Source Link: Richard Bercuson, CBC

The B.C. government says it is considering upgrading the old E&N railway to create a new commuter rail service for southern Vancouver Island.

On Thursday, Transportation Minister Kevin Falcon announced he will commission a half-million-dollar study to look at the options for commuter rail and freight on the historic route.

Currently a VIA rail passenger train makes one daily run along the old north to south line between Victoria and Courtenay on the island’s east coast.

For years, island communities, which now own the rail bed, have pleaded for money to upgrade the tracks to provide a more reliable and more frequent service, with no result. Now, however, it seems the B.C. government has taken an interest.

“There’s growing interest in alternative forms of transportation on Vancouver Island, so the time is right to do a thorough business case analysis,” said Falcon on Thursday.

“Obviously you’ve got to do your homework before you commit hundreds of millions of dollars potentially into a project,” said Falcon.

New Democrat MLA John Horgan welcomed the commitment, saying any commuter line would pass through his riding of Malahat-Juan de Fuca, but noted the timing six months before the election.

“Someone obviously dragged Mr. Falcon kicking and screaming into this position, but I’m delighted with that,” he said.

Horgan estimated upgrading the tracks would likely cost more than $100 million.

The E&N railway — once known as the Esquimalt and Nanaimo — has a long history that dates back to 1871, when the federal government agreed to build a railway as part of the colony of British Columbia’s decision to join Confederation.

In recent years, however, the route has changed hands several times as a range of companies tried and failed to make it profitable.

In 2006, the route was donated to the Island Corridor Foundation, a registered non-profit foundation created by local municipalities and First Nations to preserve the rail corridor.

A daily passenger service is operated by VIA Rail. The route still contains several historic trestles and railway stations.

Expectations of a slow winter prompted layoffs of nine workers

Gray Line West has cut back its tour schedule and laid off nine of its 119 Victoria staff, citing a challenging tourist season and expectations for a slow winter.

The company, which operates year-round sight-seeing tours and charter coach services in Victoria, Calgary and Banff, said the prospects of a lean winter forced its hand.

“We have put into effect a reduced business model in Victoria. The tourism industry is facing some challenging times and the forecast is for tourism revenue to decline in Victoria,” said Ian Robertson, executive director of corporate communications for the Armstrong Group, which owns Gray Line West and other operations such as the Rocky Mountaineer train.

“For us, at winter season it’s a particularly challenging time for tourism, and to continue with a full operation is not financially viable.”

The result is a reduction in the number of coaches on the road and tours the company will run through the city on any given day.

Robertson said they won’t be eliminating any particular tours — they offer grand city driving tours, attraction loop tours and trips to Butchart Gardens, among others — instead opting to reduce the number of options and times people can take them.

The layoffs affect management and maintenance positions. There will be no reductions or layoffs at any of Gray Line’s other operations.

Robertson also quashed rumours Armstrong Group was putting the Gray Line West division up for sale.

“We are always looking at opportunities, but the mandate we have given to Victoria and our operations in Banff is to develop a strong business plan for growth, and we continue on that track,” he said.

Armstrong Group bought Gray Line in 2005 as a complement to its other tourism businesses.

“We saw it as a fit with the Rocky Mountaineer train and Whistler Mountaineer, so it was a natural fit for our overall tourism strategy,” he said, noting the Victoria operation could expand again if the need arises.

“Certainly if the indications are that we are going to have a strong tourism season in summer, we would look at increasing our workforce and offering more tour options,” he said.

aduffy@tc.canwest.com