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Victoria News

Tax help for E&N rail project

Mary Ashley dreams of savouring a leisurely meal, spiced and diced with mouth-watering Island products, while trees, fields and towns flash by the dinner car’s windows.

“I’m waiting for the day I can board that dining train,” said the co-chair of Island Corridor Foundation (ICF), owner of the 290-kilometre E&N rail line.

Last Thursday, her dream moved one step closer to becoming reality.

Along with wiping a $5 million property tax bill off ICF’s slate, the provincial government allocated $500,000 for a study on the viability of upgrading the line for freight and passenger travel.

“This means we have provincial support,” Ashley said. “The province is looking at the whole picture of climate change and increased economic gains for Vancouver Island.”

Since the foundation acquired the line, it has negotiated against the Esquimalt and Nanaimo Belt Tax, which left ICF owing $4.5 million. The tax was directed toward companies running the railway for profit, Ashley said, whereas the foundation purchased the line to hold in the public trust.

The study will complement B.C. Transit-led research into developing a long-term transit plan for the region. It will examine the potential for freight, key to a viable railway, Ashley said. “Freight is the backbone of good rail service anywhere.”

Forest products and gravel are two possible cargos. Commuter trains will also be examined, along with potential for a tourist-oriented operation. The business analysis will happen in the new year.

Transportation and Infrastructure Minister Kevin Falcon, who has been skeptical about the potential of the E&N line, noted that the analysis is a good first step.

“(The business case analysis) will provide us the basic information on costs and ridership that we need to responsibly assess transit options,” he said in a press release.

The ICF is in the process of trying to raise $103 million for needed upgrades to facilitate increased freight and passenger use. The foundation is hoping for a three-way split on the bill between themselves and the provincial and federal governments.

raldous@vicnews.com

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