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Transportation Minister Kevin Falcon

BCAA's Annual General Meeting
(100th Anniversary of BCAA)
March 30, 2006, Victoria, BC

INTRODUCTION

  • Good evening, great to be here.
  • Thank you for the kind introduction.
  • I want to thank the BC Automobile Association and members for this opportunity.
  • This is certainly an appropriate site (Fairmont Empress Hotel) for this special annual general meeting as in 1906 it was the Auto Club of Victoria that got it all started.
  • What was it—1940 when the BCAA was officially recognized when 31 auto clubs came together?
  • BCAA obviously does things very well—renewal rate of over 90% and first auto club in North America to reach the half million member plateau (1985).
  • Your membership now stands at 750,000, very impressive indeed.

BCAA SUBMISSIONS

  • I commend the BCAA membership and executive for the well-researched submissions.
  • Government and the BCAA are not always in total agreement on transportation infrastructure issues but respect is there for your well presented arguments.
  • The report last October on ten worst intersections—we have taken notice.
  • The paper on how best to deal with current traffic congestion problems….
  • Thank you for the very important 2004 study on viable transportation options and your submission in 2003 to TransLink—the 10-year Transportation Outlook & Three-year Financial Strategy—extremely important then and now.
  • The annual BCAA Brief to Government is always anticipated - with the knowledge that we will be introduced to important new transportation view points.
  • A belated thanks for your 2002 support of government’s corporate restructuring of BC Ferries.
  • An appropriate time—if you will allow me—to touch on the events of late March.

BC FERRIES

  • That two people are, most probably, lost in the sinking of the BC Ferry, MV Queen of The North—is difficult for everybody, of course no more difficult than for the immediate family members.
  • But—we are all so very impressed with the community of Hartley Bay, how they rose to the occasion
  • Hats off to the community of Prince Rupert—an incredible team there to receive the people; to the crew of the Sir Wilfrid Laurier, the Coast Guard vessel and the professionalism of the Queen of The North crew—staying cool to enact emergency procedures.
  • So important was this tragedy that the Premier and BC Ferries President David Hahn were in Prince Rupert to greet the crew and passengers as they arrived after harrowing experience.
  • This is an arterial highway for the coastal communities, not something just for convenience.
  • This is THE way of moving goods and services effectively and it's a key corridor for tourism.
  • BC Ferries President Hahn has been instructed to bring forward a plan for restoring service to communities on the Northern routes.
  • No illusions, this will be a challenge, coping with one less vessel in the fleet.

BC Ferries Plan

  • There will be on-going service by barge to get essentials to North Coast communities.
  • Air travel is being arranged for customers booked on our northern routes.
  • And the Queen of Prince Rupert will be brought back on line.
  • BC Ferries is looking for another vessel for the summer months.
  • BC Ferries will continue to provide service linking the small mid-coast communities with Bella Coola every two weeks.
  • There will be inconvenience and everything will NOT be as it was.
  • am asking for patience and understanding by those who are affected.
  • Restoring service is a top priority for BC Ferries. 

PROVINCIAL OVERVIEW

  • NOW…..It is an exciting time for British Columbians!
    • Our economy is booming.
    • The Province is running surpluses.
    • In four years we welcome the world to the Vancouver Winter Olympics.
  • We’ve come a long way from the Decade of Decline:
    • We implemented a plan to revitalize our economy.
    • We have made difficult choices.
    • We thank the BCAA for your general support and contributions
  • We had a vision and a plan.
  • And it was essential that we stuck to that plan and not avoid hard choices.
  • That’s how we’ve rebuilt investor confidence.
  • The result—BC IS BACK.
    • We are enjoying quarter after quarter of strong economic growth—17 quarters in a row.
    • The February unemployment rate was at a 30 year low—4.8%.
    • BC led the nation in job growth in 2005 at 3.4%.o More than 275,000 new jobs have been created since December 2001, and continued growth is predicted to continue into 2007.
    • Construction, trade and demand for natural resources are strong.
    • There is renewed strength in trade, tourism, natural resources, technology and transportation sectors

Transportation Plan

  • British Columbia’s transportation system includes:
    • 42,000 kilometres of roads
    • Over 3,000 kilometres of rail line
    • 2,700 bridges, tunnels and snow sheds
    • 35-ship ferry fleet
    • 9 deep sea ports
    • 4 major airports
    • 19 regional airport

Roads

  • $65,000 is needed to resurface one kilometer of road after 12 years, but $400,000 is needed after 20 years.
  • We are spending $2.3 billion over a three year period to build, maintain and upgrade our highways.
  • That does not include capital projects:
    • Kicking Horse Canyon – $730 million
    • Sea-to-Sky Highway – $600 million
    • Border upgrades – $240 million
    • New Okanagan Lake Bridge – over $100 million
  • Our plan is driven and guided by the need to:
    • Improve the safety and reliability for travelers and businesses;
    • Expand B.C. as Canada’s trade gateway—the Pacific Gateway—to the world, through improved ports, airports and border crossings;
    • Revitalize the economy through more efficient, cost-effective and competitive transportation system;
    • Free up the movement of goods in B.C.
    • Expand our transportation infrastructure to meet the needs of a growing population
    • Provide investment with no new public debt.

