Northlander train closure could lead to rising shipping costs – by Lenny Carpenter (Wawatay News – September 19, 2012)

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

The closure of the Northlander train and divestment of the Ontario Northland Transportation Commission (ONTC) could lead to higher transportation costs for the north, said the mayor of Moosonee.

Mayor Victor Mitchell said he is concerned that the sale of the ONTC and its subsidiaries could have long-term economic effects for the northern communities.

Earlier this year, the provincial government announced that the Northlander train, which runs from Toronto to Cochrane, will cease to operate due to escalating operation costs. The Northlander will have its final ride on Sept. 28. Mitchell is concerned that the costs of shipping goods and supplies to the north will rise after the Northlander makes its final run.

“In terms of freight and fuel, it comes by the regulation style oil tankers,” Mitchell said. “And it comes directly from whichever fuel depot it comes from and ships north. If the freight is stopping before Cochrane, how is that fuel going to be hauled?”

If businesses along the James Bay coast have to have their fuel and supplies shipped by trucks before being put on the Polar Bear Express train, it would be more costly, Mitchell said.

“Further on up the coast, it’s going to be higher.”

The closure of the Northlander also means medical patients attending appointments down south will have to take the bus or airplane to reach their destination, which has its obstacles.

“Community members have always verbally complained about the difficulty with buses and airplanes, especially with their mobility stage,” Mitchell said. “The train has always been an ideal mode of transportation for them that’s comfortable. There’s easier access for a wheelchair and there’s more room to move than a bus.”

And if they have to take a plane, it would have financial impacts on the northern health benefit programs.

Mitchell is also concerned that the sale of the Polar Bear Express, which runs from Cochrane to Moosonee, could lead to higher costs.

Since 2003, the Ontario government has invested more than $439 million in ONTC to make it economically viable. The investment led to an improvement in the Polar Bear Express schedule and subsidized the train service to offset the ticket and freight costs.

But if the ONTC is sold to a private investor, Mitchell is concerned the new owner will have to raise prices to offset the operations costs.

“Right now, we’ve been told the train will be still operate, but the government never indicated to us in writing or verbally that there will be subsidy that will continue,” Mitchell said. “How long is that train going to last even though they say it will continue to operate, and what price are we, Moosonee and the north, going to pay?”

Additionally, the sale of Ontera, a telecommunications company that is often the sole provider of Internet, telephone and other communication services in the north, could lead to escalating costs for community members, Mitchell said.

“It’s not very cheap up here, as anywhere in the NAN territory,” Mitchell said. “ Depending on who the potential buyer is, what are we going to pay? Whoever buys is not going to be subsidized either.

“That’s what we’re also concerned about in the long term.”