Algoma Central Railway Passenger Rail Service Request for Expression of Interest September 2, 2014

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TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................... 1

Background ......................................................................................... 1

Current Situation ................................................................................. 2

EXPRESSION OF INTEREST INFORMATION ........................................................ 3

General Company Description and Background ............................................. 3

Management and Organization ................................................................. 3

Operations ......................................................................................... 4

Equipment ....................................................................................... 4 Schedule ......................................................................................... 4 Personnel ........................................................................................ 4 Capital Improvements - Trackage and Right of Way ...................................... 4

The Market ......................................................................................... 4

Customer Market Overview ................................................................... 4 Marketing Strategy................................................................................ 6

Key Drivers ...................................................................................... 6 Special Projects/Opportunities ............................................................... 7 Website/Internet ............................................................................... 8 Memberships .................................................................................... 8

Growth Forecast .................................................................................. 8

Revenue and Ridership ........................................................................ 8 Fares/Ticket Prices ............................................................................... 9

APPENDIX A - MAPPINGS

APPENDIX B - EOI REQUIREMENTS

Tel: 705 945 0990 Fax: 705 942 7979 Toll-free: 800 520 3005 www.bdo.ca

BDO Canada LLP 747 Queen Street E PO Box 1109 Sault Ste. Marie ON Canada P6A 5N7

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September 2, 2014

RE: Request for Expressions of Interest (RFEI) for ACR Passenger Train Operation The Sault Ste. Marie Economic Development Corp (SSMEDC), on behalf of a broad range of regional stakeholders and with the endorsement of CN/Algoma Central Railway Incorporated (ACRI) is seeking Expressions of Interest for the operation of the Algoma Central Railway (ACR) Passenger Railway Services that operate from Sault Ste. Marie and Hearst Ontario.

The purpose of this non-binding RFEI is to prequalify companies to participate in a Request for Proposal (“RFP”) process that will identify one or more parties to be retained to operate the ACR Passenger rail services. Respondents are strongly encouraged to view the following sources of documents and information:

• Algoma Passenger Rail http://www.algomapassengerrail.com/

This website prepared by the SSMEDC for the stakeholders includes considerable information on the most recent activities associated with finding a sustainable solution for the operation of the passenger rail service and it includes:

• Algoma Central Railway Passenger Rail Service - ECONOMIC IMPACT ASSESSMENT - August 13, 2014 https://icreate4.esolutionsgroup.ca/230759_SaultSteMarieEDC/en/investlocateexpand/resources/CNPassengerTrainImpactReport_FINAL_08-13-2014.pdf

• Agawa Canyon Revitalization Management Plan http://www.algomapassengerrail.com/

• Agawa Canyon Tour Train - http://www.agawacanyontourtrain.com

• Coalition for Algoma Passenger Trains - http://captrains.ca/

Electronic RFEI submissions and e-mail questions are preferred and must be received no later than 5:00PM ET on September 19, 2014 at ssm@bdo.ca:

c/o Expression of Interest for ACR Passenger Train Operation BDO Canada LLP Chartered Accountants and Advisors 747 Queen Street East Sault Ste. Marie, ON P6A 2A8

Requirements for the Expression of Interest can be found in Appendix B of this document. To facilitate a prompt response to these requirements, respondents may choose to complete, save and return Appendix B which is a form fill .pdf document or provide their own document.

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Please Note:

This RFEI is separate and distinct from the RFEI process being undertaken by CN in parallel to secure a third party operator for the Agawa Canyon Tour Train/Snow Train. Interested parties are encouraged to consider submitting expressions of interest in both RFEI processes as there may be many benefits, efficiencies and operational opportunities to be realized should a third-party be successful in both railway procurement processes. To receive the CN Agawa Canyon Tour Train Request for Expression of Interest document, please contact:

Terry O’Brien, CN, Director of Passenger Services (514) 399-6673 or,

Fady Mansour, CN, Director of Corporate Development (514) 399-4840

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EXECUTIVE SUMMARY Background The Algoma Central Railway operates between Sault Ste. Marie and Hearst. It is wholly controlled by CN, operates under the name Algoma Central Railway Incorporated (ACRI) and is part of CN’s eastern railway operations.

