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The first phase of Montreal's new Réseau express métropolitain (or REM) just opened it up. It is a 17 km light-rail line that includes five stations running from Brossard in the south (A1 above) to Gare Centrale in downtown Montreal. Eventually this network -- which is distinct from but connected to the city's existing metro network operated by STM -- will span 67 kilometers and have a total of 26 stations. To put this into perspective, Montreal's current metro totals 69.2 kms. So this is a near doubling.
As with most big city building projects, Montreal's REM is being and will continue to be criticized. Back in 2016, the project had an estimated total project cost of $5.9 billion. By 2021, this number had increased to $6.9 billion. Today, who knows what the number will be. But it will be more. The reality is that everything went up, by a lot, over the last five years. During the pandemic, we were seeing 30-40% cost increases on some of our construction line items.
What's perhaps most noteworthy about this project is its delivery model. It is being delivered through a partnership with the the Caisse de dépôt et placement du Québec (CDPQ):
Under the pact, the Caisse’s infrastructure arm is assuming $3.5-billion of the project’s $6.9-billion construction cost while Quebec is committing $1.28-billion and the Canada Infrastructure Bank is providing a $1.28-billion loan. The balance consists of a $295-million payment from Hydro-Québec for the line’s electrification, while the Autorité régionale de transport métropolitain, the transit authority for the Montreal region, is pledging $512-million.
Provincial and local governments will provide continuing operating subsidies for the REM to make sure the Caisse earns its required return on the project, currently pegged at 8 to 9 per cent. The pension fund manager will get 72 cents for each passenger-kilometre travelled on the light rail system. Without such a subsidy, fares would climb to a level few passengers could afford.
It'll be interesting to see how this approach stands the test of time. As I understand it, CDPQ wants to continue building and operating transit in other cities around the world. I don't know any of the specifics other than what I have read online. But from the outside, things seem to be working. The first phase of the REM broke ground in April 2018, and the opening ceremony was held this month (July 2023). That's basically warp speed in transit timelines.
Map: Montreal REM
This morning I took the mid-level escalators down to Hong Kong station so that I could catch the express train to the airport. At over 800m, it is supposedly the longest outdoor covered escalator system in the world.
If you’ve ever walked the streets of Hong Kong you’ll know that the ground plane can be inhospitable at times. There’s limited space, but no shortage of steep pitches. I can’t imagine having a physical disability and trying to navigate this city.
So this system must have been a real innovation when it was constructed in the early 90′s. In total it moves up and down about 135m in elevation. That’s about the equivalent of a 45 storey tower. And I got down from the mid-levels and was on a train to the airport within 15 minutes.
But because the streets here are so narrow it’s a unidirectional system with one line of escalators. They bring people down to the CBD during the morning rush, but then the direction flips and they bring people up the hill for the remainder of the day — until midnight I believe. Living near these escalators is considered a win.
Hong Kong Island surely isn’t the easiest of environments in which to build and operate one of the world’s most important global cities. There’s relatively little developable flatland. But they more than made it work by being creative and by building up. Hong Kong is not just a tall city, but a truly vertical city.
Too bad my efficient morning commute was followed by a cancelled United flight. Tomorrow is not going to be a fun day travel.
Dylan Reid of Spacing was recently at the International Transport Forum in Leipzig, Germany and has been publishing some interesting posts related to transit. Here is one about what makes transit systems succeed and fail.
I really like the point that we too often think about transit projects as culminating with a big opening, while overlooking the importance of operations. It’s a bit like focusing on the wedding ceremony and forgetting that the ceremony is only really there to (hopefully) mark the beginning of a lifelong union.
The first phase of Montreal's new Réseau express métropolitain (or REM) just opened it up. It is a 17 km light-rail line that includes five stations running from Brossard in the south (A1 above) to Gare Centrale in downtown Montreal. Eventually this network -- which is distinct from but connected to the city's existing metro network operated by STM -- will span 67 kilometers and have a total of 26 stations. To put this into perspective, Montreal's current metro totals 69.2 kms. So this is a near doubling.
As with most big city building projects, Montreal's REM is being and will continue to be criticized. Back in 2016, the project had an estimated total project cost of $5.9 billion. By 2021, this number had increased to $6.9 billion. Today, who knows what the number will be. But it will be more. The reality is that everything went up, by a lot, over the last five years. During the pandemic, we were seeing 30-40% cost increases on some of our construction line items.
What's perhaps most noteworthy about this project is its delivery model. It is being delivered through a partnership with the the Caisse de dépôt et placement du Québec (CDPQ):
Under the pact, the Caisse’s infrastructure arm is assuming $3.5-billion of the project’s $6.9-billion construction cost while Quebec is committing $1.28-billion and the Canada Infrastructure Bank is providing a $1.28-billion loan. The balance consists of a $295-million payment from Hydro-Québec for the line’s electrification, while the Autorité régionale de transport métropolitain, the transit authority for the Montreal region, is pledging $512-million.
