w w w . c u t a a c t u . c a I S S U E P A P E R 1 2

Working together for a better quality of life

Public transit keeps Canadian cities on the move—gettingpeople to work and school, reducing congestion and airpollution, supporting smart growth, and keeping our

downtowns vibrant. Transit is clean, safe and efficient—it’s ourticket to a better quality of life.

The Canadian Urban Transit Association (CUTA) is the voice of Canadian transit systems, suppliers and relatedorganizations. CUTA was founded in 1904 as the CanadianStreet Railway Association, and celebrated its 100th anniversaryin 2004.

CUTA provides training, communications, research and advocacyservices on behalf of over 100 transit systems, 250 private companies,and 75 government agencies, institutions and individuals. Itsmandate is to promote the role of transit in providing mobilityto Canadians, and to help members achieve their objectives.

We’ve come a long wayCanadians have enjoyed urban transit service for over 140 years.Since the Toronto Street Railway Co. started a horse-drawnstreetcar service in 1861, our country has seen electric trolleys,motorized buses, steel-wheeled and rubber-tired subways,automated people-movers, and even hydrogen-powered busesthat emit nothing but water vapour.

Over the years, Canada has seen many leading-edge transitdevelopments. Our North American milestones have includedthe continent’s first electric streetcar (Windsor, Ont.), the firstmodern light rail line (Edmonton, Alta.), the first rubber-tiredsubway (Montreal, Que.), and the first line-haul automatedpeople mover (Vancouver, B.C.). On a global scale, Canadianscan claim one of the world’s first bus rapid transit systems(Ottawa, Ont.) and the first wind-powered light rail system(Calgary, Alta.).

Moving Canadians effectively and efficientlyMore Canadians than ever are served by public transit—over 20 million people, or 80% of those living in urban areas. They make an average of 78 transit trips each year, for a national total of more than 1.5 billion trips (see Figure 1).

Many urban Canadians rely on transit to meet their daily transportationneeds. In the country’s 27 largest metropolitan areas, about 15% ofcommuters (or 1.35 million people) take transit to work—outnumbering the combined number of walkers, cyclists and carpassengers.a In Canada’s several largest downtowns, an even higherproportion of commuters—over 50% in most cases—ride transit toavoid road congestion and costly parking fees.

Note: This issue paper is a revised and updated version of Issue Paper 4(published in April 2003), and presents information on the services providedby CUTA members. All figures exclude the relatively small number ofCanadian transit systems and suppliers that are non-members. Unlessotherwise noted, operating information on Canadian transit systems has beenprovided by members. CUTA’s annual Summary of Canadian Transit Statistics(available from www.cutaactu.ca) provides a summary of related information.

The light rail system in Edmonton, Alberta opened in 1978 and was the first modern LRT installation in North America

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Transit ridership in Canada

TRANSIT IN CANADA:AN INDUSTRY ON THE MOVETRANSIT IN CANADA:AN INDUSTRY ON THE MOVE

For transit systems, serving large passenger volumes efficiently is acomplex and high-stakes objective. Every day, Canada’s 12,200 busesand 2,600 rail vehicles travel millions of kilometres with a cost-effectiveness that outshines most other countries. Passenger faresgenerate 61% of the $3.4 billion invested by Canadian transit systemsin their operations each year. This level of cost recovery is almostdouble the 34% rate reported by transit systems in the United Statesfor 2003.b This accomplishment has resulted from much hard workby Canadian transit systems over the last decade, as they havestruggled to improve performance and make the most of limitedfinancial resources.

The cost-effectiveness of Canadian transit systems was confirmed by arecent comparison of five large Canadian transit systems to numerousothers in the United States, Europe, Australia and Asia.c The Canadiansystems’ average operating cost per passenger-kilometre of service waslower than that of the Australian, European and American cities, andalmost as low as that of Asian cities like Hong Kong and Tokyo.

Offering mobility to those who need it

Transit creates important opportunities for Canadians with disabilities.To serve them better, conventional transit systems are becoming moreaccessible. Almost 40% of buses have low floors that make it easy forpeople with disabilities to get on and off—and the number of low-floor buses grows significantly each year.

Many Canadians, however, have mobility needs that cannot be met by conventional transit. CUTA’s membership includes 60 specializedtransit providers that serve about 240,000 registered users in 130communities. Over 40% of their customers rely on a wheelchair or scooter, while 55% can walk but still need travel assistance.

