Edmonton-based intercity bus company fears closure as finances decline amid COVID-19 pandemic

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A cash-strapped intercity bus company   fears it will be forced to close, leaving dozens of rural communities with no public transportation options.

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Edmonton-based Cold Shot marked Monday as its third year, after taking over some of the routes operated by Greyhound when it ended its service in Western Canada in 2018.

But weakened by declining ridership during the pandemic and funding shortfalls, the company might not see a fourth anniversary, said Cold Shot president Sunny Balwaria.

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“(We now) have six routes. Then in the next couple months we’ll have four and then two and then one day maybe no more Cold Shot,” Balwaria said.

If his company were to close, more than 30 small communities it serves along highways 28 and 44 would no longer have public transportation, Balwaria said, pointing to the website Bus Bud that shows Cold Shot as the only bus service operating between Edmonton and Cold Lake and Peace River.

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Before the pandemic arrived, the company was running 11 routes in Alberta and some into northern B.C. and its ridership capacity was 15 to 20 passengers per bus.

“It was becoming profitable in January 2020. And then COVID hit. We went down to nine routes in May 2020, and then down to six in July 2020,” Balwaria said.

Pandemic capacity restrictions meant buses could carry a maximum of 10 passengers, which contributed to the downward trend in revenue for Cold Shot.

Those limits became optional after the provincial government loosened COVID restrictions in July but  Balwaria said the passengers didn’t come back.

“We know that we have the highest number of COVID cases in Canada. The hesitancy is still there against travelling because of the fear of COVID,” he said.

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As company finances began to dry up, Balwaria sought government assistance.

Cold Shot received a $980,000 loan from the federal Western Economic Diversification Canada program, without which the company would have closed last Christmas, Balwaria said.

He secured another loan of $950,000 from the Business Development Bank of Canada and $102,060 from a B.C. government funding pot for intercity bus operators.

Amid several requests for assistance from the Alberta government, Balwaria received the one-time grant payment of $10,000 offered through the Alberta government’s Small and Medium Enterprise Relaunch Grant (SMERG), which he said he appreciated.

“In a way it helped us (but) our fuel costs for the entire company are $85,000 per month,” said Balwaria. “We’re not asking for profits. We’re only looking for help with operating costs.”

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And while the company’s accumulated debt now stands at $3.1 million, it has used up all of its avenues for financial assistance and Balwaria is frustrated that more help isn’t available from the province.

“It’s very disheartening that the provincial government doesn’t support what we’re doing,” he said. “It’s not just about serving the community, but also we have 250 employees (who are) full time, part time and contractors. I’m not just doing this for myself. I’ve used my own assets for this company. This is very hard.”

The Jobs, Economy and Innovation Ministry did not respond to a request for comment.

Meanwhile, other regional bus services such as Red Arrow and Rider Express have so far weathered the COVID-19 pandemic, whereas Northern Express was an early casualty.

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Simon Jucks, the former operations manager of Northern Express, said the company saw ridership for its passenger service, which operated between Edmonton, Peace River, Grande Prairie and High Level, drop sharply when the Alberta government imposed restrictions in March 2020.

“By the end of March we were down to single digit passengers,” said Jucks. “We said ‘enough is enough’ and we had to shut down. And I don’t know if the passenger counts would be there again.”

Northern Express used SMERG to transition the company into operating private charter buses for sports teams, but its regular passenger service, which started in 2005, has ended, leaving Highway 35 communities north of Peace River like Manning and High Level without public transportation.

“It’s not a positive situation. The number of people who really need the bus is very small but those people that need it really need it. But it does come down to dollars and cents,” Jucks said.

bmcbride@postmedia.com

twitter.com/blairmcbride

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