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Ontario Premier Doug Ford Talks Highway 407 Buyback Plans
In a recent update regarding Highway 407, Ontario Premier Doug Ford acknowledged that he has yet to engage in discussions with the executives managing the private toll road. This follows his earlier comments about potentially repurchasing portions of the highway to mitigate traffic congestion in the Toronto area.
During a press conference on Thursday, Ford stated, “I have not yet met with them, but I think it’s time to sit down with them and really take a look at different options.” His remarks indicate a recognition of the necessity for dialogue regarding the highway’s future management.
The idea of repurchasing Highway 407 first emerged in September, a proposal that highlights the complex history of the toll road, which was privatized in the late 1990s for $2.3 billion—a transaction Ford referred to as “the biggest mistake I’ve ever seen.” He expressed regret over the sale while contemplating an offer to reclaim the route but ultimately chose against it at the time.
Current Valuation and Future Considerations
Ford insinuated that the financial landscape around Highway 407 has changed dramatically, stating that the highway is now worth about $35 billion. However, he indicated that studies carried out by the government suggested that all Highway 400 series roads are expected to reach full capacity within the next 25 years, complicating any immediate buyback efforts.
By the end of November, reports from the Ministry of Transportation revealed that discussions with Highway 407 representatives had taken place, though specific details remained undisclosed, leaving questions about the nature of these conversations.
While Ford expressed his desire to explore various options with the highway’s executives, he did not outline specific strategies, which could include subsidizing toll fees or fully acquiring the highway infrastructure.
Plans for a New Expressway Under Highway 401
In parallel to the Highway 407 discussions, Ford is advancing plans related to an infrastructural initiative aimed at reducing congestion. This plan envisions constructing an expressway beneath Highway 401, a project that is moving closer to realization. A spokesperson from the Ministry of Transportation indicated that initial steps toward studying this concept would commence soon, with market sounding exercises planned to begin in the next few weeks.
Announced in September, the proposed 50-kilometre expressway aims to assess feasibility and cost-effectiveness while also considering the possibility of integrating a rail line within the project. Ford described this initiative as a priority and emphasized the importance of thorough environmental assessments and collaboration with Metrolinx to ensure a comprehensive approach.
The preliminary market sounding phase will lead to a bidding process for qualified companies to conduct the necessary studies, ultimately culminating in a report to guide the government’s final decision on infrastructure investments.
Source
globalnews.ca