Rapido at 20: Of Tariffs and Trains

This year marks the twentieth anniversary of our very own Rapido Trains Inc. It seems like just yesterday was the company's fifteenth anniversary. But is the company still our very own? The only thing that is constant is change, and things seem to be shifting under our feet these days. Hence, the title of this post, spawned by a recent viewing of a remarkable Rapido video. I've included screenshots with Youtube's sometimes wonky close-captioning to show I'm not making this stuff up! I'm unsure whether I should classify this post as an editorial, a news post or an April Fool's post!!

The video is 14+ minutes long - you should probably watch it - and in it, Rapido's Dan Garcia does a mock interview with mock President Jason Shron. (The actual president of the company is Jordan Smith. Then I find out Jordan Smith is apparently not a real person. Jason's initials JS were used to create an alter-ego to make Jordan seem more 'real'!). I call it a mock interview because it felt like the questions and answered were planned, if not scripted. The results were likely known ahead of time, like the results of every Russian or Chinese election. 

This video had 12,000 views in just over 48 hours. I was expecting a great discussion in the very dangerous Comments section. However, comments were turned off for this video. That's one reason I'm publishing this post. Regular Rapido videos engender lots of comments saying "love your videos", alternatively "you guys need to get more serious" and sniping about Rapido quality control, oh, and the one guy who always requests U33C's. So Rapido got serious and the topic was not up for discussion. Several questions and answers seemed variously unusual, understandable, unexpected, gobsmacking, flabbergasting and flummoxing.

Get a group of Canadian model railroaders together and I guarantee you that Rapido will come up as a topic of conversation in the first ten minutes. Let me say off the top that for purposes of piety I do not consider myself a Shronian. To quote the late, great Christopher Plummer in The Sound of Music, "You'll never be one of them, Kurt!". I just don't have adequate acute allegiance of a Shronian. Similarly, I didn't consider myself a dyed-in-the-wool "Union person" blindly following whatever edicts emanated from union leadership, while I paid $1000+ each working year in union dues. I was a follower, and I was a member, but I was not always a loyal lemming. It's fair to say that I've slagged and lauded Rapido equally throughout its history.

Now celebrating 20 years, and 50 years of its real President on this planet, Rapido finds itself intractably involved in the dumb tariffs imposed by the current misguided US administration on next-door neighbours that aren't doing Canadians any favours. It all sounds very macroeconomical, but large and small companies in this country find themselves forced to formulate and share preparatory plans in response, including this video. Rapido has taken the unprecedented step of establishing a complete operation inside the US: office, warehouse, staff and payroll in beautiful Buffalo for its ever-increasing number of US employees and designers. 

The tariff-induced model business model is to stock and ship US roads from Buffalo and Canadian prototypes for Markham (Toronto). Shipments to Buffalo and Markham will come directly from China. Not so much to avoid tariffs but to make sure the rapidly-sinking Canadian dollar - it's not tariff-based, it's currency-exchange based. Warranty repairs will be handled within the country of origin, with regular stock shipments weekly between countries.

This is seismic - a major shift in Rapido's marketing and production, already tri-nationally split between Canada, China and the US. And isn't it odd that the these were the first three countries involved in this trade war? We've known for some time that being a major presence in the American model railroad (or as they pronounce it, and it drives me nuts, Ray-Road) marketplace. Guess I'm not the only one with this train of thought, based on this social media comment:

Geographically, Canada a crepe-thin demographic distribution of citizens along the US border. The US, by comparison, is a huge mille-feuilles polyglot* with 10x the population, therefore 10x hobbyists sitting on significantly higher disposable income to spend on model trains. That monstrous market is why so many of our talented artists have to go Stateside, or to Europe, to 'make it big' before returning home to an adoring Canadian public. (*It's also why there are so many places named Springfield, one in every only 37 states and on The Simpsons.)

Rapido's website lists over 30 locomotives, 45 freight cars and 15 passenger cars in hundreds of paint schemes in HO scale, a few of which are well-known and unique Canadian models: GMD-1's, Angus Shops vans, RS-18s. One noted Canadian club modeller noted that 30 of his wished-for prototypes have been made, with maybe 10 more nice-to-haves to come. Some production has been aligned with runs of similar US prototypes, even if it means foobies. I can never un-see the CR and CSX Angus vans! 

