REPLACING A RUNNING DOG

Greyhound buses made their last stops across Western Canada Wednesday. For the company, whose coaches emblazoned with the iconic running-dog logo have traversed the region for nearly 90 years, it was the end of an era.

But was it also the end of the line for residents of more than 100 Alberta communities, many small and rural, when it comes to a lowcost lifeline to the wider world?

That certainly seemed to be the case in early July when Greyhound announced it was ending service because of high costs and declining ridership — down 41 per cent since 2010.

Growing competition from discount airlines, widespread car ownership, and relatively low gas prices — along with the vastness and sparse population of many of its markets — doomed the company’s business model.

At the same time, many residents in the rural communities Greyhound served had few affordable and practical alternatives for getting to medical appointments, visiting family and friends or shipping and receiving parcels.

But four months later, their situation isn’t nearly as dire as it first looked.

More than 82 per cent of routes previously served by Greyhound are being covered by rival private-sector carriers that have expanded their operations to fill the void, according to Alberta Transportation.

By using smaller vehicles or focusing on the most promising routes, these competitors hope to thrive where Greyhound struggled.

It’s not a perfect fix. Some 18 per cent of routes once served by Greyhound still won’t have inter-community bus service. The economics make it challenging for any private carrier.

That’s where the public sector is stepping in; the provincial and federal governments are investing up to $2 million per year over two years to provide service to small and rural communities. The money will be an incentive for companies to fill the remaining service gaps.

The Alberta government also announced in the summer $1.4 million over two years for four pilot projects that will start this fall connecting small communities with medium-sized cities. The projects include a regular shuttle bus between Camrose and Edmonton, regional transit linking Grande Prairie with five nearby towns, and expanded van service between Spirit River, Rycroft and Grande Prairie.

Meanwhile, Canada’s Indigenous Services Minister Jane Philpott says her department will subsidize bus services to remote Indigenous communities where needed.

Given the low populations of Alberta’s farflung rural communities and the lack of transit options, it’s one time government intervention in the marketplace makes sense — to provide a public good the private sector can’t.