Surrey LRT cost increases to $2.6 billion

Surrey LRT header generic

If you've hard about the Surrey Light Rail Transit project (and how I am leading the opposition campaign), you've probably heard most people refer to the project as having a projected cost of about $2.1 billion.

Well, that changes today. The capital cost of Surrey's Light Rail Transit (LRT) proposal has increased to $2.6 billion, according to a new corporate report released by the city.

Download the City's report

From City report 2016-R050
From city report 2016-R050

Pending whether the City claims there was a typo in the report, you're reading the above correctly. The cost has increased to $2.6 billion, which is slightly above the rate of inflation compared to the previous 2012 estimate of $2.18 billion, reported in 2010 dollars.

Rapid transit to White Rock is officially out

I became the centre of something of a publicity flip last week when CKNW news radio attempted to turn around an issue I pointed out over the lack of a rapid transit link to South Surrey/White Rock on the City's LRT promotion map, something the City responded to by saying that the map was only meant to show the LRT network, and that I edited the map and was messing up the context (I wasn't).

Now it's become clear that proper bus rapid transit to White Rock has been dropped from the city's project radar, because it's not included on the list at all.

This also means that the actual cost increase for the LRT project is closer to $700 million. The 2012 "LRT1" estimate in the Surrey Rapid Transit Study included the BRT link from Newton to White Rock. This estimate only includes the LRT project portion of the original plan.

What this means for LRT in Surrey

While the cost of the LRT project has increased, the major issues with the project have probably remained the same: it's still an on-street LRT system, and so it's still going to come with major trade-offs such as potential safety issues, a compromise in speed and reliability, fewer travel time and economic benefits, and higher long-term operating costs.

The most interesting thing about this cost increase is the effect it's going to have on the project's business case.

Staff anticipate that the Surrey LRT Project will be successfully screened-in for Round Seven. This will require the submission of a completed P3 Business Case in March 2016. The scope of work for completing the Business Case includes additional engineering design, geotechnical work, preparation for environmental assessment, and public consultation.

City report dated June 2015

Supposedly, according to the City, the business case isn't finalized, and the City and TransLink have been rushing to put together a new one in time for a March 2016 (as in, yes, this month) deadline to qualify for P3 Canada project funding.

However, any new, final business case that attempts to portray the LRT proposal in a positive light will come into serious conflict with the results that were found in Phase 2 of the Surrey Rapid Transit Study – which found the overall business case for the Light Rail proposal to be negative, with a 0.69:1 benefit-cost ratio (compared to a more positive 1.45:1 benefit-cost ratio for SkyTrain). And, that result was based on the original (lower) LRT cost estimate.

With all of this in mind, I'm starting to believe that there isn't going to be an LRT business case ready for this month. I haven't heard any new technical details on this project (until word of today's cost increase reached me), with everything happening behind closed doors (if it's even happening at all). The standstill reminds me of the one faced by the Evergreen Line as a Light Rail project, before the Province stepped in with a final business case and changed the Evergreen Line to its present form as a SkyTrain extension. (See also: The Real Evergreen Line Story).

After a desperate and questionable LRT poll, a broken LRT promise by the City Mayor, silence over brand new transit buses and still no update from TransLink on Phase 3 consultation, it's becoming more and more apparent that the City of Surrey's LRT project is seriously doomed to fail.

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