June 18, 2009
VIA Rail ready for high-speed trains: CEO

The head of Canada’s national passenger rail service says that the Crown corporation is ready to make a fast start on high speed
rail service and is prepared to be a key player in any new project introduced by the federal government.

VIA Rail Canada President and CEO Paul Côté said that ridership and operations have improved consistently over the past two
decades, creating a base for a more advanced system.  In the meantime, he said, new capital investments of almost $1 billion
announced in 2007 are opening the door to faster service.

“The current investment of $900 million that the government has allowed us to do will help to continue to build that foundation,
because that is the key, when the high speed systems comes into play, if the government goes ahead,” said Côté who appeared
last week at parliamentary hearings about high speed rail.  “The ridership of the franchise needs to be built to achieve that.”

Côté told the House of Commons Transport committee that the corporation has increased its ridership by 33 per cent and its
revenues by 110 per cent since 1990 because of improvements to service and infrastructure.

“I can assure you that the people at Via Rail have the competence, the expertise and the motivation (to become a partner in a high
speed rail project),” said Côté.  “If we are allowed to do this and if the context permits, Via Rail will be able to show its expertise,
quality and experience developed over all the years.”

Côté also said he welcomes U.S. President Barack Obama’s announcement of billions in new spending under a plan that is exploring
nearly a dozen high-speed corridors in the U.S., including regions that would reach Montreal, Vancouver, Windsor and possibly
Buffalo, near Toronto.  He acknowledged, however, that Obama’s approach is different approach from that of federal and provincial
governments in Canada.

The provincial governments in Quebec and Ontario, along with the federal government, are updating a 1995 study on high speed
rail that estimated a line between Quebec City and Windsor could be built over 10 years at a cost of about $18 billion.  A private
consortium of firms is leading the study in consultation with representatives from the three governments and is expected to make
recommendations in 2010.

“I know that there is some impatience that some people would like it to be faster,” Côté said.  “But that’s the way the governments
decided to go. So we will offer our assistance to make it happen and at the end we will have a very well documented storyline for
high speed rail.”

VIA Rail had developed a $3 to $4 billion plan several years ago to introduce an improved service with trains going at up to 200
km/h in the Quebec City-Windsor corridor.  The plan could have been implemented following an announcement of new infrastructure
spending in the fall of 2003 by former prime minister Jean Chretien’s Liberal government.  But former prime minister Paul Martin
cancelled the spending, closing the door on a project which already had support from other partners such as CN and CP Rail.

Under its current plan, VIA Rail will continue to use trains that can go up to 160 km/h on the Quebec City-Windsor corridor but which
often face delays since they share tracks with freight trains that have priority.

An Alberta-based research institute said that a high-speed train between Calgary and Edmonton also could have a profound impact
in that region.

“I think the important thing about the high-speed rail, and the interesting thing about it, is that it would fundamentally change that
corridor,” said Teresa Watts, an associate from the Van Horne Institute, at the parliamentary hearings last week.  “It would change
it from a corridor with two centres that at one time were competing into a complement of one million people, effectively shrinking
distance because of that link, to a unit of three million people.  I think that it has to be linked to a broader vision of economic
development.  It’s not simply a transportation solution, but it is a provincial shaper of that corridor, which has been such a
juggernaut of growth over the last decade.”

The Alberta government commissioned a feasibility study on the project that was due nearly two years ago, but it has not made it
public.

Source:
Canwest News Service - By Mike De Souza