March 23, 2012 10:00 AM
Ontario has chosen to take a new approach to regional transportation in northeastern Ontario by winding down the Ontario Northland Transportation Commission (ONTC).
This decision will allow the government to protect investments in northerners’ health and education systems while balancing the budget by 2017-18.
Since 2003, the government has worked hard to make the ONTC viable by increasing funding by 274 per cent. However, demand for its services has stagnated. Also, the current subsidy on the Northlander train is $400 per passenger, and no longer affordable.
■Government funding has increased from $28 million annually in 2003-04 to $103 million this year.
■Ridership has remained stagnant at about 320,000 rides a year.
■Sales revenues have declined from $140 million in 2005 to just over $100 million this year.
■Private buses serve most of the same communities.
A transition board has been appointed to work with current Chairman Ted Hargreaves to begin the divestment of the commission. The board has been given a mandate to:
■Ensure the ongoing operation of the Polar Bear Express service
■Divest commercially valuable assets such as rail freight, rail refurbishment and Ontera telecommunications
■Begin the process of cancelling the Northlander train service that runs between Toronto and Cochrane – to be replaced with enhanced bus service
■Tender bus services for other operators to service existing bus routes
■Consolidate the ferry service between Moosonee and Moose Factory with other provincial ferry services.
There will be no immediate changes for ONTC services or employees.
“No government in recent memory has worked harder than ours to make the ONTC viable. We’ve made significant investments in the ONTC since 2003, but the organization is not on a sustainable financial path. We have a responsibility to find a new solution that both protects essential passenger services and ensures that northerners are getting full value for taxpayer money. Our priority is to invest in areas that matter most to northerners, such as health care, education, northern highways and the Northern Ontario Heritage Fund. ”
– Rick Bartolucci
Minister of Northern Development and Mines
“Today we are provided with an opportunity to build a new transportation system for a new era. I am pleased to participate in a process that will result in a sustainable solution that has such great potential for new opportunities for northeastern Ontario.”
– Ted Hargreaves
Chairman of the Board for ONTC
QUICK FACTS
Government funding to the ONTC has increased by 274 per cent over the last nine years from $28 million annually to $103 million this year.
Since 2003-04, the government has invested $439 million in the ONTC to help it become viable and self sustaining.
The government remains committed to ensuring that northern communities and industries benefit from a viable, efficient and sustainable transportation system. The Growth Plan for Northern Ontario features a “Multi-Modal Transportation Strategy,” which includes the development of an integrated air, rail, marine and road strategy.
CONTACTS
Adrian Kupesic
Minister’s Office
416-327-3723
adrian.kupesic@ontario.ca
The Ontario Northland Transportation Commission – Backgrounder
March 23, 2012 10:00 AM
The Ontario Northland Transportation Commission (ONTC) is a Crown agency of the Province of Ontario, with headquarters in North Bay. There has been government-subsidized rail service in northeastern Ontario since 1902, when the Temiskaming and Northern Ontario Railway was incorporated.
Over the last nine years, Ontario government funding to the ONTC has increased by 274 per cent from $27.6 million in 2003 to an estimated $103.2 million this year.
Currently the ONTC provides:
■freight rail services between North Bay and Moosonee
■passenger and parcel bus service between Toronto and Hearst
■passenger train service between Toronto and Moosonee
■ferry service between Moosonee and Moose Factory
■telecommunications services to communities across northeastern Ontario
■rail car refurbishment
The Moosonee-Moose Factory ferry service will continue to operate on a contracted basis through the Owen Sound Transportation Company.
Polar Bear Express passenger and freight rail services between Cochrane and Moosonee will continue to receive government funding to ensure dependable, affordable year-round ground transportation between Cochrane and the James Bay coast.
The recent report of the Commission on the Reform of Ontario’s Public Services stated that, “Studies and reviews conducted over the past several years in Ontario and other provinces illustrate how its [the ONTC] services could be provided more effectively and efficiently through targeted private-sector involvement. These steps should be undertaken.”
ONTC Chairman Ted Hargreaves will chair the interim board, composed of:
■Philip Howell, CEO of the Financial Services Commission of Ontario
■Mahmood Nanji, Assistant Deputy Minister, Ministry of Economic Development and Innovation
■Johnathan Weisstub, Head of New Partnerships, Infrastructure Ontario
■Greg Percy, Vice President, Operations, Metrolinx
CONTACTS
Adrian Kupesic
Minister’s Office
416-327-3723
adrian.kupesic@ontario.ca