CALGARY, Alberta — The Alberta government is not willing to support a proposed Calgary-Banff passenger rail operation in its current form, saying it presents too great a financial risk.
The Globe and Mail reports that Alberta Transportation Minister Prasad Panda says the plan underestimates the capital costs and the annual financial contribution from the province, overestimates ridership, and has an unrealistic estimate of when the service could begin operation.
Liricon Capital Inc., which owns a Banff ski resort and holds a long-term lease on the city’s train station, has estimated the project will cost $1.5 billion. It has asked Alberta to provide up to $30 million in annual support, but said recently that might be unnecessary based on new ridership figures [see “Proposed Calgary-Banff rail line seeks support …,” Trains News Wire, June 28, 2022]. Liricon says the system could attract up to 11 million riders annually if Parks Canada adopts policies which would encourage use of the rail system.
Panda says he likes the concept of the rail system, but as currently presented, “it’s passing on all the risk to Alberta taxpayers.” He said his office has sent a letter to Liricon and financial partner Plenary Americas, saying the government wants “a realistic proposal” and will reconsider its position if the companies assume the financial risks and raise private capital.”
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