Quote:
Originally Posted by SaskOttaLoo
Hi all,
I had posted sometime ago about my concerns that the REM will permanently block Via Rail from using the Mont Royal tunnel. However, I hadn't been aware of many of the other issues with the project: https://nextcity.org/features/view/is-montreal-building-a-transit-boondoggle
First off, I REALLY want to like this project and hope it will succeed, given how much it is seemingly going to increase frequencies on the existing Montreal commuter lines that are part of this project. Plus, driverless systems can be a lot more cost-effective and enable much more frequent trips a la Vancouver's SkyTrain.
However, some of the main concerns raised seem hard to ignore:
* Although taxpayers put up ~50% of the investment, the CDPQ gets the first return of a mandatory 8-10%. This just makes no financial sense but fits with my observation at how bad government typically is at negotiating.
* Commuters using the existing commuter lines going through the Mont Royal tunnel will now have to switch to the REM before reaching downtown, making their trips worse than before by requiring an extra transfer and extra time
* There may not be much change in overall system ridership: "According to a February 2017 investment forecasting report, more than 90 percent of the REM’s users are expected to be existing transit users switching to the new system."
* No transparency, including on what the fares will be, and no public bidding for the project. One reason this is concerning is that the CDPG actually owns a lot of the real estate that will benefit from the project. Owning a private company myself, I know how much bidding for government contracts delivers better value for government.
* The article seems to imply that the borrowers didn't obtain as low of a financing cost as the government would've received had they borrowed for the project
* Charging a fee for future developments near the stations could potentially push new development farther away from them (this one is so far speculative)
What do others think? Is this article off-base or not?
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This article is pure emotional BS.
* Although taxpayers put up ~50% of the investment, the CDPQ gets the first return of a mandatory 8-10%. This just makes no financial sense but fits with my observation at how bad government typically is at negotiating.
Compared to any transit other projects, where the government will never get ANY return on its Investment.
* Commuters using the existing commuter lines going through the Mont Royal tunnel will now have to switch to the REM before reaching downtown, making their trips worse than before by requiring an extra transfer and extra time
Mascouche line is being diverted through the Turcot yards. And big deal, the REM will be faster than the current commuter trains and will bring many other destinations.
* There may not be much change in overall system ridership: "According to a February 2017 investment forecasting report, more than 90 percent of the REM’s users are expected to be existing transit users switching to the new system."
The CDPQi underballed so to be sure to have a profit from its Investment.
* No transparency, including on what the fares will be, and no public bidding for the project. One reason this is concerning is that the CDPG actually owns a lot of the real estate that will benefit from the project. Owning a private company myself, I know how much bidding for government contracts delivers better value for government.
The CDPQi doesn't decides the fares, the ARTM does, just as it does for the STM, EXO and other transit compagnies.
There were public biddings, and it was so transparent that when Bombardier didn't win the bid, the politicians were furious about that and wanted to force the CDPQi to use Bombardier trains...
* The article seems to imply that the borrowers didn't obtain as low of a financing cost as the government would've received had they borrowed for the project
It got a Canada's Infrastructure Bank loan, which is lower.
* Charging a fee for future developments near the stations could potentially push new development farther away from them (this one is so far speculative)
The opposite is happening as development fees are higher than what they were expected to be and many projects were announced near the new REM stations. Source :
https://www.lapresse.ca/affaires/201909/...-23-millions-dans-les-coffres-du-rem.php