This regional railway connects at its northernmost point with the Ontario Northland Railway and with CN's eastern division to the south. It also intersects with the Canadian Pacific Railway at Franz, ON and with the Huron Central Railway (a short line operation on the CP railway) at its southernmost point in Sault Ste. Marie.

Passenger service on the railway started in the early 1900s. The railway provides passenger train service along its entire route for:

• Tourists and Outdoor Sports and Recreation Participants

• Tourism and Related Service/Retail Businesses

• Private Cottage and Land Owners

• Municipalities & Small Communities

• First Nations

• Other businesses/entrepreneurs

The Algoma Central Railway also runs the Agawa Canyon Tour Train, from the months of June to October. It is a 1 day tour that runs 114 miles from Sault Ste. Marie to Agawa Canyon. This tourist train also includes a Snow Train, which operates for limited periods during the winter months.

Between 2005 and 2013 the railway’s passenger service annual ridership averaged approximately 6,600 ranging from a low of 5,100 to 12,600. Ridership fluctuations are a result of a number of global economic, industry and operational factors.

The Government of Canada annually invests approximately $2.1- $2.2 million to support the operation of this passenger service. A November 2010 study prepared by Transport Canada entitled, Evaluation of Rail Passenger Stewardship and Support, included a number of findings related to the ACR passenger service. It also reviewed transport Canada’s Regional and Remote Passenger Rail Services Class Contribution Program (RRPRSCCP). The findings state:

• Without train service, many of the communities along these RRPRSCCP supported rail lines would have only limited access to the national transportation system;

• The federal government has historically, and sometimes explicitly in its policies, recognized that it has a responsibility for ensuring that remote communities have reasonable access to the national transportation system;

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Current Situation In November 2013, CN was advised by Transport Canada that its remote rail passenger program, which provided operational support for the ACR passenger service was being terminated effective March 31, 2014. In January 2014, CN advised some affected communities that ACR passenger rail service would be ending at the end of March 2014. (CN subsequently extended the deadline to April 30, 2014).

Public and stakeholder reaction was significant and immediate. An ACR Stakeholder Committee was established and Working Group formed, which is chaired by the CAO of the City of Sault Ste. Marie and includes First Nations, affected communities, cottagers, tourist operators and other businesses. An economic impact assessment was prepared by BDO Canada LLP, Chartered Accountant and Advisors, that indicated Total Annual Economic Impact in the range of $38 million to $48 million, plus a one-time economic impact on property values in the range of $60 million to $67 million. An assertive campaign was undertaken to request Transport Canada to extend its support for the ACR passenger service for one year. On April 14, 2014, Canada’s Minister of Transport arrived in Sault Ste. Marie and announced:

“…The one-year extension of federal support for the operation of the ACR passenger rail service will give affected stakeholders as well as local municipal leaders more time to make arrangements for the development of a sustainable long-term solution for the ACR passenger rail service.”

Since the announcement, the ACR Stakeholder Working Group has been exploring a range of options to develop a sustainable long-term solution. Representatives from the working group identified a course of action with CN and agreed on the following:

• CN would undertake a Request for Expression of Interest (RFEI) process to identify and engage a third-party operator of the Agawa Tour Train with input from the Sault Ste. Marie Economic Development Corporation (SSMEDC). Simultaneously, the SSMEDC on behalf of the ACR Stakeholder Working Group and with input from CN, would undertake a RFEI/RFP process to identify and engage a third-party operator for the ACR passenger service.

• These RFEI processes would occur in parallel and provide an opportunity for third party operators to consider submitting expressions of interest to either or both operations.

