Mystery rail firm enters negotiations to operate ACR (update)

NEWS RELEASES

ACR PASSENGER SERVICE STAKEHOLDERS WORKING GROUP

Stakeholders vying to retain the Algoma Central Railway passenger service between Sault Ste. Marie and Hearst have sent a funding proposal to the Federal Government. 

The request, which would cost Transport Canada considerably less than its financial support of the service in recent years, includes information from a third-party rail company that’s expected to take over the service in 2015.

“With a relatively limited investment, the Federal Government can keep this critical transportation line in operation,” said Joe Fratesi, Chair of the ACR Passenger Service Stakeholders Working Group and Chief Administrative Officer for the City of Sault Ste. Marie. “We look forward to hearing back from the Government of Canada in the coming weeks.”

Following a request for proposal process that saw three qualified rail companies bid to assume operation of the Algoma Central Railway passenger service, it was announced earlier today that one bidder has been selected for final negotiations.

That followed a thorough analysis of the firm’s bid, which detailed plans to increase revenue and ridership by diversifying the types of tourism products and services available to passengers, as well as making the service self-sustaining within five years.

A letter of intent was signed with that company, and a definitive operating agreement is expected to be reached early in the weeks ahead, at which point the party will be identified.

According to an economic impact assessment from BDO Canada in 2014, the ACR passenger service generates between $38 and $48 million in annual economic activity, supports up to 220 direct and indirect jobs, and helps deliver more than $5 million in tax revenue to government coffers every year.

Formed in February 2014 after Transport Canada announced its intention to cut its annual investment in the Algoma Central Railway passenger service, the Working Group represents a larger committee of concerned regional stakeholders, including the City of Sault Ste. Marie, Sault Ste. Marie Economic Development Corporation, Municipality of Wawa, Town of Hearst, First Nations, Township of Dubreuilville, Tourism Sault Ste. Marie, Algoma Kinniwabi Travel Association, Coalition for Algoma Passenger Trains, and land and cottage owners serviced by the ACR line.

More information on this critical regional transportation initiative is available online at www.algomapassengerrail.com.  

Following a request for proposal process that saw three qualified rail companies bid to assume operation of the Algoma Central Railway passenger service between Sault Ste. Marie and Hearst, one bidder has been selected for final negotiations.

A letter of intent was signed with that rail firm today, with the expectation of reaching a definitive operating agreement with the company early in the new year.

Once that’s done, the party will be identified.

The ACR Passenger Service Stakeholders Working Group has been seeking an experienced third party to operate the passenger train service.

Following a thorough analysis of its bid, it was concluded that the firm selected for final negotiations appeared best qualified to assume operation of the service.

The company submitted a formal bid detailing plans to increase revenue and ridership by diversifying the types of tourism products and services available to a variety of passengers.

“While a non-disclosure agreement does not permit us to name it today, I can tell you that the company has a wide-range of experience in a variety of rail services in North America, including tourism excursions,” said Joe Fratesi, Chair of the Working Group and Chief Administrative Officer for the City of Sault Ste. Marie. “The stakeholders are committed to working with this passenger-focused firm to achieve long-term success for this critical regional passenger train service.”

The ACR passenger train operation provides a vital service for residents, businesses and visitors in the Algoma region.

Based on an economic impact assessment from BDO Canada in 2014, the service generates between $38 and $48 million in annual economic activity while supporting up to 220 direct and indirect jobs.

The Working Group was formed in early-2014 after the Federal Government announced its intention to cut a $2.2 million annual investment in the remote passenger rail service.

Transport Canada later announced a one-year extension of this passenger rail funding, meaning the service will operate in its current form until at least March 2015.

The Working Group represents a larger committee of concerned regional stakeholders, including the City of Sault Ste. Marie, Sault Ste. Marie Economic Development Corporation, Municipality of Wawa, Town of Hearst, First Nations, Township of Dubreuilville, Tourism Sault Ste. Marie, Algoma Kinniwabi Travel Association, Coalition for Algoma Passenger Trains, and land and cottage owners serviced by the ACR line.

For more information on this initiative, please visit www.algomapassengerrail.com.

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