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Budget 2005
CONTENTS
• Message from the Minister and Accountability Statement  
• Ministry Overview and Core Business Areas  
• Resource Summary  
• Vision, Mission and Values  
• Goals, Objectives, Strategies and Results  
• Related Initiatives and Planning Processes  
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Ministry of Transportation
  

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Resource Summary

Ministry of Transportation

Core Businesses 2004/05 Restated Estimates1 2005/06 Estimates 2006/07 Plan 2007/08 Plan
Operating Expenses ($000)
Transportation Improvements2 12,623 12,651 12,651 12,559
Public Transportation3 363,474 359,292 363,826 361,329
Highway Operations 414,902 419,006 415,030 418,129
Passenger Transportation Regulation 1,767 2,301 2,243 2,243
Executive and Support Services 11,689 11,695 11,695 11,695
Total 804,455 804,945 805,445 805,955
Full-time Equivalents (Direct FTEs)
Transportation Improvements 273 285 285 285
Highway Operations 633 691 691 691
Passenger Transportation Regulation 20 22 22 22
Executive and Support Services 72 76 76 76
Total 998 1,074 1,074 1,074
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
Transportation Improvements 473 1,255 1,135 765
Highway Operations 11,285 14,824 5,918 2,495
Passenger Transportation Regulation 0 183 179 184
Executive and Support Services 1,522 383 130 539
Total 13,280 16,645 7,362 3,983
Other Financing Transactions ($000)
Receipts — — — —
Disbursements — Public Transportation4 25,200 24,800 17,500 6,100
Net Cash Source (Requirement) (25,200) (24,800) (17,500) (6,100)
Revenue ($000)
Total Receipts5 77,838 56,951 58,081 59,301
1  These amounts have been restated, for comparative purposes only, to be consistent with Schedule A of the 2005/06 Estimates.
2  Transportation Improvements: Operating Expenses are reported net of funding from external sources, primarily the BC Transportation Financing Authority (see next page).
3  Public Transportation: Operating Expenses include government transfers to British Columbia Transit and British Columbia Ferry Services Inc., as well as amortization and debt servicing costs for prepaid capital advances to British Columbia Transit and Rapid Transit Project 2000.
4  Other Financing Transactions: Disbursements — Public Transportation include prepaid capital advances to British Columbia Transit for buses, and to Rapid Transit Project 2000 for construction of the Millennium SkyTrain Line (scheduled for completion in 2005/06).
5  The majority of the ministry's revenue comes from Coquihalla Tolls (approximately $49 million annually). The increase in receipts in 2004/05 was due to one-time revenue from the province's investment in British Columbia Ferry Services Inc.

BC Transportation Financing Authority — Income Statement

  2004/05 Budget1 2005/06 Budget 2006/07 Plan 2007/08 Plan
Revenue ($000)
Dedicated taxes2 425,280 450,100 463,700 477,300
Transfer payments3 750,000 — — —
Amortization of deferred contributions4 171,145 165,270 155,282 145,456
Other revenue5 4,844 18,844 10,844 10,844
Total 1,351,269 634,214 629,826 633,600
Expenditures ($000)
Amortization 301,827 307,447 313,449 318,991
Interest6 150,357 136,743 156,609 180,599
Heartlands roads program7 35,000 35,000 35,000 35,000
Grant programs8 76,300 102,000 18,000 136,000
Operations and administration 8,156 3,866 3,866 3,866
Total 571,640 585,056 526,924 674,456
Net Income (Loss) ($000)
Net Earnings (Loss) 779,629 49,158 102,902 (40,856)
Capital Plan ($000)9
Transportation Improvements 533,968 519,552 602,156 509,352
1  These amounts have been restated to be consistent with the classification of revenue and expenditures adopted for the 2005/06 and subsequent years' budgets.
2  Dedicated taxes include 6.75 cents per litre motor fuel tax and a provincial sales tax on short-term car rentals of $1.50 per day.
3  Transfer payments from BC Rail proceeds ($200 million) and the Consolidated Revenue Fund ($550 million).
4  Contributions towards capital assets are deferred and amortized to income at the same rate as the related highway infrastructure is amortized to expense.
5  Other revenue includes property and economic development revenues, net of related expenses.
6  Interest on borrowing used to finance construction work in progress is capitalized. Upon completion, related interest costs are expensed.
7  Improvements to Heartlands roads are included in capital expenditures; repairs to Heartlands roads are expensed. Total Heartlands roads program is $75 million per year.
8  Grant programs include grants paid under the transportation partnerships program for ports and airports, the provincial contribution to the Richmond-Airport-Vancouver rapid transit project, contributions for inland ferries, and other projects.
9  Capital Plan numbers are net of federal funding.