In total, specialized transit providers carry almost 12 millionpassengers each year. They employ 2,500 workers and a fleet of 1,900vehicles, ranging from passenger cars to medium-sized, low-floor orlift-equipped buses. The annual investment in specialized operationsand infrastructure is over $250 million. Municipalities provide 70% of specialized transit systems’ operating funding, with 20% comingfrom provinces and the remainder from fares.

Helping the environment

On behalf of the entire transit industry, CUTA was awarded theGLOBE Foundation’s Industry Association Award for EnvironmentalPerformance in 2004. This honour is given to "an associationrepresenting an industry sector that has shown leadership by goingbeyond regulatory compliance to develop a collective commitment toimproved environmental performance through research, developmentand education in partnership with governments, with non-governmental organizations, communities and other stakeholders."d

The GLOBE award reflects the value that Canadian communities place on transit as they strive for greater social, environmental andeconomic sustainability. Of equal importance, it also reflects theindustry’s high degree of environmental commitment and industrialinnovation. CUTA’s members have moved aggressively to develop new vehicle and fuel technologies that can reduce the emission ofgreenhouse gases and smog-causing pollutants, and to reduce fuelconsumption through driver training. Canada’s transit suppliers andoperators have become international leaders in the research, testingand implementation of clean diesel, bio-diesel, hybrid diesel-electric,natural gas and fuel cell technologies that are helping to preserve bothour environment and public health.

Building a strong economyPublic transit in Canada is big business, with transit systemsinvesting almost $5 billion each year in in operations andinfrastructure. Their payrolls include over 43,000 Canadians wholive in the very communities they serve. This number alone issimilar to the car and light truck assembly, broadcasting,advertising or petroleum extraction industries, while thousandsmore are employed by a host of private companies that supplyessential products and services. The industry creates positiveeconomic impacts through research, development andinternational sales, but also by reducing traffic congestion,enhancing personal mobility, revitalizing downtown areas, andimproving public health and safety.

CUTA’s 250 business members include many leaders in theinternational marketplace. They offer a complete range ofspecialized transit products and services:

Canada is home to three major bus manufacturers that employabout 2,000 workers and sell about 2,700 buses annually—morethan half the volume of the six major bus builders in NorthAmerica.e Sales to the United States make up 80% of theirbusiness, and are a large part of Canada’s $2-billion rail and bus export industry.

Michael Roschlau, President & CEO of CUTA receives the 2004 GLOBEAward from Canada’s former Minister of the Environment, David Anderson

• Buses and railcars

• Engines, brakes, glass, tires and other vehicle parts

• Heating and lighting systems

• Wheelchair restraints

• Vehicle washing systems

• Tickets and other printed items

• Benches and shelters

• Smart card systems

• Scheduling and dispatch software

• Rail signal engineering

• Planning and design services

• Marketing and advertising

One of TransLink’s low-floor New Flyer buses stops in Richmond Centre, a major boarding point for cyclists in Greater Vancouver

Doing more with lessOver the 1990s, Canada’s provincial governments significantly reducedtheir level of investment in public transit. By 2001, they funded just15% of transit capital costs and 5% of transit operating costs. Someprogress had been made by 2003, when provincial funding amountedto 35% of transit capital costs but still less than 5% of operating costs.Several provinces also transfer fuel tax or vehicle licensing revenues tocities that they can use for transit purposes.

For years, Canada’s federal government invested little in transit,and it remains the only member of the G-7 without a dedicatedprogram of direct transit investment. The situation has improvedsomewhat in recent years, through a series of federal investments intransit infrastructure projects. Indeed, federal announcements of newcontributions grew to over $800 million in 2004, from none at all in2001. A commitment to transfer a portion of the federal gas tax toCanadian communities for sustainable infrastructure was included inthe 2005 federal budget, and holds great promise for the future.

While recent transit investments by provincial and federalgovernments are welcome, they do not fully rectify the operatinginvestment declines of the previous decade. During that period,many municipalities were forced to balance their transitoperating budgets by cutting service, raising property taxes orraising fares. In fact, between 1994 and 2003 the averageCanadian transit fare increased by 40% while the cost of livingrose only 20% (see Figure 2). Continuation of this trend willpose a serious threat to future increases in transit ridership andurban quality of life.

