No. H125/03 For release October 24, 2003 RENAISSANCE FOR PASSENGER RAIL — TRANSPORT MINISTER ANNOUNCES $692.5 MILLION IN NEW FUNDING FOR VIA RAIL OTTAWA -- Transport Minister David Collenette today announced Renaissance II, a new funding package to revitalize inter-city passenger rail services in Canada, worth $692.5 million over the next five years. "Today, the Government of Canada is acting to provide for faster, more frequent and more reliable passenger rail service across Canada," said Mr. Collenette. "Coupled with the $401.9 million announced in April 2000, more than $1 billion has been committed by this government towards the revitalization of passenger rail, the largest cash infusion for passenger rail in Canadian history," added Mr. Collenette. The funding commitment announced in April 2000 provided VIA Rail with the means to address urgent capital needs related to rolling stock, infrastructure and health and safety. This new investment addresses VIA's long-term capital needs, ensuring that its current network and service levels are sustainable into the future, while preserving the option for higher speed rail at a later date. The capital funds for Renaissance II will be for new infrastructure improvements and additional equipment acquisition and refurbishments and will be allocated over five years beginning in fiscal year 2004/05. The investment will be targeted for spending in these categories: acquisition of new locomotives; fleet renewal; strategic infrastructure improvements to eliminate bottlenecks in the Quebec City-Windsor corridor; and station refurbishment. The completion of VIA's fleet renewal will also contribute to improving the company's environmental performance through increased fuel efficiency and reduced greenhouse gas emissions per passenger, further benefiting all Canadians. "This investment demonstrates the government's commitment to the continued revitalization of Canada's passenger rail services. Renaissance II will bring truly modern, affordable, safe and efficient travel options to Canadians," concluded Mr. Collenette. VIA Rail Canada Inc., a Crown corporation, was created in 1977 to operate Canada's national passenger rail service. Backgrounders on the new funding and the previous funding in April 2000 are attached. -30- Contact: Amy Butcher Director of Communications Office of the Minister, Ottawa (613) 991-0700 Transport Canada is online at www.tc.gc.ca.Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada. This news release may be made available in alternative formats for persons with visual disabilities. BACKGROUNDERRENAISSANCE II:THE CONTINUED REVITALIZATION OFPASSENGER RAIL SERVICES IN CANADAIn April 2000, the government affirmed its long-term commitment to a sustainable passenger rail service by confirming VIA Rail's base subsidy of $171 million per year and provided an additional $401.9 million over five years to address urgent capital needs related to new equipment, stations, infrastructure, health and safety, and to provide for modest growth in services.This funding allowed VIA to purchase 139 new Renaissance cars and 21 new locomotives. Numerous passenger stations have been upgraded and four new ones were built at London, Ontario; Campbellton, New Brunswick; Prince Rupert, B.C, and the Ottawa suburb of Barrhaven. Waste retention tanks have been installed on the Quebec City-Windsor fleet while the remainder of the fleet will have such systems in place over the next two years. The rail diesel cars have been refurbished for the regional and remote services in northern Ontario and on Vancouver Island.VIA is already operating the new locomotives and some of the new Renaissance cars. Track improvements have allowed significant reductions in trip times between Ottawa and Montreal. Additional infrastructure investments will be completed in 2004 to improve trip performance between Ottawa and Toronto.The government recognized that further investments were required to ensure the long-term viability of passenger rail services in Canada and to improve VIA Rail's financial performance. Renaissance II continues the revitalization program that began in 2000. The Renaissance II investment improves the sustainability of passenger rail services in Canada while preserving the option for higher speed rail in the future. The proposed equipment and facilities investments, combined with strategic infrastructure improvements, will address VIA Rail's long-term capital needs and improve its operational performance. Renaissance II builds on the previous investment of $401.9 million and will allow VIA Rail to continue renewing its existing fleet and stations and improving strategic infrastructure to eliminate bottlenecks and enhance capacity for faster, more frequent and reliable service.These investments will benefit Canadians across the country. For example: The Light, Rapid and Comfortable (LRC) cars will be refurbished and passenger stations upgraded to continue to meet the needs of travellers in the Quebec City-Windsor corridor. The western transcontinental fleet will be refurbished in order to modernize the interiors and meet passenger demand for better sleeper car accommodations. The investment in additional Renaissance cars will increase the sleeper and lounge car capacity on the eastern transcontinental fleet operating between Montreal, Moncton and Halifax, and add some passenger cars in the Quebec City-Windsor corridor. The refitting of the remaining Renaissance cars will also benefit northern Ontario, as it will provide employment and economic benefit for workers in Thunder Bay. The planned acquisition of new