Banff, Alta., in May, 2025. A Calgary-to-Banff route could eventually be part of a larger Alberta network, as described in the province’s Passenger Rail Master Plan, released in June.Jeff McIntosh/The Canadian Press
A multibillion-dollar proposal to build a passenger-rail service between Calgary and the resort town of Banff is advancing to the next stage of development after the consortium backing it submitted plans to the Alberta government.
Liricon Capital Ltd., owned by husband-and-wife team Adam and Jan Waterous, and Plenary Americas, a unit of Caisse de dépôt et placement du Québec, say they could have the much-discussed service up and running by 2030 – providing the province moves forward with a proposed downtown connection from the Calgary airport. There is currently no timeline for that connection.
With the submission made on Friday, Liricon and Plenary are starting the final stage of development before government and regulators decide on whether to approve construction of the 125-kilometre link from Calgary for hydrogen-powered trains. Construction could begin late next year, the consortium said.
It is one of a number of passenger-rail proposals across the country, part of an anticipated infrastructure-construction blitz. There are also plans for route between the Edmonton International Airport and that city’s downtown, and new high-speed lines between Edmonton and Calgary, as well as Toronto and Quebec City. A Calgary-to-Banff route could eventually be part of a larger Alberta network, as described in the province’s Passenger Rail Master Plan, released in June.
In it, the government said it will spend $15-million over the next three years studying airport rail links as the backbone of larger passenger networks.
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Mr. Waterous, who is also the founder of Waterous Energy Fund and executive chair of Strathcona Resources Ltd., said a major benefit of the consortium’s proposal is that it will finance the project itself and require no taxpayer money from the province. However, the government would be responsible for constructing the airport-to-downtown route.
The proponents are proposing to secure debt financing from the Canada Infrastructure Bank. CIB and Plenary are prepared to take the risk on revenue, rather than have construction grants or operating subsidies, Mr. Waterous said.
“Ours is completely unique. We think we’re going to earn a profit, and a return on our capital investment,” he said.
He declined to divulge the expected capital cost, but noted that laying new tracks in an existing corridor, as is being planned, can cost about $20-million per kilometre.
The consortium aims to strike a new agreement with CPKC to use its right-of-way to build dedicated tracks, rather than use lines that are now busy with freight trains. Indeed, conflicting passenger-freight schedules was one reason Via Rail abandoned its service on that route in 1990 as on-time service suffered, Ms. Waterous noted.
The Waterouses have been planning the rail link for more than a decade, saying it would help to reduce traffic congestion in Banff National Park as tourism numbers surge, and also ease housing shortages for service-industry workers in Banff and nearby Canmore. Their company leases the historic Banff train station and runs the Mt. Norquay ski resort.
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Under the proposal, the province would form a Crown corporation or agency for the commuter service from the Calgary airport to a new “grand central station” along 9th Avenue SE. That new station could integrate a platform for the city’s Green Line LRT currently under construction. Heading west along the CPKC rail right-of-way, the train would make two more stops in downtown Calgary.
At the third station, the Calgary-to-Banff section would begin, with stops in the west end of the city, then in Cochrane, the Stoney-Nakoda Nations, Canmore and Banff.
In terms of fares, the proponents are using a Swiss model, under which international tourists pay a much higher, business-class rate than locals from Calgary and other nearby areas.
With the proposal submitted, Liricon and Plenary said the province could still invite other applicants to compete for the project.
Devin Dreeshen, Alberta’s Minister of Transportation and Economic Corridors, said in a statement that the government is just beginning its competitive process to determine how private operators can help realize passenger-rail travel. That includes examining financing and delivery models.
Mr. Dreeshen said Calgary-to-Banff is part of a 30-year rail network envisioned by the master plan, but he declined to comment on the Liricon/Plenary proposal specifically.
He also said no decision has been made about forming a Crown corporation to build the Calgary airport-to-downtown connection.