• CN and Working Group representatives agreed to work closely on both processes to ensure a high level of communication and cooperation to the fullest extent possible.

While this process is underway the ACR Stakeholder Working Group is actively pursuing options in an effort to ensure that there is sufficient financial support for the passenger service from a broad range of sources.

The Stakeholder Working Group is seeking firms who are prepared to work with First Nations and stakeholder’s representatives, the senior levels of government and in particular CN in developing and implementing a sustainable long-term business model for the operation of the ACR passenger service.

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EXPRESSION OF INTEREST INFORMATION General Company Description and Background The Algoma Central Railway (ACR) is a freight and passenger railway in Northern Ontario that operates on the 476 km stretch between Sault Ste. Marie and Hearst, with 1 scheduled intermediate passenger stop in Hawk Junction with numerous flag stops on the ACR line. The area served by the railway is remote, with few public roads. The railway is well known for its Agawa Canyon tour train and also provides passenger train service along its entire route to tourists, cottage and land owners and sports and recreation participants accessing this vast wilderness recreation region, as well as for regular travel between communities. The passenger service provides the primary means for people, personal freight and mail to reach many communities between Sault Ste. Marie and Hearst. See Appendix A for map of ACR Rail Line, roads, trails and water crossings, as well as communities and population settlements along the line.

The Algoma Central Railway (ACR) was purchased by Wisconsin Central Transportation in 1995, which was in turn purchased by Canadian National Railway (CN) in 2001. It is now operated as part of CN's Eastern Division. The railway connects at its northernmost point with the Ontario Northland Railway, intersects the main Canadian National (transcontinental railway) at Oba, Ontario the Canadian Pacific Railway (CP) at Franz, ON and CP’s Sault Ste. Marie to Sudbury railway operated by the Huron Central Railway at its southernmost point in Sault Ste. Marie.

The passenger base is diversified in that it includes natural resource based activities, businesses/entrepreneurs, tourists and outdoor and recreation enthusiasts, private cottage and land owners and others. More significantly, the railway passes through the Treaty No. 9, Robinson Superior Treaty and Robinson Huron Treaty areas. In addition to passengers, the passenger train carries personal baggage, recreational vehicles, perishable and none-perishable items including building materials for cottagers and lodges along the line.

There are several small communities located either directly on the rail line or in its immediate proximity that derive social or economic benefits as a result of its existence. The municipalities include Hearst, Dubreuilville, Wawa and Sault Ste. Marie. Smaller communities include Oba, Franz and Searchmont.

Management and Organization Locally, CN provides for the following positions:

• Manager Passenger Operations

• Supervisor Passenger Operations

• Passenger Marketing Manager

• Passenger Sales Representative

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Operations Equipment

As per contract 156695 between Transport Canada and the ACR-CN, CN purchased and refurbished the cars to replace the previous Hearst fleet. These cars were placed into revenue service during the first quarter of 2007. Further, and as per contract, CN installed shore power at Hearst; this negates the need to have the locomotive idle at the station during layovers. The equipment continues to operate very well and provide safe, comfortable and reliable rail transportation. Maintenance of the equipment is performed at the ACR yard located in Sault Ste Marie.

Schedule

The passenger train operates on Summer Service and Winter Service schedules. The summer and winter service provides three Northbound and three Southbound trains with trains going north; Thursday, Saturday and Monday and south; Friday, Sunday and Tuesday. Given the number of flag stops, track and zone speeds, typical run time is in the range of just over eleven hours.

Personnel

The train is manned with an Engineer, Brakeman and a Conductor. The passenger train is managed locally by four full time employees who report to the Director Passenger Operations. The team organizes the train schedule, sell tickets, and provide information to the public as well as load the baggage car for the north bound train that departs Sault Ste Marie. In addition to the passenger train, they also manage and market the Agawa Tour Train that operates early summer through to Canadian Thanksgiving.

