Ontario Northland Transportation Commission

March 23, 2012 10:00 AM
Source

Ontario has chosen to take a new approach to regional transportation in northeastern Ontario by winding down the Ontario Northland Transportation Commission (ONTC).

This decision will allow the government to protect investments in northerners' health and education systems while balancing the budget by 2017-18.

Since 2003, the government has worked hard to make the ONTC viable by increasing funding by 274 per cent. However, demand for its services has stagnated. Also, the current subsidy on the Northlander train is $400 per passenger, and no longer affordable.    

• Government funding has increased from $28 million annually in 2003-04 to $103 million this year.
• Ridership has remained stagnant at about 320,000 rides a year.
• Sales revenues have declined from $140 million in 2005 to just over $100 million this year.
• Private buses serve most of the same communities.

A transition board has been appointed to work with current Chairman Ted Hargreaves to begin the divestment of the commission. The board has been given a mandate to:

• Ensure the ongoing operation of the Polar Bear Express service
• Divest commercially valuable assets such as rail freight, rail refurbishment and Ontera telecommunications
• Begin the process of cancelling the Northlander train service that runs between Toronto and Cochrane - to be replaced with enhanced bus service
• Tender bus services for other operators to service existing bus routes
• Consolidate the ferry service between Moosonee and Moose Factory with other provincial ferry services.

There will be no immediate changes for ONTC services or employees.