# Selling VIA Rail?



## Blackwolf (Jan 20, 2012)

Looks like the penny-pinching has now taken focus north of the 48th Parallel.

Canadian Federal Government ponders selling VIA Rail

They are citing reduced frequencies, removal of some services, and eliminating all public funds for the system. All this is only hearsay for now, proposals and discussion. But the suggested timeline points to 2015 for action. :angry:


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## Shawn Ryu (Jan 20, 2012)

Who will buy it? As far as I know they lose money like Amtrak.


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## Anderson (Jan 21, 2012)

Shawn Ryu said:


> Who will buy it? As far as I know they lose money like Amtrak.


It's possible that the plan would be to sell it off with an attached subsidy (in the vein of how I understand the franchises in the UK work), in the hopes of:

A) A one-time cash injection; and

B) The operator being able to reduce losses noticeably.


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## NS VIA Fan (Jan 21, 2012)

I certainly wouldn't be too concerned over this. These documents for discussion surface every few years and besides...... Ottawa is denying the report and says they have no plans to sell VIA. 

 

http://www.thespec.com/news/canada/article/658309--no-plans-to-sell-via-rail-ottawa-says

_"The federal government is denying a published report that it is thinking about selling Via Rail. _

_A spokesman for Transport Minister Denis Lebel says privatizing the passenger rail service isn't on the table. _

_Pierre Florea, Lebel's press secretary, says all government spending is under review, but there are no plans to sell Via Rail."_

Even the very pro-VIA, pro-rail Transport Minister David Collenette looked at privatization when the Liberals were in power 10 years ago and nothing happened then either.


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## jis (Jan 21, 2012)

Sort of like the periodic huffing and puffing on the part of some about Amtrak selling the NEC or discontinuing LD service.

BTW, I did not realize how large VIA's total government contribution was relative to the passenger miles it turns in. Not complaining, just had never known about the amount. It is AFAICT just to cover equipment acquisition, upgrade, maintenances and operations. No major tracks to maintain in case of VIA. Is that correct?


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## NS VIA Fan (Jan 22, 2012)

jis said:


> BTW, I did not realize how large VIA's total government contribution was relative to the passenger miles it turns in. Not complaining, just had never known about the amount. It is AFAICT just to cover equipment acquisition, upgrade, maintenances and operations. No major tracks to maintain in case of VIA. Is that correct?


VIA has received about a $ Billion for capital projects since 2007:

 

http://www.viarail.c...ital-investment

And a lot of the money went to track and infrastructure upgrades including triple tracking stretches of CN's mainline between Montreal and Toronto. 

VIA owns about 100 miles of track from Coteau-du-Lac to Ottawa and onto Smiths Falls.......and also about 40 miles of track between Chatham and Windsor. These lines have been rebuilt with new sidings and signalling systems to increase frequency and speeds into the 100mph range.

http://www.viarail.c.../tracks-project


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## jis (Jan 22, 2012)

Interesting. Thanks for the info. Regrettably, I have not had the time to follow VIA as closely as I would like to.


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