Capital Improvements - Trackage and Right of Way

CN is responsible for all capital programs on the line from Sault Ste. Marie to Hearst. The operator will access the line by way of a negotiated “Access Fee”. No direct capital expenditures will be charged to the operator unless the operator specifically requests such improvements e.g. new station building, platforms etc.

The Market Customer Market Overview

ACR’s passenger service extended all the way to Hearst in October, 1914. It operates through the heart of Algoma District providing year round access to several small towns, numerous lakes and rivers, wilderness lodges/resorts, tourism and recreation experiences, and private cottages. As early as 1909, before the line extended all the way to Hearst, the ACR began marketing to tourists, according to a 1909 ACR brochure aimed at attracting tourists. In the early 1900’s, the ACR advertised camping and scouting locations along the track to promote regional tourism. It built tourist cabins (many of which still exist), including those in which Group of Seven painters stayed from 1918 to 1924. In the 1950’s, the railway intensified its promotion of the natural beauty of the District of Algoma to tourists, especially the Agawa Canyon, a canyon carved by the Agawa River, located 114 rail miles (183 km) north of Sault Ste. Marie, and not accessible by road. The Algoma Central developed a tourist stopover there and it

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proved to be a great success for the railway. Owing to the popularity of the Agawa Canyon excursions, the Algoma Central would run the longest passenger trains in North America, often up to 20 to 24 cars long on dedicated tour train excursions to the Canyon starting in 1972. During the 1970’s and 1980’s, around 100,000 people per year would tour Agawa Canyon. It added an additional tour train product—the Snow Train to the Canyon during the months from December of March.

More recently, the Railway’s main markets have been located in Southern Ontario and the US Mid-west with the primary market being the GTA/South/Southwestern Ontario, closely followed by Michigan and to lesser degrees, Wisconsin, Illinois, Ohio and Indiana.

The ACR markets the following uses of the passenger train: “Tour of the Line” (year-round passenger service between Sault Ste. Marie and Hearst), “Tracks to Trails” (snowmobile excursions), “Wilderness by Rail” (promotion of activities offered by adventure travel/ecotour operators and stays at lodges), and accommodation in the “Camp Car” in the Canyon. As well, The Railway has been taking people to visit Agawa Canyon on the regular Passenger Train since the early 1950’s and began operating a dedicated Tour Train in 1972.

The Passenger Train service base is defined as follows:

• Tourists and Outdoor Sports and Recreation Participants

• This group includes all individuals who hunt, fish and participate in other recreational activities that use the railway, for activities such as photography, painting, kayaking, canoeing, bicycling, snowmobiling and backpacking etc.

• Tourism and Related Service/Retail Businesses

• This group uses the railway to operate, to transport guests/clients to their remote operations, transport goods and materials to their facilities; and to use the railway as a unique promotional and tourism marketing feature that makes their tourism products and accommodations competitive in the marketplace;

• Private Cottage and Land Owners

• This group uses the railway to gain access to their properties and resources and to transport goods, materials, food and supplies;

• Municipalities & Small Communities

• These communities are located either directly on the rail line, or in its immediate proximity and derive social or economic benefits as a result of its existence. The municipalities include Hearst, Dubreuilville, Wawa and Sault Ste. Marie.

• Smaller communities include Oba, Franz, Searchmont and Hawk Junction.

• First Nations

• The railway passes through the Treaty No. 9, Robinson Superior Treaty and Robinson Huron Treaty areas. These traditional areas are used by a number of First Nations for hunting, fishing, trapping and other socio-cultural and resource based activities.

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• Other businesses/entrepreneurs

• Resource based operations who use the passenger service for transportation of employees for forestry, energy and mining activities;

• Trappers who use the passenger service for access to trapping grounds.

For a visual illustration of certain affected stakeholders, please see Appendix A for a map.

Marketing Strategy The marketing of the ACR passenger train is integrated with and very much tied to partnerships with Tourism Sault Ste Marie, Algoma Country and Tourism Northern Ontario.

