Southern Railway buoyed by tentative deal for Island service
AMY SMART / TIMES COLONIST
APRIL 3, 2014
Southern Railway is optimistic about a tentative deal with Via Rail to restore passenger service between Courtenay and Victoria.
Don McGregor, project manager for railways infrastructure improvement at Southern, said that while the deal hasn’t been finalized, it marks a significant step in the project negotiations.
“We feel very good about it, we think it’s fair on both sides,” McGregor said.
“We took the better part of two years to arrive at this point, so I believe it’s significant.”
The deal would see Southern run the service on the E&N railway, which is owned by the non-profit Island Corridor Foundation, while Via Rail would provide the train, insurance and a fixed subsidy.
McGregor emphasized the word “tentative.” The boards of all three organizations must approve the agreement and finalize funding before any work begins.
He couldn’t share any details of the deal, saying they are “confidential at this point.”
The Southern board is expected to approve the deal in a matter of “weeks, maybe a couple of months,” he said, but could not speak to the boards of Via Rail or the Island Corridor Foundation.
He said Southern and Via Rail have been working “very well” together.
The service would operate out of Nanaimo, with an early-morning train to Victoria and a return train at the end of the day, according to the Island Corridor Foundation.
Funding must be finalized before repair work begins on the tracks and bridges. Repairs are expected to take at least nine months.
Passenger rail service was suspended in 2011 amid concerns about track safety. The Island Corridor Foundation has raised nearly $21 million for improvements, but the money is contingent upon securing a passenger service agreement with Via Rail.
A Via Rail spokesman said Wednesday that nothing has been signed and discussions are ongoing.
“We feel very good about it, we think it’s fair on both sides,” McGregor said.
“We took the better part of two years to arrive at this point, so I believe it’s significant.”
The deal would see Southern run the service on the E&N railway, which is owned by the non-profit Island Corridor Foundation, while Via Rail would provide the train, insurance and a fixed subsidy.
McGregor emphasized the word “tentative.” The boards of all three organizations must approve the agreement and finalize funding before any work begins.
He couldn’t share any details of the deal, saying they are “confidential at this point.”
The Southern board is expected to approve the deal in a matter of “weeks, maybe a couple of months,” he said, but could not speak to the boards of Via Rail or the Island Corridor Foundation.
He said Southern and Via Rail have been working “very well” together.
The service would operate out of Nanaimo, with an early-morning train to Victoria and a return train at the end of the day, according to the Island Corridor Foundation.
Funding must be finalized before repair work begins on the tracks and bridges. Repairs are expected to take at least nine months.
Passenger rail service was suspended in 2011 amid concerns about track safety. The Island Corridor Foundation has raised nearly $21 million for improvements, but the money is contingent upon securing a passenger service agreement with Via Rail.
A Via Rail spokesman said Wednesday that nothing has been signed and discussions are ongoing.