2002/03 Annual Service Plan Report Ministry of Transportation

Year-at-a-Glance Highlights

Three-year Transportation Investment Plan

The government approved a three-year Transportation Investment Plan that contemplates a total investment of $5.5 billion in transportation infrastructure. The investments outlined in the plan will improve safety, increase economic activity, and enhance the movement of people and goods throughout the province and across international borders. The Plan will be funded through participation in federal cost sharing programs, third party contributions, public-private partnerships and dedicated revenue from a 3.5 cents per litre increase in the provincial motor fuel tax that took effect March 1, 2003.

Highlights of the plan include:

• an increase in the annual investment towards improving northern and heartlands roads by $75 million per year;
• improvements to the Okanagan Valley's main corridor, Highway 97, and to other priority corridors such as Highway 3 through the Southern Interior, Highway 95 through the Kootenays and a new Okanagan Lake Bridge at Kelowna;
• smaller-scale localized improvements to other major highways throughout the province; such as Highways 4, 5, 16, 20, 37, 101 and others; intended to improve safety and increase effectiveness through the addition of passing lanes, realignments and other safety features;
• funding of $145 million per year (up from $135 million) for rehabilitation to protect the public's investment in transportation assets;
• secured funding of $225.8 million for capital projects from the Government of Canada. This includes $62.5 million for the 10-Mile (Park) Bridge project on Highway 1 in the Kicking Horse Canyon, $75.3 million under the Strategic Highway Infrastructure Program and $88 million under the Border Infrastructure Fund;
• a multi-year investment program to undertake critical improvements to the Sea-to-Sky Highway; and
• funding for community and regional airports and ports of $10 million per year to stimulate incremental economic activity.

Public-Private Partnerships

The Legislature adopted the Transportation Investment Act, which established the policy and legal framework to enable Public-Private Partnerships (P3s). The Act enables the government to enter into P3 arrangements where the financial analysis shows these would provide a clear public benefit. Specifically, the Act allows the government to reach agreements with private investors who may build, operate and maintain highways and recover their costs by charging user fees. The province will regulate the amount of the tolls that the private sector operators can charge.

The ministry, in cooperation with other provincial agencies, developed a plan to transfer the operation of the Coquihalla Highway to the private sector. A request for proposals was issued in spring 2003.

In order to solicit and develop P3 proposals in Greater Vancouver, the ministry is working with the Greater Vancouver Transportation Authority to evaluate the feasibility of a coordinated program to identify and implement transportation improvements in the Fraser River corridor. The goal of the program would be to contribute significantly to the regional and provincial economies through better movement of goods and people. Translink's Fraser River Crossing, scheduled for completion in 2007, would be part of the program; other candidate projects under consideration include the proposed South Fraser Perimeter Road, Highway 1 widening (Vancouver to Langley), and a new crossing at Port Mann. The overall program would involve user charges as a prerequisite to implementation.

The ministry also hosted the BC Transportation Partnerships International Conference in July 2002.

Regional Transportation Advisory Committees (RTACs)

The ministry established RTACs in eight B.C. regions, covering the entire province outside Greater Vancouver. The committees will identify regional transportation needs and advise the Minister on regional priorities, fulfilling a New Era commitment to give regions more control over their transportation needs and planning.

Integrated Provincial Transportation Strategy

Work commenced with other provincial Crown transportation agencies on the development of a high-level strategic plan, intended to identify potential new efficiencies and points of integration across B.C.'s transportation system. This will fulfill a New Era commitment to examine the status of the transportation system in terms of both operations and infrastructure, and to consider various regional transportation models. Input from the RTACs will support the development of the strategic plan.

Infrastructure Management

The ministry endorsed new agreements between road and bridge maintenance contractors and their unions that will reduce labour costs by 16 per cent and save the province $26 million annually, while continuing to protect public safety. Without these efficiencies, annual costs would have risen to $347 million by 2004/05. The savings will enable the ministry to bring the costs of maintenance contracts back down to $321 million by 2004/05, the same level as in the 2001/02 fiscal year. New contracts to be tendered in 2003 and 2004 will be extended to a 10-year term. The new 10-year contracts will enable maintenance contractors to plan more effectively and provide a more favourable time frame for amortizing the cost of heavy equipment and facilities.

The ministry developed a Contractor Assessment Program, a new and improved procedure for achieving a standard of excellence in contracted highway maintenance. The program includes an enhanced contract auditing process, which for the first time formally incorporates input from stakeholders such as police, emergency service providers, the trucking and bus industries, school districts, and resource industries.

Streamlined Processes

The ministry implemented 10 new processes as part of its Business Process Re-engineering project. These processes will improve front-line customer service, records management, expenditure reporting, hiring and contracting, gravel management and emergency response capabilities.

The ministry initiated the privatization of inland ferry services at Francois Lake, and made provisions to transfer the ferry route at Little Fort to road and bridge maintenance contractors in 2003/04.

Organizational Restructuring

The Office of the Superintendent of Motor Vehicles, formerly a part of the Transportation Ministry, more appropriately fits within the mandate of the Ministry of Public Safety and Solicitor General, and was therefore transferred to that ministry at the end of 2002/03.

The Motor Carrier Branch, the administrative arm of the Motor Carrier Commission, was housed within the Insurance Corporation of British Columbia (ICBC) from 1996 through 2002/03. It was transferred back into the ministry effective April 1, 2003.

It was determined that operating provincial weigh scales under the supervision of the Ministry of Transportation (MoT) is consistent with the mandate and service plan of the ministry. Effective April 1, 2003, the weigh scales were returned from ICBC to the jurisdiction of MoT. The scales are to be jointly administered with the Ministry of Public Safety and Solicitor General. The result will be improved customer service, maximizing the trucking industry's ability to move goods and create economic activity.

In support of the government strategic direction towards shared support services and common information technology services across government and the broader public sector, the ministry transferred 52 positions to Solutions BC, the government's newly established shared services agency. The agency will deliver innovative, client-focused services in such areas as information technology, payroll, accounting, and procurement. The intended result is improved service and reduced costs over time.

Similarly, in support of the government's vision of achieving excellence in public service, the ministry transferred 24 human resources staff positions to the new BC Public Service Agency. The Agency provides leadership in people management and human resource services for government as a whole.

BC Ferry Services

The government announced a decision to transform BC Ferries into an independent, self-financing company, dedicated to improving service while fostering greater consumer choice. BC Ferries, which had operated as a taxpayer-supported Crown corporation, was restructured under the B.C. Company Act and renamed BC Ferry Services. The new company will be governed by the British Columbia Ferry Authority, an oversight body modelled on the successful Vancouver International Airport Authority. An independent regulator will regulate rates and protect consumer interests.