Key Drivers

Looking at two major groups: in the United States recommended targeting is 50+ males interested in fishing / fishing lodges, and in southern Ontario recommended targeting is people interested in both fishing and soft-outdoor experiences.

For Wilderness by Rail and Tracks to Trails there is a well-rounded campaign that focuses predominately on the US Border States and domestic market. This program includes production of a promotional brochure and distribution services.

The campaign is a robust targeted campaign that combines print, consumer touch and online. Total budget for the past three years that this partnership has been in place, which includes dollars invested by CN, Algoma Country through their position as regional marketing lead for Tourism Northern Ontario and different components of partnership with the Ontario Tourism Marketing Partnership is a total investment of just over $350,000.00. The largest percentage of the dollars were invested in year one which saw the program developed including the new brand, artwork and all photography utilized during the campaigns. The partnership is in the planning stages for the 2014-2015 marketing season at the time of writing.

Algoma Country is a not for profit tourism organization which represents the geography of: Spanish, ON to Sault Ste Marie to White River, to Hearst, Elliot Lake and down to Spanish. Mandates include: marketing, product development and training all for the betterment of the tourism industry in the region. The organization has been marketing in this area since 1974 and is led by a diverse Board of Directors of which each member of the Board represents a sub section of the area geography. The marketing pillars include: touring, nature and outdoors, fishing and hunting.

Tourism Sault Ste. Marie is a division of the Sault Ste. Marie Economic Development Corporation and is responsible for the marketing and product development of tourism in Sault Ste. Marie and surrounding area.

A Management Committee, made up of industry partners meet regularly to assist in the overall development of the Annual Business Plan, as well as the regular updating of the 5-year Strategic Plan

All private sector partners contribute financially to TSSM, with the accommodation sector doing so through a 3% Destination Marketing Fee, with all private sector funds

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being used for either marketing activities or product development. These funds are also used to lever additional funding from Provincial and Federal levels of government.

Through an industry-driven Strategic Plan, TSSM focuses on three (3) key areas, including: Attractions Packaging, Meetings/Conventions/Sports Tourism, and linkages to the Algoma Region for outdoor experiences

Special Projects/Opportunities

1. Tour of the Line - year-round passenger service between Sault Ste. Marie and Hearst)

2. Tracks to Trails - snowmobile excursions are marketed through Algoma Country and the partnership that includes CN, Algoma and Tourism Northern Ontario. This unique snowmobile adventure allows this area to tell the story of a very unique product. Our marketing plan includes print, media fams, and online. This unique experience is approximately 20 percent of the total investment in marketing done by Algoma. Best bet market for this product is predominately Michigan. Statistically, riders do not want to trailer for eight hours.

3. Wilderness by Rail

a. promotion of activities offered by adventure travel / ecotour operators and stays at lodges is a specialty program which focuses on the unique experience located in this region selling rail-based excursions, facilitated by the Algoma Central Railway (ACR). Possible destinations and activities accessible by train include:

i. fishing lodges, ii. canoe / kayaking trips, iii. camping, iv. hiking, v. etc.

4. Accommodation in the “Camp Car” in the Canyon

5. Group of Seven Product Development for Lodge Based Experiences

a. Lodge-Based Experiences Product Concept - Lodge-based experiences include: scheduled or custom small group experiences at higher end wilderness lodge(s) with educational or experiential component focused on Group of Seven that might include:

i. lectures and presentations by experts, ii. art in many forms, iii. painting, iv. sketching, v. photography day trips vi. a venue for artist retreats organized by a third party.

b. Interpretive signage at accessible sites. Minimum of 13 signs will be installed at sites that include the canyon, the Northshore of Lake Superior, the Mississagi Valley and Sault Ste Marie

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c. The recreation of the famous Group of Seven Train Car

d. Development of three training modules which will educate special interest groups, tourism operators that will include properties located along the line and their staff. The modules being developed if the applications are successful are a beginner, an advanced and a train the trainer component.

