“Private capital” may be needed to revive public transit in Canada, according to a federal report.
“We heard that the immense need for, and the associated costs of, major public transit projects cannot be met by governments on their own,” said Infrastructure Canada in a
report released on July 25, as first reported by Blacklock’s Reporter.
Infrastructure Canada, which is responsible for federal public infrastructure policy, said “there was interest in exploring” the role of alternative financing and public-private partnerships.
This includes “potential financing options (e.g., Canada Infrastructure Bank (CIB) and private capital),” the report added.
The report summarized public comment on a
2021 pledge by Prime Minister Justin Trudeau to permanently fund public transit, with yearly spending of $3 billion beginning in 2026.
“Over the next months, the government will work closely with our transit partners on the path forward,” it said.
Statistics Canada said in a
July 19 report that although there was an increase of $68.6 million in transit operating revenue nationwide in May, as compared to last May, the amount ($290.1 million) was $46.1 million below the pre-pandemic May 2019 level.
Nationwide ridership in May was also 22 percent below pre-pandemic levels when compared with the same month in 2019, according to the federal agency.
‘Until the Economy Recovers’
“The pandemic has dramatically reduced ridership,” said the Canadian Urban Transit Association in a
written submission to the Commons finance committee in October 2022 ahead of Budget 2023.
“Without adequate funding, public transit agencies will have no choice but to reduce service and operations.”
In his testimony before the Commons transport committee last November, Marco D’Angelo, CEO of the Urban Transit Association,
said the operating expenses of transit vehicles “are very high” and “it’s difficult to directly request more and more public funding to pay these expenses.”
“One of the possible solutions would be to renew the agreement announced on February 17 for next year, until the economy recovers and ridership gets back to normal,” he said, referring to the cabinet pledge to offer
$750 million to cities to make up for transit-fare shortfall.
“Most agencies are expecting to find revenue shortfalls in the coming weeks as we enter the new year,” Mr. D’Angelo added. “Our members cannot be forced to make service cuts. That will make a full economic recovery simply out of reach.”
The federal government, from the outbreak of the COVID-19 pandemic, budgeted more than $2.3 billion under the
Safe Restart Agreement to support public transit.
The funding, announced in September 2020, was prompted by the threatened layoff of 1,500 drivers and conductors by one of Canada’s largest transit operators, the South Coast British Columbia Transportation Authority, in April that year.
The government subsequently approved another $750 million subsidy on Feb. 17, 2022,
saying it was a “one-time payment” at the time.
