ABSTRACT
Operators and governments are now questioning the efficacy of maintaining passenger rail services to remote communities where other modes of transport may offer improved levels of service and/or lower cost alternatives. The case of remote passenger rail services in northern Manitoba is used to investigate these issues. The net present costs of alternative air and bus services are examined and their implications for the regional economy and tourism are analysed. The general conclusions that can be drawn are that alternative services can provide an improved quality of service, but only under certain conditions are they likely to cost less and have a positive impact on the regional economy.