VANCOUVER, B.C. — Canadian Pacific Railway (CPR) said in a press release its charges for the West Coast Express are fair and market related and reflect the cost of operating passenger commuter service during peak hours on its busiest freight line in North America.
In a statement yesterday, CPR said it would not appeal a B.C. Supreme Court decision that will result in the release of its contract with Translink, the regional transportation authority for the Greater Vancouver Regional District (GVRD), to provide rail commuter passenger service between Mission and downtown Vancouver.
The contract will show that the total charge to Translink for commuter services provided by CPR in 2001 was $8.3 million. It reflects the costs of:
– Providing West Coast Express access to one of North America’s busiest port rail corridors during peak morning and afternoon hours;
– Operating the West Coast Express commuter train on the 69-km route, including the costs of crewing the trains; and
– Meeting Translink’s stringent safety standards and operating procedures required for passenger service as specified in the contract.
The charges translate to $4 per person for a one-way fare from Mission to Vancouver. This calculation reflects the fact that 69 km of track is assigned to the service during peak periods.
CPR’s $8.3 million charge represents less than half of Translink’s total expense associated with the commuter train, based on Translink’s financial statements.
CPR’s component of the total expense is fair and market related. The charge reflects the fact that during 47 per cent of peak daylight hours, commuter operations take priority over freight services to and from Canada’s largest and busiest port. It is totally inaccurate for the Chairman of Translink to claim that CPR makes an annual profit of 1,000 per cent on this service.
CPR has met or exceeded all of the very high service expectations around the agreement with West Coast Express. As a result, commuters in the Lower Mainland have the top performing rail commuter service on the continent. CPR operated West Coast Express with an on-time service performance of 99.2 per cent in 2001. The service is a safe and time saving alternative to highway travel for two million passengers per year.
Key elements of the contract to be released are:
– Translink pays $4,122,000 a year for shared infrastructure.
– Translink is charged $2,603,000 a year for operations.
– CPR supplies all train crews for the West Coast Express at a charge to Translink of $1,553,000 a year.
CPR’s decision to release the contract is in response to this week’s ruling of the British Columbia Supreme Court regarding the Judicial Review Procedure Act and the Decision of the Information and Privacy Commissioner of British Columbia made under the Freedom of Information and Protection of Privacy Act.
Background On Cp Rail And West Coast Express Contract
CPR provides West Coast Express and Lower Mainland commuters with:
– North America’s best-performing commuter train service at 99.2 per cent on time.
– A time saving and cost-effective alternative to highway travel for 2 million passengers per year.
– An annual charge to West Coast Express that translates to $4 per person per trip, less than one-half of a single fare from Mission to downtown Vancouver.
– Congestion-free rail transit through one of the most densely packed urban areas of Canada.
– Safe transit on a heavily used rail corridor in which freight operations are integrated during commuter operations.
TRAVEL FACTS IN GREATER VANCOUVER
– From 1996 to 1999, road traffic volumes grew twice as fast as the population.
– 3.6 more vehicles are added to the road system every hour of every day.
– Growth predictions are for 40,000 more people and 23,000 more vehicles per year.
– There is just one occupant in road vehicles on 45 per cent of trips.
– There are 8,000 riders per day using the West Coast Express; without the service, there would be as many as 800,000 more cars per year on the road during weekday peak periods. Passenger vehicles compete with the 20,000 trucks that use roads in Greater Vancouver daily.
– Cars and light trucks emit 58 per cent of the mobile-source air pollutants in the region, causing increasing concerns about health, environment and global warming.
WEST COAST EXPRESS RAIL LINE
– The commuter route is 69 km, running from Mission to Vancouver.
– The rail line terminals and port facilities along the corridor constitute a backbone of Greater Vancouver rail-port economy.
– About 19 per cent – or 524,000 — of CPR’s total system carloads move through the Vancouver port area.
– West Coast Express occupies peak morning and afternoon workday hours on the busy CPR Mission-to-Vancouver corridor.
– Service agreement reflects the significant claim West Coast Express service makes on available capacity on CPR’s Mission-to-Vancouver corridor during peak hours.
– The Mission-to-Vancouver corridor carries Canada’s bulk export commodities, including grain, potash and fertilizers, as well as the fast-growing import-export container traffic.
– The corridor serves the Port of Vancouver, port terminal operators, CPR’s container terminal at Pitt Meadows, and many local businesses.
WEST COAST EXPRESS AGREEMENTS
– CPR responded to provincial request to accommodate a commuter rail service over a busy rail freight route.
– CPR and B.C. Transit negotiated over a 30-month period reaching an agreement that stands as an example of effective public-private partnerships.
– Three agreements:
1. A one-time Construction Agreement involving incremental changes to CPR track infrastructure over a 69-km distance to accommodate a commuter service that would meet service specifications. Cost of $64 million. (By comparison, British Columbia spent $62 million to build two High-Occupancy Vehicle lanes over a 16-km stretch of the TransCanada Highway from Coquitlam to Burnaby, which taxpayers maintain).
2. Purchase of Service Agreement,
-a 20-year term, effective Nov. 1, 1995, reflecting desire of province and CPR for long-term contract;
-shared infrastructure uses, priority access to the track during peak periods, and services such as rail traffic control, transportation, track maintenance, supervision, etc.
-escalation index negotiable every five years.
3. Crewing Agreement, won by CPR in 1995 tender bid.
WEST COAST EXPRESS SERVICE
– Commenced Nov. 1, 1995, meeting target set by the British Columbia government.
– 8,000 commuters use West Coast Express daily.
– West Coast Express describes itself as “The most on-time commuter rail operation in North America”. On-time performance: 99.2 per cent in 1999, 99.3% in 2000; 99.2% in 2001.
– Outstanding safety record.
– CPR has met or exceeded the design expectations of the service.
– Service operates Monday to Friday with five trains per day in each direction and infrequent special event trains on weekends. Operating windows are 5:27 a.m. to 8:40 a.m., and 3:50 p.m. to 7:33 p.m.
– Eight commuter stations en route, with train layover facilities located at each end terminus.
HISTORY OF THE RAIL LINE
– Originally completed in 1887 to serve the Port of Vancouver.
– By linking the Port of Vancouver to the transcontinental rail system, CPR helped launch Vancouver as an international port city. Many would say its vitality and wealth were a direct outcome of its status as an international port. Today, the rail-port economy remains a critical component of Vancouver’s strength and that of the British Columbia economy.