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2010-05-13 at 6:00 PM

Greyhound Canada still searching for government support

By Leith Dunick, tbnewswatch.com
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Greyhound Canada is looking to upper levels of government to help prop up money-losing routes in rural Canada.

Company senior vice-president Stuart Kendrick said while Greyhound did retain its routes in Northwestern Ontario after threatening to pull service last December, it’s not a service they’ll continue permanently unless a federal-provincial task force comes up with viable solutions when it presents a September report on the future of bus service in Canada.

There’s no doubt in his mind that Greyhound – or any other bus service that takes its place – will need help.

"It is clear from many years of operating the lines through the small communities that it’s not sustainable," he said, hours before meeting with Mayor Lynn Peterson and other city officials in an attempt to impress on them the importance of the upcoming report.

Kendrick’s biggest fear is the task force will decide to go with the status quo. That would be disastrous, he said.

"We believe that leaving it as it is could result, and will result, in reductions of service by many companies in the industry, including Greyhound."

The news comes months after Greyhound served the region notice that it was pulling its service between Sault Ste. Marie in Winnipeg, a notion that did not sit well with regional leaders, many of whom would have seen their communities made even more isolated given the lack of passenger rail service in parts of Northwestern Ontario.

A deal was reached at the last minute to save the service, an agreement that allowed Greyhound to reduce the number of trips between some communities during the winter off-season.

Kendrick is not ruling out further cuts in the region.

"It’s quite possible," he said. "But again, we’re optimistic that the importance of the service to this community, who rely on this service, is recognized at each level of government and that a long-term solution will happen."

Some routes, he added, were run with as few as seven people aboard the bus. But as it stands, the company has no choice in the matter, as it is regulated to take on the less profitable runs in order to secure higher density routes in southern Ontario.

Kendrick said he was not in town to ask for handouts or money, calling that a Band-Aid solution.

"We’re here to collaborate, not confront … Overall we just hope that local communities understand what’s in store," he said.

Coun. Iain Angus said Thunder Bay is fully aware of the impact the loss of bus service could have on the city.

He also said he understands the economic reality the bus companies are facing, adding the city will push the task force to find a solution that keeps the service running. But that’s about all they can do, he said.

"At the end of the day, it is going to be up to the feds and the province to decide how to do this," Angus said when reached by phone on Thursday afternoon. "A lot of the routes are in fact never going to be profitable."

Angus added he plans to pass the information along to the Northwestern Ontario Municipal Association, who Greyhound has agreed to meet with in June Click here to submit a letter to the editor.

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Tbnewswatch.com(4)

Comments

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pieislandrefugee says:
cancel all the runs.

if its not profitable, its not worth doing. If it requires financial assistance....

.... its not viable, only liable.
5/13/2010 11:14:28 PM
Optimus Pine says:
Saskachewan has its own bus line, maybe we should too...
5/14/2010 4:19:17 PM
FernandoMartinez says:
I e-mailed Mr. Angus on this issue. I brought up the potential for the city to make money off of Greyhound's failures.

Greyhound loses money because it operates huge full-sized buses. Perhaps if the city starts a company that operates small to medium sized buses, operates with lesser frequency, and perhaps even slightly pricier, it can perhaps survive.

There WILL be riders because it's an essential service for some, especially in smaller communities. It can operate from Winnipeg to Sault Ste. Marie.

You save tremendously on fuel costs by not having huge, empty buses, fill a bus easier with smaller buses and lesser frequency on routes, directly create jobs in the city, and all revenue goes to the city which will hopefully help pay off Peterson's spend-o-holic pet projects.

The only thing I'm worried about is this city tends to turn everything it touches into fecal matter. I'm afraid that if the city is running this operation directly, it'll lose money and taxpayers will be on the hook for it.

Nonetheless, taxpayers are already on the hook by subsidizing Greyhound to still operate in this region. They might as well keep our tax dollars in our city.
5/15/2010 4:37:20 AM
baor says:
If VIA rail which is a Crown corporation was cancelled, why should the taxpayer pay for Greyhound. Free market society...sink or swim on your own merit.
5/18/2010 2:55:26 PM
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