zagox
Active Member
It all depends on the financial model for the capital side. But fortunately in context of provincial transportation spending, the numbers are very small (provided at the bottom of this post). I think the operational funds is pretty minimal placed in the context of how much the highway costs to run. And if the province can hold off triple laneing for a number of years, that has value too. 1st, can private capital plus the infrastructure bank handle a 40 year payoff (build plus 30 years). 2nd, will CP come in and help a bit more than offering land and cooperation, paying a yearly or as used fee for capacity? Even a million or two a year would really help. 3rd, can this be seen as a boon for tourism - the government is going in for a comparable cost convention centre, does this make the package for Calgary even more compelling and how much is that worth? How much is less congestion (or the equal amount of congestion but more visitors) worth to Banff and Banff tourism operators (could there be an incremental hotel room fee capture of some type?) How much is not building a new parkade worth to the Town of Banff?
Given the NPV of the rail project at negative $370-350 million or so (over a 25 year time horizon, and it is unclear whether the NPV included operating and revenues), minimal greenhouse gas savings (given a diesel trainset), and around $1 million a year in reduced highway maintenance, there is a hole - not a huge one. Add operational costs of $7-9 million. So need to find $23 million a year.
In context, operations and maintenance would be 0.6% of the highways operation and maintenance budget for the province. The capital portion would be 0.8% of the provincial transportation capital budget per year. And those numbers are without any other partners providing funding.
When is the highway forecast to require triple lanes? One joy of living in Calgary compared to Denver is that a day trip to the mountains is fairly easy, even on the weekends. Denver-Vail is about the same distance as Calgary-Lake Louise, and both have mostly 4 lane highways in between. But it is no fun to go to Vail on a weekend day because you either have to leave at 5am or slog through traffic the whole way up. I hope we continue to enjoy excess capacity to the mountains far into the future. I assume the prairie section could be triple laned fairly easily? Colorado has already triple laned every possible spot short of massive tunnneling works, so it seems impossible to see improvement on that corridor in the future (and rail service would also cost an order of magnitude more than this proposal).