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VIA Rail Canada (pronounced "vee-ah") is an independent Crown corporation offering passenger rail
services.
VIA Rail operates trains in 8 Canadian provinces (all except Newfoundland and Labrador and Prince Edward Island) over a network spanning the country from the
Atlantic to the Pacific, and from the Great Lakes to Hudson Bay. It reportedly carries 3.9 million passengers annually.
VIA Rail's corporate headquarters are in Montreal, Quebec.
Canadian Passenger Rail, pre-1978
The post-war era saw two developments which would eventually
prove disastrous to previously profitable passenger rail transport. Taxpayer subsidized airports and nationalized and private
airlines were detrimental to long-range Canadian inter-city passenger trains. Short-range passenger trains also underwent
dramatic restructuring with the increased use of personal automobiles and the creation of taxpayer subsidized highways such as
the Trans-Canada Highway.
In the 1960s it was obvious to both the Canadian National Railway (CN) and Canadian Pacific Railway (CP) that passenger trains were no longer viable. CP sought to rid itself
of the burden of operating passenger trains, but federal government regulators and politicians balked, forcing CP to continue
running a minimal service through the 1970s. CN on the other hand, being a Crown
corporation, was encouraged by the federal government and political interests to invest in passenger trains. Innovative marketing
schemes such as Red, White, and Blue fares, new equipment such as scenic dome cars, and services such as Rapido and
Turbo trains saw substantial increases in ridership.
By the 1970s even CN saw the writing on the wall and sought to rid itself of passenger
trains. The decline of passenger rail became a federal election issue in 1974 when the
government of Pierre Trudeau promised to implement a nation-wide
carrier similar to Amtrak in the United States. The name VIA Rail originated in 1976 as a
marketing term for the Canadian National
Railway's passenger train services. In 1977, CN underwent a dramatic restructuring when
it placed various non-core freight railway activities into separate subsidiaries such as ferries under CN Marine and
passenger trains under VIA Rail.
Canadian Passenger Rail, post-1978
On April 1, 1978 CN's VIA Rail
subsidiary became a separate Crown corporation, taking with it possession of former CN passenger cars and locomotives. Following
several months of negotion, on October 29, 1978 VIA took over operation of CP passenger train services, along with similar possession of cars and locomotives.
Passenger train services which were not included in the creation of VIA Rail included those offered by BC Rail, Algoma Central Railway, Ontario Northland Railway, Quebec North Shore and Labrador Railway, various urban commuter train services
operated by CN and CP, and remaining CN passenger services in Newfoundland.
At this time, VIA did not own any trackage and had to pay right-of-way fees to CN and CP, sometimes being the only user of rural
branchlines.
VIA initially had a tremendous variety of equipment and operated routes stretching from Sydney, Nova Scotia to Prince Rupert, British Columbia and north to Churchill, Manitoba. In excess of 150 scheduled trains per week were in operation, including
transcontinental services, regional trains, and corridor services.
Passenger Rail Rebirth
The national reach and new marketing schemes saw ridership spike in the late 1970s and
early 1980s to previously unheard-of levels, brought on partially by unprecedented
inflation and rising gas prices.
1st Round of Cuts
However increased ridership would not be VIA's saviour and in 1981, significant budget
cuts by Prime Minister Trudeau's government saw fully 40% of VIA's
operations slashed. Gone in an instant were oft-sold out trains such as the Super Continental (which
reduced VIA to operating only one transcontinental train, The Canadian) and the popular Atlantic, among others. VIA
also sought to reduce its reliance on 30+ year old second-hand equipment and placed a significant order with Bombardier for new high-speed locomotives and cars which would be used in its corridor
trains. The LRC (light, rapid, comfortable) locomotives and cars proved troublesome and would take several years to work
out problems.
Restoration of Service
The election of Prime Minister Brian Mulroney's government in
1984 brought a friend to VIA, initially, when several of Mulroney's committments included
rescinding the VIA cuts of 1981 by restoring the Super Continental (under
pressure from his western caucus), and the Atlantic (under pressure from his eastern caucus and the formidable then-Saint John mayor Elsie Wayne). Mulroney's government gave VIA funding to refurbish some of its cars, and purchase new
locomotives, this time a more reliable model from General Motors Diesel
Division.
2nd Round of Cuts
By the late 1980s, inflation and other rising costs were taking their toll on federal
budgets and in the infamous 1989 budget, VIA again saw its budget slashed, surpassing even
the 1981 cuts. By early 1990 the Super Continental was
again removed, along with numerous disparate rural services such as in Nova
Scotia's Annapolis Valley and Cape Breton Island, western Canada, and in the corridor. The Canadian was also moved from its
"home" rails on CP to the less-populated northerly CN route between Toronto and Vancouver, severing major western cities such as Regina and Calgary from the passenger
rail network and flaring deep-rooted western bitterness toward Ottawa.
Emerging out of these disastrous cuts, VIA was a much smaller company and immediately took to rationalizing its fleet of cars
and locomotives, resulting in a modern fleet of refurbished stainless steel (HEP-1 and HEP-2 rebuilds, defined as "Head End
Power") and LRC cars, as well as rationalizing its locomotive fleet with GM and Bombardier (LRC) units.
3rd Round of Cuts
VIA was not spared from further cutbacks in Prime Minister Jean
Chretien's government elected in 1993. Minister of Finance Paul Martin's first budget in 1994 saw further VIA cuts which saw
the popular Atlantic dropped from the schedule, focusing the eastern transcontinental service on the Ocean.
