Esquimalt & Nanaimo - A charity?

[Ken V]

"Business Edge" reported on a plan that would turn the E&N property over to a new charitable organization while allowing continued operation by Rail America (for freight) and VIA Rail (for passenger). To read more see: BusinessEdge.ca

In my opinion, this idea seems way out there. Maybe this is the kind of thinking that might just turn the railway around but I doubt it will happen.

[ENR3870]

The Esquimalt and Nanaimo Railway would be the contracted company to operate the railway. A publicly owned rail line could have many advantages over privately owned rail lines, no property taxes as the land would be owned by the communities or a non profit holding company, as a public transportation corridor the railway would be privy to grants and other monies from differnent levels of government(ie. the VIRC could secure the funds needed to rebuild the line to Crofton, that CP abandoned 20 years ago, whereas the E&N as a private company is unable to pay) that private companies would have to use money from their income. The Esquimalt and Nanaimo railway would be able to provide rates for hauling freight that would better compete with trucks, although according to the Top Shelf Feeds in Duncan, rail costs less than trucks as the E&N doesn't rely on BC Ferries for their mainland connection.

If it was very unlikely that the VIRC would be granted charitable status, why would Rail America be sticking around? RA must see some light at the end of the tunnel(no pun intended). Otherwise, there's no point in keeping the E&N running, and IMHO the E&N should be abandoned.

While the railway would be preserved, some of the E&N's assets would be on the chopping block.