Artificial Intelligence (lacking Actual Intelligence) tells us that Rapido has "produced about 25 different passenger car models, half a dozen different locomotives, freight cars, accessories, and more." AI doesn't show me the next sentence that it used to train its machine, "but the vast majority of the work is done by just five of us: three in Canada, one in the States and one in China." There are now 30 employees including the two presidents.

So of course Rapido needs to thrive in the US if it is to survive. For years now, Rapido has been broadly advertising across the border via the US model railroad press, plus social media internationally. Niche models that have been repeatedly requested by Canadians - but perennially not produced - like RS-23s and S-13s are small runs that won't translate into big US sales. Rapido does NOT produce stock but instead fills pre-orders. Ninety per-cent of its sales at discounts through retailers and a few distributors, reducing available profits. Once runs have been produced, products are rarely re-run.

With 70% of sales in the US now and projected to increase to 80-90%, and many models designed by American designers of American prototypes, Jason acknowledges in the video that it's already a crowded market for US prototypes. The CryoTrans and auto-flood coal hoppers were big sellers amongst other American models that were last tooled in the 1990s. Fat ladders, fad stirrup steps and fat walkways, oh my! I think tariffs were the springboard that has catapulted Rapido into the US pool!

The video includes the tired trope rhetorically asking why Rapido is producing Model X? "Why do we need this? Jason needs it for his layout." Really? The layout that MIGHT be completed when he's a senior citizen?  The layer-cake line linking Brockville, Kingston (!) and Guildwood but nowhere close to Spadina, its intended centre of interest? Yeah, that one. I think that trope train left the station a long time ago!

So I wish Rapido and Jason well. The fact that his company has remained viable for these 20 years and has grown, has a solid reputation and obviously huge uptake across the North American (and UK!) market is a testament to the their mantra (Quality. Style. Spirit.) and their hard work. These are the facts, and they are undisputed (A Few Good Men reference). Check out this logo that reflects their EXPOnential growth and maybe their EXPOrt experience:

I have told Jason that I'm delighted with the Rapido products on my layout: RS-18s, Angus vans, a coach, a covered hopper. They are a tribute to him and his company. Consider this post a historical plaque, a milestone marker, a digital date-stamp. We'll all be watching as our world continues to change and Rapido changes along with it. 

Running extra...

The first recorded use of the term 'doublavay' by someone else other than your humble blogger. Used to denote a J-train of two Venture consists, this term will become a lot more common after April 1, when it's expected that all J-trains will be 'doublavays' perhaps to defeat CN-imposed crossing speed reductions. Excellent David McCormack photo posted to Instagram on March 15 showing VIA Nos 643 (Set 8) and 62/52 (Set 15 leading):

Got a train show? Need a train show? Trevor Marshall is compiling a list of 2025 train shows. More here.

VIA and CN in Federal Court - The Facts, Part 3

As I continue to garner (and generate posts here!) more public documents from the Federal Court case, I've been sharing their contents and how they comprised the application for judicial review. Having not been heard, due to CN's motion to strike, the case has been taken to the Quebec Superior Court while Transport Canada (TC) digests CN's submitted grade crossing protection data. On December 10, 2024 Ministerial Order MO 24-01 required CN to supply Transport Canada with information pertaining to approximately 300 crossings within 30 days. CN submitted data pursuant to this order by January 9, 2025. Watch for an upcoming post profiling the Ministerial Order.

The initial "facts" from this Federal Court case has now grown into a series of at least four posts:

• VIA and CN in Federal Court - The Facts, Part 1
• VIA and CN in Federal Court - The Facts, Part 2
• VIA and CN in Federal Court - The Facts, Part 3 (you're reading it!
• CN-VIA Train Service Agreements

In this post, you'll find these gems that I've recently gleaned from the following chronological submissions to the Court:

• Record of the Attorney-General of Canada (AGC) in response to CN
• VIA's response to CN's Motion to Strike
• VIA's application to the Canadian Transportation Agency
• CN's answer to VIA to the Canadian Transportation Agency

Although in a previous post profiling CN-VIA Train Service Agreement (TSA) I suggested the TSA may be the grounds upon which the judge based her decision, it now appears to me that the AGC submission re: jurisdiction may have been what led to the Court not hearing VIA's application for judicial review. The AGC material was submitted on January 23, 2025 slightly less than one month before VIA's application was to be heard in Federal Court in Montreal.

