Star: Green light for new streetcars
Green light for new streetcars
http://www.thestar.com/news/gta/article/652705
Jun 17, 2009 11:10 PM
Tess Kalinowski
Transportation reporter
Premier Dalton McGuinty and Toronto Mayor David Miller are expected to announce in Thunder Bay Friday that the TTC's plan to buy 204 European-style streetcars finally is a go.
Federal officials Wednesday night refused to confirm that Prime Minister Stephen Harper will also attend the event, and it is still unclear whether Ottawa has stepped up with stimulus cash to pay a third of the $1.2 billion cost of the TTC's agreement with Bombardier to build the cars.
That deal was to expire June 27.
Transport Minister John Baird dismissed Toronto's sole request for a share of the economic stimulus pot – money for streetcars – with a well-publicized expletive last week. But he later apologized, saying the "best is yet to come" for transit, and suggested Ottawa would continue to work with the city to make sure Toronto wasn't overlooked.
The streetcars would replace the TTC's decrepit 30-year-old fleet that runs on 11 of the city's busiest transit routes.
Without new cars, the TTC would have to undertake a major rebuild of its current vehicles, something that would cost at least $100 million and take years. Meantime, the cars are failing so fast the TTC anticipates having to use buses on some routes later this year.
Government and Bombardier officials were tight-lipped Wednesday over details of Friday's announcement.
But a city hall source said a report showing the streetcar contract would directly create 5,700 jobs "is very compelling."
Released by the mayor's office Tuesday, the report was prepared for Bombardier by an outside consultant. It says the streetcars that would be built at Bombardier's Thunder Bay plant would directly generate 5,700 jobs, including 5,000 in Ontario.
About 350 of those jobs would be located in the Toronto area, and the contract would create a further 4,100 indirect jobs here. If the federal and provincial governments invested in the streetcars, they would recoup about $500 million in tax revenue, the report says.
It's estimated that Toronto is eligible for about $312 million of the federal government's $4 billion economic stimulus fund.
A spokesperson for Baird said his office received the report only Wednesday. But Chris Day said the government is "committed to ensuring that Toronto gets its fair share."
"The city is an important part of our Economic Action Plan. The city has been hit by the global recession. With any investment we make in the city, our goal is to create jobs for the people of Toronto over the next two years – when they need them most," he said.
Baird is expected to remain in Ottawa Friday.
Queen's Park officials said it was still being determined whether Infrastructure Minister George Smitherman, the province's point person on the streetcars, would attend the announcement.
A streetcar announcement would be welcome news in the North, said Paul Pugh, head of the CAW local at the Bombardier plant.
"Assuming this goes through, it's going to be a huge thing for the city of Thunder Bay, to say nothing of the plant itself. This would provide much sought-after stability both for the city and the plant," he said.
"With 10 years of work, it will encourage Bombardier to make a much-needed investment in the plant in upgrading machinery and technology," he added.
Bombardier officials refused to comment.
The Quebec-based company won the contract after a tightly scrutinized procurement process and a competitive bid by German-based Siemens Canada. The new light rail vehicles, which will be similar to those in use in Brussels, will cost about $4.9 million each and accommodate 260 riders. They're longer than the existing cars and are expected to be tested on the city's tight turns and steep hills in 2011 before going into service in 2012.
The province has already agreed to pay for two-thirds of the $950 million to build Toronto a new Transit City light rail line on Sheppard Ave. Ottawa has agreed to one third of that cost, which includes the light rail vehicles.
In April, Queen's Park announced $7.2 billion for light rail lines running along Eglinton and Finch Ave. W., and to refurbish the Scarborough RT – the cost of which also includes the vehicles, which would be built as an option to the contract for the TTC's 204 replacement cars.
It's expected to take about another decade to replace the TTC's current fleet of 248 cars.
With files from Robert Benzie