VIA RAIL CANADA INC.
Requesting $980,546,235 for the 2022-2023 Main Estimates
VIA Rail Canada Inc. (VIA) is seeking access to $980,546,235 in planned spending authorities.
KEY MESSAGES:
- The funding is from the corporation’s base appropriation ($146.8M), additional funding approved in Budget 2018 ($425.7M), 2020 ($340.3M), and Budget 2021 ($67.7M) decisions.
- Operating funding is for VIA’s general provision of national passenger rail travel, and to implement and manage infrastructure investments that will improve fluidity.
- Capital funding includes regular funds to keep VIA’s asset base in a state of good repair, as well as investments in modernization and improved connectivity, such as fleet renewal in the Quebec City-Windsor Corridor.
- A new Corridor fleet and infrastructure investments will improve a safe passenger experience while enabling VIA to take an important step towards High Frequency Rail.
IF PRESSED
- The Government of Canada is committed to modernizing intercity passenger rail services in a way that will best meet the transportation needs of travelers, while also creating jobs and economic growth.
- While VIA will continue to feel the impacts of the pandemic in 2022, the Crown corporation is well managed. VIA’s demand responsive return-to-service strategy will be adjusted accordingly as the pandemic continues to evolve.
BACKGROUND
VIA’S OPERATIONAL FUNDING
Reference Levels ($146.8M)
VIA Rail’s annual reference level has been set at $146.8M since 2015. By design, appropriated Crown corporations are allocated annual reference-level funding that is insufficient to maintain their full year of operations. This ensures regular Cabinet or Budget consultation on top-up operating funding as well as capital funding.
Extended Funding ($340.3M)
VIA received five years of extended (top-up) funding through a 2020 off-cycle decision to address the business-as-usual requirements of the Crown corporation, keeping operations running in a steady state and capital assets in a state of good repair. VIA previously received three years of extended funding in Budget 2014 as well as Budget 2017.
VIA’S KEY CAPITAL PROJECTS
Corridor Fleet Renewal ($425.7M)
VIA awarded a $989M contract to Siemens Canada Inc. in December 2018 to provide 32 trainsets to replace the existing Corridor fleet. These new trainsets will enter into service between 2022 and 2024. This project is currently progressing in line with the established schedule, with winter testing having been carried out.
Targeted Investments and High Frequency Rail (HFR) De-risking ($67.7M)
Budget 2021 provided VIA Rail with capital and operating funding for infrastructure projects that will improve fluidity and connectivity while enabling VIA Rail to take an important step towards High Frequency Rail (HFR). It also provided VIA Rail with operating funding to undertake activities to further de-risk HFR.