More profitable, better for the environment: The Trudeau government should put aside its high-frequency train (TGF) project between Quebec and Toronto and focus on high-speed, says French giant Alstom.
“As long as you’re putting that kind of money into the most profitable investment that has the greatest impact, both economically and socially,” Michael Keroullé, Alstom’s president for the Americas, confides in the Journal.
Mr Keroullé argues that a high-speed train costs 20 to 30% more than a slower version. It’s possibly more. But in the end, the investment is more profitable because more people are using it, he argues.
“We see it in all countries that have made this choice: with the speed we change the means of transport [de l’auto et de l’avion vers le train] much more than originally planned,” confirms the manager.
Alstom, whose largest shareholder is the Caisse de depot with 17.5%, is exiting because it felt last fall Ottawa was “opening up” to funding a 300-speed train. km/h.
In March 2022, Transport Canada’s “Request for expressions of interest” for the project named a maximum speed of 200 km/h, which is little more than the maximum speed of current VIA Rail trains.
About fifty companies followed the government’s call, including several who expressed their desire to go beyond 200 km/h.
Result: In October, the government issued an update promising to give companies “flexibility” to offer “higher speeds on certain segments”.
Aim for less than three hours
According to Alstom, the aim should be to reduce the travel time between Toronto and Montreal from five hours to less than three hours.
“This shows the benefits of the railway,” says Michael Keroullé. This has happened on all lines in all countries where we have had the same debate. »
The office of German Transport Minister Omar Alghabra, reached by Le Journal, declined to comment on a possible conversion of the TGF project into a TGV.
In spring 2021, Le Journal reported tensions within the federal government between supporters of the two scenarios. According to our sources, Michael Sabia, Deputy Treasury Secretary, and Catherine McKenna, then Secretary of Infrastructure, lobbied for a Montreal-Toronto TGV that would have suspended Quebec.
In December, Mr. Alghabra announced the formation of a subsidiary of VIA Rail to manage the TGF project. A former Hydro-Québec executive, Marie-José Nadeau, has been appointed vice chairman of the company’s board of directors.
In May, Cynthia Garneau caused a surprise when she resigned from her position as CEO of VIA after a three-year tenure.
Alstom in Canada
- Headquarters America: Saint-Bruno-de-Montarville
- Plants: Thunder Bay, La Pocatière,
- Brampton, Kingston, St Bruno
- Employees: 4200
Union VIA fears privatization
The official documents are clear: the federal government plans to transfer not only the construction of the high-frequency train (TGF) to the private sector, but also the operation after completion, which worries the union members of VIA Rail.
In a call for expressions of interest published last year, Ottawa specified that a “private partner” would be responsible for both building and operating the future rail network for a period of “30 to 50 years.”
Even less service?
“We are concerned because one of VIA Rail’s few truly profitable routes is the Quebec City-Windsor corridor. So, of course, if we privatize this section, it means that profits will go with the line. However, this allows VIA to maintain trains in other regions,” said Daniel Cloutier, Quebec director of Unifor, which represents more than 2,000 VIA employees.
“Would that mean fewer trains elsewhere, or more public funding to offset profits that would go to private companies? continues Mr Cloutier.
“Once the train is built and operational, there is no reason why VIA Rail cannot operate it as it is doing now,” he said.
It should be noted that the Caisse de dépôt has chosen this form of public-private partnership to operate the Metropolitan Express Network (REM) in the Montreal region.
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