Sault Ste.

Marie To Sudbury

Passenger Rail Initiative

Discussion Paper
- Restricted Circulation November 16, 2004 Draft 5 A. Osborne M. OShea D. Raymond

Table of Contents
1) Introduction a) Preface......... 3 b) Transportation 2000 Canada....... 4 c) Questions of Interest....... 5 2) Short Line Rail Situation Analysis a) External Situation Analysis........ 6 b) Rail Line Industry Analysis........ 6 3) Review of Comparable Short Line Train Services a) Sudbury White River....... b) Montreal Quebec...... c) Victoria Courtenay....... d) Other Short Line Rail Rates 4) Potential Benefits From a Short Line Rail Service Between Sault Ste. Marie And Sudbury a) Businesses....... b) Tourism....... c) Health Care......... d) Education........ e) Safety.. f) Environmental Issues.......................... g) Other....... 5) Market Potential For a Short Line Rail Initiative Between Sault Ste. Marie and Sudbury a) Municipality b) Businesses, Clubs and Organizations.... c) Festivals and Attractions.... d) Education Sector. e) Health Care Sector...... 6) Requirements For a North Central Short Line Rail Company a) Possible Organizational Structures......... b) Improvements to Infrastructure Required.. c) Financing......... d) Key Success Factors........... 7 8 9 10

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7) Sources of Information/Correspondence a) Web Sites 20 b) Emails. 20

(1) Introduction c) Preface

An initiative has been started to look into the feasibility of a passenger rail line between Sault Ste. Marie and Sudbury, Ontario. The idea is being advanced by two interested individuals with the anticipation of a group to be formed. In the groups beginning stages, they have connected with the Community Economic & Social Development program at Algoma University. A student at Algoma University will be assisting the group move forward with the examination of a passenger rail services linking the communities east of Sault Ste. Marie. A rail service connecting these Northern Ontario communities can have significant social, environmental, and economic benefits to all those involved. The Transportation industry in Canada is very important but is struggling to provide sustainable, safe, efficient, cost effective, and environmentally sound solutions to all Canadians. A proper transportation system would allow widely scattered communities to continue to thrive. Public transportation brings freedom of movement and a better quality of life to the entire community. However, Canada has failed to address some increasing difficulties over the last few decades which have resulted in highway and airport congestion. Canada has also witnessed the removal of bus and ferry schedules as well as most passenger rail services across the country. Further, Fuel shortages are likely to worsen in the future causing an increase in the cost of gasoline and subsequently an increase in the cost of traveling. Change is necessary - but the changes in transportation have been largely negative. Instead of eliminating crucial transportation services, communities should find ways of making them work together to insure the survival of all forms of transportation. Up until recently, only two large companies (Canadian National Railways and Canadian Pacific Railway) have dominated the railway industry in Canada with only a few short line and regional railways (SL/RRs). The Canada Transportation Act was introduced in 1996 which has increased the production of (SL/RRs) across the Canada. (SL/RRs) are an important part of the transportation system in Canada yet many cities are without any

form of passenger rail transportation. Canadians rely on effective, efficient, safe and environmentally sustainable transportation network that is why the rail industry could significantly improve the accessibility of Northern Communities in Ontario between Sault Ste Marie and Sudbury. The most pressing issues facing Canada's SL/RRs are: financial viability raising the profile of SL/RRs public interest issues rail infrastructure interline service management legislative initiatives. Source (www.arrc.ca) d) Transportation 2000 Canada

Transport 2000 Canada is a non-profit organization whose purpose is research, public education and consumer advocacy. It promotes environmentally-sound transportation solutions and gets actively involved in a wide range of issues such as: public transportation, safety, accessibility, energy efficiency, protection of the environment, inter-modal cooperation and government regulation. Transport 2000 believes that transportation is more than just a means of moving goods and people, measured only by profits or political benefits. Transport 2000 believes that public transportation impacts on land use, economic development and the quality of life. Transportation is a tool to protect the environment, conserve energy, diminish land pressures, curtail the growth of road and highway spending and promote economic growth. Transportation also determines accessibility to housing, education, health services, employment and leisure. Transport 2000 represents the interests of consumers or users of public transport services in Canada and is involved with a variety of transport issues including:

