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Vancouver SkyTrain: Councilman Okino Says that it Makes Money. Truth or Lie?
By Panos D. Prevedouros, PhD, 4/8/2008 12:42:28 PM

It is not possible for me to rebut the misinformation and attacks from the Mayor’s staff, lead consultant’s staff and a handful of rail proponents. One item however stands up like a sore thumb: Councilman Okino’s assertion that Vancouver SkyTrain actually makes money.

The SkyTrain is a heavily subsidized operation (over half a billion in annual taxes go to its operator from motor fuel taxes and property taxes) and because of the intertwined nature of transit operations in Vancouver (buses, trains and ferries), it is not possible to assess its exact level of subsidy.

Before I address Okino’s “fact” directly, let me share some information on SkyTrain from Wikipedia, annual reports of the SkyTrain operator and other sources.

• SkyTrain is operated by British Columbia Rapid Transit Company under contract from TransLink, a regional government transportation agency.

• It is policed by the Greater Vancouver Transportation Authority Police Service.

• SkyTrain Attendants are on-board “driverless” trains to provide first aid, directions, customer service and inspect fares, and they monitor train faults and drive the trains.

• TransLink claims to lose about $6 million in unpaid fares annually, including $3 million from SkyTrain.

• During the 1980s, expansion options for the rapidly growing region included streetcars, rapid buses, and light rapid transit, which were passed-over in favor of new SkyTrain lines.

• Critics of the project dubbed it the "SkyTrain to Nowhere", claiming that the route of the new line was based on political concerns, not the needs of commuters. For example, the end of the Millennium Line is in a vacant field, a site that was chosen because it was supposed to be the location for a new high-tech development, but additional development has been slow to get off the ground. Note that the Expo Line opened in1985 and the Millennium Line opened in 2002.

• Current SkyTrains cannot be used on the under-construction Canada Line and vice versa as the Canada Line uses conventional-railway technology as opposed to SkyTrain's linear-motor technology. The latter is proprietary Bombardier technology.

• The maintenance yard has reached its maximum capacity and a new one is needed.

• The Canada Line is scheduled for completion in November 2009, in time for the 2010 Winter Olympics. It is being built on a $1.9 billion contract.

• The fully-automated Canada Line will use trains with conventional motors rather than Bombardier's proprietary linear induction technology, used on the existing lines.

• An extension to the Millennium Line was originally scheduled to be completed in 2009, but was delayed to 2014 due to budget concerns.

• This extension would replace the region's busiest bus routes where over 100,000 trips are already made on a daily basis.

• Over the years, violence and other criminal activities has been a major concern, but TransLink insists the system is safe. Neighborhoods served by SkyTrain have become areas known for drug dealing, break-ins, and robberies. Vancouver Police Department says that little crime takes place in the stations themselves. However, criminal activity becomes more visible 400–700 yards outside them.

• Greater Vancouver is divided into three zones with fares varying depending on how many zone boundaries are crossed during one trip: $2.50 within one zone, $3.75 crossing two zones, and $5.00 crossing three zones.

• TransLink operating cost in 2005 was $724,788,000. Transit fares cover $285,520,000. The rest is subsidy from fuel taxes which cover $254,628,000 and property taxes which cover $216,824,000. Note that fares cover less than 40% of the operating costs and none of the fixed costs.

• The capital costs of building the system are shared with other government agencies. TransLink has $1.1 billion in long term debt, as of 2006.

• Nowhere on TransLink’s annual report is the SkyTrain shown as a budget item, so its alleged operational profits cannot be calculated.

Back to Okino’s allegation… What he’s saying is that the SkyTrain covers all its operating costs from the farebox. He calls this a “profit” and ignores the billions sank for its construction. But even if this “profit” is true, it is like Okino buys a small residence with a $2,000 monthly mortgage for 30 years and then at every opportunity, he brags that he’s able to cover its $400 monthly maintenance and utilities bills and have a few bucks left over. What about the mortgage itself? Well, obviously that does not count for Okino since he got the taxpayers to pay for the mortgage!

So when Okino says that SkyTrain makes a profit, does he lie or not?

Okino also alleges that SkyTrain has reduced dependence on automobiles. In the 15 years between 1991 and 2006, Vancouver grew by 39% in population. Its bus trips grew by 38%. Its vehicle registrations grew by 40% to 1.38 million units. (Note the dependence of Vancouver’s population to transit: It has almost the same number of vehicles as Oahu for a population that is nearly three times that of Oahu.) Despite many billion dollars spent on the SkyTrain, the growth of vehicles and bus usage have remained unabated and proportional to population growth.

Five years after SkyTrain opened, the British Columbia Ombudsman wrote in a 1987 report that: “The negative external effects of SkyTrain currently include in some areas unacceptable noise levels, a harsh and forbidding presence, loss of privacy, reduced property values and a depreciated enjoyment of individual and community lifestyle.”

There are three places in North America with a geographic similarity: Manhattan in greater New York City, San Francisco in greater Bay Area and Vancouver. For all three cities, the core of the city is separated from large population masses by large bodies of water. In those places, the addition of transit systems has helped bridge the gap between transportation capacity and demand. Oahu shares no similarities with these places in terms of geographic obstacles and population.

To summarize, although Vancouver, British Columbia is a fairly large city with less crime than U.S. cities of similar size, crime on or near the SkyTrain is a major concern. Noise was a major concern and sound walls were retrofitted along long lengths. Expected development materialized in a much lower pace and would probably have been more vigorous if a more accessible mode of transportation had been chosen. And, of course, the SkyTrain is heavily subsidized by fuel and property taxes. Last but not least, there are no similarities between Vancouver, Canada and Honolulu, Hawaii.

Lies and manipulated information are pushing the rail project on Oahu. It remains to be seen for how much longer.

Panos D. Prevedouros, Ph.D., is a Professor of Transportation Engineering for the Department of Civil Engineering at the University of Hawaii at Manoa; President of the Hawaii Highway Users Alliance (HHUA.org); a member of the Subcommittee Chair, Freeway Operations, Transportation Research Board and a member of the Board of Scholars, Grassroot Institute of Hawaii. He can be reached at mailto:pdp@hawaii.edu

HawaiiReporter.com reports the real news, and prints all editorials submitted, even if they do not represent the viewpoint of the editors, as long as they are written clearly. Send editorials to mailto:Malia@HawaiiReporter.com


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