Go Transit

Ticket to rideGO Transit CEO Gary McNeil explains the advantage of using strategically based stations, and shares the companyÔÇÖs expansion plans with Jenn Monroe. The price of fuel should make public transportation an attractive choice for travel in major metropolitan areas such as Toronto, Ontario, but unlike in the 1970s, todayÔÇÖs consumers do not seem to be driving much less than usual. ÔÇ£What attracts people to us is good service and a viable choice for travel," said Gary McNeil, managing director & CEO of GO Transit.┬á GO Transit is CanadaÔÇÖs first, and OntarioÔÇÖs only, interregional public transit system, linking Toronto with the surrounding regions of the Greater Toronto Area (GTA). It carries more than 50 million passengers a year with an extensive network of train and bus services, running 181 train trips and 1,814 bus trips daily, which equates to about 205,000 passengers each day (170,000 by train and 35,000 by bus). GO Transit recovers 80 to 90 percent of its operating revenue through the fare-boxÔÇöone of the best financial performances for any transit system in the world.┬á So if it isnÔÇÖt gas prices, what does attract riders to GO Transit? ÔÇ£Unlike other transit systems, weÔÇÖve really identified what customers need,ÔÇØ McNeil said, ÔÇ£which is access to stations.ÔÇØ GO Transit has found that strategically placed stations with ample parking have helped it maintain its five percent growth each year for the past decade. ÔÇ£Instead of seeing the automobile as the enemy, weÔÇÖve embraced it,ÔÇØ he explained. ÔÇ£We have to get those people out of their cars by intercepting trips. WeÔÇÖre really focusing on getting people to the station.ÔÇØPassenger rail service is not an easy business, and the challenges facing GO Transit are daunting. It owns just a fraction of the tracks it uses, and depends upon long-standing relationships with national freight companies Canadian National Railway and Canadian Pacific Railway. ÔÇ£The freight railway relationship is very monopolistic,ÔÇØ McNeil said. ÔÇ£Any time we look at expansion, it is 100 percent our cost. It is a very expensive proposition.ÔÇØFor several decades, GO Transit depended upon CN and CP for maintenance and crews as well. But in the 1990s it looked for competitive pricing for maintenance, found Bombardier Transportation, saved significantly on its costs and got excellent service. As of June 2008, it will begin using crews from Bombardier, too. ÔÇ£They are more customer service oriented,ÔÇØ McNeil said. ÔÇ£We get competitive pricing and dedicated crews.ÔÇØWhat made it easier for GO Transit to find another supplier was the freight companiesÔÇÖ decision to focus on their core competencyÔÇöfreight. With the recent renaissance in rail, the freight business is seeing as much, if not more, success than the passenger business, but this has led to yet another challengeÔÇöinsufficient rail capacity. ÔÇ£Because we donÔÇÖt own most of our tracks we are in constant competition with the freight,ÔÇØ McNeil said. ÔÇ£Sometimes we take hits in on-time performance. We were at 95 percent for years, but in the past five years, because there are more trains, weÔÇÖve used up 100 percent of the capacity. WeÔÇÖre operating at 89 percent on-time, which isnÔÇÖt terrible but is significant enough that we see the difference.ÔÇØMuch of the capacity trouble stems from years of under-funding of the rail system. ÔÇ£WeÔÇÖd used up all of the capacity by the 1990s,ÔÇØ McNeil said, ÔÇ£and now weÔÇÖre trying to catch up. For years the government was investing in roads and bridges when really it needed to be investing in all aspects of the transportation system.ÔÇØFor its part, GO Transit has extensive expansion plans. Among them, replacing the 80-year-old signal system at Union Station (which McNeil referred to as the companyÔÇÖs ÔÇ£heartÔÇØ) with a $281 million computerized system. Because it will be making the switch while operating at full capacity, the change will take five years to complete. McNeil said the company is planning to protect the old system as a museum. Union StationÔÇÖs 80-acre heritage roof will also be replaced and feature an atrium.GO Transit is also in the process of replacing its 20-year-old fleet of engines. Twenty seven engines are already on order, with an option to buy a further twenty six. The new MotivePower engines, of which two are now in operation, can pull a 12-car train, which allows GO to increase capacity. McNeil said the engines will be arriving at a rate of two a month for the rest of the year.While much focus is on its rail services, GO Transit also is growing its commuter bus service. Its 316 buses provide services to locations the rails do not, and also are used along the rail routes during off-peak periods. GO Transit also is preparing for the arrival of the first of 22 new Alexander Dennis double-deck commuter buses to be used in peak corridors. McNeil said he believes the buses, because they are unlike any others, will attract new riders. They will also carry more people without an increase in operating costs.Overall, it is not fancy new buses or faster trains that make the difference in how GO Transit does business, however. It is, rather, the companyÔÇÖs overall approach to service. ÔÇ£We donÔÇÖt provide ÔÇÿpolicy-service,ÔÇÖÔÇØ McNeil explained. ÔÇ£We put service out based on demand. This allows flexibility and cost control.ÔÇØGO Transit is also feeling the impact of rising fuel costs. All of its equipment runs on diesel, and it uses natural gas to run the hot air blowers that keep the track switches from freezing during the winter months. Its solution has had to be, in part, annual fare increases. ÔÇ£WeÔÇÖve adopted a 10 to 15 cent increase each year,ÔÇØ McNeil said. ÔÇ£We explain to the passengers why we do it and weÔÇÖve kept the fares competitive.ÔÇØFirst published April 2008