Voice of Business: Passenger Rail Service One Step Closer

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Passenger rail service to Peterborough and beyond has cleared another stage toward construction.

Transport Canada announced on July 20 that the Request for Qualifications it issued back in April had concluded and three proponents were selected as eligible to bid on the upcoming Request for Proposals.

The project will link Toronto, Peterborough, Ottawa, Montréal, Trois-Rivières, and Québec City with regular passenger rail service on dedicated passenger lines. It will require hundreds of kilometres of new track, refurbishment of old rail beds, new or improved crossings at every road it crosses, agreements with property owners, new stations, and a lot of planning. Creating a proposal for a project of this scale will require significant resources, which is why each of the three proponents are conglomerates made up of large construction and transportation industry companies.

The following groups have been invited to move to the Request for Proposals (RFP) stage:

  • Cadence (CDPQ Infra, SNC-Lavalin, Systra Canada, Keolis Canada)

  • Intercity Rail Developers (Intercity Development Partners, EllisDon Capital, Kilmer Transportation, First Rail Holdings, Jacobs, Hatch, CIMA+, First Group, RATP Dev Canada, Renfe Operadora)

  • QConnexiON Rail Partners (Fengate, John Laing, Bechtel, WSP Canada, Deutsche Bahn)

Next up will be one of the most exciting phases in the project: Request for Proposals. Expected to launch this September, proponents will be expected to draw up their plan to meet the goals of VIA HFR and Transport Canada with a technically and commercially feasible solution that includes both a business and management plan. The proposals should answer a lot of the big questions about this project, including cost, where the lines will run, whether there will be high-speed sections, construction timelines, whether any additional towns/cities will get a stop, where the line will connect to Toronto, and whether the lines will twin alongside freight and include much-needed freight line refurbishment.

Additionally, the project will be required to meet reconciliation goals, as per Transport Canada:

“Advancing reconciliation with Indigenous Peoples is a priority for the Government of Canada, and this is why early engagement with Indigenous communities is already underway. As part of the RFQ process, respondents were required to demonstrate their capacity to work with the government to create mutually beneficial, socio-economic development opportunities for Indigenous Peoples. Indigenous reconciliation is critical to the success of the HFR project and will be integrated in all phases of the project.”

The government expects to evaluate the proposal submissions in the summer of 2024. Following that, a case will be made to our federal government to fund it. Considering the years and hundreds of millions of dollars that will have already been spent at that point, it should be a choice between different business models and levels of service. Ideally, the business plan will show a high return on investment. After all, VIA’s big push for this project and its first dedicated passenger tracks is that they will be able to provide a higher level of service, which should equate to a much higher return on investment and push the crown corporation toward profitability.

As well, this project promises to move us forward in fighting climate change. The proposals should lay out a case for the amount of emissions they will help us cut while improving intercity connectivity. The rail network should be electric (or at least almost all electric), providing people with sustainable and environmentally-friendly transportation.

We still have a long way to go before passenger trains will stop in Peterborough, but we have come a long way in the last few years. If you want to read up a bit more on the history of how we got here, check out our Voice of Business column from March 1.

Content provided by the Peterborough and the Kawarthas Chamber of Commerce.

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