51. VIA RAIL

VIA RAIL CANaDA INC.

VIA Rail Canada Inc. (VIA) is seeking access to $769,779,151 in planned spending authorities.

KEY MESSAGES:

• $326,383,900 in operational funding is from VIA’s annual reference levels, Budget 2019, and an off-cycle funding decision in 2020.

• $443,395,251 in capital funding is from Budgets 2017 and 2018, and an off-cycle funding decision in 2020.

• These funds are for VIA’s continued operation of Canada’s national passenger rail service and for key capital projects to modernize its service offering and make safety improvements.

• The operating funding is for VIA’s general provision of national rail travel. $1.5M is earmarked for remediation work with respect to the Government’s Federal Contaminated Sites Action Plan.

• Capital funding is for fleet renewal in the Quebec City-Windsor Corridor which is a major equipment project ($268.4M), for a large-scale track infrastructure project to modify grade crossings, and to keep VIA’s asset base in a state of good repair.

• Funds will support VIA in maintaining a safe, efficient, and reliable passenger rail service for travelers across Canada.

• A new Corridor fleet and track infrastructure enhancements will improve passengers’ experience and support the continued health and safety of VIA’s customers and employees.

IF PRESSED

• While VIA will continue to feel the impacts of the pandemic in 2021, the Crown corporation is well managed and in close communication with Transport Canada. VIA’s demand responsive return-to-service strategy will be adjusted accordingly as the pandemic evolves.

BACKGROUND

VIA’S OPERATIONAL FUNDING

Reference Levels

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

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.

Federal Contaminated Sites Action Plan (FCSAP)

VIA Rail received $4.1M through Budget 2019 as part of the Government’s FCSAP program.  The intent of this program is to address the Government’s priority to protect the health and environment of Canadians by minimizing threats from pollution through assessment and remediation activities on contaminated sites.

VIA’S KEY CAPITAL PROJECTS

Corridor Fleet Renewal

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 and winter testing will take place in late 2021.

Grade Crossings Enhancements

On November 2014, the Railway Safety Act was amended with new Grade Crossing Regulations (P.C. 2014-1296) towards a higher level of rail safety by reducing the frequency and severity of accidents at Canada’s federally-regulated grade crossings.  VIA Rail received $100M through Budget 2017 to work with CN to meet the key requirements of these regulations, which is to maintain sightlines at grade crossing and prohibit their obstruction.