Alto’s current estimate to build Canada’s first high-speed railway is between $60 and $90 billion.
The Town of Whitby in Durham has expressed interest in being part of Alto’s planning process (see below).
Unlike several other infrastructure projects, Alto will be a revenue-generating asset. It said its ticket prices are being worked out and will be competitive (see below).
With speeds reaching 300 kmh or more on some 1,000 km of dedicated and mainly electrified tracks, Alto will connect people living along:
- Toronto
- Peterborough
- Ottawa
- Montréal
- Laval
- Trois-Rivières, and
- Québec
Alto explained long-term sustainable infrastructure project cost can be divided into two main categories in terms of cost. They are:
- Capital costs: This represents the investment required to build the infrastructure. For Alto, that includes some 1,000km of dedicated, grade-separated tracks and all surrounding structures such as over and underpasses, fencing, train stations, and all other physical assets.
- Operating and maintenance costs: This represents the ongoing costs required to run and maintain the infrastructure once it is in service. For Alto, this includes on and off-train employees, electricity (Alto will be mostly electrified), maintenance, inspections and the ongoing upkeep of the tracks and assets, among other costs.
Capital Investment
Also explained that even before construction begins, significant work is required to develop the project, including engineering studies, environmental assessments, public engagement and design.
“Our estimates are prepared during the earliest stages of project development, when the overall concept, route , and scope are known, but many engineering details have not yet been finalized,” said the company.
It pointed out that given that the project is still in its initial stages, it is not possible to have a finalized budget.
“As we advance further with the project, more details will be firmed up, and our cost estimates will become more concrete. Through the design phase, we will confirm the final rail alignment and station requirements. We will also define the infrastructure needed to support the network, including bridges, underpasses, and other structural elements. Lastly, we will have a clearer picture of the quantities of materials needed to build, and market and procurement information. In short, further development of our project will give us the information needed to refine the capital costs,” Alto said.
Passenger Revenue
Alto will be a revenue generating project. Once in operation, it expects to welcome millions of passengers per year. This revenue is projected to fully cover and likely exceed our operating and maintenance costs, according to research. Furthermore, based on examples of high-speed rail across the globe, it is possible that operating services will generate surpluses.
“To be clear, these amounts do not cover the original capital costs or all lifecycle costs, but the benefits of building high-speed rail in Canada are well worth those investments,” the company said.
Global Comparisons
Alto’s current estimate can also be viewed in an international context. As outlined in Alto report, Canada’s Moment, the capital cost is about $60 million to $90 million per route-kilometre, which is comparable to the international average of some $77 million per kilometre for high-speed rail projects. This comparison varies according to factors including geography, land acquisition, labour costs, regulations, and project scope.
Building a high-speed rail network is a long-term undertaking, and the costs will evolve over time, from capital to operation and maintenance costs, the company said.
Earlier Stories
How much will it cost to take a ride on proposed Alto trains