agree that overall the institution of marriage is a benefit.

The challenge for key stakeholders in New Hampshire will be to develop the right PPP that can properly assign economic risk, returns and accountability, he explained.

Unlike a traditional public works project – the governing body raises the money and puts contracts out to bid for the work – a PPP works differently, by sorting out the key partnership components of design, build and finance.][...]
http://www.nhbr.com/December-11-2015/Public-private-effort-pushed-for-rail-project/

I highly recommend reading the entire article.
 
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