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
So apparently Lyft is the largest bikeshare operator in North America. They operate around 68,000 bikes and scooters, which equaled some 52 million rides last year. Ridership also continues to grow. Since 2020, ridership has grown in cities like New York (+56%), Chicago (+79%), Boston (82%), and Denver (+170%).
However, this part of Lyft's business was in the news this week because the company announced that they are entertaining proposals to sell it, as well as "strategic partnerships." The company has said that it remains committed to offering bikes through the Lyft app, but clearly it is trying to shore up its balance sheet.
This raises some interesting questions. Can bikeshare be a profitable and sustainable for-profit business? Or do we now need to be thinking of it as an important public service that is deserving of subsidies -- similar to how public transit and cars/roads work in most cities? My own view is that these networks are here to stay regardless of how profitable or unprofitable they might be.
For additional stats on Lyft's bikeshare business, click here. One of the figures that I found interesting, but not surprising, was that 71% of riders use bikeshare for "fun." This is by far the most popular use case. The next most popular use is "errands" at 39%.
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
So apparently Lyft is the largest bikeshare operator in North America. They operate around 68,000 bikes and scooters, which equaled some 52 million rides last year. Ridership also continues to grow. Since 2020, ridership has grown in cities like New York (+56%), Chicago (+79%), Boston (82%), and Denver (+170%).
However, this part of Lyft's business was in the news this week because the company announced that they are entertaining proposals to sell it, as well as "strategic partnerships." The company has said that it remains committed to offering bikes through the Lyft app, but clearly it is trying to shore up its balance sheet.
This raises some interesting questions. Can bikeshare be a profitable and sustainable for-profit business? Or do we now need to be thinking of it as an important public service that is deserving of subsidies -- similar to how public transit and cars/roads work in most cities? My own view is that these networks are here to stay regardless of how profitable or unprofitable they might be.
For additional stats on Lyft's bikeshare business, click here. One of the figures that I found interesting, but not surprising, was that 71% of riders use bikeshare for "fun." This is by far the most popular use case. The next most popular use is "errands" at 39%.
On most days, I walk to the office. That is going to be changing later this summer, but what I'm about to say will still apply.
Because I walk more often than I drive, whenever I have to go somewhere that necessitates a car and that obligates me to leave during the evening rush, the first thing I usually think to myself is "shit, it's going to really suck getting out of downtown."
I have very little patience when it comes to sitting in traffic. So when I'm faced with this kind of situation, my mind immediately goes to: "okay Brandon, what are your other options here?"
And this is exactly what happened this past Friday. I had a dinner up in Vaughan after work and I opted to take the subway to VMC station (the northern terminus of one of Toronto's lines).
It was actually my first time riding this new line extension and it was cool to see the area around the station. It's not yet a 15-minute community, but I believe it can get there with some narrow streets and the right kind of ground floors.
The entire trip took about 45 minutes, and I can tell you that on more than one occasion I thought to myself, "this is way better than sitting in traffic."
On most days, I walk to the office. That is going to be changing later this summer, but what I'm about to say will still apply.
Because I walk more often than I drive, whenever I have to go somewhere that necessitates a car and that obligates me to leave during the evening rush, the first thing I usually think to myself is "shit, it's going to really suck getting out of downtown."
I have very little patience when it comes to sitting in traffic. So when I'm faced with this kind of situation, my mind immediately goes to: "okay Brandon, what are your other options here?"
And this is exactly what happened this past Friday. I had a dinner up in Vaughan after work and I opted to take the subway to VMC station (the northern terminus of one of Toronto's lines).
It was actually my first time riding this new line extension and it was cool to see the area around the station. It's not yet a 15-minute community, but I believe it can get there with some narrow streets and the right kind of ground floors.
The entire trip took about 45 minutes, and I can tell you that on more than one occasion I thought to myself, "this is way better than sitting in traffic."
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