VIA Rail Canada: We believe we can raise the money to build our own tracks

April 27, 2015

Vanessa Lu, business reporter for the Toronto Star reports with freight traffic clogging railroads, VIA Rail Canada is considering a strategy to raise $3 billion (CDN) in private investment to build dedicated passenger tracks from Toronto to Ottawa, the nation’s capital, and Montreal.

VIA Rail is looking at raising $3 billion in private investment to buy and build its own dedicated passenger tracks from Toronto to Ottawa and Montreal, a move that could speed up service dramatically.

“We think there is enough money in the Canadian market to fund this type of investment,” said Yves Desjardins-Siciliano, VIA Rail’s president and chief executive officer, interviewed Monday at Union Station. He pointed to pension plans or insurance funds as likely investors for the proposal.

He would go out to the global market to find interested investors – possibly as a public-private partnership, promising “double digit” returns. Or it could be bonds, or even green bonds.

“It’s an excellent time to raise money for infrastructure,” Desjardins-Siciliano said, pointing to low interest rates.

Institutional investors have slowly diversified from equity investments and fixed income into long-term infrastructure, such as toll highways, airports and even rail infrastructure.

Read the complete story at the star.com by clicking here.

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