6. Creative Services/Production

Pictures, copy, maps, and other materials (both digital and traditional), including the brand tool kit for Group of Seven for distribution.

Website/Internet

Reference to passenger train on ACR’s company’s website and includes banner ads, hosting, monthly server maintenance and backup fees.

http://www.agawacanyontourtrain.com/content/tours/passenger

Memberships

Memberships in various group/motor coach associations and regional Tourism Organizations to assist in promoting the Railway’s experiences.

Growth Forecast Revenue and Ridership

Ridership from 2005 to 2013 ranged from 5,166 passengers to 12,640 passengers. Between 2005 and 2008, ACR passenger revenues were between $2.5 million and $2.8 million with an average of $2.65 million. This includes $2.2 million in financial assistance provided by Transport Canada.

Algoma Central Railway Passenger Rail Service

Year Ridership Revenue

2005 12,640 $2.82M

2006 10,646 $2.74M

2007 7,843 $2.60M

2008 6,992 $2.50M

2009 6,102 $2.45M

2010 5,341 $2.45M

2011 5,732 $2.54M

2012 6,256 $2.54M

2013 5,166 $2.49M

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Between 2005 and 2013 the railway’s passenger service annual ridership averaged approximately 6,600 ranging from a low of 5,100 to 12,600. Ridership fluctuations are a result of a number of global economic, industry and operational factors. Revenue is generated from this service in the form of ticket sales for passengers, excess baggage and/or the transport of recreational vehicles. The passenger service has also received a contribution from the Federal Government in support of Remote Passenger Rail Services, which is currently set to expire March 31, 2015.

Fares/Ticket Prices The Railway operates on a Zone Fare/Rate Structure as follows.

Zone 1

0-50 miles $

Zone 2 50-102 miles

$

Zone 3 102-165

miles $

Zone 4 165-200

miles $

Zone 5 200-250

miles $

Zone 6 250-296

miles $

Age Group

Under 5 2013 14.00 24.65 37.05 49.40 61.80 71.35 2012 13.70 24.05 36.15 48.20 60.30 69.60

6-18 2013 19.50 38.40 58.95 79.45 100.05 120.65 2012 19.00 37.45 57.50 77.50 97.60 117.70

19-+ 2013 22.35 48.00 75.35 102.85 130.20 157.60 2012 21.80 46.80 73.50 100.35 127.00 153.75

60-+ 2013 20.90 43.80 68.60 93.20 118.00 142.50 2012 20.40 42.75 66.90 90.95 115.10 138.00

Special round trip fares (Sault Ste. Marie – Hearst) 2013 2012

Under 5 $89.00 $87.00 6-18 $145.00 $141.00 19-+ $233.00 $227.00

Regular base fare ticket prices of late have been increased year over year to match inflation and to be market competitive. January 2013 fares were increased on average about 2.50%.

APPENDIX A - MAPPINGS

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Ontario NorthFishing

Adventures

Cameron LakeFishing Lodges

Watson's Pine Portage

TatnallCamp

WoodsCabins

Errington'sWilderness

IslandMarmac

Lodge

EightyEight

Lodge

CampLochalsh

Loch IslandLodge & Fish

Camp

TotomenaiLodge

WindyLake

Lodge

KwagamaLake Lodge

CanadianAdventure

Spruce HavenWilderness Lodge

Northland24.5

Searchmont32

Wabos36

AchiganLake42

Ogidaki48.5

TroutLake57

Mekatina64.5

SpuceLake71

Batchawana79.8

RandLake85

Regent89.1

Frater103

AgawaCanyon114

Eton120

SandLake138

Anjigami148

HawkJunction165

Perry150

Goudreau178

Wanda188

Franz194

Hilda208

Wabatong206

Mosher218

Dana229

Langdon239

Algoma258

Hale266

Hansen262

Mead273

Coppell281

Wyborn294

The Corporation of the City of Sault Ste. MarieEngineering & Planning DepartmentPlanning DivisionMarch 28, 2014This map is for general reference only.For official mapping, see the Engineering and Planning Department.Orthophoto: NoneVector Data Credit: LIO, Ontario Ministryof Natural Resources.