RECORD OF THE ATTORNEY-GENERAL OF CANADA (AGC) IN RESPONSE TO CN'S JURISDICTION MOTION PER FEDERAL COURT RULE 365

The AGC included 291 pages of material in its submission to the Court. An overview of the AGC's position:

1. CN says VIA is not a federal board, commission or other tribunal.

2. The AGC agrees that VIA's application is not in the Court's jurisdiction and should be struck.

3. CN's decision is a purely contractual matter not within the Court's jurisdiction.

4. Since the application was filed by VIA, the Minister ordered CN to provide data as above, ensuring compliance with regulatory requirements, and to ascertain whether it's an active safety issue.

The AGC contends that VIA's application fails. CN's decision is not a state action, and therefore is not subject to judicial review. CN issued the Crossing Supplement to exercise its authority over VIA to direct it to take certain safety measures on CN property. This authorization is sourced in its contract with VIA, an act of private law, not of the Parliament. Any remedies VIA has against CN are private law remedies.

Submissions by the AGC:

VIA's application cannot succeed because it fails to state a cognizable administrative law claim. Does the power exercised by the decision-maker find its source in Federal law? CN does not have power to make binding rules of public law. This role is delegated to the Minister, by Parliament. As such, the Crossing Supplement is not part of federal law and the application fails.

A company can make internal safety rules and instructions. Grade Crossing Regulations set out, among other things, minimum sensor requirements to ensure Advance Warning Devices are properly triggered. A company cannot suggest approval of its own rules for crossings, though it can formulate rules re: how railway equipment is operated as it traverses a crossing work. 

The Minister must not approve railways' rules, to give them the force of public law. CN cannot unilaterally issue Crossing Supplement as public law. It must be submitted to the Minister. CN did not do this, therefore the Crossing Supplement is not a rule under the RSA.

CN's authority to issue Crossing Supplement(s) is its contract with VIA.

Also of note, Administrative Monetary Penalties (AMP) regulations in Sec. 40.1 of the Railway Safety Act (RSA) create a penalty scheme to promote compliance with the RSA. AMP designates certain rules like the CROR that contraventions of which may be regarded as violation under the AMP scheme. A safety issue identified by the Minister must be named a violation of the RSA to be sanctioned by AMP.

The Minister's Role in Rail Safety:

Contractual relations between railways occur within a regulated rail safety environment. A railway's adoption of internal safety requirements and its application of those requirements to contracting parties does not supersede, override or fulfill the Minister's role.

The Minister has a wide range of power sufficient to allow the Minister to address and resolve CN and VIA's safety concerns.

Under Section 32.01 Safe Railway Operations the minister could order CN to stop requiring VIA to obey the Crossing Supplement. Conversely, the Minister could order VIA to follow the Crossing Supplement procedures.

If the Minister issues such an order, it could be challenged at the Transportation Appeal Tribunal of Canada, a specialized administrative tribunal. The order can be reviewed by a single member, thence a three-member Tribunal. Their decision is then judicially reviewable by the Federal Court. 

Therefore, the Judicial Review process should have been addressed by the Minister.

TC enacted the Ministerial Order in direct response to VIA's allegation that CN's grade crossing warning system sensors do not meet minimum requirements. TC is analyzing CN's data.

Therefore it is respectfully submitted that: the Court should strike VIA's application.

VIA'S RESPONSE TO CN'S MOTION TO STRIKE

VIA submitted 1,615 pages to the court supporting its response. As with previous submissions, many of these seem redundant but serve as background: Canadian Railway Operating Rules, CN's Crossing Supplements, and legal precedent cases. Reiterating CN's grounds for its Motion to Strike: 

• Their claim that CN is not a "federal board, commission or other tribunal" as required to be included by Section 18 of the Federal Courts Act. A claim that the Court lacks the jurisdiction to hear the Application. The Train Services Agreement (TSA) between CN and VIA gives CN control over the movement of VIA's passenger trains providing CN with absolute discretion, including CN's ability to make private arrangements and issue General Bulletin Orders (GBO's).

