Why build a New HWY 413 to dead – end at HWY 400, with Intersections when we have an under-utilized HWY 407 from Burlington to HWY 115?

Proposed New 413 Series Highway

Known as the GTA West corridor, the proposed new 413 Highway will run from Hwy. 400 (between Kirby Road and King-Vaughan Road) in the east to the Hwy. 401/407 interchange in the west. It will include up to four to six lanes, intelligent transportation features, and truck parking, the Ontario Ministry of Transportation says

(17 Intersections and Dead Ends at, and will Clog HWY400)

Which Capital Investment will provide the Greatest and most Immediate financial return for the Province?

The Question Becomes Why Add and Pay for New Infrastructure when we are Not Utilizing the 407ETR, and particularly the East End Which Dead Ends at Hwy 115?

Let’s buy back HWY 407 as a Capital Investment, and that’s not an Expense and make it Toll Free. Today’s low interest rates, make that possible, at low cost!!

Then everyone can use it, including truckers and blue-collar workers. The pension funds would probably happily debt finance it! Make it a Canadian Benefit!

Suppose it will cost $35 Billion dollars to buy it back. The price was established when SNC sold a portion, and could be lower today because of COVID, and possibly reduced revenue.

I know, this sounds impossible! But;

• Paying $1.5 billion in tolls each year growing at 7% for the next 76 years will not be fun either.
• The Cost of Grid Lock in the GTA is something like $10 Billion / year. Suppose we could reduce this by $3 Billion annually.
• In addition, we will have improved our Productivity and Standard of Living by ½% of GDP, ($651 Billion) = $3+ Billion
• That’s an Annual Saving or Cost Reduction of $4.5 Billion / year plus another $3 Billion in GDP, generating another $1 Billion in Tax Revenue.
• This equals approximately $5.5 Billion Annual Improvement on a $35 Billion Investment.

The Cost to Fund and payback $35 Billion over 25 years at 5% would be approximately $2.5 Billion per year.

Other Benefits of Buying back the 407ETR

More importantly it “fixes” our cost against future rising tolls. If we do nothing the Tolls in 10 years at 7% growth in volume and pricing will amount to $2.57 Billion/ year.

• The operating cost are reduced dramatically for the 407, and would be limited to new construction and expansion.
• Re-balance the traffic on the 403, QEW, 401, 410, 427, 400, and 407, will optimize traffic flow on the major highways, reducing Grid Lock.
• Truckers and blue collars workers can now choose the best route. Time to stop penalizing our productive workers at the expense of those who can expense the toll.
• Productivity Goes Up, and we spend more time doing productive work rather then sitting in traffic. It may be easier to hire truck drivers who don’t have to sit in traffic.
• Canadians ability to compete improves. Freight costs about 6-8% to ship products, any saving on costs, reduces the Retail price by a factor of 4-6 times.
• Carbon Emissions go down. This is real versus the Carbon Tax!
• Now we can focus on removing true traffic bottle necks versus contrived ones

Maybe the Proposed New Subways need to be re-considered in light of the changing work styles, and these funds used to buy back the 407ETR?

I am sure a more thorough analysis will provide a similar result or maybe better.

More Information on the 407ETR

When the Liberal Toronto Star publishes an article on buying back the 407 ETR it is time to get on side. This was written by Linda McQuaig with support from Sandford Borins, a professor of public management at the University of Toronto and research fellow at the Harvard Kennedy School.

If you like this concept, please forward to Premier Doug Ford doug@ontariopc.com

Best Regards, and consider the possible!