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Federal Government Giving $691.9M to Via Rail Over 5 Years to Improve Train Service

Posted on: Thursday, 11 October 2007, 18:00 CDT

By THE CANADIAN PRESS

TORONTO - The federal government is investing $691.9 million into Via Rail over five years to help the cash-strapped Crown corporation refurbish passenger train service.

"This new funding is the largest capital program in the history of Via Rail," Finance Minister Jim Flaherty said Thursday in announcing the investment at Toronto's Union Station along with Transport Minister Lawrence Cannon.

"It will improve the sustainability and reliability of the passenger rail services across Canada and provide more frequent, faster cleaner and safer services along the Quebec City-Windsor Corridor."

Of the total funding package, $516 million in capital funds will be allocated over five years for infrastructure improvements and equipment refurbishments, beginning in 2007.

It will be targeted toward fleet renewal, through refurbishment of Via's locomotives and passenger cars, strategic infrastructure improvements to eliminate bottlenecks in the Quebec City to Windsor, Ont., corridor as well as station refurbishments.

The remainder of the funding - $175.9 million over five years - will be used to sustain Via's national network until the capital program is completed.

Via receives about $170 million in annual operating subsidies from the government, and has been struggling with aging equipment and capacity problems since the government of former prime minister Paul Martin reversed a $700 million commitment announced by the previous Liberal government of Jean Chretien in 2003.

Still, it has managed to increase ridership to about 4.1 million passengers last year from about 3.8 million.

Flaherty said the train is an environmentally-friendly and efficient way to travel, and that the government is committed to preserving and expanding Via service across the country.

"By taking the train, people can bypass traffic congestion, they can save on the price of gas and reduce greenhouse gas emissions all at the same time," he said.

Source: Canadian Press

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