Marine Atlantic reduces fuel surcharge – for now

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It will cost slightly less to travel to and from Newfoundland by Marine Atlantic this summer – the result of the unexpected drop in the price of oil.  The company announced on January 14 that it would pass the savings on to its customers by reducing its fuel surcharge by six percent– effective immediately.  However, the reduction will be somewhat offset by a 2.6% increase in base vehicle and passenger rates as of April 1, reflecting the Crown corporation’s increased costs of doing business.  Schedules up to March 3, 2015, were also announced, and bookings are now being accepted online and by telephone.

The fuel story is somewhat of a good news-bad news scenario.  While the company and its customers are benefitting in the short term from the current lower prices, new environmental regulations will require a transition from cheaper blended fuel to 100% cleaner-burning marine diesel over the next three years.  This is anticipated to result in higher fuel surcharges over time.

Don Barnes, vice-president of customer experience, says Marine Atlantic’s 2015-16 schedules recognize the popularity of the late evening departures from both North Sydney and Port aux Basques, as well as the overnight schedule on the seasonal Argentia run.  The 2345 departures are scheduled every night of the year, with late morning departures also offered throughout the peak and shoulder seasons.  Mr. Barnes notes that should the need arise at other times the second departure can be added on short notice to ensure traffic demands are met.

The Argentia service has continued to grow in popularity each year since the tri-weekly overnight schedule was introduced in 2011, and the charter of MV Atlantic Vision has now been extended until November 2017.  Mr. Barnes said the 2014 season saw an average increase of 5.5% in ridership on each crossing.  The Port aux Basques run, meanwhile, experienced a slight decline. He was optimistic about prospects for 2015, noting that the lower gasoline prices combined with the devalued Canadian dollar will make driving vacations in Canada a more attractive proposition this year.  This should auger well for “rubber tire” traffic to Newfoundland.

Discontinuance approved for Cape Breton rail line …but is it really the end?

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Freight train led by two orange and yellow locomotives in centre of image, surrounded by fall foliage under an overcast sky.
Amid fall foliage near Shunacadie NS on 5 November 2014, a 16-car CB&CNS train rolls toward Sydney with two units resplendent in Genesee and Wyoming’s colourful orange livery on the point. Pretty as this picture may be, the reality for this endangered line is grim indeed. Yet there may be a glimmer of hope on the horizon.

A ruling has been issued by Nova Scotia’s Utilities and Review Board (UARB) on the application by the Cape Breton and Central Nova Scotia Railway (CBCNS) to discontinue service between St. Peter’s Junction near Point Tupper and Sydney.  But there’s a great deal of uncertainty as to what it means.  Meanwhile, a group of users, several business organizations, the provincial government, and the Cape Breton Regional Municipality are not prepared to pronounce the rail line dead at this point.

The railway’s owners – US-based Genesee and Wyoming Inc. – have made it clear that they are finished.  Company representatives bluntly told the UARB hearing on December 8 and 9 that no trains would operate after December 31, 1014, under any circumstances, and the line has now effectively been shut down. But the board’s ruling on January 15 set a different date for the end of service – October 1, 2015.  Until then, the UARB says, “CBCNS must deliver goods by rail if that service is required by a shipper and the shipper is prepared to pay a reasonable rate for that service…”

Under the legislation governing provincial shortlines, the UARB cannot order a company to continue an uneconomic operation, but does have the authority to set the timeframe for discontinuance of service.  Furthermore, under amendments to the Railways Act that received speedy passage with all-party support in the Legislative Assembly last fall, the actual physical abandonment of a line now falls under the jurisdiction of the transportation minister – not the UARB.   In order to remove the tracks, CBCNS will have to negotiate with the Honourable Geoff MacLellan – a Cape Bretoner who is on record as supporting the retention of rail service.  And, the minister would appear to have a lot of public support on the island. Continue reading “Discontinuance approved for Cape Breton rail line …but is it really the end?” →

The UARB hearing – an eyewitness account

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– by Tim Hayman

(Editor’s Note: Don MacLeod, Ashley Morton and Tim Hayman represented TAA at the Sydney UARB hearing in December.  Ashley Morton delivered the opening statement, but was unable to be present for closing arguments due to other commitments.)

The hearing got off to an interesting start, with the legal counsel for the CBNS (Michel Huart) raising concerns about potential bias on the part of the Chairman of the Board (Peter Gurnham), as Mr. Gurnham had been legal counsel for NSPI during the previous abandonment hearing in 2002. After a short period of deliberation, the board decided that there is no bias issue, as Mr. Gurnham had taken an appropriate period of abstention (three years) following his original appointment to the board.

CBRM was first to present, and made their case that the hearing should be adjourned until CN is at the table. They argued that the proposed discontinuance plan is not adequate if CN is not involved, due to “the letter” (I’ll just call it that, as we all know what that means). The Chair questioned whether CN’s obligation would only kick in if the CBNS discontinuance actually goes through, rather than at an earlier stage. CBNS responded simply: “we’re not CN, and we’re not the province”.

The board determines that the meeting will continue, as the Chair notes that UARB has no jurisdiction over either the province or CN, but suggests that it will be acceptable for participants to refer to that issue throughout their arguments.

CBNS began the formal process, by calling two witnesses for examination by Mr. Huart – these are Josée Danis, AVP of Corporate and Industrial Development for Genesee and Wyoming Canada, and Gareth Martin, in charge of sales and marketing for the CBNS. It is noted that Ms. Danis was assigned specifically to oversee the discontinuance and abandonment of the Sydney Sub. She has past experience (10 years) at CN, and seems very well versed in this kind of setting.

Continue reading “The UARB hearing – an eyewitness account” →