Good afternoon. My name is Toby Lennox. I'm the vice-president of corporate affairs and communications for the Greater Toronto Airports Authority. Thank you for the opportunity to appear before you today to provide the GTAA's perspective regarding high-speed rail in Canada.
I should also point out that I've been asked by my colleagues at Aéroports de Montréal to indicate that they espouse the views that I'm going to be offering today.
The GTAA is the private not-for-profit corporation that operates Toronto Pearson International Airport. As Canada's busiest airport, Toronto Pearson is an essential component of the transportation infrastructure that connects our nation with the rest of the world. We handle approximately one-third of Canada's passenger traffic and 50% of all air cargo. This activity fuels Toronto Pearson's role as a critical economic engine for southern Ontario and Canada, generating thousands of jobs and billions in annual economic output, wages, and taxes.
Mr. Chairman, just as your committee is examining options for addressing the transportation needs of Canada, we too are considering the future of Canada's transportation system and our role in it. There are many uncertainties: the rising cost and scarcity of oil, the impact of environmental regulations, and other changes we have yet to anticipate. We must, however, continue to work with you and all levels of government to anticipate these changes, examine alternatives and solutions, and ultimately strengthen our transportation infrastructure.
Airports are not islands unto themselves. For Canada's transportation system to operate efficiently, effectively, and sustainably, intermodality is necessary. Just as the air mode cannot operate in isolation from other modes, the same applies for high-speed rail. This is particularly the case in the Quebec-Windsor corridor. In exploring how to best implement high-speed rail, it is in all of our interests to consider it in the context of the whole transportation system. Airports are not destinations. Rather, they are facilities that accommodate transitions for both people and goods--in other words, gateways.
Having recently completed our airport development program, Toronto Pearson is poised for growth. Growth would not be possible without reliable, innovative, and competitive aviation infrastructure. If planned properly, high-speed rail provides an opportunity to strengthen the role of major airports as regional transportation hubs. The greater Toronto area is currently experiencing a renewed investment by all levels of government in regional transportation. A regional transportation plan created by the region's transportation agency, Metrolinx, outlines a coordinated multi-modal transportation system, with focus on rapid transit expansion.
In this plan, Toronto Pearson was identified as a special mobility hub. It is considered a key connection point for several of the recommended top-priority rapid transit links, including the proposed air-rail link to downtown Toronto. Due to its relationship with urban growth centres, Pearson provides an opportunity for efficient intermodal transfers of high volumes of local, regional, and international travellers. It is our view that the integration of high-speed rail would augment the efficiencies of this planned regional transportation system. Further, the GTAA is very pleased to have been asked by Transport Canada to participate as one of the private sector members on the Ontario-Quebec continental gateway and trade corridor.
Through this forum, we hope to advance the discussion about transportation in this corridor in an integrated fashion. It would be an opportunity lost if we did not maximize easy and efficient connections between the rail, highway, and air modes. To achieve the full benefit of high-speed rail, we need to look to the experience of Europe and other parts of the world. Several countries have built or are building extensive high-speed rail networks that often link directly into major airports, such as in Frankfurt and Paris. We will need, however, to come up with a made-in-Canada solution.
High-speed rail will have an impact on air passenger service. In the Windsor-Quebec corridor, most of these impacts will be experienced on what is called the "eastern triangle", the services between Toronto, Montreal, and Ottawa. This segment for the GTAA accounts for approximately 3.5 million passengers annually, or more than 9,500 passengers per day. With competition from high-speed rail service, we would expect the demand for these short-haul domestic flights to soften. To what extent that would be would depend on a number of factors, including the cost of the new rail service, markets served, location of stops, etc.
At the same time, we need to look at the potential options, consequences, and possibilities. Will reduced demand for short-haul operations free up capacity for more long-haul flights to international, transborder, and long-haul domestic destinations? Will this ease future capacity pressures and thus delay the need to expand airport facilities further?
The impact of high-speed rail on air travel in this corridor is not yet entirely clear. However, to ensure that the air transportation system can withstand this transitional culture shock, it is vital that any future planning related to high-speed rail is integrated into the existing airport system.
As previous studies of high-speed rail have shown, this mode of transportation will require a significant financial commitment. That is not to say that the investment should not be made; however, the financial viability of the entire system needs to be considered so that the maximum benefits of high-speed rail can be realized. Therefore, we must keep an eye on the continued financial health of the aviation sector when decisions are being made regarding the funding of transportation infrastructure.
In conclusion, we encourage the federal government to continue to explore high-speed rail as a component of our national transportation system. The government should ensure that a big picture approach is taken. We believe that there are real opportunities to integrate high-speed rail and international, transborder, and long-haul domestic travel from airports, and in particular, Toronto's Pearson. It is imperative that these modes are integrated in order to take advantage of intermodal efficiencies that will benefit all Canadians through a strong transportation network.
Thank you.