Rail Documents From Premier Campbells Office

2003OTP0103-001046 Nov. 25, 2003		Office of the Premier Ministry of Transportation
MOVING FORWARD: THE BC RAIL INVESTMENT PARTNERSHIP

INVESTING IN THE BC RAIL SYSTEM

1) Continued Public Ownership Ø BC Rail’s rights-of-way, railbed and tracks legally protected under public ownership through legislation. 2) No More Public Debt Ø BC Rail’s $500-million debt eliminated, saving $30 million a year in interest. Ø Eliminating future risk to taxpayers who have already borne the cost of $860 million in asset write-downs. Ø CN assumes responsibility for maintenance of the infrastructure and cars, which costs BC Rail $40 million a year – equivalent to $3.6 billion over the next 90 years in today’s dollars. Ø Increased municipal tax revenues of $8.3 million to take effect the year in which the partnership is completed – representing nearly $750 million over 90 years in today’s dollars. Ø With the $1 billion in proceeds, these measures represent total benefits from the partnership of more than $5 billion. 3) 600 New Cars Ø 600 new centrebeam cars to increase capacity and meet customers’ needs in the forest industry. Ø Faster transit time will improve car availability by 800 cars.

4) Lower Rates and Costs Ø Open Gateway Rate and Service Commitment ensures competitive access for interline shippers to other markets. Ø Seven per cent average rate reduction for interline shippers. Ø Reduced costs for shippers from faster transit times. 5) Improved Access to Markets Ø Integrated North American rail network. Ø New Chicago Express to reduce transit times from Prince George by 2 days. Ø New access through the Port of Prince Rupert, reducing shipping times to Asia by 1.5 days. Ø 30 per cent reduction in transit times between Prince George and Vancouver 6) Long-Term Protection of the Rail Network Ø New protection for BC Rail customers under the Canada Transportation Act. Ø Re-open Dawson Creek-to-Hythe line to facilitate grain handling in Peace region. Ø D’Arcy – Lillooet and Takla shuttle services continue. Ø Unlike today, when routes may be discontinued at any time, there will be a moratorium on operational discontinuance ensuring no route closures for at least five years. Ø Commitment to maintain Tumbler Ridge infrastructure in place for at least 5 years.

INVESTING IN JOBS AND OPPORTUNITIES

7) $135 Million for Northern Communities Ø $135-million Northern Development Initiative for investments in forestry, pine beetle recovery, transportation, tourism, mining, Olympic opportunities, small business and sustainable economic development: Ø $25-million operating endowment. Ø $60 million divided equally to four regions: $15 million each to Prince George, the Peace, the Northwest, and the Cariboo-Chilcotin/Lillooet. Ø $50 million for a general trust to support cross-regional investments. 8) Prince George Gateway to the North Ø Head office for the Northern Development Initiative. Ø $4 million to Prince George Airport. Ø New B.C. North Division office. Ø $1-million state-of-the-art wheel shop in Prince George to accommodate new work for locomotive and car repairs. Ø Surplus CN yard land would be made available for commercial redevelopment, with a portion donated to expand Cottonwood Park. Ø Expanded municipal tax revenues of $825,000. Ø The Province will negotiate with the city on transfer of non-railway lands. 9) Major New Expansion to the Port of Prince Rupert Ø $17.2 million from the Province to support container development. Ø Up to $15 million from CN for rail infrastructure at the port. Ø Work with federal government to secure added funding for the redevelopment Ø Up to 500 direct jobs.

10) New Benefits for Squamish Ø 71 acres of BC Rail land, currently leased to Nexen, to be transferred to Squamish to facilitate a major downtown revitalization initiative. Ø CN will facilitate the upgrading of the Sea-to-Sky Highway and ensure rail alternatives for 2010 Olympics. Ø Expanded municipal tax revenues of $650,000 for District of Squamish, and $495,000 for the Squamish-Lillooet Regional District. Ø The Province will also negotiate the transfer of non-railway surplus lands. 11) $15-Million BC Rail First Nations Benefits Trust Ø Will support economic development, educational advancement and cultural renewal for the 25 First Nations along the BC Rail corridor. Ø This may include funding to: build capacity and provide seed-capital for aboriginal enterprises and joint partnerships; protect and promote languages; and support aboriginal youth apprenticeship training. Ø CN to retain existing First Nations programs and staff. Ø D’Arcy – Lillooet and Takla shuttle services continue. Ø The Province will negotiate transfer of non-railway surplus lands. 12) New Tourism/Passenger Services Ø BC Rail and CN are issuing a request for proposals to develop new passenger-tourist train services. Ø These will create hundreds of jobs in the hospitality and tourism sector.

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