VIA Rail

[Bordercollie]

My thoughts are the more I learn how Via works, the less attractive a senior position looks in general. At least with the CBC and Canada Post, you have options and methods to do what is best for a crown corporation. For instance, why is there not a way to buy Via merchandise? Yes, I know of the stuff for the Ocean and Canadian anniversary.. But, what about other things? I can list things outside of clothing that Via could sell that would sell. Canada Post and the CBC have better stores.

VIA bonds? Private charters?

 

[Trackside_Treasure]

given up on VIA ALTOgether.

IC what you did there. ALTOruistic!

 

[lenaitch]

Any VIA CEO is going to be a political appointee and thus subject to political winds. It's worth remembering that the last CEO, Garneau, also left early when it was clear that VIA was being cut out of the HSR project, and will ultimately surrender the legacy corridor services. Not a good job opportunity for someone who is ambitious and wants to aggressively build a business..... but perfect pre retirement job for somebody who can just keep the seat warm and keep VIA below thecradar screen.

I was a bit surprised by the negative tone of CBC's report on his departure. It's a bit rich blaming VIA for allegedly high fares, when its mandate from Ottawa is all about reducing aubsidy. I wasn't aware that VIA's reputation was in the soup generally. Personally I think they are performing well considering the lack of support they are getting. VIA is a Cinderella story, fed a starvation diet and ignored by the family it depends on. Or maybe Oliver Twist is the better analogy.

I also wondered if Peloquin was being thrown under the bus for his handling of the Venture procurement, the disputes with CN, the slow service which is attributable to CN not VIA, and the cold weather issues - all of which the government appears more interested in burying than in solving. Maybe Peloquin simply isn't interested in a prolonged fight with one hand behind his back and Ottawa simply wants VIA moved off the front pages, without much commitment to actually delivering good transportation. Retirement may look pretty attractive after 41 years.

So I'm giving the guy the benefit of the doubt and wishing him a happy retirement. He has a strong CV and will likely stay active.

- Paul

In some ways I'm not so sure there is much difference for any leader in a board governance setting, you're at at-will appointee, generally with really good terms. At the end of the day, I doubt any end up in line at a soup kitchen.

The big problem with VIA is it has no enabling legislation. The CEO or Board can't sit in front of Cabinet or a committee with the position that 'this is what you mandate us to do, so you need to fund it' or 'here's our strategic plan to implement the mandate you have assigned us'. VIA has no bargaining chips to play.

 

[Bordercollie]

In some ways I'm not so sure there is much difference for any leader in a board governance setting, you're at at-will appointee, generally with really good terms. At the end of the day, I doubt any end up in line at a soup kitchen.

The big problem with VIA is it has no enabling legislation. The CEO or Board can't sit in front of Cabinet or a committee with the position that 'this is what you mandate us to do, so you need to fund it' or 'here's our strategic plan to implement the mandate you have assigned us'. VIA has no bargaining chips to play.

But you do get to decide where to put the different chess pieces and how they should move. With the resources you are given. You can also lobby for more resources and state your case as to why you should get it.

If you can show that you made an improvement with the resources given maybe there is a case to get more?

 

[crs1026]

But you do get to decide where to put the different chess pieces and how they should move. With the resources you are given. You can also lobby for more resources and state your case as to why you should get it.

If you can show that you made an improvement with the resources given maybe there is a case to get more?

If only that were true. Suppose VIA decided that they could make more money if they added another Montreal-Ottawa run and delete a Montreal-Quebec run. VIA needs a signoff from the Minister or designate. And to get that signoff, they have to provide supporting documentation. Many "helpful" analysts would review the proposal. The capacity of various pins to house angels would have to be verified.

If the change worked, the added income would be deemed a reduction in subsidy and would be clawed back.

Air Canada might need internal approvals to sell the change but ultimately would just adjust its schedule and aircraft cycle and make the change. The added revenue would be retained income, available for reinvestment, debt reduction, or disbursement to shareholders,

- Paul

 

[Bordercollie]

If only that were true. Suppose VIA decided that they could make more money if they added another Montreal-Ottawa run and delete a Montreal-Quebec run. VIA needs a signoff from the Minister or designate. And to get that signoff, they have to provide supporting documentation. Many "helpful" analysts would review the proposal. The capacity of various pins to house angels would have to be verified.