Provincial and local governments will provide continuing operating subsidies for the REM to make sure the Caisse earns its required return on the project, currently pegged at 8 to 9 per cent. The pension fund manager will get 72 cents for each passenger-kilometre travelled on the light rail system. Without such a subsidy, fares would climb to a level few passengers could afford.
It'll be interesting to see how this approach stands the test of time. As I understand it, CDPQ wants to continue building and operating transit in other cities around the world. I don't know any of the specifics other than what I have read online. But from the outside, things seem to be working. The first phase of the REM broke ground in April 2018, and the opening ceremony was held this month (July 2023). That's basically warp speed in transit timelines.
Map: Montreal REM
This morning I took the mid-level escalators down to Hong Kong station so that I could catch the express train to the airport. At over 800m, it is supposedly the longest outdoor covered escalator system in the world.
If you’ve ever walked the streets of Hong Kong you’ll know that the ground plane can be inhospitable at times. There’s limited space, but no shortage of steep pitches. I can’t imagine having a physical disability and trying to navigate this city.
So this system must have been a real innovation when it was constructed in the early 90′s. In total it moves up and down about 135m in elevation. That’s about the equivalent of a 45 storey tower. And I got down from the mid-levels and was on a train to the airport within 15 minutes.
But because the streets here are so narrow it’s a unidirectional system with one line of escalators. They bring people down to the CBD during the morning rush, but then the direction flips and they bring people up the hill for the remainder of the day — until midnight I believe. Living near these escalators is considered a win.
Hong Kong Island surely isn’t the easiest of environments in which to build and operate one of the world’s most important global cities. There’s relatively little developable flatland. But they more than made it work by being creative and by building up. Hong Kong is not just a tall city, but a truly vertical city.
Too bad my efficient morning commute was followed by a cancelled United flight. Tomorrow is not going to be a fun day travel.
Dylan Reid of Spacing was recently at the International Transport Forum in Leipzig, Germany and has been publishing some interesting posts related to transit. Here is one about what makes transit systems succeed and fail.
I really like the point that we too often think about transit projects as culminating with a big opening, while overlooking the importance of operations. It’s a bit like focusing on the wedding ceremony and forgetting that the ceremony is only really there to (hopefully) mark the beginning of a lifelong union.
One of the reasons why this is important is because, as Reid points out, “fares need to provide a strong and consistent proportion of the agency’s funding.” So you need bums in seats, which means you need to build the right transit in the right locations. In other words, a new subway line through a low density suburb will probably result in an abysmal farebox recovery ratio.
At the same time:
“…fares will rarely cover all of an agency’s costs. Hong Kong’s Kam noted that, to be truly autonomous, an operator needs an additional dedicated, independent source of revenue. This cannot be based on additional transit-related non-fare revenue (e.g. advertising) – such revenue is helpful but never significant. It needs to be an external source. In Hong Kong, it is based on the agency’s extensive property ownership, but in other cities it could be a congestion charge, a dedicated sales or income tax, or other mechanism. Only with such a source can the agency have the independence to make its own choices for reinvestment and improvements.”
This is one of the reasons why I am such a strong supporter of road pricing.
Another point that Reid makes is that transit agencies should always have a consistent pipeline of new projects, rather than erratic periods of expansion. This makes a lot of sense given what it takes to ramp up for a large infrastructure project. But it’s obviously contingent on having sustainable funding sources.
Click here if you’d like to read the rest of Dylan Reid’s post.
One of the reasons why this is important is because, as Reid points out, “fares need to provide a strong and consistent proportion of the agency’s funding.” So you need bums in seats, which means you need to build the right transit in the right locations. In other words, a new subway line through a low density suburb will probably result in an abysmal farebox recovery ratio.
At the same time:
“…fares will rarely cover all of an agency’s costs. Hong Kong’s Kam noted that, to be truly autonomous, an operator needs an additional dedicated, independent source of revenue. This cannot be based on additional transit-related non-fare revenue (e.g. advertising) – such revenue is helpful but never significant. It needs to be an external source. In Hong Kong, it is based on the agency’s extensive property ownership, but in other cities it could be a congestion charge, a dedicated sales or income tax, or other mechanism. Only with such a source can the agency have the independence to make its own choices for reinvestment and improvements.”
This is one of the reasons why I am such a strong supporter of road pricing.
Another point that Reid makes is that transit agencies should always have a consistent pipeline of new projects, rather than erratic periods of expansion. This makes a lot of sense given what it takes to ramp up for a large infrastructure project. But it’s obviously contingent on having sustainable funding sources.
Click here if you’d like to read the rest of Dylan Reid’s post.
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