• VIA Loss-Of-Shunt (LOS): VIA's application arises from the LOS phenomenon, which CN has studied for more than ten years in the US. CN is aware that the Ventures are at an increased risk of LOS since they are lighter and shorter trains than VIA's Legacy (LRC and HEP) trains. 

On January 31, 2025 VIA's Director, Network Operations & Railway Safety Governance – Railway Operations Nicholas Panetta made an affidavit in VIA's case as part of VIA's response to CN's motion to strike, with the following dates:

• June 2, 2023 VIA applied to CTA
• June 21, 2023 CN proposed VIA sign the ninth amendment to the CN-VIA TSA
• June 23, 2023 VIA wrote to preserve the TSA in a standstill agreement - unsigned by CN.
• June 26, 2023 CN wrote to VIA with revised standstill agreement called CN's Status Quo Agreement - unsigned by CN.
• June 27, 2023 VIA signed and returned the Status Quo Agreement - unsigned by CN.

VIA uses the Guelph Sub without a contract after CN took it back from GEXR.

VIA's APPLICATION TO THE CTA

June 2, 2023: VIA contended that the close integration between CN and VIA ceased a long time ago:

• CN has a quasi-monopolistic position over VIA. CN's revenue is 38 times higher than VIA's ($15B to $0.4B, respectively).
• Fees that VIA pays to CN are less than 1% of CN's revenue.
• VIA is not one of CN's top 100 customers.
• There is significant friction between VIA and CN in the Corridor.
• There is no set of defined rules for VIA's right to make punctual ad hoc changes such as adding frequencies or operating special trains.
• CN simply refuses all changes with no explanation or justification.

VIA also contends that due to this strained relationship, CN refuses to share its track quality data with VIA. In January, 2023 VIA operated an ENSCO sensor-equipped locomotive and gathered data on multiple locations on CN's Kingston Sub. Those with high vertical acceleration:

Both types of sudden movement can injure passengers and/or VIA employees. CN's track quality is not conducive to safe, efficient operation of VIA's trains.

CN adopted Precision Scheduled Railroading circa 2003 under CEO Hunter Harrison. The aim was to transport the same or more freight with fewer cars, locomotives and staff required, with longer, slower, heavier trains, all to improve CN's operating ratio (89 in 1995; 69 by 2003; 60 in 2022). Before, CN operated 5,000-foot trains with 6,000-foot sidings, now 10-14,000-foot trains with lower Horsepower Per Ton. 

New Train Service Agreement (TSA) negotiations began on August 4, 2021.

CN's ANSWER TO VIA'S APPLICATION TO THE CTA

April 19, 2024: VIA's High Frequency Rail plans are not yet committed-to, therefore CN's freight capacity should not be decreased by imposing VIA's perceived needs solely on CN. Until dedicated Corridor trackage for passenger trains is a reality, CN contends that:

• VIA's proposed TSA would an impose an 'expropriation' of CN's assets for the benefit of VIA passenger service to the detriment of CN's freight service.
• "CN and VIA continue to work collaboratively" i.e. for scheduling and "this process works".
• The CTA should decline to impose VIA's Proposed TSA.
• "Each additional passenger train layers a relatively unchangeable schedule that CN must then accommodate its freight around."
• Passenger trains require Class 5 track, while CN's infrastructure is mostly Class 3, with some portions of Class 4.
• The burden of accommodating VIA services places CN at a competitive disadvantage to CP and other competitors.
• "VIA chooses to run its services almost entirely on CN's infrastructure" and "CN has worn the albatross of accommodating the overwhelming majority of VIA's services."