the development of rail passenger services in Canada; the future of inter-city bus services; urban and commuter transit systems; the implications to consumers of the deregulated airline industry in Canada; the role of marine and coastal services; the effects of and alternatives to rail branch line abandonments; the role of government regulation in all public transportation; the impact on the public interest of demands for new highway spending; the safety of air, rail, and other public carriers; the promotion of inter-modal links to improve the accessibility and cost-efficiency of public transport - (www.transportation2000.ca)

e) Questions of Interest

1) Are there individuals in the community who would be interested in the rail line initiative? 2) What would be an appropriate structure for this group? 3) Which organizations in the north east are available to help mobilize the group? 4) What are the funding opportunities? (government? private?) 5) What would be the costs of developing the rail infrastructure to accommodate a short line passenger rail service? 6) How many trains would be needed and how often would they run? 7) Who would own and/or the rail service? (profit? non profit?) 8) What social, economic, and environmental benefits can a passenger rail service provide to the communities in the region? 9) Is there a demand for a passenger rail service between Sault Ste. Marie and Sudbury? 10) How would other transportation industries, and stakeholders play a part 11) What is the history and track record of the rail service between Sault Ste. Marie and Sudbury?

(2) Short Line Rail situation Analysis

a) External Situation Analysis Opportunities Changing trends to be more environmentally friendly Aging demographics in the region needing more transportation options Cultural shifts in preferred methods of transportation The costs of all forms of transportations have increased, some substantially Bad winter weather causes delays and dangerous road conditions Increasing fuel prices and automotive insurance costs Sault Ste. Marie has a skilled labour force and Three post-secondary education facilities for staff and support Potential for linking with Sault Ste. Maries strong tourism industries Increase in mobile technology Existing rail network to link to other major destinations Challenges Shrinking northern populations Improvements to alternative methods of transportation Altering existing transportation balance b) Rail line industry analysis Strengths Transportation by train is well known as a cost effective, safe and environmentally friendly method of transportation Trains have more open area than planes or busses for travelers to move about and work Weaknesses Potentially high initial cost of restoring tracks, stations, and purchasing equipment Potentially high operating and maintenance costs Potentially high cost of tickets to passengers Infrastructure needs improvements

(3) Review of Comparable Short Line Train Services (The Following Information Was Obtained from Via Canada)

a) Sudbury White River (The Lake Superior)

The Lake Superior is a short line railway that travels between Sudbury and White River and is operated by VIA Rail Canada. The train makes three round trips per week and stops in Cartier, Franz and a few other places in between. It also allows outdoor enthusiast to get off anywhere they want if they request a special stop. The Lake Superior is a very handy way to travel in northern Ontario regardless of weather or road conditions.

A round trip between Sudbury and White River costs $106 (taxes extra) when you buy tickets seven days in advance. Comfort class is the only class available between Sudbury and White River. . The Lake Superior departs Sudbury on Tuesday, Thursday and Saturday mornings at 09:40 and arrives in White River at 18:00; it leaves White River on Wednesdays, Fridays and Sundays (departure from White River at 09:30, arrival in Sudbury at 19:00).

The Train The train offers comfortable seats, lots of leg room and large windows to let passengers admire the scenery allowing safe and worry free travel. Passengers are invited to bring their own food, because there is no meal service on the train. It is recommended that baggage is restricted to one or two carry-on baggage. But travelers can make use of the baggage car with a maximum of six articles, three free of charge. Alcohol is served onboard but serving hours are governed by the laws of Ontario. Under these laws, one cannot consume alcohol that was not purchased onboard.

b) Montreal Charny Quebec (City Train)

The Montral-Charny-Qubec (City train) takes passengers to and from Montreal and Quebec City. The train avoids bottlenecks on the bridges and the stress of driving especially during adverse weather conditions.

Fares are much cheaper then air or car travel. A round-trip ticket between Montral and Qubec City costs only $82 (purchase five days in advance, taxes extra, some conditions apply). The Montral-Qubec City train offers you a choice of three or four departures per day in either direction. The complete journey generally takes a little under three hours.

Train The train has extra large seats with headrests and all the room needed to work or stretch out. All trains running between Montral and Qubec City now use VIA's new Renaissance cars. These ultramodern cars feature a combination of leading edge technology, comfort and sophistication. Passengers can place calls on mobile phones or Work on lap top computers. There is also food and beverage services aboard each train served by professional staff. Passengers are allowed one article of baggage into the car with you, but check up to seven articles, four free of charge.