TRANSPORTATION ISSUES

  • Transportation the backbone of our provincial economy.
  • One million jobs depend on BC’s transportation network.
  • About $81 billion worth of goods moves through British Columbia each year.
  • This movement is through our international ports and airports, highways, railways and border crossings.
  • A key feature of our plan is that the investments will be made where there is a genuine and measurable return on investment.

Escalating Costs

  • We will always be faced with challenges and we have several significant issues to wrestle with:
    • Rising fuel costs
    • Rising labour costs
    • Rising costs of materials, steel and concrete fabrication
  • We are studying the impact of rising fuel costs and possible methods of helping businesses maintain or improve on the current levels of economic activity.
  • These rising costs have been especially felt this year in our various bridge projects.
  • P-3’s, or Project Partnership arrangements, involving levels of government and the private sector; like the William R. Bennett Bridge Project over Okanagan Lake, represents one successful method of keeping construction and operational costs down.

GATEWAY PROGRAM

  • It was at the BC Chamber of Commerce Transportation Forum in January where Premier Campbell and I announced the Gateway Program Definition Report.
  • The Gateway Program is a wide-ranging plan to meet the needs of our growing economy, increasing Asia-Pacific trade, and a growing population.
  • Many of you have heard me speak about the Gateway Program and know how badly this plan is needed:
    • Congestion now costs our economy $1.5 billion per year; up significantly from a decade ago
    • Existing bridges and highways in the Lower Mainland are now well beyond their designed capacities.
    • We know improvements are needed and we need to take action now.
    • We need to plan for the future and address long-term needs of the people of the Lower Mainland.
  • The consequences of not making the improvements include increasing congestion, longer rush hours, increased cost to economy, delayed goods movement, and unreliable transit connections through region.
  • Gateway is multi-modal:
    • Congestion reduction will permit restoration of public transit across the Port Mann Bridge (first time since 1986).
    • Both Port Mann and Pitt River bridges will be engineered to accept light rail transit.
    • HOV lanes will extend to Langley and exist in both directions across the Port Mann.
    • The Gateway project includes a $50 million investment in cycling infrastructure, the largest in the BC history; adding bike lanes on new bridges along Highway 1 corridor, Port Mann the Pitt River Bridges.
  • Gateway is a $3 billion dollar plan:
    • We look to the federal government for part of cost
    • We are also looking at possibly tolling the twinned Port Mann Bridge.
    • The provincial tolling policy does say that alternative routes must exist in order for a toll to be levied.
    • Tolling is a Traffic Demand Measure and reduces congestion past 20 yearso Both Alex Fraser Bridge and Pattullo are Port Mann alternatives.
    • Plan calls for the South Fraser Perimeter Road to open before Port Mann twinning is complete—greatly changing the way goods move along the Fraser and making the Alex Fraser more accessible.
    • We expect no increase in Pattullo Bridge traffic if tolls are placed on Port Mann Bridge because of South Fraser Perimeter Road.
  • We want to move quickly to get Gateway Program Projects underway:
    • Pitt River Bridge/Mary Hill Interchange:
    • Design/Build Request for Qualification issued February 22.
  • Environmental Assessment approval is imminent.
  • South Fraser Perimeter Road:
    • Pre-design consultations complete.
    • Enters Environmental Assessment this summer.
  • Port Mann Bridge/Highway 1:
    • Pre-design open houses are underway in communities around the lower mainland.
    • So far, tolling is an option that people appear to support.
  • There have been encouraging words from the Premier following his recent meeting with Prime Minister Harper:
    • A message of urgency from Ottawa regarding Gateway and Pacific Gateway initiatives.
    • The Prime Minister seems to agree that significant investment in both the port of Prince Rupert and Vancouver must be pursued
    • And there will be infrastructure investment behind that:
      • inland ports
      • rail infrastructure
      • road infrastructure

KICKING HORSE CANYON PROJECT PHASE 2

  • We share a priority, improving the Trans Canada from Kamloops to the Alberta border.
  • Earlier this month (March 10) I welcomed my new federal counterpart, Transportation, Infrastructure and Communities Minister Lawrence Cannon, to British Columbia.
  • Together, we announced the agreement to fund Phase 2 of the Kicking Horse Canyon Project.
  • Highway improvements through Kicking Horse Canyon are our number one transportation priority.o Phase 1—replacement of the Yoho or Five Mile Bridge and its approaches, will be completed this year.
  • Phase 2 is the Park Bridge replacement and upgrading of about 5 kilometres of the Trans-Canada Highway:
    • This $130 million phase of the project is to be completed by 2009 - $67.5 million provincial contribution.
    • Preliminary work has begun by the private-sector partner, the Trans-Park Highway Group, with very promising feedback on progress to date (ahead of schedule).
  • Kicking Horse Canyon improvements are key to the movement of goods and people through our gateways to Alberta, the United States and coastal ports:
    • This marks an era of cooperation where federal and provincial governments work together and meet long overdue transportation infrastructure needs
    • Fulfillment of the commitment to carry on with improvements to this vital corridor.

