Will high-frequency trains derail Via’s legacy revenue?
MONTREAL — A high-frequency-rail project between Toronto and Quebec City is generating big questions about the future of Via Rail.
On track to start operations in about a decade, the so-called HFR promises to transport more passengers more quickly, more often.
But the swifter service also threatens to lure customers and cash away from Via Rail’s main service, which derives the vast majority of its revenue from the central Canadian corridor.
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Via CEO Mario Péloquin says the Crown corporation plans to discuss its funding model with the federal government in several years, but that it intends to maintain service in Ontario and Quebec as well as on its long-haul routes.
Last week, Via reported an operating loss that increased eight per cent year-over-year to $381.8 million in 2023, even as ridership continues to grow.
Péloquin is banking on more business passengers and fewer short-haul commuters to drive up revenue as part of a five-year strategy that aims to cut operating costs and replace the organization’s 75-year-old long-haul fleet.
This report by The Canadian Press was first published May 23, 2024.
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The Canadian Press