We’ve been hearing it for months: $500 million will be missing to fund transportation this year in Greater Montreal, due to the drop in ridership caused by the pandemic.
Half. Billion.
Big money.
Demands abound for Quebec to pump mountains of new dollars, ideally within the framework of a five-year agreement, in order to make up for this shortfall.
But before receiving a check, the Autorité régionale de transport métropolitain (ARTM), responsible for planning the entire sector in the Montreal region, intends to thoroughly review the ways of doing things in the industry to generate new savings.
A major exercise in this direction was launched this Wednesday, I learned.
In the afternoon, the ARTM presented its “action plan” to the leaders of the Société de transport de Montréal (STM), the Société de transport de Laval (STL), the Réseau de transport de Longueuil (RTL) and of exo.
The request is clear: these companies must identify short-term savings and ways to “optimize” the operation of public transit in the region, without reducing the quality and frequency of service offered to users.
Huge challenge ahead. Guaranteed hitches.
No specific target has been set, but according to my information, the ARTM hopes that the savings will amount to tens of millions.
The goal of the maneuver is to go a long way to reduce recurring deficits, in order to convince Quebec to invest significant sums to make up the rest of the shortfall.
How does the ARTM intend to go about it?
Savings could be made by reducing the number of executives and administrative employees, the organization believes.
The ARTM also aims to pool certain resources, among other things for the maintenance and charging of electric buses. Also, the creation of “high-frequency metropolitan axes”, which would allow, for example, STL buses to pick up passengers on STM territory.
In short, the AMF aims to do “better” and “more” with the resources that already exist, and believes that “one cannot build blindly on a model that does not take into account the major changes that are taking place”.
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This demand comes as the public transit sector is going through major upheavals across the country.
First there is traffic, which remains about two-thirds of what it was before the pandemic. In Greater Montreal, fare revenues paid by users amounted to 654 million last year, compared to 940 million in 2019.
Quebec has pumped in emergency funds of more than 1.4 billion since the start of the pandemic, but this temporary aid is ending.
As recently as Tuesday, exo, which operates suburban trains and bus lines in the outskirts, estimated its deficit at 29 million for the next year. The STM evaluates its own at 60 million, and this, after announcing a reduction plan of 18 million.
The slope to be climbed will be steep. There is a huge gap between the ARTM’s expectations, in terms of spending cuts, and the financial difficulties that transport companies say they are already experiencing.
Another element of complexity in the equation: the ARTM’s (very low) love rating.
The organization, created in 2017, is still seeking to establish its authority – no pun intended – after the first difficult years of existence.
Quebec was highly dissatisfied with the performance of this organization, whose primary mission is to plan and finance the entire metropolitan network.
The Legault government gave him a slap on the wrist – one could even speak of a big cuff – last May (1).
Another element of difficulty: the arrival of the Metropolitan Express Network (REM). This 67-kilometre light rail system, designed and owned by a subsidiary of the Caisse de dépôt, will have to be integrated into the existing network managed by the ARTM, which is causing some clashes.
Added to this hearty menu is the ongoing reshuffling at the top of the transport companies. Two of the four general managers have left their positions in recent months (Luc Tremblay at the STM and Guy Picard at the STL) and a third will leave shortly (Michel Veilleux at the RTL).
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It is therefore against this somewhat chaotic backdrop that the ARTM today presented its game plan to Greater Montreal’s public transit companies. This exercise will represent a huge test for the credibility of the young organization.
I have spoken to several high-ranking sources in the various transport agencies, and they emphasize that there will be no miracles. It will be difficult, if not impossible, for them to reduce their expenses without cutting back on the service offer, even if the agreements signed with the ARTM prohibit them from doing so (2).
Most agree, however, that some ARTM ideas can be defended well. Like that of “regionalizing” activities relating to the electrification of buses. I agree.
You’ll have to buy a ton of new equipment at high prices, and maybe even build new garages, as the fleet grows in the next few years. It will also be necessary to determine the best strategy to recharge these buses at the right time, with millimeter precision, since their autonomy is lower than those using diesel.
Currently, the city’s four transit companies are each developing their own game plan. Pooling everything could certainly generate efficiency gains.
The ARTM proposal arrives at midnight minus one, since the companies have already started their electrification projects. But better late than never. Especially if it can avoid other financial fiascos like the 584 million STM garage in the Rosemont-La-Petite-Patrie district (3). Wait to see more.
This is not the first time that the idea of integrating certain public transport activities has been raised. Previous plans stalled, in particular due to union constraints.
Resistance to “regionalization” is likely to be strong. The application, complicated. If the powerful unions agree to be more flexible, for example by agreeing to welcome electric buses from Longueuil to Montreal, we can predict that salary conditions would be standardized for everyone on the rise, and not on the fall.
The savings desired by the ARTM could therefore be difficult to obtain.
Be that as it may, the Authority considers that the changes in travel habits are irreversible. She judges that it would be “counterproductive”, even “irresponsible”, not to review the organization of the network on a metropolitan scale now that it is certain that telework is here to stay.
The Minister of Transport and Sustainable Mobility, Geneviève Guilbault, will begin a consultation tour this month to identify solutions to the funding crisis. She hopes to announce a five-year funding plan by the end of 2023.
Not everything will be settled.
Because in addition to financing the already existing network, we will also have to hurry up to develop without delay a new public transit offer for underserved areas, such as the east end of Montreal.
Quebec, Ottawa and the cities will have to stretch out billions. It will be a company choice, and an invoice with several zeros for all taxpayers.