Quote:
Originally Posted by J.OT13
Honestly, I'm very confused with REM and how it came to be. Who planned it, who will own and operate the system, how fares will be collected and by whom, how the Caisse was able to get such an incredible price for it. I need to take some time to read on the matter to fully understand.
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I can make a short story.
In 2014, AMT studies showed that the LRT would be more expensive then buses on the new Champlain Bridge. It was the opposite for the West Island part. This was a political football as the government didn't want to finance either projects.
Old Québec premier, Couillard, visited the SkyTrain in Vancouver and thought it was a great way to come back from the Airport and it would be great for Montréal. He was flabergasted to learn that the CDPQ couldn't even build such things in its own province. Thus Sabia suggested Couillard to create a new CDPQi infra which would look into the feasibility of such projects.
During 2015, the CDPQi infra studied the 2 requests from the QC government on what would eventually become the REM :
- West Island LRT
- South Shore LRT.
Through cost optimisations, in April 2016, CDPQi announced the Réseau Électrique Métropolitain.
For the average operating costs of subsidy per km of a given user in the Montréal Metropolitain Area, the CDPQi could build, finance and operate it. For those who find the subsidy for the REM to be high, it is what the average is in the region, and that for operating costs only. The REM is not only a good deal in rapidity of execution but also for costs.
Buses operating costs are about 0.99$ per km per user and trains full subsidy of about 1.21$ for the worse lines. It thus made financial sense to remove the entire Deux-Montagne line (even if it was the most profitable line).
Projects analysis for LRT usually don't include all operating and financing costs (i.e. Ontario LRT projects), plus other metrics are usually included, such as impacts on gentrification etc.
When the REM went to the BAPE, it was criticised for not having the full information (it still hasn't). Basically the BAPE is not the Pape (Pope) was the answer by the politicians. It was hard for environmentalist groups to grasp that a project was going ahead without their approval. Such groups are pro streetcars and went to court and then superior court. The judgements were lapidating towards these groups.
Other cost optimisations were necessary with the construction consortia, and at a time, Sabia had even given hope. The REM is one of the first projects to be build/design/finance/own and the CDPQi wants to export that to other countries (New-Zealand being one)
The February 2018 version of the project, Réseau Express Métropolitain was born when the financial aspects were secured. The ARTM was mandated to discuss (read, coerced by the QC government) with the CDPQi for the charges per user per km.
Thus the CDPQi owns the REM at nearly 70% and the QC government for the remainder. Operations are in the train contract and it will be Alstom and its partners. The Mont-Royal tunnel and railtracks are owned by another CDPQ entity and not CDPQi.
The ARTM is in charge of putting the payment system for the REM and all fares are being done by that entity.
The price is low because of optimisations, no financing required, and other ownership of major structures (mainly tunnel and Champlain bridge). There is also an ARTM construction charge for new buildings or new renovations on buildings near REM stations. That is common in Asia.
This is the first time that a transit project was utterly optimize to have the most cost effective solution. In the last months, the QC government asked the CDPQi, instead of the planning arm, ARTM, to study 3 projects:
- REM extension to Laval
- REM extension to Chambly
- REM/LRT project from Downtown to CÉGEP Marie-Victorin/Pointe-aux-Trembles.
It removes most of the lazy politics from transit planning, which is amazing by itself.