SEA-TO-SKY

  • 13,700 vehicles travel between Horseshoe Bay and Squamish each day and 7,700 continue on to Whistler each day
  • Sadly, there have been more than 300 collisions a year on the highway.
  • From the beginning we have said improved highway safety for residents and visitors is our top priority
  • Expect a 30% percent reduction in collisions once the project is complete in 2009.
  • For Sea-to-Sky Highway users it means increased capacity, fewer blind spots and fewer closures
  • We had the December 2005 opening of the Ansell Place / Lions Bay Village section:
    • A 4 lane section—open a year and half ahead of schedule.
    • Fewer construction disruptions for residents, commuters, tourists.
    • Environmentally responsible designs
  • Future Sea-To-Sky sections should move ahead quickly
    • Due to a Design – Build – Finance operational agreement with the Sea-to-Sky Transportation Group
  • The Sea-to-Sky, the William R. Bennett Bridge and the Kicking Horse Canyon projects are all great examples of public and private sector expertise, delivering benefits to motorists together:
    • Gold Award (Canadian Council for Public-Private Partnerships)
  • British Columbia leads Canada in innovative infrastructure financing.

BORDER INFRASTRUCTURE PROGRAM (BIP)

  • The Border Infrastructure Program (BIP) is a joint Federal/Provincial $241 million worth of improvement plan.
  • The BIP will improve safety and reduce congestion around BC’s border crossings by:
    • widening key corridors to four-lanes, including Highway 15 from the Douglas crossing to the Trans-Canada Highway.
    • Improving #10 Hwy and 8th Ave from Pacific to 99.
    • new interchanges on Highways 91 and 91A.

Current Status

  • Construction has begun on Highways 10, 11 and 15.
  • Construction on Hwy 91A at the Howes Street interchange is close to completion.
  • Construction underway on Queensborough upgrade and 72nd Ave interchange

TRANSLINK GOVERNANCE REVIEW

  • Improvements are not all about highway construction projects.
  • On March 8, I commissioned an independent review of TransLink governance.
  • The three panel members are:
    • Ex-Langley City Mayor Marlene Grinnell (Chair),
    • My former Deputy Minister Dan Doyle, and
    • Transportation businessman Wayne Duzita.
  • In eight years:
    • TransLink’s operating budget has almost doubled.
    • TransLink has initiated multiple projects (Canada Line, Golden Ears Bridge) worth billions.
  • I’ve wanted this sort of review since the Canada Line debate over a year ago.
  • TransLink gets funding from a lot of places:
    • Tax dollars from the federal and provincial governments,
    • Lower Mainland fuel tax and property taxes.
  • I have asked the panel to report back this Fall on:
    • The appropriate division of responsibility and control between the Province and TransLink for transportation matters in Greater Vancouver.
    • The appropriate size, composition and appointment processes for the Board of Directors of TransLink.o The appropriate responsibilities, authorities and powers of the GVRD in relation to TransLink under the GVTA Act.
    • Appropriate responsibilities, authorities and powers of TransLink to institute revenue measures for funding service delivery and capital projects.
    • How to ensure the Province will have effective input into, and oversight of, TransLink activities and decisions as they affect provincial interests.
  • I expect amendments to the GVTA Act ready for introduction this time next year.

NORTHWEST CORRIDOR IMPROVEMENTS

  • Up to 750 trucks move between Prince George and Prince Rupert each day.
    • Truck traffic is up 37 percent in the last five years.
    • In Smithers and Prince George, traffic volumes can reach 16,000 to 23,000 vehicles per day.
  • In Northern BC, maintenance alone costs $93 million per each year.
  • Last year, we invested $148 million to improve provincial highways in the north. Successful projects include:
    • Highway 97 Fort St. John four-laningo Resurface of 23.5 kms of Highway 16 near McBride
    • Improvement to the Jensen Road intersection on Highway 16, in partnership with ICBC and the City of Prince George.

MOUNTAIN PINE BEETLE

  • Of course some of the increased traffic on our northern highways is due to the Mountain Pine Beetle (MPB) epidemic.
  • We have already invested almost $10 million to upgrade interior highways dealing with increased truck traffic
  • The inevitable MPB spread means we can no longer absorb the transportation impacts through our regular program budgets.
  • On February 24th in Prince George, Forests and Range Minister Rich Coleman and I joined our Prince George MLAs in announcing an additional $90 million in highway upgrades

Closing Remarks

  • Transportation is the backbone of British Columbia’s economy.
  • Regardless of where in British Columbia you operate, I think people in the lower mainland need to hear more about your support for the Gateway Program.
  • They need to hear more about how you think TransLink should be structured.
  • They need to hear how you are preparing for the Pacific Gateway initiatives.
  • These projects and others, like the William R. Bennett Bridge in Kelowna, provide real benefits to BCAA members as well as all BC residents and visitors to BC.
  • With the successful completion of these projects we are providing confidence that we can develop and act on plans that make sense.
  • Thank you for inviting me here this evening. Thank you for your support of our initiatives.
  • Here’s to the next 100 years of the BCAA.
  • I look forward to your questions.