One of the most pronounced effects of inadequate investment has been the deterioration of Canada’s transit infrastructure. The averageCanadian transit vehicle is now 10 years old, compared to 7 years in theUnited States where state and federal governments have played a largerfinancial role.f Buses are typically kept in service for 18 to 20 years,versus 12 to 15 years in the United States.

While maintaining and renewing today’s infrastructure is a realconcern, it is equally important that the industry be positioned toserve increased future ridership. A survey of CUTA’s transit systemmembers found that current financial plans could fund only 41% of the $14.1 billion they needed to expand their infrastructure andmeet growing demands from 2004 to 2008.g Figure 3 shows how the shortfall of planned investment in infrastructure expansion grew to $8.3 billion for that period, from $3.7 billion for thepreceding five-year window.

The Canadian Urban Transit Association (CUTA) is the voice of Canada’s public transitindustry. For additional information including research reports, industry updates, news

bulletins and more, please contact us or visit our website.

Suite 1401 • 55 York Street • Toronto ON • M5J 1R7 • CanadaTelephone: 416-365-9800 • Fax: 416-365-1295

transit@cutaactu.ca • www.cutaactu.ca

REFERENCESa) Statistics Canada, "Where Canadians Work and How They Get There", 2003 (available

from www.statcan.ca)

b) American Public Transportation Association, Public Transportation Fact Book, 2005(available from www.apta.com)

c) J. Kenworthy and F. Laube, The Millennium Cities Database for Sustainable Transport,Union Internationale des transports publics (UITP), cited by the Centre for SustainableTransportation in Sustainable Transportation Monitor, issue No. 7, 2002 (available fromwww.cstctd.org)

d) Information from www.globe2004.com

e) Information from CUTA members

f ) Information from CUTA members and www.apta.com

g) Canadian Urban Transit Association, Report on a Survey of Transit Infrastructure Needs for the Period2004-2008, 2003 (available from www.cutaactu.ca)

A low-floor bus in production at the Nova Bus facility in St. Eustache, Quebec

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Average adult transit farevs. consumer price index

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Canadian transit infrastructureexpansion needs

Surveyed time period

Transit Timeline1752 - 2005Transit Timeline1752 - 2005

2004CUTA celebrates 100 years as the voice of Canada's public transit industry.

2001BC Transit puts Canada's first modern double-decker buses into regular service in Victoria.

2001Calgary Transit's C-Train becomes the world's first wind-powered light rail system.

1983Ottawa's Transitway opens as one ofthe world's first bus rapid transit systems.

1892The Port Arthur Electric Street Railway (now ThunderBay Transit) begins operation as one of the firstmunicipally owned railways in North America.

1974The first Orion Bus productionmodel was manufactured.

1966Montreal's Metro opens as the firstrubber-tired subway outside Europe.

2002Saskatoon Transit Services launches its BioBus project,running two buses powered by canola biodiesel.

1998The Société de transport de l'Outaouais (STO)introduces a transit pass to Gatineau residentsin the form of a reusable smart card with anembedded microchip.

1974Bombardier MassTransit Division iscreated in Montreal.

1930Western Auto Truck Body Works, the precursorof New Flyer Industries Ltd., is founded in Winnipeg.

1886Windsor, Ontario introduces the firstelectric streetcar in North America.

1752Metro Transit's Halifax Harbour ferry, originally knownas the "Dartmouth ferry", begin offering a vital linkbetween the community of Dartmouth and the BritishMilitary Garrison in Halifax, on the other side of the harbour. It is now reputed to be the oldest continuous salt-water passenger ferry service in North America.The service was originally provided by a large rowboat with a sail, and at one time was operated using horsesto power a wheel.

1905Vancouver's streetcar service is launched on theRichmond line. When it closed in 1958, electricrail passenger disappeared from British Columbiauntil Skytrain opened in 1986.

1954The Toronto Transit Commission celebrates thelandmark opening of Canada's first subway alongYonge Street from Union Station to Eglinton Ave.

1912Streetcar service is introduced to Lethbridge, Alberta. The corner of 3rd Avenue and 5th Street South, near Galt Gardens was thelocation of all town functions and celebrations.

Printed in Canada on recycled paper. May 2005