Passenger Rail Discussion Group April 17, 2012 Seattle, Washington Cross Border Passenger Rail: A Canadian Perspective

Purpose To discuss: 2 Transport Canada’s Role - Policy Perspective on Passenger Rail Overview of Government Support for Passenger Rail Quebec City – Windsor High-Speed Rail Study Current State of Cross Border Rail Beyond the Border

3 Transport Canada’s Role Establishes the policy regime for both passenger and freight rail. Encourages efficiency by fostering healthy and competitive freight rail industry in Canada.  Establishes legislation governing economic behaviour including provisions governing the relationships between freight rail services and passenger rail operations. Acts as steward over and administers the annual subsidy to VIA Rail Canada (VIA). Administers regional and remote passenger rail program providing contributions for two regional services and two First Nations-owned remote services.

4 VIA is an independent Crown Corporation whose operation is at arms length from Government of Canada. VIA operates a national passenger rail service on behalf of the Government. VIA’s services span from coast to coast plus regional and remote, serving 4.2 million passengers a year; $258 million in revenue and $262 million in Government operating funding (2010). Since 2007, Government invested $923 million to:  refurbish locomotives and passenger cars;  modernize stations; and  remove bottlenecks through infrastructure upgrades. VIA Rail Canada Inc.

5 High-Speed Rail The Government of Canada jointly completed a study with the governments of Ontario and Quebec on high-speed rail in the Quebec City – Windsor Corridor. It found:  no technological barrier to implementation; but  would require major government investment (200 kph $18.9B / 300 kph $21.3 B). In the current fiscal circumstances, a new project of this scope is not a priority of the federal government. The Government is focusing on improving services in the Quebec City – Windsor Corridor:  of $923 million in capital funding, over $450 million has been for new passing sidings, signalling upgrades, and station improvements in the Corridor.

6 Current State of Cross Border Rail Car 46.5M Air 9.6 M Bus 1.6M Marine 1.2M Pedestrians 0.5M Rail 0.2M Passenger rail border crossings are limited: 3 passenger services cross the border (Amtrak) The majority of border crossings are by cars or air services.

7 Beyond the Border Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness - Announced February 4, The declaration committed to develop a comprehensive approach to preclearance and pre-inspection covering all modes of cross-border trade and travel. Initiatives related to passenger rail include:  negotiate a preclearance agreement for land, marine and rail by December 2012; and  U.S. Customs and Border Protection to conduct full preclearance of rail travellers in Vancouver, B.C. Negotiations will be completed by the end of 2012.

8 Going Forward This discussion group provides a useful forum to:  discuss a variety of policy and operational issues;  facilitate discussion among governments and stakeholders;  share information on recent developments in passenger rail; and  enable dialogue for future planning and possible improvements in cross-borer services. Transport Canada looks forward to engaging in this dialogue.