Activities for children Children will be delighted with the VIA Rail Kids Activity Book which contains a variety of cut and paste, and colouring activities. In summer, guides provide tourist information for passengers and entertain children aboard. Also, When it's time to eat, excellent menus are available for children.

Other classes available VIA 1 class offers you maximum comfort, a delicious meal and many privileges. Available on most trains in Southern Qubec and Southern Ontario.

c) Victoria Courtenay (The Malahat)

On the Malahat passengers discover some of the most beautiful countryside in Vancouver Island between Victoria and Courtenay. The round-trip between Victoria and Courtenay costs only $58 (purchase seven days in advance, taxes extra.

The Malahat offers one departure per day in each direction. The journey time to Courtenay is approximately 4 hours. Passengers can get off at Chemainus, Nanaimo, Parksville or Qualicum Beach: as everywhere else in the network. It allows people to get on and off as many times as they like for the price of one ticket to the final destination.

Train A comfortable seat, large windows to admire the scenery, hassle-free, and safe travel. That's what's a passenger gets on the Malahat, passengers are invited to bring their own food, because there is no meal service on the train. However there is plenty of time to buy a sandwich, a soft drink or a coffee during the stop at Nanaimo. There is no baggage car on this train. This means that checked baggage service is not available. It is also restricted to two items of carry-on baggage. There is alcohol served on the train and is controlled by the government of British Columbia

d) Other Short Line Rates Return

Toronto-Niagara Falls: London-Windsor: Oakville-Ottawa: Montral-Toronto:

$23 $34 $86 $86

All Train Information, Maps and rates were obtained from Via Canada. www.Via.ca November 1, 2004

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(4) Potential Benefits from a Short Line Rail Initiative between Sault Ste. Marie and Sudbury

a) Businesses

There is a real opportunity for the businesses in Sault Ste. Marie and Sudbury to benefit from a rail services as well as all communities in between. By providing affordable access to these two large markets in Northern Ontario, consumers and suppliers have an alternative method to travel, access customers, and to buy goods. A passenger rail service would also make the smaller communities in between Sault Ste. Marie and Sudbury, more accessible and can assist the growth of the smaller, more isolated markets in the north.

A rail service can also provide access to technology, meals, and beverages while on the train. This alone may make rail transportation appeal to people traveling for business or people who require a premium form of travel. Unlike a bus or a plane, a train can provide these services allowing a person to remain connected and make more effective use of their time while traveling.

b) Tourism

A rail service could add to the tourism industry for all communities in the north. Many different hospitability and tourism organizations can make use of a rail service to increase access to markets or support products/services. Special packages can be created that incorporate the train ride as part of the deal or promotion. A working relationship among key businesses such as the Casinos, hotels, restaurants, adventure trips, and other tourist based companies is essential. This would increase access to attractions in Sudbury, Sault Ste Marie, and all communities in between. Lastly, the train itself could be made into a tourist attraction, complementing the Algoma Central Railway, for customers to travel across the north east in style and safety.

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c) Health Care

A passenger rail service between Sault Ste. Marie and Sudbury would increase regional access to healthcare in Sault Ste. Marie for general health care and emergency services from neighboring communities. It would also increase access to medical care in Sudbury that is not available in Sault Ste. Marie, such as cancer and cardiac care. Unlike other methods of transportation, a train has the ability to bring health care professionals and equipment onboard as well as provide a faster, safer, more comfortable ride. This would make it an ideal form of transportation for elderly and critically ill patients who may require assistance along the way or more room then a bus or car could provide for equipment. A rail service would also provide further access to prescription medication and could be used as a delivery system for medical supplies and between Sault Ste. Marie and Sudbury. Lastly, a passenger rail system could be used assist the Northern Ontario Medical School by providing another transportation service to/from the Sudbury facility and by building strong relationships with the communities.

d) Education

A rail system could benefit both public and private schools in the north and strengthen the partnerships between educational institutions by offering fast, affordable, and technologically innovative services to further link the schools educational programs, resources, and opportunities for students. A rail system would make schools in the north more accessible, which may encourage stronger working relationships between the schools and communities as well as possibly increase the number of students who can attend from outlying areas. Also, schools at all levels will have an alternative to taking a bus for field trips and can make the train part of the destination and learning experience.

