Passenger Trains > Tourist train offered "free" to City of Sherbrooke (Que.)

Orford Express offered free of charge to the City
La Tribune
March 31, 2015

> (SHERBROOKE) The owners of the Orford Express are willing to give
> their tourist train to the City of Sherbrooke in exchange for a tax
> credit.
>
> Sherbrooke elected officials are evaluating the proposal with a
> management approach to outsourcing and without the need to inject
> municipal funds.
>
> "The Orford Express has been offered as an asset donation. The City's
> interest to consider the option of becoming owner to keep this
> leader. Otherwise, a sale to private interests could result in the
> removal of equipment and then we would lose everything ", confirmed
> executive committee chairman, Serge Paquin.
>
> Traveling on Monday to return home, the main shareholder of the
> Orford Express, André L'Espérance, could not be reached to explain
> his reasons for disposing of the train rather than continuing its
> operation via the company Escapades Memphremagog, which also operates
> the cruise ship Grand Cru.
>
> Father Donald Thompson, who also has interests in the tourist train,
> is withholding comment until the end of talks.
>
> After the offer, municipal officials undertook a performance analysis
> of the Orford Express. After a few years of high traffic, it was hit
> by a cascade of contingencies.
>
> Operations were suspended last year after a fire.  Loss of business
> after the train tragedy of Lac-Mégantic pushed the company to seek
> redress in court for the value of the agreement signed with the
> now-defunct Montreal, Maine and Atlantic Railway (MMA), for its
> trackage-rights use of the rails until 2025.
>
> "We have a series of financial and technical elements to confirm. The
> train would fall within the Société de transport de Sherbrooke, whose
> charter provides for such operation.  STS does not however have the
> technical resources; the City would combine a private partner who,
> according to specifications of the tender should finance all the
> investments required to even the operating income without investment
> by the city of Sherbrooke," says Mr. Paquin.
>
> The investments of the current owners to acquire and renovate the
> locomotive and three dining cars of the Orford Express would total
> nearly $10 million.
>
> "The gift will subject to professional appraisal, and it will be submitted to
> the Canada Revenue Agency for approval.  STS will be recognized as a
> charitable organization, which should be a formality considering
> that it meets all the criteria."
>
> Resumption of operations is not expected before 2016. The company
> finally received last month the windows of the dome roof that was
> damaged in a fire last year. The train is parked along the lakeside
> promenade of Nations and as the repair should be done in the open,
> it awaits milder temperatures to proceed.
>
> These technical requirements were causing too much uncertainty to
> launch a 2015 season. In prior years the operator has had to cancel
> reservations or to propose alternatives to its customers to honor
> reservations.
>
> "If it is we who provide the stimulus, our concern will be to
> maximize the local benefits. With a season of 47 000 passengers,
> including 80 percent from outside, the benefits including overnight
> stays in 2000 have been estimated at $11 million. It is essential to
>  preserve it, "argues Serge Paquin.
>
> The kitchens of the Orford Express have been moved from Sherbrooke in
> Magog to supply train and cruise ship from the same location.


Full story (French):

L'Orford Express offert gratuitement à la ville



Edited 2 time(s). Last edit at 03/31/15 14:56 by GenePoon.