New threat to the Newcastle Sub?

A railway track disappears to the horizon amidst a forest
CN’s Newcastle Sub just north of Rogersville NB. Parts of this line could soon be in jeopardy once again. (Ted Bartlett Photo)

There’s a chance that the fight to save the Newcastle Subdivision could be back on the table sooner than expected. In 2014, the Province of New Brunswick signed an agreement with CN to provide funding to maintain the north (from Irvco, N.B. to Nepisquit Junction, N.B.) and south (between Catamount, N.B. and Nelson Junction) portions of the Newcastle Sub.. This left only the middle section (roughly from Miramichi to Bathurst) uncovered, an issue that would later be solved by an agreement with the federal government.

The original agreement signed between the provincial government and CN indicated that it would ensure continued freight operations on the line for the next 15 years. Unfortunately, one detail was not specified in the press release from CN or other public information at the time: a clause in the agreement would allow for CN to re-evaluate the situation after 5 years, and if traffic on the line had dropped below 2012 levels for two consecutive years, they would be free to terminate the agreement and re-apply to abandon the line.

That clause will be applicable in 2019, meaning that in as little as two years time we could be facing another fight to preserve the route of the Ocean, which may also soon be the route of additional VIA trains if the proposed daily regional services between Campbellton and Moncton get off the ground. Of course it’s not a sure thing that CN will choose to invoke this clause, nor is it certain whether traffic levels have indeed dropped to the point that would make that possible – but the situation does give cause for concern.

TAA will continue to monitor this situation closely, and will plan to work with our partners throughout the region to advocate for solutions to preserve the line and passenger service, should CN seek once again to walk away from the route.

Here are CBC and Radio-Canada reports on the current situation:

 

CBC (English): http://www.cbc.ca/news/canada/new-brunswick/freight-rail-project-cn-1.3992590

Radio-Canada (En français):  http://ici.radio-canada.ca/nouvelle/1017997/troncon-miramichi-bathurst-survie-menacee

 

VIA reports positive holiday ridership

The rear end of two stainless-steel trains, with dome-observation cars, at a station platform
A pair of Ocean train sets in Halifax just before Christmas. Extra departures for the holidays meant this sight was once again common for a couple weeks. (Photo – Tim Hayman)

 

VIA Rail is reporting positive results from the 2016-2017 Christmas/New Year’s holiday season. VIA issued a press release on Jan. 12 claiming “record” results, though it’s admittedly not at all clear what their frame of reference is to declare these records (best numbers ever? In the past decade? In the past 5 years?)

Putting aside the hyperbole, the message is still a positive one. VIA has been promoting their trains as an ideal way to travel at that time of year (in particular), and more people seem to be getting that message.

Overall, VIA reported a 16% system wide increase in passenger totals when compared to last year, and a 20% increase in revenues. Increases in the Corridor were consistent with these numbers (16.8% increase in passengers), while both the Canadian (13.8%) and Ocean (2.7%) saw positive changes as well, and small positive trends (1.1%) were found on other regional services.

Given VIA’s decision to run extra trains on the Ocean over the holidays (3 extra trips in each direction over a 2 week Continue reading “VIA reports positive holiday ridership”

Fewer trains, higher cost – VIA’s Tri-weekly Ocean continues to cost more than 6 day/week service

Two yellow VIA Rail trains sit on tracks next to each other at the Halifax station on a sunny day.
Two Ocean train sets sit in Halifax on a sunny day about a year before the 2012 service cut. This is now a rare sight, only occurring when VIA runs extra trains over the holiday season. (Tim Hayman photo)

When VIA Rail cut service on the Montreal-Halifax Ocean in half back near the end of 2012, they claimed that the move was made to reduce the cost of running the service. The Ocean, like all of VIA’s services (and indeed, nearly all public transportation systems worldwide), operates at a net “loss”, with subsidies required to offset the operating costs of the service. Trains like the Ocean require a somewhat higher subsidy per passenger than VIA’s Corridor services, and VIA management was supposedly looking for ways to reduce spending across the system. So the Ocean was reduced from 6 day per week operation to only 3.

Passenger rail advocates, including Transport Action Atlantic, raised their voices at the time to warn of the implications of slashing the service. Examples from Canada and elsewhere in the world continue to show that frequency reductions are not an effective means of reducing costs – while they may result in some immediate cost savings, any cost reductions are offset almost without fail by greater reductions in ridership as a result of the less convenient service.

The problem with reduced frequency is that costs don’t come down enough, while revenues plummet. Reducing a service like the Ocean to a lower frequency does reduce some costs, but not all of them, as many fixed costs remain (e.g. maintenance of stations and other infrastructure, equipment costs, some personnel costs, marketing). In other words, a 50% reduction in train frequency does not result in a 50% reduction in costs. VIA’s numbers since 2012 back this up: in 2011, the Ocean cost $48,832,000 to operate 6 days per week. In 2013, that cost was reduced to $43,930,000 for 3 trains per week – a reduction of barely 10%.

Continue reading “Fewer trains, higher cost – VIA’s Tri-weekly Ocean continues to cost more than 6 day/week service”