Rapid Transit Project 2000 — Income Statement

  2004/05 Budget 2005/06 Budget 2006/07 Plan 2007/08 Plan
Revenue ($000)
Recognition of deferred capital and pre-operating contributions(1) 28,384 29,348 28,666 28,027
Expenditures ($000)
Amortization of deferred capital contribution(2) 28,384 29,348 28,666 28,027
Net Income (Loss) ($000)
Net Earnings — — — —
  Note: Amortization of (1) receipts from the province and (2) capital assets related to construction of the SkyTrain Millennium Line.

Major Capital Projects

Nisga'a Highway

Objective: The Nisga'a Highway Project is in the final year of a seven-year investment program that involves upgrading the Nisga'a Highway from a gravel resource road to an all-weather, two-lane highway that meets a 70 kilometres per hour standard. The upgrade is now 75 per cent complete and is expected to be finished by the Fall of 2005. The upgrade will better serve Nass Valley residents and resource industries in the area.

Costs: The estimated total cost for the seven-year program is $52 million.

Benefits:

  • Safer roads.
  • Travel time savings.
  • Better access to British Columbia communities.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks: This project has presented engineering and construction challenges due to the rugged terrain. However, few risks remain as the construction left on the Nisga'a Highway upgrade is straightforward gravel and paving work.

Kicking Horse Canyon

Objective: Upgrade the 25-kilometre section of the Trans-Canada Highway to a modern, four-lane standard from the junction of Highway 95 at Golden to the western boundary of Yoho National Park. This corridor was originally constructed throughout the 1950s and is mostly two lanes wide. It is an important route for tourism and interprovincial trade, serving as a gateway between British Columbia and the rest of North America. Additionally, by connecting remote resource extraction sites with processing, manufacturing and distribution centres, this portion of the Trans-Canada Highway is a key part of our province's resource economies, particularly forestry and mining.

The Kicking Horse Canyon project has three phases, of which only the first two are funded and underway.

Costs: The estimated cost is $191 million for the first two phases.

  • Yoho (5-Mile) Bridge (current budget $61 million): The cost of this work is being shared with the Government of Canada under the Strategic Highway Infrastructure Program (SHIP). The federal portion is $23 million and the provincial portion is $38 million. Construction is on schedule and expected to be complete by Fall 2006.
  • Park (10-Mile) Bridge (preliminary estimate $130 million): The cost of this work is being shared with the Government of Canada under the Canadian Strategic Infrastructure Fund (CSIF). The federal portion is $62.5 million and the provincial portion is $67.5 million. The provincial government is pursuing private-public partnership delivery. A request for proposals was issued in October 2004.

Note: It is anticipated that in the future there will be a third phase for upgrades from Golden to 5-Mile and 10-Mile to Yoho National Park when federal cost-sharing is secured.  Improvements likely will be made over the longer term, rather than within the three-year scope of this service plan.

Benefits:

  • Safer roads and increased capacity on a critical provincial and national gateway.
  • Fewer road closures due to slides and accidents.
  • Replacement of two major structures that are nearing the end of their service lives.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks:

  • Challenging climatic and geographic conditions.
  • Managing traffic during construction.

Okanagan Lake Crossing

Objectives: To construct a new five-lane crossing to replace the existing 46-year-old crossing which is now at the end of its economic and useful life, and to reduce the increasing traffic congestion. The project includes improvements to the east approach through downtown Kelowna to improve traffic flow, a truck climbing lane on the west side of Okanagan Lake, and an interchange at Campbell Road on the west side of the crossing.

Costs: The crossing and east approach improvements are estimated to cost $100 million. Improvements to the west approach are estimated to cost an additional $20 million. The new crossing will be delivered through a public-private partnership. The east and west approach works will be delivered through traditional tender.

Benefits:

  • Safer crossing and connecting roads.
  • Travel time savings due to relieved congestion.
  • Economic development through increased tourism and more efficient movement of goods and services.

Risks: Engineering and construction challenges, which are substantially transferred to the private sector through the public-private partnership.

Sea-to-Sky Highway

Objectives: Implement critical safety, reliability and capacity upgrades to Highway 99 (the Sea-to-Sky Highway) by constructing lane expansions along some sections of the highway between Horseshoe Bay and Whistler. The schedule requires these upgrades to be completed by the end of 2009.  Much of the design and construction will be done by a private sector partner. These upgrades are in addition to improvements currently under construction between Culliton Creek and Cheakamus Canyon.

Costs: The estimated construction cost is $600 million. Further information including a Capital Project Plan is available at http://www.seatoskyimprovements.ca/.

Benefits:

  • A safer road.
  • Increased capacity.
  • Travel time savings.
  • Reduced vehicle operating costs.
  • Fewer road closures due to slides and accidents.

