Transportation policy - It's all in the price

The furor over road tolls has brought the discussion of congestion and public transit into the spotlight.  The fact that the Liberal government is expanding GO transit from a city-wide transit system into an intercity transportation solution while at the same time cancelling the Northlander, only serves to illustrate the Liberal government is not in control of the bureaucracy.

The Liberal mindset that is tilted in Toronto's favour, has been made clear by numerous comparison's of the "subsidy" to the Northlander and the "investment" in GO Transit.  Aside from the obvious bias of the terminology used, there are some other differences that need to be addressed as Ms. Wynne struggles to find a solution to the mess that is transportation policy in Ontario.

GO Transit is recognized as a valuable public organization and is wholly supported by the Ontario government.  Whether or not the claim of an 80% to 85% recovery rate is strictly due to efficient operations, or slightly skewed by inclusions of deferred capital contributions, there is no doubt it is a well run company.  I will leave the differences in comparing the financials of the two companies to those of you who are qualified and have time available.

Metrolinx 2010-2011 Annual Report

ONTC 2010-2011 Financial Statements   (Annual Report not published)


Ontario Northland, as an agency under the direction of Ministry of Northern Development and Mines has undergone at least two decades of declining support and constant attacks by the party in power.  There was a time in 2003 where it looked like the tide was turning and the Liberals were prepared to invest in the company, but that ran out before the damage could be corrected and it has actually declined to the point where the entire company is to be cast aside.

With that background, we turn to comparisons of the services provided by both companies. 

GO transit serves a population of 7,000,000 within an 11,000 square km area and has the benefit of municipal transit systems to feed all its stations.

 Ontario Northland serves a population of 3,300,000 including Toronto within a 
181,000 square km area with very limited transit feeding its stations.  

There is a difference in the level of service on board due to the amount of time needed to come from Cochrane rather than Barrie, but it is in the per kilometre pricing that a distinct and vital difference emerges.  The competition for both GO Transit and Ontario Northland is the automobile.  Although the CAA Driving calculator shows the true cost of driving, most potential riders only compare the price of fuel against a train/bus trip since they will own and operate the vehicle regardless of transit use.  If we assume an average fuel economy of 10L per 100 Kms and and average price of $1.20 per litre (more like $1.36 in Cochrane) the cost per km of taking the car works out to .12 cents per km.  

For trips to Toronto, GO Transit fares vary from .12 cents per km from Barrie to .15 cents per km from Kitchener, Oshawa and Hamilton.  Ontario Northland fares from Cochrane work out to .22 cents per km, which is much higher than the cost of driving.  Why is there a need to capture so much more revenue from a passenger from Cochrane versus one from Oshawa?

Then there is the difference in discounts for multi rides, students and seniors, who are primarily the target market for the Northlander.  GO Transit discounts will lower the fares down to .06 per km for seniors and .10 per km for students, while Ontario Northland passengers only get discounted to .18 cents per km.  It is no wonder the services offered by ONR are not utilized to the same extent as GO Transit.

Then there is the marketing budget for each company.  GO Transit spends huge amounts of money to advertise their services and pull people out of their vehicles.  Ontario Northland has not advertised the Northlander for years.  

Again, the company is set up to fail, then non-use is used as justification for removing the service.  Road tolls will start to correct the financial imbalance of gas tax and vehicle registration revenue being $875 Million below the amount spent by MTO on highways.

Transportation companies rely on good feeder systems to build ridership.  Ms. Wynne needs to set up good feeder systems for GO Transit and properly price them to stem the unsustainable use of the automobile.