Quote:
Originally Posted by milomilo
Do you have other information that isn't in the public to support that? Because to me, while they seem serious about it, it doesn't seem realistic at all. It also isn't the road I want to go down. If you let a private operator run a line there, there is no chance of building off that to make an integrated network. It's going to need large subsidies and regulations to make it work anyway, so the far better option is to have some form of government body run it.
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Well, all rail service is regulated. And if they think they can do it without operating funds, more power to them. And yes, it does look like a subsidy will come, in the form of a loan from the Canada Infrastructure Bank, which will lower their cost of capital. Additional cost recovery would come from CPR using the added infrastructure.
In this case, there is little opportunity cost for letting the private sector lead on this. Should the government want track access later for a Cochrane service, they would be able to lease access (as we can on CP, we just aren't willing to pay what it actually is worth to have access).
They seem to think it is realistic, which is all that matters.
In addition to talks with CP and the infrastructure bank they have:
And have resources themselves, and connections to raise money given the right investment (infrastructure investments are attractive to generate consistent returns, and this one has less risk if CP is willing to partner for some capacity too):
If Calgary and the Bow Valley can add regular passenger rail in the province for very low public investment, at little risk to the interests of the public, I don't see the problem with it.