WACR RAIL LINE ROADS, TRAILS AND WATER CROSSINGS

IMPACT OVERVIEW

0 5 102.5 Kilometers

! Public Road - 32 Crossings

! Private Road - 38 Crossings

! Unknown Road - 15 Crossings

# Public Trail - 2 Crossings

# Private Trail - 2 Crossings

^ Water - 30 Crossings

G ACR Station

!H Lodges

ACR Rail Line

Indian Reserve

Major Roads/Highway

Arterial / Collector

Local

Resource / Recreation

Projection Details:DegreeGCS North American 1983

CROSSINGS BISECTING OR WITHIN 30M OF ACR RAIL LINEFROM NORTHERN BOUNDARY OF THE CITY OF SAULT STE. MARIE TO HEARST, ONTARIO

HEARST

CN

CN

CP

CP

SAULT STE. MARIE

WAWA

DUBREUILVILLE FRANZ

OBA

SEARCHMONT

HORNEPAYNE

CHAPLEAU

GARDEN RIVERFIRST NATION

BATCHAWANAFIRST NATION

MICHIPICOTENFIRST NATION

BRUNSWICK HOUSEFIRST NATION

CHAPLEAU CREEFIRST NATION

MISSANABIE CREEFIRST NATION

CONSTANCE LAKEFIRST NATION

APPENDIX B - EOI REQUIREMENTS The enclosed Expression of Interest Requirements document may be used to electronically submit information. However, it is possible to create your document in a separate file ensuring that the EOI Requirements on the following pages have been met.

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ALGOMA CENTRAL RAILWAY Passenger Rail Service

EOI Requirements Please provide the following information in your submission:

BASIC INFORMATION:

Company (Legal Entity) Name

Corporate Address

Primary Contact Name

Primary Contact Title

Telephone Number

E-mail Address

OPERATING LOCATIONS:

Location from which you would conduct business relative to this RFEI

Address

City

Province / State

Postal Code

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RELEVANT EXPERIENCE AND CAPABILITY:

Please provide:

• Examples of experience in the operation and promotion of tour/passenger related railway operations.

• Experience of the key individuals who will be leading the operation and promotion of the passenger train.

• Experience and examples (if any ) of substantially increasing ridership and revenue on a passenger train service that also has a significant tourism conform component

• Experience and examples (if any) of working with stakeholder groups and tourism organizations as well as developing unique tourism products that combines the benefits of a regular passenger service with unique tourism product offerings

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OPERATING STRATEGY:

Please include an overview of your proposed operating strategy including examples of where you have been successful in growing the market and customer base and some of the strategies you have used to achieve sustainability and profitability.

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LABOUR STRATEGY:

Please provide an overview of your proposed labour strategy including the potential sources of professional staff and labour available to your recruitment strategy and retention approach.

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HEALTH, SAFETY & ENVIRONMENT PROGRAM:

Please detail your companies integrated Health, Safety & Environment (HS&E) program, including:

HS&E statistical information (in the format below) for the last five (5) years:

• Lost Time Injury Frequency (LTIF)

• Recordable Injury Frequency (RIF)

• Severity Rate (SEVERITY)

• Reportable Environmental Incidents (RIF)

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FINANCIAL & CREDIT REFERENCES:

• Audited financial statements for your company for the last three (3) years.

• Liability Insurance - proof of adequate insurance coverage, minimum $100 million.

• Credit references from a m inimum of three financial intuitions, insurers or sureties confirming your company’s maximum ability to provide security.

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CLAIMS DISCLOSURE:

Please indicate any dispute, active or settled, valued in excess of $ 5 million occurring over the past five (5) years.