Our strategic plan focuses on reducing the total government operating subsidy to $170 million by 1999, compared to $245 million in 1996, and less than half the $389 million subsidy in 1992. Looking beyond 1999, VIA has prepared a long-term investment and operational plan which could allow the corporation to achieve greater self-sufficiency. Details of this plan are currently under review by the government.
MORE EFFICIENT EQUIPMENT AND MAINTENANCE
Throughout 1997, VIA continued to achieve significant cost reductions without compromising service. We completed the closure of maintenance centres in Halifax and Toronto, consolidating maintenance activities in Montreal and rationalizing workloads at the Winnipeg and Vancouver centres. In addition, we continued to achieve lower operating and maintenance costs due to the modernization of our fleet and the introduction of refurbished equipment on train services in northern Manitoba, northern Quebec and southwestern Ontario. Operating costs were further reduced by replacing high-horsepower locomotives on these routes with smaller, more efficient units converted to head-end power.
MORE EFFICIENT USE OF EQUIPMENT
In the fall of 1997, we modified the days of operation on our western transcontinental service, reducing equipment requirements to three trainsets instead of four. As a result, we will achieve a $600,000 annual savings in maintenance. Additional cars will remain available to increase capacity in response to market demand during peak travel periods. The results of improved equipment recycling, the use of refurbished equipment and reduced need for guard equipment continues to lower costs throughout the network. By the end of 1997, VIA had reduced the active fleet to 392 cars and locomotives – compared to 446 units in 1994.
EFFECTIVE ASSET MANAGEMENT
Early in 1997, VIA concluded subleases with tenants for vacant office space in our Montreal headquarters. As a result, almost half of the original leased space now generates revenue for VIA. In addition, we redeveloped Winnipeg Union Station to accommodate provincial and federal tenants, generating annual revenues of $1.2 million over the next 15 years.
We are currently undertaking a comprehensive assessment and rationalization of VIA’s station facilities, to streamline operating costs while improving amenities for our customers. This assessment will help support plans to operate, upgrade and manage quality station facilities for the future.
IMPROVED LABOUR ARRANGEMENTS
In October, the Canada Labour Relations Board approved VIA’s application under section 18 of the Labour Code to have operating crews represented by a single bargaining agent. VIA plans to merge the operating duties of the conductor and assistant conductor positions with the engineer position, and assign all customer-contact responsibilities to on-train services staff. Negotiations with the Brotherhood of Locomotive Engineers, which operating employees selected as their bargaining agent, and the Canadian Auto Workers on the impact of this change are on-going. VIA plans to introduce the merger in April 1998, eliminating about 227 operating positions while adding approximately 70 new customer service positions, with estimated annual savings of $15 million.
A new deal for Gaspé
In June, VIA signed an agreement with short-line operators to obtain running rights over tracks formerly owned by CN between Matapédia and Gaspé. The agreement ensures the continued operation of VIA’s Chaleur on these lines, a service that continues to attract increased ridership and revenues – especially from U.S.-based tour operators.
VIA and Hudson’s Bay
In August, the CN rail lines from The Pas to Churchill were taken over by the Hudson’s Bay Railway. VIA negotiated an agreement with the new operators to continue running its passenger service over their tracks.
Self-monitoring diagnostics
VIA has begun assessing self-diagnostics and improved control systems for use on GPA30 locomotives and LRC cars. These improvements would not only record operating conditions and reduce the equipment down-time to troubleshoot failures, but would also improve the control and management of critical operating features of the fleet for our on-board colleagues and customers.
Our strategic plan focuses on reducing the total government operating subsidy to $170 million by 1999, compared to $245 million in 1996, and less than half the $389 million subsidy in 1992. Looking beyond 1999, VIA has prepared a long-term investment and operational plan which could allow the corporation to achieve greater self-sufficiency. Details of this plan are currently under review by the government.