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e) Safety

Canadians rely on safe transportation methods in order to travel, ship goods, and commute between locations all over Canada. The vast distances between communities along with poor weather conditions can isolate smaller communities that do not have suitable access to and from other locations.

Perception of Transportation Safety -(EKOS Research Associates)

Trains are known as a safe alternative to driving, especially in poor weather conditions or during the night. There are numerous accidents each year between Sault Ste. Marie and Sudbury that could possibly be avoided if a rail system was in place. Car and motorcycle crashes caused 54.7% of Canadian spinal-cord injuries in Canada, according to the Canadian Paraplegic Association. Motor vehicle crashes caused approximately 50% of all degrees of traumatic brain injuries in the US. - (www.tranportation2000.ca)

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f) Environmental Issues

Motor vehicles are the largest source of air pollution, generating more than two thirds of the carbon monoxide in the atmosphere. Some pollutants emitted by cars and trucks are also known to cause cancer, including toxic substances such as soot, benzene, arsenic compounds, formaldehyde, and lead. In the 1996 National Toxics Inventory, the Environmental Protection Agency estimates that mobile sources such as cars, trucks, and buses release about 3 billion pounds of cancer-causing, hazardous air pollutants each year. Carbon dioxide (CO2) is the largest contributor to climate change and the transportation sector is one of the largest sources of CO2. In Canada, the transportation sector contributes 47% of the carbon dioxide emissions produced and about 25% of total greenhouse gas emissions (www.tranportation200.com). A rail transportation service could significantly reduce the amount of pollution caused by cars and trucks on the highways between Sault Ste Marie and Sudbury. The Ontario Medical Association estimated that in the year 2000, pollution costs to the health-care system and losses to employers and employees in that province were more than $1 billion. (www.tranportation2000.ca)

g) Other

Land use costs Each lane of highway can carry about 2000 cars per hour in each direction - about 2500 people, assuming an average of 1.25 passengers per car. But that's only 15-20% of the people-carrying capacity of a rail line occupying the same amount of land. To put it another way: To replicate that capacity in private cars on an expressway requires at least 6 lanes per direction. (www.tranportation200.ca) Enhance the capability to meet changing demographic needs

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As people age, they tend to change the way in which they travel. In Canada, the aging population in the north requires an alternative form of transportation that is safe, reliable, affordable, and comfortable.

Increase collaboration between municipalities and social clubs

A passenger rail system could further strengthen the relationships of cities between Sault Ste. Marie and Sudbury by offering another form of much needed transportation. Offering an additional method of travel will allow organizations to work closer together and open new markets in the north.

Possible Parcel delivery / courier capabilities

A passenger rail service could also take a portion or parcels and cargo delivery to Sudbury that may to be too large or heavy for a bus or a plane. The train may also be more convenient for locations where the bus or plane does not stop or because of scheduling issues. The service would also provide the flexibility of additional departure/arrival times for goods.

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(5) Possible Market Potential for a Short Line Passenger Rail Initiative betweenSault Ste. Marie and Sudbury

a) Local/Regional Government

Municiplaities/Tonships/Villages/Towns First Nations Economic Development Corporations / Community Development Corporations

b) Businesses i. Chambers of Commerce

c) Clubs and Organizations

Hotel/Motel Associations Northern Ontario Tourism Organization Regional Tourism Associations Elks Club (re: Cancer care transportation) Indian Friendship Centre The Ontario Camping Association

d) Festivals and Attractions

Bon Soo Sault Ste. Marie Drum Festival Algoma Fall Festival Cine Fest Science North/Dynamic Earth Sault Ste. Marie Charity Casino Sudbury Downs

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Museums Theaters Historical sites Parks Campgrounds

e) Education Sector

Algoma University Laurentian University Sault College Cambrian College Lake Superior State University Regional public and private schools

f) Health Care Sector

Hospitals Health Care and Medical Centres Pharmacies Northern Ontario Medical School

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(6) Requirements for a North Central Short Line Rail Company

a) Possible organizational structures

Service from existing rail companies Partnerships with existing rail companies Partnerships with Municipalities Private enterprise Publicly owned corporation Non profit organization Worker co-operative

b) Infrastructure improvements and purchases required

Track, rail bed (including bridges) Buildings Trains (rolling stock)

c) Financing

Federal, Provincial and Municipal Governments Existing rail companies Banks or similar lending institutions

