TRAN Appearance: Main Estimates 2023-2024 and Supplementary Estimates (C) 2022-2023

47. Vancouver Island Rail Corridor

ISLAND RAIL CORRIDOR

  • While Canada recognizes the strategic importance of preserving a continuous transportation corridor, it is imperative to consider First Nations participation and perspective in any future use of the Island Rail Corridor.
  • In support of shared ongoing commitments to reconciliation, Canada and the Province of British Columbia have decided that the reversion of the land bisecting the Snaw-Naw-As First Nation reserve is a necessary first step in developing a shared vision for the future of the Corridor.
  • Canada will collaborate with the Province of British Columbia to begin a formal engagement process with affected First Nations on the next steps for the Corridor grounded in mutual benefit for both First Nations and British Columbia.

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SUPPLEMENTARY MESSAGES

  • A Letter of Agreement between Canada, Snaw-Naw-As First Nation, and the Island Corridor Foundation to acknowledge that the conditions of the 2021 decision of the Court of Appeal for British Columbia (BC) have been met is in its final stages.
  • The Government of Canada is willing to support a collaborative partnership-driven approach with First Nations, and the Province of BC, to collectively determine the future of the corridor that meets the needs of the local communities.  

UPDATE

As part of BC Minister Fleming’s statement on the future of the Corridor, the Province of BC is committing $18 million to allow for future corridor planning involving affected First Nations and regional districts. The funding will also allow First Nations to assess identified concerns such as flooding, access, noise, or safety issues where the corridor crosses their lands. Cowichan Tribe and Halalt First Nation are awaiting the result of the Snaw-Naw-As First Nation decision before proceeding further with their legal claims.

SUPPORTING FACTS AND FIGURES

  • Formerly known as the Esquimalt and Nanaimo (E&N) Railway and with a history beginning in 1871 when British Columbia (BC) joined Canada, the Island Rail Corridor (IRC) is approximately 289 km long and runs between Victoria and Courtenay, through or adjacent to 14 First Nations communities.
  • Since 2003, the Island Corridor Foundation (ICF), a non-profit society composed of First Nations and regional governments, has owned the rail line.
  • As the Island Rail Corridor is owned and operated strictly within the boundaries of BC, it is a provincially regulated railway.
  • In 2011, passenger operations ceased on the Corridor due to safety concerns with track and bridge conditions. However, a 16 km segment is operational under contract to the Southern Railway of Vancouver Island to move forestry products to a barge ramp in Nanaimo to connect with rail lines in the BC’s Lower Mainland.
  • A 2022 ICF Business Case estimates that restoration of the corridor to enable a mix-used rail system (commuter, freight, and tourism) would cost $431 million. Earlier analysis by the Province of BC estimated the cost of rehabilitation would be upwards of $1 billion.  

BACKGROUND

  • In 2015 the Snaw-Naw-As First Nation brought legal actions against Canada and Island Corridor Foundation (ICF), seeking the reversion of former Reserve Lands, indicating that the land which the Island Rail Corridor sits on were no longer being used for railway purposes. Subsequently in 2016 two additional court claims of the same nature were filed by the Cowichan Tribe and Halalt First Nation.
  • The Cowichan Tribes and Halalt Nation actions are currently in abeyance while the Snaw-Naw-As First Nation action has gone forward.
  • On the Snaw-Naw-As First Nation case, in September 2021, the Court of Appeal for British Columbia (BC) gave Canada until March 14, 2023 to determine if restoration is in the public interest, and whether it will fund restoration. If funding was not provided, or a decision was not made, Snaw-Naw-As could return to court seeking an order vesting the lands as Reserve lands. 
  • In Fall 2022, the BC Ministry of Transportation and Infrastructure led engagement processes with First Nations and implicated stakeholders on the future of the corridor, as well as a freight analysis.
  • On March 14, 2023 Transport Canada and the Province of BC issued a joint statement on the future of the Vancouver Island Rail Corridor outlining a decision that that reversion of the land bisecting the Snaw-Naw-As First Nation reserve is the first step in the process of developing a shared vision for the future of the corridor with First Nations.