A private bus company is outraged over what it feels is an unnecessary public transit line in the Toronto-Niagara corridor.

In April 2009, Ontario Transportation Minister Jim Bradley announced that $2.5 million would be invested in starting a GO bus service between Toronto-Niagara and four GO Transit Park and Ride lots. On Sept. 5, GO began offering regular weekday, weekend, and holiday GO Bus service to Niagara Falls.

The new service makes stops in St. Catharines, Grimsby, Stoney Creek, and connects with trains at the Burlington GO Station.

The Toronto-Niagara corridor is currently served by two private sector firms: Greyhound Canada and Coach Canada.

Jim Devlin, president of Coach Canada, calls the decision to introduce new public transit service in an area that's already well-served "political."

"This is the only corridor where there are two competitors operating," he told CBC News on Friday. "We're overserviced now."

As the cost to operate the GO bus service is estimated at $3.5 million and revenue is projected at $2 million, there will be a shortfall of $1.5 million, Devlin said.

"Why is Minister Bradley supporting the decision to operate a money-losing venture on a route network that is already fully serviced with coaches that are not filled to capacity?" he said.

Devlin is also upset the decision to launch the service was made without any consultation with either Coach Canada or Greyhound, despite Bradley's promise in January they would be consulted.

Devlin says that because GO fares are so much lower — and GST is not added to public transit fares — his company cannot match pricing. As a result, he said, Coach Canada will be forced to end bus service to Welland, Port Colborne and Fort Erie, and putting 80 to 100 jobs at risk.

Group backs Go

David Jeanes, president of Ottawa-based Transport 2000 Canada — a non-profit organization that promotes environmentally sound transportation solutions — told CBC News that although he understands Coach Canada's sense that there isn't a level playing field with the introduction of the GO route, "the type of service provided by Coach Canada and Greyhound is not the same."

GO transit is an environmentally friendly mode of transportation, Jeanes said, and one that is financially attractive to many people. "GO moves a lot of people. Any expansion of GO Transit in the Niagara peninsula will certainly be beneficial to residents," he said.

GO's weekday service offers 12 trips in each direction between Niagara Falls and Burlington GO Station, as well as five additional trips in each direction between Grimsby and Burlington. Weekend and holiday service consists of six trips in each direction between Niagara Falls and Burlington.

Coach Canada, which has operated a coach service in the Toronto-Niagara corridor since 1995, offers 31 trips daily between Toronto and Niagara Falls, 32 trips daily between Toronto and St. Catharines and 22 daily trips between Toronto and Grimsby. In 2008, the company operated 15,529 trips over these routes.

It has recently slashed its fares for the Toronto-Niagara region.