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Independent Study Confirms Positive Economic Impacts of Rail on Island

Vann Struth Consulting Group ( has recently completed an independent report on the economic impact of construction activities related to restoring and revitalizing rail service on Vancouver Island. The report was commissioned by the Island Corridor Foundation to gauge the immediate economic impact to Vancouver Island residents on the construction aspects of rehabilitating the Island Corridor.

The report states that with a rail construction budget of $304 million, a rail project for the Island would generate $470 million in total economic output, far more than the investment required. Furthermore, it is estimated that 85% of the construction expenditures could be sourced from BC companies and even better, many of the materials required could be purchased from Vancouver Island businesses. The report also highlights $147 million in labour income, providing many opportunities for Island-based workers resulting in immediate flow through benefits directly to the residents of Vancouver Island.

This report demonstrates the incredibly positive impact a full restoration of rail service would have for our Island economy. The work on this corridor can begin immediately, it can put people to work with good paying jobs, across multiple industries, and benefit all on Vancouver Island. We have an opportunity to stimulate our local economy while building a better BC and better Vancouver Island for the future,” said Phil Kent, Co-Chair of the Island Corridor Foundation Board, the owner of the rail asset.

David Screech, Mayor of View Royal agreed, “We are facing enormous challenges in the coming days and months in our economic recovery. The work on the Island rail corridor is an opportunity for us to build critical and desperately needed infrastructure and to energize our local economies at a time we need it most. There has never been a better time to move forward on rail than now.

The full report may be downloaded here.

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