Calgary-to-banff passenger rail link gaining steam

Interest from Ottawa, investors and the province's backing means the reality of passenger rail service linking Calgary's airport with Banff is well on track, say those pushing the project.

The proposal would also connect the city's downtown to its airport — a long-sought goal that has appeared tantalizingly close with recent northeast extensions of Calgary's LRT system.

“It would be absolutely fabulous ... a link to the airport is a must,” said Coun. Shane Keating. “Whether this concept is financially feasible is another question.”

Private investor interest in the project has been sparked by a memorandum of understanding signed between Alberta Transportation and the Canada Infrastructure Bank (CIB) in June 2020, say officials with Invest Alberta, a provincial Crown corporation.

The 150-kilometre link would include three stations in Calgary, including the airport and downtown, as well as stops at Cochrane, Morley, Canmore and Banff on a dedicated line following the existing CP Rail corridor.

Calgary International Airport could see 10 departures a day to Canada's busiest national park, which hosts more than four million visitors in a typical year.

Boosting the province's tourism industry by directly connecting international travellers with Banff National Park is the concept's main focus, say proponents.

“The Yyc-calgary-banff rail project has the potential to be the first airport-to-mountain community transit solution of its kind in North America, making Alberta an even more compelling destination for global visitors year-round,” Premier Jason Kenney said in a statement, adding the possibility the train could be powered by hydrogen also adds an environmentally sustainable component.

Invest Alberta said it will continue to assess the more than $1-billion project by engaging First Nations and municipalities in consultation over the rail link that would be developed under a public-private partnership (P3) model.

But there's growing confidence that the ambitious vision is economically realistic given the signal sent by the CIB, said David Knight Legg, Invest Alberta's founding chief executive.

“The best test of economic feasibility is the CIB saying they'll fund 50 per cent of it, and they're pretty tough customers,” said Knight Legg.

“All the principal owners have come together — it's very hard to find projects where the federal government, the CIB and the province come together. It's pretty exciting.”

While CP would provide the rail bed, the project developer would be Liricon Capital Ltd., which owns the Mount Norquay ski area and holds a long-term lease of the existing Banff train station.

The hope is to have a final agreement on the concept by the end of the year, with construction beginning in 2022 and the line becoming operational in 2025.

But much work needs to be done before that becomes a reality, said Knight Legg, who nonetheless predicts it will.

The concept has the potential to significantly bolster a tourism industry increasingly crucial in diversifying the province's economy, said Mayor Naheed Nenshi.

“I'm excited to see sustainable rail service connecting the Calgary International Airport, our downtown and the Town of Banff moving forward,” said Nenshi.

“This would be a boost to our travel and tourism industry, and I'm happy to see progress is being made.”

Echoing those comments was Banff Mayor Karen Sorenson, adding the line would reduce congestion on the Trans-canada Highway that's been increasing in recent years.

And the chief executive of Banff Lake Louise Tourism noted hospitality sector promoters have been working for years for just such a link.

“The passenger rail system being explored will be absolutely beneficial to our region, providing a more sustainable option for people coming from Calgary to access the mountains,” Bruce Leslie said on Thursday.

“Not only will it contribute to reducing traffic congestion, but it will provide a unique experience for visitors that will be a nod to our historic roots of travel by train.”

A rail link running through the downtown would be a massive tonic for the city's core, said Knight Legg.

“Right now, over two million people a year are skipping Calgary when they land to go to Banff, just going straight out on Stoney Trail,” he said.

The preliminary blueprint envisions a rail line running from the airport southward, parallel to the existing CP tracks along the west side of Deerfoot Trail before crossing the Bow River on an existing bridge.

It's not yet certain where a downtown station would be located, said Knight Legg.

Another stop could be located on the northwest edge of Calgary “but there'll be people requesting stops all along the line,” he said.

Passenger rail service from Calgary through the mountains ended in January 1990 after Ottawa scrapped the southern line — due to deep budget cuts — in favour of a northern route through Edmonton and Jasper.

In recent months, the province has also agreed to work with the prospective developers of a highspeed rail link between Edmonton and Calgary, and of an elevated electromagnetic one proposed to connect the two cities.

Those behind the two projects are still raising private funding and no actual construction is imminent.