Jumping on the train might seem like a nice alternative to a traffic jam… until you realize your train is also sitting in a traffic jam.
Many Canadians rely on the national passenger rail service: 4.1 million people hopped aboard a Via Rail train last year — a 25% jump from 2022 — and CEO Mario Péloquin says he expects to see a record of over five million passengers take a Via Rail train in 2024.
But the company is burning through cash quicker than a Gen Zer during a Shein sale. Last year, Via’s operating loss increased by 8% to $381.8 million, even after a 29% boost in revenue to $430.7 million and a 15% increase in government funding to $773 million.
- According to the Globe and Mail, a good chunk of the money was spent expanding its service by increasing the frequency of trips and introducing a new fleet of trains.
- Key to this expansion has been a planned high-frequency train between Montréal and Toronto, a trip that currently takes ~5.5 hours but could be cut down to three.
Yes, but: Via’s reputation for delays — which routinely disrupt business travel and family holidays — stands in the way of its success as a beloved rail service. Péloquin says part of the challenge lies in operating on lines that are primarily owned by private-sector railways.
- Privately owned CN Rail owns ~83% of the tracks Via operates on, while Via owns ~3%. Since CN prioritizes its cargo trains, Via passengers deal with constant delays.
Bottom line: About 95% of trains on the Montréal-Ottawa line arrive on time, where the company controls the majority of the tracks. That number is below 60% for the rest of the network. As a possible solution, Ottawa is looking into giving passenger trains more priority.—LA