VIA Rail: Future of Rail: Trends, Revenue Surge, & Infrastructure Challenges

VIA Rail Canada Reports Revenue Surge Amidst Operational Challenges

VIA Rail Canada experienced a year of mixed fortunes in 2024, as revealed in its recent financial report. The national passenger rail service saw a significant increase in revenue, reaching C$480.2 million, an 11.5% jump from C$430.7 million in 2023. This growth, fueled by increased passenger demand, occurred against a backdrop of significant operational headwinds, particularly concerning on-time performance within its primary service area. The report, released last week, highlights a year of both progress and setbacks for the Crown corporation. This article examines the financial successes, operational hurdles, and strategic initiatives shaping VIA Rail’s current trajectory and its future within the Canadian transportation landscape.

Increased Ridership and Revenue Growth

The core driver behind VIA Rail’s revenue boost was a 6.6% surge in ridership, reaching 4.4 million passengers in 2024 compared to the previous year. This increase indicates growing public preference for rail travel, potentially driven by factors such as rising fuel prices, increasing concern for carbon emissions, and the inherent convenience offered by train travel in certain corridors. The revenue increase suggests strong demand for VIA Rail’s services across its network, including popular routes connecting major urban centres such as Montreal, Toronto, Ottawa, and Quebec City. The growth likely reflects the efficacy of its marketing strategies and its ability to meet increased consumer needs.

VIAction 2030 and Fleet Modernization

Beyond financial performance, 2024 marked the launch of VIA Rail’s VIAction 2030 strategic plan, a blueprint for the company’s future operations. The plan encompasses strategic initiatives aimed at improving service quality, expanding its network, and modernizing its fleet. A key element of this strategy is the planned replacement of the existing pan-Canadian fleet. The investment in new rolling stock is a crucial step toward enhancing passenger comfort, improving operational efficiency, and reducing emissions, aligning with broader sustainability goals within the transportation sector. Funding secured for the fleet replacement underscores the Canadian government’s commitment to rail infrastructure development and its significance in the country’s overall transport network.

Operational Challenges: The Quebec City-Windsor Corridor

Despite the positive revenue and ridership figures, VIA Rail faced significant operational challenges in 2024, particularly in the vital Quebec City-Windsor corridor, which is considered the backbone of its operations. Officials cited infrastructure regulations that impacted on-time performance during the fourth quarter of 2024, suggesting potential issues with track maintenance, signaling systems, or other factors affecting service reliability. These operational issues are further illustrated by its first quarter 2025 on-time performance figures, where VIA Rail blamed CN (Canadian National Railway), the host railroad for much of the infrastructure, for speed restrictions. These restrictions negatively impacted VIA Rail’s ability to maintain schedules, creating delays for passengers and potentially harming its reputation and ability to grow.

The Role of Host Railroads

The performance of VIA Rail is heavily reliant on the infrastructure owned and maintained by host railroads, primarily CN and CP (Canadian Pacific). The recent issues in the Quebec City-Windsor corridor highlight the complexities of this relationship. Any decisions or actions taken by the host railroad, such as implementing speed restrictions due to track maintenance or other issues, can directly impact VIA Rail’s on-time performance and operational efficiency. Addressing this reliance on the host railroads’ infrastructure, through ongoing negotiations and improved service agreements, is a vital element of VIA Rail’s operational strategy. This also stresses the importance of effective collaboration and coordination between passenger and freight railways to ensure a functioning and reliable rail system for Canada.

Conclusion

VIA Rail’s 2024 performance presents a complex picture. While the company demonstrated its ability to attract passengers and generate revenue growth, operational challenges, specifically in its busiest corridor, cast a shadow over these achievements. The launch of VIAction 2030 and the commitment to fleet modernization are positive indicators for the future, representing significant steps toward improving service quality and embracing sustainability. However, the success of these initiatives hinges on addressing the recurring issues impacting on-time performance, particularly those caused by host railroad infrastructure. The company must prioritize strengthening its relationship with infrastructure providers. For VIA Rail to realize its long-term goals, it needs to invest in track infrastructure and improve communication and cooperation with freight operators.