The provincial government is hopping onboard rail on Vancouver Island, announcing Thursday it will fund a $500,000 study on boosting freight and passenger train service.

The study is slated to determine viability and costs to upgrade the tracks for commuter rail and freight, and likely ridership, said Transportation Minister Kevin Falcon.

“We want to make an informed decision, informed by a proper business case,” Falcon said. “We need to look at the entire line, the population centres and how much upgrading is needed.”

The request for proposal for a business case will be issued early in the new year, Falcon said, for completion in 2009.

The announcement also includes $4.5 million in tax relief for the Island Corridor Foundation (ICF) from the Esquimalt and Nanaimo Belt Tax Act, a 25 per cent tax on sold railway corridor land.

The ICF, a public federal charity, acquired ownership of the 290-kilometre E&N railway track and corridor in 2006. It estimated upgrading the track for commuter trains and freight would cost about $103 million.

Parallel to that, a study by Communities for Commuter Rail (C4CR) estimated getting a single bud car running between Langford and Victoria would cost about $16 million.

“Before spending $15 to $25 million (on commuter rail), it’s worth spending $500,000 to do a more detailed study,” said Geoff Pearce, chair of C4CR, a group with representatives from Langford, Colwood, View Royal, Esquimalt, Victoria, the Capital Regional District and BC Transit.

“This has been pushed by a number of groups as the way of the future. But it’s as much as going back to the past,” Pearce said.

Falcon said the C4CR study was a good first step, but its cost estimates were incomplete. The ICF was uncertain how to design a business case to attract federal dollars, he said, allowing the ministry to step in.

If the study recommends promoting commuter rail in certain areas, such as Greater Victoria, as opposed to the entire corridor, Falcon said he would be “absolutely happy to look at that.”

The provincial government has come under increasing pressure to at look at commuter rail for southern Vancouver Island.

During the municipal elections, a non-binding referendum in Langford and Colwood calling for support for commuter rail passed by a vast margin. Last week a bipartisan provincial finance committee made commuter and freight rail on the Island one of its priorities.

“There has certainly been a lot of momentum on this,” Pearce said. “BC Transit is looking at this also. (The government announcement) is another step in the right direction.”

Malahat Juan de Fuca MLA John Horgan said he’s happy the Ministry of Transportation isn’t ignoring rail on southern Vancouver Island any longer. He doubts the government could have collected the Belt Tax without crippling the ICF.

“The government recognized southern Vancouver Island transportation woes won’t be solved by wishful thinking. I’m pleased the government is investing on a process that is well underway,” he said, referring to previous studies by C4CR and the ICF.

“It’s been a big challenge without the ministry at the table.”

Langford Mayor Stew Young said having the provincial government onboard is the long awaited missing piece of the commuter rail puzzle. Over the next 20 years, the City is planning its density and growth around the rail line, Young said.

Investing in infrastructure during a downturn in the economy while giving people efficient and “green” transportation is critical, he continued.

“Rail is how communities evolved in the first place. We are going back to how things worked 100 years ago,” Young said. “I’m glad the government is taking a hard look at this. The job to do now is to understand the real costs and what level of subsidy is needed.”

editor@goldstreamgazette.com