If the change worked, the added income would be deemed a reduction in subsidy and would be clawed back.

Air Canada might need internal approvals to sell the change but ultimately would just adjust its schedule and aircraft cycle and make the change. The added revenue would be retained income, available for reinvestment, debt reduction, or disbursement to shareholders,

- Paul

Those savings or increase in revenue could be used to improve services elsewhere. And you could make a case as such.

 

[crs1026]

Those savings or increase in revenue could be used to improve services elsewhere. And you could make a case as such.

VIA could ask, yes - on bended knee. But approval depends on politics, not the business case.

- PUl

 

[micheal_can]

But you do get to decide where to put the different chess pieces and how they should move. With the resources you are given. You can also lobby for more resources and state your case as to why you should get it.

If you can show that you made an improvement with the resources given maybe there is a case to get more?

The problem is they do not have any resources to spare. They don't have an excess of rolling stock to better utilize. They don't slots on their busiest sections. All they can hope to do is to ensure they run to the best of the ability that it is given.

 

[roger1818]

But you do get to decide where to put the different chess pieces and how they should move. With the resources you are given. You can also lobby for more resources and state your case as to why you should get it.

If you can show that you made an improvement with the resources given maybe there is a case to get more?

VIA kind of did this over a bit over a decade ago when they took advantage of the upgrades to the Kingston Sub and their ownership of the Brockville and Smith's Falls Subs to approximately double the frequency between Ottawa and Toronto. The result was more than doubling of ridership on the route, proving that increasing frequency drives increases in ridership. Armed with this data, Yves Desjardins-Siciliano presented an argument for HFR, claiming the frequency and reliability were more important than speed. We all know how successful that was.

 

[smallspy]

If only that were true. Suppose VIA decided that they could make more money if they added another Montreal-Ottawa run and delete a Montreal-Quebec run. VIA needs a signoff from the Minister or designate. And to get that signoff, they have to provide supporting documentation. Many "helpful" analysts would review the proposal. The capacity of various pins to house angels would have to be verified.

- Paul

Do they, though?

My understanding is that VIA is given a pretty free reign to use the resources that it has been given, and figure out the best way to maximize their use. This includes the ability to reallocate them if they deem necessary.

Along those same lines what it can't do without permission is expend to new areas, or to greatly increase frequencies - things that would require additional resources above and beyond what they already have.

Dan

 

[crs1026]

Do they, though?

My understanding is that VIA is given a pretty free reign to use the resources that it has been given, and figure out the best way to maximize their use. This includes the ability to reallocate them if they deem necessary.

Along those same lines what it can't do without permission is expend to new areas, or to greatly increase frequencies - things that would require additional resources above and beyond what they already have.

I was led to understand that VIA's business planning process requires justifying things including money on a route by route basis to various bureaucrats. That's a far cry from a business justifying plans to its Board but having internal authority. Also, VIA is a class of Crown Corporation whose ability to borrow money is limited.

Maybe that has changed somewhat over the years, but it's a pretty restrictive regime. With politics always being the trump suit.

- Paul

 

[Trackside_Treasure]

If only that were true. Suppose VIA decided that they could make more money if they added another Montreal-Ottawa run and delete a Montreal-Quebec run. VIA needs a signoff from the Minister or designate. And to get that signoff, they have to provide supporting documentation. Many "helpful" analysts would review the proposal.

Already cancelled from Feb 9, 2025 and likely extending into the spring of 2026: several trains just evaporated, due to 'operational constraints' which seem to be late arriving previous-leg trains and less-in-demand trains ,including daily 42/55, 644 on Fridays/Sundays and 645 on Mondays.

 

[Bordercollie]

Already cancelled from Feb 9, 2025 and likely extending into the spring of 2026: several trains just evaporated, due to 'operational constraints' which seem to be late arriving previous-leg trains and less-in-demand trains ,including daily 42/55, 644 on Fridays/Sundays and 645 on Mondays.

Likely not enough available equipment.