Quote:
Originally Posted by MalcolmTucker
Why should the government take on the risk of owning the infrastructure if a private company will do it?
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Some subsidies will be required regardless, so you incorporate them in the contract. The advantage AB gets is that they can regulate what goes on the track, for the good of Alberta rather than some corporation's shareholders. While it's an alien concept in Alberta, railways normally act as a network rather than single entities - by owning the track we will be able to use the line to run trains along it and onto other lines beyond (in some far distant future).
This isn't an unusual thing. HS2 in the UK will work this way - the UK government is currently building the line and Network Rail will maintain it, but they have yet to decide who will actually run the trains on it. If they used the model you propose, where a single company operated the entire thing, they would lose a lot of benefit of the line, as trains will run from London on the new high speed track to Birmingham or Manchester then on legacy track to Scotland or Newcastle. That plan would be much more complicated if you had to use the private company's track to Birmingham, then someone else's for the rest of the route.
What if we wanted to run a train from Edmonton to Calgary on this company's line, then (for example) on a hypothetical line down to Lethbridge? How would that work, if two different companies owned each railway? It might be possible, with regulation, but it would be better if we just operated the track like Network Rail in the UK.
HS2 franchise: Bidder shortlist revealed
For the record, I can't claim to be an expert on the intricacies of how these contracts work, so if I have got some details wrong I am happy to be corrected. I'd honestly rather the government ran everything including the trains, as evidence shows it just works better. But I don't think Albertans could ever bring themselves to do that.