As an example of how VIA's operations cause operational problems, CN blames the track arrangement at VIA's Brockville station for a 2% reduction in its OTP:

CN referred to VIA's daily reports that describe and allocate responsibility for delays. A sample report shows VIA apparently acknowledging delay to its train is due to equipment issue for VIA No 37 on 2024-04-03:

One of the first friction points between CN and VIA in its negotiations was new schedules proposed by VIA for Peak Season/Holiday Extra trains as part of VIA's 'Seasonal Changes' process (below. With known frequency that would create "additional blocks of time during which no freight trains can be launched", CN contended that these proposed operations could also lead to a higher chance of VIA-VIA conflicts, such as VIA Nos 63/53 that depart Kingston six minutes apart towards Toronto.

CN also noted that:

• VIA also has to get approval from Metrolinx to depart Toronto Union Station.
• VIA's own 2022 annual report showing load factor of only 61% the same as September, 2023.
• VIA should not be granted blanket priority over CN freight trains. Shippers might sue, and CN could use $1B annually.
• CN schedules its trains around VIA's train schedules. VIA trains overtake CN trains 20-40 times per day on the Kingston Sub. 
• CN disputes Via's ENSCO limited data.

CN also said that VIA's proposals for the TSA are outside its jurisdiction to impose governance provisions therein "that give VIA extensive oversight of and involvement in, CN's own governance and operations".

CN argued against VIA's allegation that CN 'simply refused' all requests, saying it has "delivered presentations in response to VIA's formal requests for changes", and that "VIA wants a seat at the decision-making table...so that it can oversee, monitor and regulate CN...for the benefit of VIA."

CN requested that the CTA impose CN's Proposed TSA for five years.

I'll continue to post submissions to the Federal Court case, now moribund, as they become publicly-available.

Running extra...

You'll see a prominent dual-flags sidebar item to visibly indicate my dedication to the many American readers of Trackside Treasure. Issuing blanket statements about ALL Canadians or ALL Americans is not realistic to me, and something I will not engage in. There are lots of Americans who did NOT vote for the current administration, and there are lots of other Americans who did and are likely now regretting their votes. Politics is a dirty business and this is a train blog.

That doesn't mean I didn't watch the swearing-in of Canada's 24th Prime Minister and his hand-picked cabinet. This is an essential part of our Constitutional Monarchy. Unlike the under-qualified, downright un-qualified in some cases, political loyalists and cronies chosen to head Federal departments in the American system, our Ministers are elected Members of Parliament and therefore enjoy the trust reposed in them by their ridings' electorate, not only a patronage president surrounding himself with yes-men and yes-women, at least one of the latter from the world of WWF! And I don't mean the World Wildlife Fund! Canadian Cabinet ministers reflect Canada. And a really shiny table! I said, this is a train blog!

This week, NATO's SecGen visited the Oval Office. That mantel looks like it could collapse under the weight of those symmetrical kabenchkes. The fireplace surround has weird gold flourishes on it and even the handles of the fireplace tools are golden, though never used because there's never a fire lit. Once a symbol of class and American soft power, the Oval Office now resembles a cross between a Vegas bathroom and an Egyptian pharaoh's tomb. A cross of crassness and classless. Psychologists say displays of gold are visible symbols of wealth, but subliminally reveal tendencies toward greed and excess. But I mean it, this is a train blog!

Pop-Up Post: CN Nos 377, 372, 271, 305 - February 2025

In Part 2 of this three-post series, I profiled a day of VIA and CN traffic at Kingston's VIA station. This post continues the plethoric passing of 14 trains, including four CN freights: Nos 377, 372, 271 and 305. CN No 377 is first:

Ex-Rock MWCX 462639 (top photo). ONR 7418-7725-7794-7701-7712-7716-7431-7446:

CFL TA 1010: Chemin de fer Lanaudiere propane tank car, not Canadian Football League!

Tail-end ingot empties Coe Rail COER 804902; Rio Tinto RTAX 19090, 19084:

No 372's tank cars passing behind.

CN No 372 is second, partly eclipsed by the parallel primary passing of 377:

KCS 172248 (above)

BN 467465 green and BNSF 'swoosh' 426061

Ex-CSX now VWCX 256578 and 250031:

AEX ex-Winchester &Western 23926:

American Styrenics ASOX 889170 heavily-graffiti'd. I call this car the 'attitude of gratitude':

CN No 271 was third:

With the ascent of automobile manufacturing in Mexico, I'm seeing quite a few of these. TTGX 825130 Ferromex with vertical lettering:

CN No  305 was the third westbound and fourth freight I found:

UP 701442 in forestry product pool service (above). Graffiti'd CIT Group covered hopper CBFX 310876:

Running extra...

