Toronto’s Transit Saga

In the City of Toronto, there are two primary theories surrounding how to develop new public transit projects: light rail transit (LRT) and subways. Correspondingly, there are two potential funding frameworks: use the $8.4 billion allocated by the Province to build a network of LRT lines, or use part of the money to start funding a subway on Sheppard Avenue, then arrange a P3 to deliver the remaining lines.

Currently, of the $8.4 billion, $6.4 billion has been allocated to the Scarborough-Eglinton Crosstown Project. This includes below and at-grade work on Eglinton Avenue and the replacement of the Scarborough rapid transit line with the same LRT technology that the Eglinton line will use.

This leaves the City with $2 billion. In a February vote, Council reaffirmed Toronto’s commitment to LRT lines on Eglinton and Finch corridors. In a March meeting, an expert panel recommended LRT as the most cost-effective solution and Council voted for LRT on Sheppard. Both the Finch and Sheppard lines have an estimated cost of $1 billion each.

However, Toronto’s Mayor Rob Ford has been active in promoting subway as the best form of public transit for the city. While the city does have $1 billion to spend on transit along Sheppard, the cost estimate for an eastbound subway extension (the same direction as the proposed LRT) is approximately $2.7 billion, according to a report commissioned by former councillor (and dentist) Gordon Chong. The Toronto Transit Commission pegged the cost of this project as closer to $3.7 billion.

Ford believes that the private sector would be willing to invest in a P3 project to close the funding gap for a subway on Sheppard. He told reporters on March 15, “You put a shovel in the ground, investors will come, funding will come, it’s all going to come.”