Rail CEO Attributing Decline in Punctuality to New Speed Regulations by CN
In Montreal, Via Rail's dismal first-quarter performance has been attributed largely to fresh speed regulations imposed by Canadian National Railway Co (CN). Here's a lowdown on this fiasco:
What Went Wrong
- New CN Speed Limits: Via Rail squarely points the finger at these speed regulations as the primary culprit for the steep drop in on-time performance. The new rules have imposed restrictions on new passenger trains operating on CN tracks, specifically along the Québec City–Windsor corridor, that Via Rail deems arbitrary and unjustified[2][3][4].
- Infrastructure Obstacles: These restrictions have resulted in extended journey times and decreased service dependability. Via Rail maintains that these restrictions were implemented without prior discussion and are part of an ongoing legal battle[4].
- Wintry Woes: Heavy snowfall in February didn't help, but it didn't play the lead role in the service turbulence[2].
Effects on Via Rail
- Punctuality Woes: The on-time performance plummeted from 72% in Q1 2024 to a pathetic 30% in Q1 2025[1][2][4].
- Passenger Dip: Ridership took a 2.7% nosedive, marking the first drop since the railway's pandemic restoration started[2][4].
- Financial Hit: Despite a boost in revenue thanks to other adjustments, Via Rail reported an operating loss before federal funding and income taxes of $160 million, an increase from $151.3 million the year prior[2][4].
CN's Rebuttal
CN vehemently contests Via Rail's allegations, asserting that Via Rail is unwilling to shoulder responsibility for procuring trains with potential safety issues. CN contends that any restrictions imposed are essential for safety[2].
[1] "Via Rail on-time performance plummets as CN speeds slow to a crawl," CBC News, Jun 4, 2025, https://www.cbc.ca/news/canada/montreal/via-rail-on-time-performance-plummets-as-cn-speeds-slow-to-a-crawl-1.6166409
[2] "Via Rail blames CN for drastic drop in on-time performance," The Canadian Press, Jun 4, 2025, https://ca.finance.yahoo.com/news/via-rail-blames-cn-drastic-174000136.html
[3] "Via Rail calls for repeal of Canadian National speed restrictions," CTV News, Feb 18, 2025, https://www.ctvnews.ca/mobile/business/via-rail-calls-for-repeal-of-canadian-national-speed-restrictions-1.5005258
[4] "Via Rail goes to court over CN speed restrictions," Global News, Feb 18, 2025, https://globalnews.ca/news/8653886/via-rail-goes-to-court-over-cn-speed-restrictions/
Companies mentioned in this story: (TSX:CNR)
- In Toronto's finance industry, investments in the transportation sector may face scrutiny as a result of the ongoing legal dispute between Via Rail and Canadian National Railway Co (CN).
- With Via Rail's business operations significantly impacted, other railways in the industry might consider reevaluating their partnership strategies with CN.
