Rising fuel prices driving riders to transit, GO says
Nick Kyonka
Staff Reporter
The Toronto Star
An estimated $10 million budget shortfall caused by rising fuel prices won't affect the cost of riding the GO Transit or curtail its train schedules, transit officials said yesterday.
The reasons: revenue gains from a 6.5 per cent boost in ridership over the last 12 months, and a provincial bailout to cover the rest.
"There has been no pressure whatsoever on fare increases or cuts in service," said the company's chair, Peter Smith, following a monthly board meeting yesterday.
The cost of operating GO's fleet of 38 trains and 343 buses has ballooned in recent months as the price of diesel fuel doubled. At the same time, however, rising pump prices encouraged more people to park their cars and take GO instead.
On average, GO sold an extra 13,000 train and bus rides each day this May – a 7.2 increase over the same month last year.
The biggest gains were on the expanded Bradford rail line – which now runs to Barrie – and the Highway 407 bus route. Both saw ridership grow by 21.5 per cent.
Ridership over the last 12 months is up by nearly 3.2 million people – or 6.5 per cent – on all bus and train lines compared to the 12 months prior.
"We all recognize that we're in an environment now where gas and diesel fuel prices have gone up," said Smith. This year's extra riders are expected to earn the company about $6 million in extra revenue, he noted.
The province has pledged to cover any remaining GO shortfall caused by rising fuel prices, Smith said yesterday, though a Ministry of Transportation spokesperson said the ministry could not confirm this until reviewing the transcript of yesterday's meeting.
Fares collected from riders cover approximately 85 per cent of GO's total operating costs, with the province subsidizing the rest.
As fuel prices continue to rise, GO will look for more ways to expand its services and boost ridership, said customer service director Bill Jenkins yesterday.
"We see a direct correlation between putting capacity out and increasing ridership," Jenkins said.
That includes bringing 26 new locomotives on stream. Some are already operating on the Milton line.