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VICTORIA – On July 30, 2003, Transportation Minister Judith Reid committed to issue a bi-weekly bulletin to keep British Columbians up to date on the BC Rail revitalization initiative.
Under the BC Rail revitalization initiative, BC Rail’s railway right-of-way, railbed and tracks will remain publicly owned, while a partner will assume the operations and management of the freight-railway service and provide much-needed capital investment.
Mayors’ update
As part of the government’s commitment to open and ongoing dialogue, meetings with mayors and civic officials have been occurring on a regular basis. On Aug. 28 John McLernon, chair of the board for B.C. Rail and of the evaluation committee overseeing the revitalization initiative, hosted its regular conference call with mayors and civic officials from railway communities.
The evaluation committee provided the mayors with an update of the revitalization initiative and discussed other topics, including:
The call also provided mayors with an opportunity to express their continued support for the BC Rail revitalization process and to reiterate their views to the evaluation committee on the importance community benefits and the long-term sustainability of British Columbia’s transportation infrastructure plays in supporting regional economic development.
Operational tours complete
Since the last update, most of the proponents have completed facility and rail line tours of BC Rail’s operations. These tours allow the proponents to visit the facilities and get a first-hand view of the railway shop sites and operations. Line tours allow the proponents to inspect the railway lines and gain a better understanding of the system’s operations.
The proponents continue to undertake detailed reviews of materials relating to BC Rail operations and its customer base, allowing them to develop comprehensive proposals for consideration by the government’s four-person RFP evaluation committee.
After proposals are submitted, the evaluation committee will review them. First and foremost, the committee will be looking to see how the proponents address the issues of community benefits, growth opportunities, sustainability and competitiveness.
The evaluation committee will not consider any proposals that undermine the continued public ownership of the railway right-of-way, rail bed and track.
Short- and long-term business plans demonstrating new investment and improved service required from proponents
In the development of the RFP, mayors and shippers cited sustainability of the freight railway as a key concern. To address this concern, proponents will need to demonstrate their short- and long-term business plan considerations to the RFP evaluation committee.
Of key importance will be the proponents’ plans for the railway’s long-term sustainability through new investment and improved service and their vision for the railway as a key component of British Columbia’s transportation infrastructure.
Customer-oriented and competitive services are also a key consideration for the evaluation committee. The committee will ensure all proponents indicate how they will protect and/or enhance rate structures for existing customers as well as provide continued access to North American markets and carriers for interline rail shipments.
As explained in BC Rail Update #1, the shipper advisers will provide third party adjudication on these important issues. John Edsforth of Travacon Research and Allan Foran of Aikins, MacAulay & Thorvaldson have been meeting with BC Rail’s customers throughout the month of August. Insights gained from the railway’s customers, who are among the province’s key job creators, will provide important counsel to the evaluation committee. This dialogue will continue during the coming months.
Accommodating new passenger services and addressing community concerns
Third party passenger services will be accommodated on the existing railway lines, as noted in the RFP document.
The evaluation committee will be looking for proponents to deliver a strong business plan ensuring access is provided on reasonable commercial terms and that opportunities are maximized in key passenger service markets.
The evaluation committee will also be looking at how proponents intend to address the concerns of communities, employees and First Nations. The evaluation committee will want to fully understand these issues, which will vary considerably from proponent to proponent.
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A copy of the BC Rail revitalization initiative RFP document can be viewed at www.bcrail.com
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