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Originally Posted by Urban_Sky
Because the federal government has decided back in the early 1990s to completely transfer the burden to invest into the national rail network to the private sector, which even generated some one-off privatisation revenues, while most countries in Europe or Asia invest massive amounts of private funds into their own networks.
I don't know what's so shocking about the observation that the track standards and capital expenditure maintained by private-sectors freight railroads only reflects the needs of their own freight trains, instead of those for passenger trains which require track standards and consume more track capacity the faster they operate. IMHO, the government and the taxpayer get no more and no less than what they pay for...
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Definitely agree with that.
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Originally Posted by hipster duck
When you think about it, it's obvious that Canada would prioritize freight over passenger railroads. We are a physically large country, with few navigable rivers, whose primary exports - particularly in western Canada - are bulk commodities. We have 2 of the 7 Class I railroads in North America, which is pretty impressive given our size, and both CN and CP extend their network well into the US.
We obviously know how to run freight railroads, and so our governments support them the best way they can, which is to get out of their way.
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Well, while the railroads do seem to be very effective at moving large volumes of freight, they also have a very poor safety record, even with regulation. So the government does need to get in the way and make them change - but they won't of course. Normally, after a tragedy such as Lac-Megantic a country and people would be so shocked that they would be forced to change - see how quickly NZ changed their gun laws. But in this country, atrocious safety of the railroads is so normalised that the people don't care, and there is no point wasting political capital on making them change.
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Originally Posted by hipster duck
The bad news is that we have designed a railway system where moving anything other than non time-sensitive cargo would incur massive investment. It's a good example of a "market failure". Even if there's a huge pent up demand for passenger rail, and even if passenger services were still run by CN or CP, would these companies invest billions of dollars to build a totally parallel system of trackage so that they could run high frequency passenger trains? Probably not. It's better for them to stick to doing what they already do well, given that they know it makes money for them and that they have some natural monopoly over the transport of many of those commodities.
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Yep, railways are the perfect example of market failures. It is near impossible to have true competition - CN and CP don't compete with each because their railways go to different places, and it would be inefficient to build multiple parallel railway lines. And trying to use them for anything else is near impossible. If we had a properly managed system, the government owner of the track would be able to build investment that would benefit all users, but under the current system it is to CP/CNs advantage to make the railways as attractive to passenger rail as possible.
At this point, I think we are too far gone to do what should be done and nationalise the track. But we at least need to stop the attitude that the railroads can do whatever they want - they serve and owe us, not the other way around. A good start would be for the government to say that in ten years time, no more dangerous goods can move through populated areas (like downtown Calgary). It's going to cost them money to ensure the safety of Canadians? Tough. They've benefited handsomely from their arrangements and can afford the investment, and they are a monopoly anyway so they can make it work.