Risks:

  • Challenging climatic conditions.
  • Challenging construction due to difficult terrain or unstable areas, and the need to maintain traffic flows.

Rapid Transit Project 2000

Objective: The Millennium Line project, which is mostly complete and is running smoothly, included construction of the 21.6 kilometre Millennium Line extension to the SkyTrain rail transit system in the Lower Mainland, plus feasibility studies of two planned further extensions of SkyTrain. Construction is underway on the last portion from Commercial Station to Vancouver Community College.

Costs: The total cost of the Millennium Line is forecast to be $1.12 billion, which is lower than its approved budget of $1.17 billion. An operating lease with TransLink is in the final negotiation stage.

Benefits:

  • Rapid transit service for current and future commuters.
  • Reduced congestion.
  • Reduced pollution from automobile exhaust emissions.
  • Slower growth in the demand for new highway infrastructure.
  • Less urban sprawl, due to compact development around transit stations.

Risks: Risks are related to one remaining section, from Commercial Station to Vancouver Community College, which faces standard construction and financial risks and is expected to be turned over to the operator in late 2005.

Transportation Investment Plan

The first phase of a multi-year Transportation Investment Plan for British Columbia was announced in February 2003. The Plan is set out in detail in "Opening up BC", available online at http://www.gov.bc.ca/bcgov/content/images/transportation_plan_web.pdf.

Key components of the plan include:

  • Border Crossing Program — Enhancing the free flow of goods approaching and through B.C.'s busiest border crossings (highways #10, #11 (Sumas Way), #15 (176 Street), #91 and #91A), $242 million will be committed to infrastructure and technology improvements. British Columbia and provincial partners will provide $140 million, to be combined with $102 million from the federal government's Strategic Highway Infrastructure Program and Border Infrastructure Fund. This program's planned investments extend beyond the three-year scope of this service plan.
  • Gateway Program — Potential projects to improve the movement of people and goods in the Lower Mainland include twinning the Port Mann Bridge and widening Highway 1 between Vancouver and Langley; developing a four-lane, 80 kilometres per hour South Fraser Perimeter Road from Tsawwassen to the Port Kells area; and improving existing roads from New Westminster through Coquitlam, Port Coquitlam and Pitt Meadows to Maple Ridge to create a North Fraser Perimeter Road. Preliminary estimates suggest this program would cost $2.6 billion. Consultation with local governments continued through 2004. The ministry is committed to work with local governments, residents, businesses and other stakeholders as the program progresses.
Port Mann Bridge.
  Port Mann Bridge
  • Highway Corridors — Improving the performance of highway corridors through projects such as passing lanes, four-laning, left turn slots and realignments. Projected investment from 2005/06 to 2007/08 is $202 million. Approximately $10 million of this will be provided by the federal government under the Strategic Highway Program.
  • Highway Rehabilitation — Investing $438 million over three years (2005/06 through 2007/08) in road and bridge surfacing, bridge rehabilitation, seismic retrofits and highway safety improvements.
  • Heartlands Roads — Making Heartlands roads safer and more reliable, and improving connections between communities, the ministry is investing $225 million from 2005/06 through 2007/08 to renew the northern and rural road network.
  • Okanagan Corridor Improvements — Apart from a new Okanagan Lake Crossing, $60 million is expected to be invested to support trade and tourism and reduce congestion in urban areas.
  • Transportation Partnerships Program — Along with contributions from partners, the ministry is reserving $10 million a year, primarily for port and airport infrastructure improvements that will bring benefits for regional economies. A portion of this program funding is directed to cost-sharing on community cycling infrastructure.
Port improvements benefit the economy.
  Port improvements benefit the economy
  • Weigh Scales Upgrade Program — Over the two years of 2005/06 and 2006/07, an estimated $10 million will be invested to relocate and redesign weigh scales, implement joint facility operations at borders and develop intelligent transportation systems to process truck traffic more efficiently.
  • Heartlands Oil and Gas Road Rehabilitation Strategy — In partnership with the Ministry of Energy and Mines, the program will rehabilitate the existing public road infrastructure in the Northeast region of the province to help eliminate seasonal road restrictions and extend the winter drilling season for oil and gas exploration.
  • Richmond-Airport-Vancouver Rapid Transit Project (RAV) — The RAV project is a jointly funded (B.C. Government, Vancouver International Airport, Federal Government and the Greater Vancouver Transportation Authority (GVTA)) rail-based rapid transit line that will link central Richmond, the Vancouver International Airport and Vancouver's downtown business district. The project is deliverable by the GVTA through its subsidiary RAVCO. The province is committed to make $435 million in contributions.

 

     
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