Here's my very brief review of the 2025 issue of the annual Model Railroad Planning, still my favourite magazine of the year:

• Too many monster layouts. Their dimensions: 40x52, 13x22, 22x28, 25x35, 19x60. These are thought by the editor to be inspiring, but for many aspiring but house-less layout builders, they may be overwhelmingly unattainable.
• Too much like Great Model Railroads showing completed, post-planning layouts. We need to see more uncompleted benchwork, bare walls, in-progress photos!
• Modelling other layouts: I was able to spot Lance Mindheim's Monon curve and Florida look-alike, Tony Koester Ohio junctions. Modellers see these fine layouts but need to 'go their own way' and not just build what they're seen elsewhere!
• Good news - no car floats, no 'overpasses of death'. 

Wintertime at the Station, February 2025 - Part 2

In Part 1 of this series, I documented a delightful day adjacent and adrift astride the CN Kingston Sub on Saturday, February 8. In this post, we finish the day and in Part 3, it'll be a pop-up photographic panoply of freight cars from the day.

The third of four CN freights, all-auto rack 271 deigned to distribute its mile or more of empties far beyond the length of Kingston's kapatious platform! A long time running...

1158 WB - CN No 271CN 8932-5670 (top photo).

1203 WB - VIA No 63 904-3472-3460-3371-3309-3308R(en)-3309F(uture):

Tail-end car lets its high-red show, unlike a more hip Kingstonian blow-at-high-dough (I shot a still, in my home town, perhaps?) tragically, I can't come up with anything better to this mundane-but-someday-soon-to-disappear-view.

1252 WB -  CN No 305 3275 mid-train DPU 3356:

 

1320 WB -  VIA No 65 907-3464-3471-3341-3329F40(years)-3350 F40-3323R:

No 65 arrived 20 minutes early and met 30-minute late No 40.

1325 EB - VIA No 40 6408-3477-3459-3373-3370-4103:

Turbo-era signage on the fence has lasted long enough to see not one but two iterations of Turbo train produced by Rapido Trains Inc. I prefer seeing the Turbo 2.0 at the 14:10 mark HO-scale Kingston to all that Guildwood precursor - it's almost as alien as the 1:07 mark!

Departing east with a cornucopia consist comprising veritable VIAriety :

1413 WB - VIA No 53 913-3364 F40-3342-3340-3466-6412:

No 53 arrived 15 minutes late. Meeting No 64 at 1415.

1415 EB - VIA No 64 917-3464-3472-3302R-3361F-3314R-3306R. A mini-railfan gets the best view of all, pumping his arm for the 'honk' sign enthusiastically engendering two toots from the departing crew:

1445 WB - VIA No 47 910-3456-3353 F40-3360F-3366 F40-3312R snowed-in car view:

1525 EB - VIA No 42 Venture Set 21, arriving 25 minutes late.

Not road apples at least, road-salt Venture view:

Running extra...

Positive! Nik Delja of the Bytown Railway Society reached out this week to let me know about some recently-posted Youtube videos. Many of these were filmed by the late Bruce Chapman. This video shows the 1974 CP RDC fantrip that came to Kingston from the 8:00 mark. A great resource to wallow in nostalgia!

Positive! This week on Reddit: Now go read the Trackside Treasure article where they actually got the court documents from the Federal court that describe how there was not a single event of loss of shunt, only what CN call "close calls". 

https://tracksidetreasure.blogspot.com/2024/12/via-and-cn-in-federal-court-over-cn.html?m=1

That article is the most in depth piece of public content you'll find on the issue to date.

Negative! This happened this past week. One never knows what one will read next on social media! For April 1, the group will be changing its name from Canadian-Passenger-Rail to Canadian-Passiveaggressive-Rail:

In-between? American readers - you are welcome here. If you're in doubt where Canadians are coming from, this updated Youtube video will help. In the meantime, travellers heading from the US to Canada are taking it personally. And they shouldn't: