Canada commits C$71.1 million to look at VIA Rail's high frequency rail proposal

The government of Canada and Canada Infrastructure Bank (CIB) have committed a total of C$71.1 million (US$53.96 million) in funding to further explore VIA Rail Canada's proposal for high frequency rail in the Quebec City-Toronto Corridor. The government noted that "a modernized passenger rail system with a dedicated track would significantly improve the movement of people in Canada's most densely populated regions and busiest transportation corridor, from Quebec City to Toronto."

Approximately 72 percent of VIA Rail Canada's passengers travelled through the Quebec City-Toronto Corridor in 2018, which accounts for 66 per cent of the network's revenues. Additionally, ridership within that corridor is diverse, consisting of students, seniors, tourists and business travellers who do not typically travel by train outside of this area.

"High frequency rail is part of VIA Rail Canada's transformation towards a more modern passenger service for a more connected, more sustainable and more mobile Canada. Consistent growth in ridership since 2014, thanks to our employees' excellence in operations and service, has created a solid foundation for our proposed high frequency rail project," said VIA Rail Canada President and CEO Cynthia Garneau. 

Canada Infrastructure Bank and VIA Rail Canada will establish the Joint Project Team with C$55 million (US$41.74 million) in CIB funds. The Joint Project Team will explore the possibility of high frequency rail between Quebec City and Toronto by focusing on the following activities throughout 2019 to 2020:

• finalizing legal and regulatory work related to safety and environmental assessments;
• consulting with stakeholders and Indigenous communities;
• examining required land and track acquisition; and
• completing the technical, financial and commercial analysis required for a final investment decision on high frequency rail in the corridor. 

Transport Canada and VIA Rail Canada will use the C$16.1 million (US$12.22 million) balance of the funding to support VIA Rail's contributions to the work of the Joint Project Team, as well as fund technical work to ensure the interoperability and integration of high frequency rail with operating tracks used by local and regional transit providers in Montreal and Toronto. This includes track work in Montreal's Mont-Royal Tunnel to enable VIA Rail Canada's heavy rail trains to operate on this segment of the Réseau express métropolitain (REM) light-rail system. Transport Canada explained that this important piece of preliminary work is needed so that the different rail systems work together should high frequency rail proceed in the future. 

"I'm pleased that the Government of Canada is conducting additional exploratory work on high frequency rail. Our government supports a modernized passenger rail system that has the potential to increase reliability, frequency, service and provide faster trip times in the Quebec City - Toronto corridor. This would allow Canadians to get to their families faster and better connect our businesses, while reducing road congestion, and providing a low-emission travel alternative," Canada Minister of Transport Marc Garneau said. 

A recent market sounding exercise determined significant interest regarding the proposed high frequency rail project, which has prompted the government of Canada to proceed with a phased approach to ensure the foundations of success are laid and to encourage private sector involvement. The government noted that the exploratory work is a responsible next step and will require Canada Infrastructure Bank and VIA Rail Canada's expertise, as well as external advisors. 

"I welcome this innovative partnership as a great example of how the Canada Infrastructure Bank can work with partners like VIA Rail Canada to advance potential projects that are in the public interest. Determining the viability of high frequency rail is a high priority for the federal government, and the Canada Infrastructure Bank and VIA both bring invaluable expertise to this next phase of planning and pre-procurement work. This is critical work towards a final investment decision on the high frequency rail project in in the future," said Canada's Minister of Infrastructure and Communities François-Philippe Champagne. 

Canada Infrastructure Bank President and CEO Pierre Lavallée added, "Canada Infrastructure Bank has a mandate to provide advice on transformational projects, and we are proud to partner with VIA Rail Canada. We will bring our specialized expertise in infrastructure and innovative financing to support planning and pre-procurement work over the next two years."