Thank you very much, Mr. Chairman.
Good afternoon, members of the standing committee, and thank you for this opportunity to appear before you today. I assure you my remarks are very short, so that we'll have time for dialogue.
With me are my colleagues--you have just introduced them--Gerry Kolaitis and André Gravelle, both of whom are quite familiar with the high-speed file and whom I will call on later during the question period.
The future of Canada's national passenger rail service and the role that high-speed rail might play in the future are very important issues. Public interest in these issues is high, reflected in the study now under way by the Governments of Canada, Quebec, and Ontario to update feasibility studies for high-speed rail in the Quebec City-Windsor corridor, and by the recent coverage of a possible link between Calgary and Edmonton.
VIA welcomes this interest. We have made our expertise in this area available for the study.
We also welcome the opportunity to provide any information, expertise and resources that will help this committee as it conducts hearings on high-speed rail.
I would like to use these opening remarks to provide a brief overview of the existing passenger rail network, what VIA is doing today, and how that fits in with any future developments that might include high-speed rail service.
As you know, VIA operates the national passenger service on behalf of the Government of Canada. We deliver an efficient, reliable, environmentally sustainable service. Our responsibility is to do so in a financially responsible manner, ensuring the best possible service to Canadians and the best management of the assets and resources invested in passenger rail.
We serve communities large and small, from the Atlantic to the Pacific and north to Hudson Bay. We operate 500 trains per week, including 429 in the Quebec City-Windsor corridor. Our transcontinental service spans the distance between Toronto and Vancouver and between Montreal and Halifax. Our remote and regional services connect many rural and northern communities. In some places, we offer the only transportation option.
Our current network of services was established in 1990. Since that time, effective management and rigorous cost controls have achieved significant growth in passenger rail while improving service quality and reducing costs to the taxpayer.
For example, we have reduced reliance on government operating funding by 48%, or approximately $200 million per year; increased revenues by 110%; increased passengers by 33%; and increased our cost recovery by 102%.
This is a consistent record of continuous improvement over almost 20 years. It is a record we have maintained even in recent times, which have been challenging for the entire transportation industry.
In 2008, VIA increased revenues for the fifth consecutive year, with a 5% increase over 2007. And we set a new record for ridership, carrying 4.6 million passengers. VIA's performance reflects our success in building an organization, and a growing network of services, around our core strength in passenger transportation: delivering excellent customer service. We continuously sharpen our ability to design and deliver a service that matches and responds to the needs of our customers.
From maintenance and train operations to marketing to developing leading-edge customer relationship tools and leading-edge technologies, all aspects of our business are integrated around our single core focus on customer service.
This expertise is recognized internationally. Studies looking at passenger rail operations around the world have ranked VIA Rail above average on key operational measures. Other countries and railroads seek our advice on all aspects of passenger rail operations. We are currently working in partnership with France's SNCF to market and deliver our expertise worldwide.
Here at home, the Government of Canada gave a major vote of confidence in the future of passenger rail in this country and in VIA's ability to deliver results. In 2007 this current government announced a five-year, $516-million capital investment to strengthen passenger rail services across the country and to ensure that service remains both cost-effective and sustainable for the future.
With the 2009 federal budget, VIA received an additional $407 million for capital projects, bringing the current investment program to a total of $923 million. The investment benefits all parts of our national network--vital infrastructure improvements in the central corridor; upgrading locomotives and passenger cars that will be used throughout the system; and improving stations across the country to meet customer expectations for safety, comfort, and convenience. This investment allows us to continue moving forward, laying the foundations for higher-speed passenger rail service, a more reliable service, and a more sustainable service across Canada.
Everything we have achieved and continue to achieve is vital to the future of conventional passenger rail in Canada. And it is equally vital to the success of any high speed rail service, should the government decide to pursue that course.
On this last point, let me make three comments.
First, if a high-speed service is developed, it can only succeed on the foundation already in place for passenger rail—the understanding of the market, and the ability to serve that market. VIA has built that foundation.
Second, high-speed rail is not an alternative to conventional rail. Experience with high-speed services around the world shows that it succeeds as an integrated component of a larger, coordinated, intermodal network of passenger services, which I know the committee has heard about, including efficient conventional rail services that connect the high-speed backbone to extended communities and regions.
Third, VIA's expertise in passenger transportation, built up over 30 years in the Canadian marketplace, is unique, and would be vital for any high-speed rail service. That is why the Van Horne Institute's 2004 pre-feasibility study on high-speed for Calgary-Edmonton called on VIA's expertise in areas such as ridership and revenue forecasting, operational issues, facility requirements, and projected socio-economic benefits.
Whether high-speed rail is part of Canada's future remains, of course, an open question. We all look forward to the results of the current study on high-speed rail in the Quebec City-Windsor corridor, and the findings of this committee. However the question is answered, VIA remains committed to delivering the best possible passenger rail service to Canadians. We are confident that we can deliver results that meet the expectations of our customers and the Government of Canada as transportation needs evolve in the years ahead.
As this committee looks at options for the future, I will be happy to answer questions and provide any other assistance that you may require.
Thank you very much.