COSTS SOAR $1 BILLION
Combined construction estimates for a Surrey light-rail line and the Millennium Line subway under Broadway in Vancouver have risen to almost $4.5 billion
Sky-high real estate, a weak Canadian dollar, high labour and materials costs and inflation have contributed to increasing the projected cost of two major rail projects planned for Vancouver and Surrey by about $1 billion.
Updated costs for the $7.3-billion second phase of the region’s 10-year transit and transportation plan — including the Broadway subway line in Vancouver and an at-grade lightrail line in Surrey — were released on Monday to kick off a two-week public-consultation process.
“This is the result of, these cost estimates, two years of very, very rigorous work — engineering work, public consultations and due diligence, peer reviews as well — to ensure that these costs at this time are reasonable to take to the next phase of the program going forward,” said TransLink CEO Kevin Desmond.
The two major rail projects, with a combined cost of almost $4.5 billion, are expected to account for almost half of the total Phase 2 investment.
TransLink’s latest estimate for extension of the Millennium Line down Broadway, through a bored tunnel from VCC-Clark to Arbutus, is $2.83 billion. In 2015, it was estimated that the project would cost $1.98 billion to build, or $2.28 billion in 2018 dollars. That’s a $550 million increase. The line is anticipated to be operating in 2025.
The 10.5-kilometre first stage of the Surrey-Langley rail line, which will run on 104 Avenue, City Parkway and King George Boulevard is estimated to cost $1.65 billion. In 2015, the cost estimate was $1.03 billion, or $1.24 billion in 2018 dollars. That’s a $410 million increase, for the line expected to be operating in 2024.
The Phase 2 project cost estimates are subject to approval of the business cases, which are currently being reviewed by the federal and provincial governments, and could change during the bidding process.
Desmond said TransLink has taken into account that costs will inflate further as the major projects are constructed, and that has been factored into the cost estimates so it’s not expected the estimates will change.
He said considerable contingencies have also been built in, and it’s expected that the matter of who will be on the hook for any cost overruns will be part of the contract negotiation process.
Other than the Millennium Line Broadway Extension and the first stage of the South of Fraser rapid transit in Surrey, there is a long list of planned improvements in the second phase of the plan.
For bus riders, there will be an eightper-cent increase in service, two new B-Line rapid buses in Richmond and
Surrey, more than 150 new buses and new bus service in Vancouver, Surrey and North Vancouver. A sevenper-cent service increase in trips is planned for HandyDart.
The cost of bus improvements is estimated at $890 million.
SkyTrain will see the addition of 108 new cars to the Expo and Millennium lines, 95 replacement cars, an increase in service during busy times on all SkyTrain lines, upgrades to stations, an increase in vehicle storage and maintenance capacity and power and systems upgrades.
The SkyTrain investment is estimated at $1.3 billion.
The major road network will see $75 million in upgrades. Regional and TransLink-owned cycling and pedestrian infrastructure will be improved to the tune of $50 million.
Planning will also begin for a proposed gondola on Burnaby Mountain, the second phase of the Surrey-Langley rapid transit line, rapid transit to the University of B.C. and regional transportation strategy.
Phase 2 funding contributions are coming from the federal, provincial and regional governments.
The federal government has committed to paying up to 40 per cent of the capital costs for major projects, which translates to $2.01 billion for this phase.
The province has agreed to pay for 40 per cent of all projects, for a total of $2.55 billion.
“This program is very much dependent on that senior government support,” said Desmond, who added that in 2015 it was estimated that senior governments would fund 48 per cent of capital costs, and now those governments will fund 68 per cent.
Trans Link plans to pay for its share of capital and operating costs with fare revenues, property sales, internal savings, a two-per-cent fare hike, three-per-cent parking tax increase, a property tax increase of $5.50 for the average household, development cost charges and revenue from transit-related commercial opportunities. These funding methods were announced in March.
The total regional cost is $2.71 billion, which includes $1.86 billion for capital and $855 million for operating costs.
Public consultation on the plan goes until May 11. Feedback can be provided at ten year vision. translink. ca or at one of eight open houses scheduled around the region found at tenyearvision.translink.ca/ get-involved.
The final plan will be presented to a joint meeting of the Mayors’ Council and board of directors in June.