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Other private or corporate lenders Financing through the sale of stocks

d) Key success factors

Sufficient customer demand two-way haul Competitive pricing Convenient scheduling Excellent customer service Suitable tracks and trains Access to skilled labour Efficient use of technology to meet customer needs and assist in sales/marketing Harmonized integration with existing transportation services

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(7) Sources of Information / Correspondence

a) Web Sites

Association of Regional Railways Canada (http://www.arrc.ca/website/index.asp) Via Canada (http://www.viarail.ca/en_index.html) Canada National Railway (http://www.cn.ca/index.shtml) Transportation 2000 Canada (http://www.transport2000.ca) Transportation Canada - Rail (http://www.tc.gc.ca/rail/menu.htm) Rail America (http://www.railamerica.com/index.html) Canada By Rail (http://www.canadabyrail.ca/aboutCBR.html) The Railway Association of Canada (http://www.railcan.ca/) Rails Canada (http://www.railscanada.com/index2.shtml)

b) Emails Mike OShea James Peters, Via Customer Relations Correspondence to Date To: Mike OShea From: James Peters Thank you for your follow-up email. Services are offered with an objective of increasing ridership by responding to the needs of the market and better serving the majority of our customers. Our schedules and services are reviewed periodically in an attempt to match customer demand according to the options presented by VIA resources and constraints. Examples of the latter include the time slots allotted to us on CN and CP tracks, as well as equipment cycling and servicing. We realize that every schedule has some drawbacks, and we must select the most convenient for the majority of our customers.

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With regards to the possibility of establishing service between Sault Ste. Marie and Sudbury, suggestions are welcome, and they are documented for review by our marketing group, while keeping in mind the needs of all of our passengers. Unfortunately, limited resources do not permit us have formal discussions on these issues with individuals or groups. Nevertheless, we appreciate the fact that you have taken the time to write to us on behalf of the residents in your area. -----------------------------------------To: James Peters From: Mike Oshea Dear Mr. Peters Since I last e-mailed you I have began to co-facilitate a small working group to look at the feasibility of re-establishing the passenger rail service between the Sault and Sudbury Ontario. While the process is at the very early stages, my committee would be interested to know who at Via, we should be discussing this initiative with. Does Via have any resources or advice that could assist us in pulling our feasibility study together? In your opinion what are the key issues that we must address? Thank you for your time, and I look forward to your reply -----------------------------------------To: Mike OShea From: James Peters Thank you for your email expressing an interest in a passenger rail link between Sault Ste. Marie and Sudbury. As you may have heard the recent acquisition of new equipment will allow us to consider the feasibility of introducing new services where financially viable. I have forwarded a copy of your email to our Marketing group for their information and consideration. The reality at VIA Rail Canada today is that any new train service must pay for itself as we have a fixed subsidy with no planned increases. You can rest assured that routes such as Sault Ste. Marie and Sudbury will be considered and new services will be added if financially viable.

To: James Peters From: Mike OShea Hi, I live in Sault Ste. Marie, ON. Some years ago there was a train the Bud car that ran between Sault Ste. Marie & Sudbury. Does Via rail have any plans to provide regional rail service to Sault Ste. marie & the North shore? What would it take to

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establish such a service? Given our aging population, and the regionalization of cancer care in Sudbury, it make good sense to re-establish this rail link...what do you think? Mike O'Shea

Art Osborne Brian Christie, The Office of Tony Martin MP Correspondence to Date To: The Office of Tony Marin MP From: Art Osborne Many thanks Brian... one of us will be in to get it. We appreciate your effort and will have a new project discussion document for your office review likely next week. -----------------------------To: Art Osborne From Brian Christie Art, the report just came in. You can drop by the office any time 9-12 1:30-4:30 next week. Brian ----------------------------To: The Office of Tony Marin MP From: Art Osborne Great Brian! Our group thanks you for your efforts. ----------------------------To: Art Osborne From Brian Christie Art, I ordered a copy of the report today from the Transport Canada, Transportation Development Centre. I will call you when it comes in. ----------------------------To: Art Osborne From Brian Christie

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Tony, A quick update... I Will send you the next Version of the Sault Sudbury Discussion paper spoon.. OK to add your name to the list in the document as a person contacted? (Doesn't position you one way of the other... just that we chatted.) Transport Canada has a book that would be helpful.... Making Transportation Accessible. Not sure if your folks could easily access one for us, but if so, that'd be great. Cheers,

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