Is there a strong business case to be made for private enterprise funding maintenance?
assume contracts will be structured to ensure the private consortium will also fund ongoing maintenance for whatever they build.
the TTC will still need a stable and substantial revenue source for SOGR, the backlog for which will only grow if private enterprise helps build more transit lines.
All excellent points. I see it being essential that these questions be answered and the context more widely discussed, because like it or not, it's not a matter of 'if this coming', it's 'when' and 'how much'?.
First question:
There's an excellent case to be made
in most instances for contracting out maintenance. That's already here and now, but needs a lot more discussion.
Second:
That will all be part of the contract, and by far, again
in most instances for the higher tech maintenance, best those who build it, and own it, maintain it. The advantage there is that it's in the interest of the owners to protect their investment. What's up in the air is whether, like CP and CN, they continue owning the asset, or if it reverts to the 'commonwealth' after a certain amount of time, like Hwy 407. (which is just a lease)
Third:
This shouldn't be affected. I highly suspect when Ford team see the choices in front of them, they won't upload anything. Consider this from their stated ideology ("subways, subways, subways" besides, which is just maniacal ranting): If Enterprise can go around them, and deal with only the Feds (at arm's length, which the Feds will also like, through the InfraBank, but the Feds get credit for it in the Public's eye) then it gives QP far more reason to step back rather than forward.
They will have the perfect excuse, even dealing with their own sycophants, to say: "It's out of our hands, but we will consider being part of that particular consortium project".
I have to repeat, and only a few will take issue with this: In light of the attitude and approach the QP Cons are taking now, and will continue to take, things don't look rosy, and the vision is precarious at best.
I'd much rather trust a consortium under the aegis of the InfraBank who have the Feds at their back to judge situations on a case-by-case basis for a business plan. The plan comes in under a considered threshold to be profitable and sustainable? Then the Feds and/or the Province can step in with a contribution of size to gain voting shares on the board for the building of the project, and in the lease to run the operation, or in part if the lease is private also, then a subsidy determined by contract for operating expenses is also included.
It would behoove VIA Rail and CN/CP to also partake in such consortiums, with agreed priority for passenger of course, but now we're getting down to nuts and bolts. Will discuss that further in an appropriate string if opened at this site. I think such a string would not only host excellent discussion on this, but also educate some readers on the differences between DBFOM and the many other forms of P3, right up to totally private, with no public shareholders.
We have to get in front of this, because it's coming folks. It's already well-handled in Oz, Japan and other nations. Studies and precedents already exist.
Addendum: There's a lot of lit on-line for the Ozzie model, I've just scanned through a number, but this one is particularly neutral and analytical:
The Entrepreneur Rail Model: Funding urban rail through majority private investment in urban regeneration
Author links open overlay panel
PeterNewmanSebastianDavies-SlateEvanJones
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https://doi.org/10.1016/j.retrec.2017.04.005Get rights and content
Under a Creative Commons
license
open access
Abstract
The 21st century has seen an unprecedented expansion of urban rail as a response to urban congestion, low
carbon mobility and as a seed for
urban regeneration. Many
cities would like to do much more rail in their futures to create
knowledge economy centres but cannot find the funding, including Australian cities that are the focus for this paper. Four approaches to funding are outlined from fully government to fully private with two in between. The Entrepreneur Rail Model suggests a majority
private sector funding can facilitate the new markets for urban regeneration as well as providing integrated rail that government's usually find difficult to fund. The process requires transit planning to be seen primarily as a
land development tool rather than a transport system. This was the historical function of urban rail in the nineteenth and early twentieth century and signals a significant new 21st century rail market as well as the need for new procurement and governance systems for land assembly and
transport planning that can ensure network integration, new assessment models and public good outcomes.
[...]
The 21st century has seen an unprecedented expansion of urban rail as a response to urban congestion, low carbon mobility and as a seed for urban rege…
www.sciencedirect.com
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See also:
Transport projects have now replaced mining infrastructure spending in Australia
CHRIS PASH
FEB 1, 2018, 9:43 AM
[...]
While the report doesn’t identify whether the investment is from government or the private sector, or where it occurs, both the NSW and Victorian governments have embarked on massive infrastructure programs in recent years.
Sydney alone has more than $50 billion worth of transport projects underway, including the $17 billion WestConnex tollway, the $14bn Northern Beaches and Western Harbour tollways, the $3bn NorthConnex, the $8.3bn Sydney Metro North West rail line, and $2.1b Sydney Light Rail.
Melbourne’s transport projects include the $16.5bn North East Link toll road, the $6.7bn West Gate Tunnel and and the $11bn Metro rail project.
New engineering and commercial construction activity increased by 12% in the last year, reaching its highest level since the start of 2016, according to the Deloitte Access Economics Investment Monitor for the December quarter. “The improvement is partly due to the fact that the overhang of...
www.businessinsider.com.au
Latter article above isn't an academic one, but it does give an overview of the scale of investment underway in Oz (a lot of it is P3, some completely private), but to put a perspective on this...what Ottawa has just paid for the Trans-Mountain Pipeline could alone build the full Missing Link to radically transform the ease of Private Finance 'buying into' GTHA rail projects.
And do it without court hearings and other very clumsy moves on the part of certain actors.
To put that into very biased and subjective terms: "They owe us" the Missing Link. What's "good for Alberta" has to apply even more for Ontario, that no matter how you cut it, provides a much greater slice of GDP. Oddly, the Ont-Cons are very silent on that. I blame dogma myself.
https://en.wikipedia.org/.../List_of_Canadian_provinces_and_territories_by_gross_dome...
At the very least, the Feds could put their share required under the Railways Relocations...Act into the Infra-Bank to spur private investment for the remaining 50%. It is guaranteed Section 92 status under the Constitution and various acts, Transportation, Railway Acts over the years, and used some 400 times already in Canada's history to be "Federally Regulated" "for the general advantage of Canada". And the cherry on the cake is that it's been tested and accepted by the Supreme Court many times, also to cover "street railways and tramways" if so desired.
Example (there are many more decisions that quote the Acts)
Supreme Court of Canada
Canadian Pacific Railway Co. v. Attorney-General of British Columbia, [1948] S.C.R. 373
Date: 1948-27-04
[...]
We were then referred to subsection 21 of section 2 of the Railway Act:—
(21) "railway" means any railway which the company has authority to construct or operate, and includes all branches, extensions, sidings, stations, depots, wharves, rolling stock, equipment, stores, property real or personal and works connected therewith, and also any railway bridge, tunnel or other structure which the company is authorized to construct; and, except where the context is inapplicable, includes street railway and tramway;
[...]
Let Ford be hoisted by his own differential! We can work around him. If we pay the piper, we can choose who we wish to pipe.