LAKELAND – During the Town’s regular council meeting on Aug. 28, council deliberated sending a letter of support for Cold Shot, with Mayor Maureen Miller noting that Greyhound ran into similar issues with the provincial government. “[Greyhound] found it difficult to survive, and when they went to the [provincial] government and asked for funding... the government said no.”
Miller said that when Greyhound stopped its operations, Cold Shot was one of the businesses that supported the community, “and they’re having a difficult time maintaining, so they’re appealing to the government again for support.”
Every Tuesday to Friday, Cold Shot has a route from Bonnyville to St. Paul, with the departure time at 3:05 p.m., and arrival at 3:50 p.m. There is also a route from St. Paul to Smoky Lake, with the departure time at 3:55 p.m., and arrival at 4:55 p.m. Tickets are $84.99, according to the Cold Shot website.
Coun. Sid Sood expressed his concern with the price, noting it is expensive for people, but recognized that if Cold Shot stops its operations, “Then you have nothing.” There would be no bus services at all.
Miller agreed, noting the Town of St. Paul is also hoping to do a transportation study and applied for a grant.
CAO Steve Jeffery said administration hasn’t heard anything back from the government yet about the grant.
Coun. Ron Boisvert motioned to provide a letter of support. The motion passed.
Background
It has been five years since Greyhound stopped its operations in Western Canada, which includes Alberta. Cold Shot, a private bus service company, took over 11 routes, becoming the province’s biggest rural bus network.
And at the end of 2022, Cold Shot sought the provincial government’s help to continue its operations, citing increased input prices like fuel, according to a November 2022 Cold Shot letter addressed to the Office of the Premier, retrieved by Lakeland This Week through the Town of St. Paul.
Cold Shot claimed it provides the lowest prices among all inter-city transport companies. “Our operations serve to the far reaches of the province—the so-called ‘milk runs’, as opposed to the ‘cream runs’ between larger centres,” said Sunny Balwaria, CEO and president of the company, in the letter.
Balwaria said inflation replaced COVID-19 as a threat to its operations. In February 2022, fuel cost the company $53,000, compared to $90,000 in September 2022.
Despite increases in input prices, Balwaria claimed the bus company’s prices remained “stable,” adding without government support, “We will not survive long enough to participate fully in the recovery from COVID – already, we have had to reduce our routes from 11 to six.”
Balwaria also stated previous requests for assistance were turned down by the previous provincial government due to the company’s status as a for-profit enterprise. Despite its status as a for-profit enterprise, Balwaria indicated in the letter that for almost three years, it was losing rather than making money, turning to financing to keep its operations going.
Balwaria requested the government review its policies in light of the damages caused by the pandemic, as well as the ongoing impact of inflation.
As of November 2022, the company projected its daily bus operating costs amounted to $13,229 for driver wages, insurance, fuel, maintenance, and cleaning to an annual total of $3.4 million.
He suggested the funding be given quarterly, and that the company will provide transparent accounting of where the money will go. Balwaria said the funding will be allocated to its operating services, and not be used to pay its debts or overhead expenses.
No provincial program funding private bus companies
In January 2023, Minister of Transportation and Economic Corridors Devin Dreeshen, responded to the letter, also retrieved by Lakeland This Week through the Town of St. Paul. In the letter, Dreeshen thanked Cold Shot for its services
Dreeshen said there are no provincial program funding private bus companies, but acknowledged the private intercity busing industry serves “as a critical backbone of the transportation system” for Albertans living in rural and remote communities.
He said in recognition of this, the previous minister of Transportation and Economic Corridors, urged the federal government to consider providing “greater support for this industry by expanding eligibility under the Rural Transit Solutions Fund,” and that the department will continue to “work with rural municipalities to hear concerns and consider options to support public transportation for rural residents.”
He also said the department is evaluating the Rural Transit Solutions Fund, launched in 2018, to “determine the next steps for rural transportation in Alberta.”
Following the provincial elections, Balwaria sent a letter back, congratulating Dreeshen for his re-election and re-appointment. He also said, “I hope that the intervening six months have been sufficient to assess the situation and identify solutions,” referring to Dreeshen’s letter that the department will evaluate the Rural Transit Solutions Fund.
