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Greyhound blames woes on over-regulation

By: Mary Agnes Welch

5/09/2009 1:00 AM | Comments: 11

THE battle over money-losing northern and rural bus routes is threatening to halt cross-Canada Greyhound service altogether, turning the province into a black hole for bus travel.

Greyhound says it would rather dead-end buses at the Manitoba border than continue to cope with provincial regulations that force the company to serve remote towns with few passengers. "We've exhausted all avenues in Manitoba," said Stu Kendrick, Toronto-based senior vice-president for Greyhound. "We can't seem to get right-sized." Greyhound announced Thursday it would pull out of Manitoba at the end of the month and northwestern Ontario in December if Ottawa doesn't pony up a $15-million subsidy, a move the federal government called a bully tactic.

Greyhound's exit will affect thousands of regular passengers, a dozen routes and 160 towns, from Arborg to Zhoda. Northern towns could be particularly hard hit because many First Nations citizens don't have cars and return flights to Winnipeg run well over $1,000. It's those northern routes than have caused Greyhound particular grief over the last several years.

Lynn Lake, where service has already been cut by a day, gets everything from Wal-Mart orders to prescription drugs by bus and sends out everything from water quality samples to medical X-Rays. "The town basically revolves around the bus," said Lynn Lake chief administrative officer Helen Gibson, who is worried cargo service -- which Greyhound has said will continue --could shrink when passenger service disappears.

It used to be that lucrative routes -- the ones in southern Ontario and even the Thompson to Winnipeg run -- would offset losses the company took on runs to places like Lynn Lake. But the downturn in the economy, deep discounts at Via Rail and deregulated air travel have shrunk those profit margins, Kendrick said.

Meanwhile, ridership on many Manitoba routes has declined between eight and 10 per cent a year, and as much as 20 per cent last year.

Kendrick said Manitoba's passenger bus regulator -- the Motor Transport Board -- is among the strictest in the country. Every time Greyhound wants to raise fares, reduce the frequency of a run or stop service to a town, it needs the board's approval.

If Greyhound shrinks service without permission, it faces fines or the loss of its operating licence.

In 2005, the Motor Transport Board hashed through 20 applications from Greyhound to reduce the frequency of 14 routes, cancel the route between Winnipeg and Vita and contract out some runs to smaller companies.

After months of hearings all over the province, the board granted 16 of those requests, but forced Greyhound to continue several northern routes that connect small remote towns with Thompson.

Greyhound appealed to the courts to overturn the decision, but was denied.

Since then, Greyhound says, regulators have stymied attempts to rejig routes to make service more profitable.

However, Alfred Rivers, chairman of the board, says Greyhound has asked for a half-dozen reductions to its routes in the last couple of years and several fare hikes -- and has won them all.

"Since 2007, they've not been denied once," Rivers said.

maryagnes.welch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition September 5, 2009 A3

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11 Commentscomment icon

NDP. START YOUR OWN BUS LINES. GREY HOUND FORCED THE SMALLER LINES OUT. GOOD BYE GREY HOUND.

NDP. START YOUR OWN BUS LINES. GREY HOUND FORCED THE SMALLER LINES OUT. GOOD BYE GREY HOUND.

Deregulate the bus services - allow all bus services/companies to bid on a route and let the profit and loss statement for each route decide where the buses are routed - the market will quickly decide which bus service is available

[edited] they should have the license to carry packages revoked. Also, it's likely the new terminal was built with largely government money. I wonder if there isn't something in this announcement that breaks the terms of those agreements?

If they intend to send vehicles to those locations anyway, do they intend to send small vehicles that carry parcels only?

If they're going to dead-end buses at the Manitoba border, I wonder how they intend to do cross Canada service? How do you get someone from Halifax to Vancouver without crossing Manitoba? Another large corporation looking for handouts.

I hope the government stands firm on this. Maybe Via Rail or the like should branch out into providing bus service.

Does anyone remember the 10 mil loan to Motorcoach that was supposed to keep them here. Not long after they were gone. I think deregulating the industry would open up new and innovative ways to transport goods and people. I thought we live in a democracy in Canada but I guess that's only for the individual and not the governments and large biz who are allowed to operate monopolies under the guise of democracy. Sounds alot like despotisim to me. What happened to all the abandoned rail tracks that could be turned into express ways using smaller fuel efficient passenger vehicles. Now that would be innovative. Common NDP let's have some visionary ideas for the future of our province.

Has anyone thought of designing a smaller, more efficient bus that would be able to utilize the greater space for shipping, yet have fewer seats for passengers if that is what is required? These buses may look strange, but if the passenger service or numbers are not there, then something has to give. This might seem to be a heavy handed approach by Greyhound, yet if it isn't working, then the big question is WHY,and what is needed to get it done?

If the provincial government, who states that they are concerned with the environment in this province, just hand over millions of dollars annually, how is this better? Operating out dated equipment is wrong, and if the province is to be ponying up the cash, can't they request some alternatives be looked into?

Does Greyhound have hybrid buses? What environmentally friendly ideas are Greyhound considering, or is it the status quo in regard to the equipment that they use? Could you have a bus that runs on used cooking oil from the restaurants up north, so that is not wasted or thrown away any more? Maybe this is the time to really shake up this industry in a manner never thought of before.

As usual, the poll question oversimplifies the matter, and tries to turn it into simple black and white. No, I don't approve of government subsidies for any business ever(no matter how generous their lobby group is), AND I don't approve of the government "regulators" telling Greyhound(or any other business) what routes they have to run, and how to run their business, profit and free market be damned.

I would like to add that if Greyhound ceases passenger traffic, they should lose their license for freight. Tell they to leave and let a local operator run the business.

This is a classic example of a corporation that is attempting to blackmail its customers. The fat cats in their Calgary office have no understanding how to operate a company. They are a disgrace!!!

Hopefully, Beaver Bus Lines and other local firms are working on proposals to replace Greyhound. This could turn out to be a boon to Manitoba business. Customer dissatisfaction with Greyhound seems to be high and the company's recent moves have been regarded as consumer-hostile. Rather than panicking the public, big business selfishness is fueling a cry for change and viable alternatives.

Greyhound bought up a number of bus lines in Manitoba to eliminate any possible competition. They have then tried to eliminate all of the unprofitable routes. The Dog has been nothing but a greedy carpetbagger who is now trying to blackmail the citizens of Manitoba. The company is a posterchild for mis-management. Tell them to turn in their license and leave. Greyhound and its present management are a disgrace!!!!!!

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