Association of Vancouver Island
& Coastal Communities (AVICC)
& The Round Table

March 6, 2002

• Agreement Reached to extend Passenger and Freight Services until April 15
• Organization formed to develop a long-term, sustainable solution for rail on Vancouver Island

QUW'UTSUN' CULTURAL AND CONFERENCE CENTRE, DUNCAN, BRITISH COLUMBIA
At the Duncan meeting of the Round Table on the Future of Rail on Vancouver Island agreement was reached to extend both the passenger and freight services on Vancouver Island until April 15th, 2002. The Round Table further agreed to form an organization to assist in determining ways of continuing services and developing a long term, economically sustainable solution for the Island's railway.

"At our first meeting we made significant progress in many areas. As part of the cooperative search for solutions, the current owners of the line have agreed to leave the rail infrastructure intact and undisturbed until July 15th, assuming ongoing commitment by the stakeholders to a collaborative and cooperative approach to the search for solutions. This set the stage and the challenge for our second meeting," said Mary Ashley, Chair of the Round Table and President of the AVICC.

"Our challenge for the Duncan Meeting was to also ensure that the current freight and passenger services continue to operate and that we start the process of developing it new business model for the railway that will sustain it into the future. We made significant progress on both."

In view of the loss of the majority of freight business on the line, the current operator, E&N Railway Company (1998) Ltd. (ENR), required commitment of additional resources to meet its revenue requirements for ongoing operation of the passenger service. ENR needed a commitment on March 5, 2002, that the additional resources are now available. As a result of some intense discussion and ultimately some new financial commitments by several of the key stakeholders, the ENR has now agreed to extend the service to April 15, 2002. This, in effect, extends the interim passenger and freight services for one more month.

"Our intention is to ensure that the services continue while we work on longer term solutions. To that end, we have agreed, under the leadership of the AVICC, to form the Vancouver Island Railway Development Initiative," said Mary Ashley.

This organization will have a dual mandate:
1) Securing interim funding to extend rail freight and passenger operations from April 15 to July 15;
2) Develop a business model and plan for economically viable and sustainable on-going rail services beyond July 15th.

The Round Table has agreed that if the rail assets on the Island are to reach their true potential, new investment must be found, new partners must be involved and a new business plan developed.

"This has been an incredible process," said Mary Ashley. "We started the Round Table in the middle of January and since that time we have made more progress than I believed possible at the outset. Perhaps one of the most important results of the Round Table has been the better understanding that we all now have of the issues and the challenges we face. We are, for the first time in the history of this rail line, all working together."

"I would like to thank Chief Harvey Alphonse, of the Cowichan Tribes, for hosting the meeting. Having this meeting at the Quw'utsun' Conference Centre with its theme of gathering together, set the tone for the meeting and contributed to its success."

"All of the stakeholder groups should be commended for their support and participation and for the long hours that were spent by their representatives in getting us to where we are today. In particular, I would like to thank the companies and organizations which, when commitments were needed to move us forward, rose to the challenge. These include: VIA Rail, Superior Propane. The Cowichan Tribes/KDC, Canadian Pacific Railway (CPR), Point Hope Shipyard, and others that I may have missed."

"Finally, on behalf of the Round Table, I would like to extend my thanks to the employees of the ENR who, under very difficult and trying circumstances, have continued to operate the rail services on the Island. Your continued dedication and commitment has been appreciated."

Contact: Mary Ashley, Chair of the Round Table
Phone: (250) 203-3501

Related documents:

• Backgrounder on the AVICC
• Backgrounder on the Round Table on the Future of Rail on Vancouver Island.
• Backgrounder on the Vancouver Island Railway Development Initiative (VIRDI)

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