By Shaun Penner

After two years of losses

Cold Shot, NDP calling for provincial support for struggling rural bus services

Nov 22, 2021 | 4:46 PM

Cold Shot Bus Lines and the Opposition NDP are hoping the Alberta government can help inter-city bus service providers with some financial support, after operating at a loss over the last two years due to the pandemic.

President of Cold Shot Sunny Balwaria joined NDP Transportation Critic Lorne Dach Monday to call on the province to subsidize some operational funding for such companies, after Balwaria claimed his company had been operating at a loss since April of 2020.

The Alberta-based bus line, which is currently operating six routes in the province, has become the only bus service option in Grande Prairie because of the pandemic. This came after Greyhound pulled its service from western Canada in 2018, and Red Arrow temporarily halted its service to and from Grande Prairie shortly after the pandemic hit in the spring of last year.

“Cold Shot was turning a profit in 2019 when the pandemic arrived in full force, and we decided that we had to cut our capacity to 50 per cent in order to continue operating safely,” Balwaria said. “We needed 60 per cent ridership to break even, but we continued operating knowing that we would lose money… our customers needed us.”

Balwaria said Monday his company has made several requests to the province for some level of financial aid for rural bus services, calling for a program like the one-time funding for inter-city bus operators provided by the BC Government. That program netted Cold Shot $102,000 to continue its route between Fort St. John, Dawson Creek and Grande Prairie.

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Dach says the NDP has also called for a similar program to help companies like Cold Shot but was told they do not meet the criteria for existing funding programs because they are a for-profit business.

“That’s a bunch of bologna… (Cold Shot) has been running at a loss for nearly two years. They are effectively a non-profit,” said Dach. “If these guys were in it just for the money, they wouldn’t still be driving these buses with half the seats empty, but they have been.”

Dach suggested such a funding program is vital to help keep rural bus services afloat, as it is an essential service for many in the community.

“I can’t stress enough how vital bus service is for rural and remote Alberta communities. If you don’t have access to a car, it’s literally your only way to travel for work, for school, for medical appointments and for family commitments,” Dach said.

Balwaria says the money is critical to help Cold Shot keep its head above water, as he claimed the company has exhausted its reserve funds, taken on loans, and has received other grants like the Canada Emergency Wage Subsidy.

“We do not expect taxpayer money to compensate (us) 100%… we are asking for the province to help us out with the breakeven point, subsidize the (operating) cost only.”

During the question period Monday, Dach asked Minister of Transportation Rajan Sawhney why the province would not commit to such funding for rural transportation services.

Sawhney said she would be willing to sit down with members from Cold Shot to discuss their predicament.

“I would be pleased to meet with Cold Shot to discuss the supports that may be available to them, in addition to the two grants they have already received from the Government of Alberta.”

Cold Shot offers routes connecting Grande Prairie to both Fort St. John and Edmonton. It also offers services between Peace River and Edmonton.