TOareaFan
Superstar
The public itself will see lower toll rates
What? We would negotiate a cancellation fee based on 84 years of projected tolls (with the current year levels of toll rates and traffic as the base number before projecting forward increases)...pay out that money and then lower tolls?
In a province scrambling to find money to pay for infrastructure, going backwards and making existing infrastructure a drain on the provincial treasury seems an awfully strange way of doing that.
and the province will have free reign to work on the 407 as they see fit, including the ability to (at some arbitrary future time-point) build a parallel highway that directly competes with it for traffic, if necessary for reasons of traffic congestion, which is of course forbidden under the current terms of the lease.
How far away from the 407 does any new E-W highway have to be under the current agreement? If you were building a new E-W highway today where would you put it? Right beside it or a fair bit north?
There would also be benefits which are less tangible and less easy to put in terms of round numbers, such as the lessening of gridlock in the rest of the region by the 407 becoming an integral part of a publicly-owned network of infrastructure instead of a premium service, and the benefits of setting the idea that it is detrimental to sell off public infrastructure to private business firmly into the mindset of the populace.
The 407 is an integral part of the road network now.....are you suggesting the number of users today is insignificant? It is jammed during peak times. Yes it is less so during off peak but that is the public exercising pricing logic. "during peak it is worth paying for this road over the alternative....off peak, when the alternative is not as congested, it is less worth it". It just indicates that its capacity is less needed at off peak times.