Canada Line losses no surprise, TransLink says
The Canada Line connects Richmond, Vancouver and the airport.
Updated: November 18, 2009 12:44 PM
A forecast that the $2-billion Canada Line will lose money until 2025 is no surprise, according to TransLink officials.
B.C.'s Comptroller General, in her review of TransLink, noted the newly opened line's costs will exceed its revenues by $14 to $21 million a year for most years until then.
TransLink spokesman Ken Hardie said that's partly because TransLink has accelerated the repayment of its $545-million share of the cost of building the Canada Line. The financing of the line linking Richmond, Vancouver and the airport was fronted by private partner InTransitBC.
"We're going to pay it off sooner and own it sooner," Hardie said.
It's also normal for a new rapid transit line to be subsidized for years before approaching breakeven, he said.
The original two SkyTrain lines now make money, but fares recover only 55 per cent of the broader cost of transit service.
The Comptroller General also noted the direct Canada Line revenues don't count additional revenue TransLink may attract in part because the line makes the system as a whole more attractive.
The report found most of TransLink's cost pressures are being driven by bus system expansion, particularly into areas with low ridership, not the launch of the Canada Line.
"TransLink's debt has more than tripled since 2005," the report noted.
The report noted the Canada Line was pushed ahead of TransLink's priority to build the Evergreen Line first.
"The provincial priority was to participate in the Canada Line, in part because they felt it had a stronger business case and because of the desire to have the line available for the Olympics," the report said. "Given the provincial and federal funding availability, TransLink proceeded with the Canada Line."