This move was seen as somewhat controversial and politically-motivated as the principal cities benefitting from the
Atlantic's service were Sherbrooke, Quebec and
Saint John, New Brunswick, where coincidentally
the only two Progressive Conservative Party Members of Parliament in Canada were elected in the infamous 1993 federal election which saw Jean Chretien's Liberal Party take power. The Ocean service which was preserved operates on trackage
between Montreal-Halifax running through the lower St. Lawrence River valley and northern New Brunswick. The federal Minister of
Transport in Prime Minister Jean Chretien's government at the time,
Douglas Young, was elected to a
district which included Bathurst, New Brunswick on
the Ocean's route. Interestingly, a remote VIA-service to Quebec's Gaspe Peninsula, the Chaleur was also spared from being cut at this time, despite having less ridership than the
Atlantic.
A Passenger Rail Renaissance?
By the late 1990s, rising environmental concerns focusing on reducing dependence on
automobiles and airplanes (see Kyoto Accord), as well as a rail-friendly
Minister of Transport in David Collenette, saw modest funding
increases to VIA. Corridor services were improved with new and faster trains, a weekly tourist train The Bras d'Or returned VIA
service to Cape Breton Island for the first time since the
1990 cuts, and a committment was made to continue operating on Vancouver Island, however western Canada continued to languish with the
only service provided by The
Canadian.
In a significant new funding program dubbed "Renaissance," passenger cars were purchased second-hand from a failed Great Britain-France train (using the
Channel Tunnel rail link), and new diesel locomotives were purchased
from General Electric (to replace the retiring LRC units). This
expansion to VIA's fleet has permitted scheduling flexibility, particularly in the corridor. Additionally, many passenger
stations have been remodelled into rider-friendly destinations, with several hosting co-located transit and regional bus hubs for
various municipalities.
On October 24, 2003, federal Minister
of Transport David Collenette announced $700 million (CAD) in new funding over the next 5 years. This funding was far below the
$3 billion (CAD) needed to implement a high-speed rail proposal in the Quebec City-Windsor corridor nicknamed VIA-Fast,
however the funding was intended to "provide for faster, more frequent and more reliable passenger service across Canada....
[preserving] the option for higher speed rail, such as the Via Fast proposal" said Collenette. This new project was to be called
"Renaissance II."[1] Critics of "Renaissance II" noted that the
majority of spending would take place in the corridor services and not add new trains or improved scheduling to Atlantic and
Western Canada.
4th Round of Cuts
On December 18, 2003, Prime Minister Paul Martin
announced a freeze in federal spending on all major capital projects, including VIA's five-year $700 million capital investment
"Renaissance II" program announced just six weeks earlier by outgoing Prime Minister Jean Chretien's administration. Critics of Martin's cuts noted that he was in a distinct conflict of interest
where he and his family through Canada Steamship Lines
and various subsidiary and affiliated companies, had somewhat significant investments in inter-city bus lines - key competitors
with VIA Rail.
VIA's Role in the Liberal Party of Canada Sponsorship Scandal
The federal Auditor General's report released
publicly on February 10, 2004 showed
what appeared to be a criminal misdirection of government funds intended for advertising to key Quebec-based supporters of the Liberal Party
of Canada. (See Liberal Party of Canada sponsorship scandal). Included in the Auditor General's
report was the fact that VIA Rail Canada was used as one of several federal government departments, agencies, and Crown
corporations to funnel these illicit funds. Forced to act on the Auditor General's report due to its political implications,
Prime Minister Paul Martin's administration suspended VIA Rail President Marc LeFrançois on February 24, 2004, giving him an ultimatum of
several days to defend himself against allegations in the report or face further disciplinary action.
Several days later, during LeFrançois's suspension, a former VIA Rail marketing department employee, Myriam Bédard, revealed she was fired several years earlier when she questioned
company billing practises in dealing with advertising companies. She was publicly belittled by VIA Rail Chief Executive Officer
Jean Pelletier in national media on February 27, 2004. Pelletier retracted his statements but on March 1, 2004, Pelletier was fired. On March 5, 2004, after failing to adequately defend
himself against the allegations in the Auditor General's report, Lefrançois was fired as well.
VIA Rail today
Despite its role as a political football in both the administration and operation of the company, VIA continues to operate
transcontinental service, provided by The Canadian, running three times a week between Toronto and Vancouver in the west, and by the Ocean, operating six times a week
between Montreal and Halifax in the east.
International connections are provided by agreement with Amtrak and include the Maple Leaf, operating between New
York's Pennsylvania Station to Toronto's Union Station via Albany and Buffalo. Similarly,
The
International operating between Chicago's Union Station
and Toronto, although recent changes to the Amtrak schedule result in passengers having to detrain at the Canada-U.S. border and cross
to make the connections. Border security concerns continue to play havoc with train schedules in international service and their
continuation is in doubt. The Adirondack is an exclusive Amtrak train operating between Montreal and New York, replacing the previous Montrealer train.
There are numerous daily trains operated in the heavily populated Quebec-Windsor Corridor which extends from Quebec City through Montreal, Kingston, Toronto, and London to Windsor. Service between Toronto
and Montreal to Ottawa is included in this grouping. There is also
an overnight train operated between Toronto and Montreal, named the Enterprise.
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