Source Link: The Canadian Press

MONTREAL — Transportation experts don’t believe the federal government’s small budgetary nod to public transit will help Bombardier Inc. (TSX:BBD.B) offset a forecast slide in its aerospace business.

Transit will compete with roads and other priorities for the $4 billion earmarked for infrastructure upgrades and only a portion of the spending is expected to be directed at the purchase of train cars.

Another $407 million provided to Via Rail will upgrade tracks and several train stations.

Neither allocation will help the Montreal-based company weather the global economic storm, analysts said Friday.

With 75 per cent of its rail revenues coming from Europe and its headquarters based in Berlin, Bombardier Transportation is looking to harness stimulative efforts in Europe and emerging countries outside North America.

“Canada is almost inconsequential for them,” said Cameron Doerksen of Versant Partners.

Doerksen said there wasn’t any expectation in the investment community that Bombardier would see significant benefits from the Canadian budget.

With a backlog at the end of the last quarter totalling $25.8 billion or 2.5 years, it’s unlikely that stimulative spending would have a major impact on the company anyway, he said in a report.

It would take several years for any contracts awarded today to begin to generate revenue for the company.

While new train orders are positive, the contribution from the business jet market is much more important to Bombardier’s overall profitability.

Business aircraft account for 27 per cent of total revenues compared to 50 per cent from transportation, but are believed to make up 44 per cent of operating earnings compared to only 35 per cent for transportation, Doerksen said.

Source Link: by James Murray, NetNewLedger.com

Thunder Bay, ON — “All aboard?!” That was the call of the conductor as a passenger train was set to leave the station. Canada is a nation where the train served as the metal bindings that forged the nation. Building “the national dream” of Canada meant, for Sir John A. McDonald, putting a railway across Canada.

The Canadian Prairies were populated by immigrants who traveled by train from Montreal, and Toronto.

Today, VIA Rail is a mere shadow of how rail service used to be in Canada. Sure there are still passenger rail trains that one can take, but not like it was.

In these days of economic uncertainty, coupled with concern over the environment, rebuilding our national railways, to include high-speed passenger rail service would be a worthy goal.

Re-investment in transportation technologies could be a worthy means of economic stimulus. Many communities across Canada are considering upgrading their own mass transit systems.

What is not considered in many cases is connecting mass transit with inter-city train transport. Well, not apparently considered in Canada. The closest might be Ontario’s Go Transit system. However that system does not connect to the airport with a train that could solve parking problems at Canada’s largest airport, and make the airport more of a transportation hub.

If you were to look at Europe, you would see that most major airports are also connection points for not only public transit, but for railways too.

In Frankfurt, Germany, one can get off an airplane, and then catch a train.

In Canada, it could be argued that our greater distances preclude having more rail travel. That argument can be solved easily with high-speed trains.

Here a VIA Rail passenger train will clock about 80-90 kph. In Europe, there are trains traveling up to 200plus kph.

Consider that for many short distance trips, a high speed train might actually be equally as fast as a plane.

Construction of rail systems is something that Bombardier does quite well. In Thunder Bay, our Bombardier plant has build transit systems for years. Any move toward improved rail and transit will benefit Thunder Bay.

The challenge perhaps is in co-ordination of transportation systems. If the airport became more of a transportation hub, with trains, buses, and airplanes departing, and were merged with the transit systems, we would be able to combine security services, and offer positive alternative choices for the traveling public.

The challenge to making a better future is in looking at new ideas, and refusing to continue with the same old thinking that has lead us to the problems we face today.

That of course is just my opinion. As always, your mileage may vary.

James Murray