locomotives will allow VIA to continue its locomotive fleet renewal, increase train departures and contribute to improving the company's environmental performance through increased fuel efficiency and reduced greenhouse gases (GHG) emissions per passenger. Finally, the strategic infrastructure improvements, which will be spread throughout the Quebec City-Windsor corridor, will:increase track capacity and alleviate bottlenecks; improve on-time performance; reduce trip times by increasing speed; allow for additional frequencies; and further improve safety and reliability of service.With a total investment of $692.5 million planned over the next five years, the renaissance of passenger rail will continue to bring truly modern, affordable, safe and efficient travel options to Canadians. Coupled with the $401.9 million announced in April 2000, the more than $1 billion commitment by this government is the largest cash infusion for passenger rail in Canadian history.October 2003BACKGROUNDERRENAISSANCE I:THE BEGINNING OF PASSENGERRAIL REVITALIZATION IN CANADA In April 2000, the Government of Canada affirmed its long-term commitment to a sustainable passenger rail service by confirming VIA Rail's base subsidy of $171 million per year and provided an additional $401.9 million in capital funding over five years for the revitalization of passenger rail services in Canada. The capital funding targeted the following three areas: $85 million for health and safety concerns to provide waste retention systems on all passengers cars and to provide signals on VIA Rail-owned lines in the Quebec City-Windsor corridor; $140.9 million for urgent capital projects to replace worn-out locomotives (with concurrent benefits of reduced greenhouse gases), to repair damaged equipment, to undertake refurbishment of rail cars, and to upgrade stations; and $176 million to acquire new passenger cars eliminating sold-out conditions during peak travel periods; to provide additional equipment to expand frequencies in the Quebec City-Windsor corridor; and to undertake strategic track improvements in the corridor. VIA Rail's capital investment program, launched in the fall of 2000, is responding to the growing demand for a modern, efficient, coast-to-coast passenger rail service. It is providing much-needed, modern equipment, better tracks and infrastructure, better station facilities, improved safety and environmental practices ¿ all as part of a truly modern network of services linking over 450 communities across Canada. New Renaissance Passenger Cars VIA Rail has purchased state-of-the-art passenger cars, expanding its total fleet by one-third. Specially designed for short-haul business travel and one-night sleeping car service, the new cars can operate at speeds over 175 km/h, and incorporate the best of current technology and advanced safety features. The first new passenger cars were introduced on the Enterprise, VIA Rail's Montreal-Toronto overnight service, in June of 2002. In fall 2002, Renaissance cars went into daytime service on the Montreal-Quebec City and Montreal-Ottawa routes. The first set of longer distance Renaissance cars entered service on VIA Rail's service between Montreal and Halifax at the end of July 2003. The remaining new cars will be phased into service by mid 2004. New Locomotives VIA Rail has purchased 21 new high-speed General Electric Genesis locomotives, which are helping to shorten trip times in VIA Rail's busiest markets. The locomotives have a maximumoperating speed of 175 km/h, with highly efficient acceleration and deceleration performance, advanced safety systems and significantly improved fuel consumption and emission controls.The new locomotives entered service in November and December 2001. Refurbished Equipment To reduce operating costs, and to ensure safe, reliable operations, VIA Rail has also repaired and upgraded existing equipment. This includes modernizing the Light, Rapid and Comfortable fleet of cars with updated technology and improving the interiors. VIA Rail has also completely overhauled and refurbished rail diesel cars used on Vancouver Island and in northern Ontario. The refurbished equipment is dramatically improving the reliability and comfort of these services. Infrastructure Improvements A $28 million investment in infrastructure between Ottawa and Montreal has already led to a 25-minute improvement in best trip time. Additional investments to upgrade and improve infrastructure will begin to address growing demand for faster passenger service in the Quebec City-Windsor corridor. Major improvements will include extended passing tracks, sidings, and other measures to reduce speed restrictions, as well as improved signaling and traffic control systems. Work to upgrade the Montreal-Toronto track is scheduled for 2004 and 2005. Station Improvements VIA Rail has launched a system-wide program to upgrade passenger stations and facilities. A two-year $10 million investment in VIA Rail's busiest facility, Toronto Union Station, is scheduled for completion in the fall of 2003. Other major projects already completed include renovations to stations in Halifax, Moncton, Quebec City, Kingston, Oshawa, Oakville, Kitchener, Brantford and Jasper, and new facilities in London, Campbellton and Prince Rupert. VIA Rail has also opened Barrhaven/Fallowfield station in the west-end of Ottawa. Installation of Car Waste Management Systems The Quebec City-Windsor corridor fleet has already been fitted with waste retention systems. New waste management systems will be applied to the long-distance passenger cars between 2003 and 2005. October 2003
