• CABR Project
    • Background
    • Benefits
    • Updates
    • Stakeholder Support
    • Support Letters
    • The Proponents
    • Proposal Structure
    • P3 Financing Proposal
    • Resources
  • Route/Destinations
  • FAQ
  • About
  • Media
    • In the News
    • Newsletters
  • Support Us
    • All Aboard with CABR
  • Contact Us

Calgary Airport - Banff Rail

info@friendsofcabr.com
Friends of CABRFriends of CABR
Friends of CABRFriends of CABR
  • CABR Project
    • Background
    • Benefits
    • Updates
    • Stakeholder Support
    • Support Letters
    • The Proponents
    • Proposal Structure
    • P3 Financing Proposal
    • Resources
  • Route/Destinations
  • FAQ
  • About
  • Media
    • In the News
    • Newsletters
  • Support Us
    • All Aboard with CABR
  • Contact Us

FREQUENTLY ASKED QUESTIONS

Project Status

What is the history and timeline of the CABR Project?

Concept (2016 – 2019)
Alberta Transportation funds study for Calgary Downtown to Banff; Liricon proposal to Canada Infrastructure Bank (CIB) accepted.

Feasibility (2020)
CIB funds study for Calgary Downtown to Airport; CIB Memorandum of Understanding (MOU) with Alberta Transportation.

Development (2021)
Liricon MOU with CP Rail; CIB provides 50% of capital; Liricon Unsolicited Proposal to Alberta Transportation.

Plenary competitively selected as Liricon’s co-developer; make Enhanced Unsolicited Proposal to Alberta Transportation.

Design (2022 – 2023)
Eighteen month Design Phase necessary to support community consultation, permitting and contracting before a final investment decision and start of construction

Construction (2025 – 2028)
Anticipated three to four years of construction once Design Stage passed.

What is the current status of the project?

The CABR Project is ready to enter the Design Phase which is forecast to take 18 months before construction can commence.

Has CABR been approved by the province?

Importantly CABR is not yet an officially approved provincial project and this is limiting the ability of other key stakeholders including Canada Infrastructure Bank, CPKC Rail and City of Calgary to undertake work necessary to progress the project.

Has CABR been approved by City of Calgary?

The City’s current approval, albeit unfunded, is for a standalone Airport Transit Line linking the Blue Line LRT to the Airport (Stage One) at an estimated cost of $400-800 million and ultimately extending the Airport Transit Line to meet the future Green Line (Stage Two).
CABR believes it can connect the airport to the Blue Line as an integrated part of its line at a fraction of the cost of a standalone transit line and providing North Eastern Calgary residents improved rail access to the downtown and the Bow Valley.

What does the Minister of Transportation 2023 mandate letter say? (our emphasis)

The Premier has been a strong supporter of the CABR Project and regional rail in general in two successive mandate letters. The 2023 mandate letter requires the Minister to:

“explore cost-sharing arrangements with the private sector and/or municipalities that support economic investment in Alberta’s transportation network, including public transit, heavy rail and bridge infrastructure that better connects the Calgary and Edmonton airports to their downtowns, regional communities to Calgary and Edmonton, and Calgary to the province’s Rocky Mountains parks system. This must initially include completing the Blue Line link to the Calgary airport.”

Examining the feasibility of a province-led Metrolinx-like model for commuter rail service using heavy rail on the Canadian Pacific rail line from Airdrie to Okotoks and the Edmonton International Airport to downtown Edmonton, with a view to developing a commuter rail system that can expand as Alberta grows. Part of the feasibility study should include the use of hydrogen-powered trains.

What needs to happen for Government of Alberta to approve the CABR Project?

The Unsolicited Proposal process makes it easy for the Government of Alberta to provide contingent approval of the CABR project and allow necessary work to proceed at minimal risk to the Alberta taxpayer and without making any final investment decision.

Has the Government of Alberta progressed CABR quickly to date?

While large infrastructure projects often take many years to plan and develop, Government of Alberta have been very slow to recognize the unique features of the CABR Project and advance it in a timely manner.

  • Alberta Transportation entered into successive MoUs with Canada Infrastructure Bank to progress the project in 2020 and 2021 but nothing happened.
  • Alberta Transportation largely ignored the unsolicited proposals from Liricon Plenary in May and November 2021.
  • While the Airport Connection Rail Study represents a positive step forward, we hope that it is not a further excuse for delay and that key aspects of CABR which are essential to support conclusions of the study can be advanced in parallel.
  • Government of Alberta’s exploration of a Provincial agency similar to Metrolinx in Ontario is unnecessary for CABR and could lead to years of delay.
What is the Airport Connection Rail Study?

In budget 2023, the Government of Alberta allocated $3 million to City of Calgary to to identify the optimal rail connection and alignment between downtown Calgary and the Calgary International Airport.

An additional $2 million is allocated to the city to initiate design work on the Blue Line extension to aid the airport connection to the east.
This study has procured a consultant over the summer of 2023 and is expected to commence in October 2023 with conclusions by August 2024.

Is CABR part of the Airport Connection Rail Study?

CABR is an important stakeholder in the Airport Connection Rail Study and offers a foundational solution to all of the regional rail initiatives under consideration in the study.  The study was initially designed on the premise that the various rail initiatives were competing whereas in fact they are largely complementary with CABR the only project which is able to move forward in the near term.

How important is the MoU between Liricon and CPKC Rail?
  • The MoU between Liricon and CPKC Rail to lease a 25 ft wide strip of land stretching approximately 90 miles from Calgary Airport to the Banff Train Station is the key to a fast direct express airport to downtown connection and timely and cost effective onward connection to Banff.
  • CABR is the only project which has such an MoU with CPKC Rail and the MoU has already been renewed twice (most recently on October 27, 2023) while Government of Alberta makes a decision on the project.
  • The MoU sets out the key terms and conditions for passenger use of the corridor and provides a strong basis to proceed into design and permitting work.
  • Freight railroads are typically strongly averse to sharing their alignment with other services and Liricon’s successful negotiation of the MoU is testimony to the strong trust established through negotiation of the long term lease over the historic Banff Train Station, expansion to include 20 acres of CPKC lands around the station for intercept parking and through more than 100 meetings over a five-year period leading up to the fall of 2021.
  • The CPKC MoU is an integral part of the CABR proponents Enhanced Unsolicited Bid proposal that was delivered to the Ministry of Transportation in November of 2021.
  • It cannot be assumed that the offer to lease a portion of the corridor sufficient for dedicated passenger rail tracks will be open indefinitely or would be offered to other counterparties or for other projects.

Alignment & Design

Have the Speeds Been Calculated for the Route?

Formal studies on the speeds and times of the Airport to Downtown Alignment have not been completed by CABR. Previous studies completed by CPCS have led CABR to adopt a 15–20-minute ‘express’ ride from the Airport to Downtown and a 1.5-hour ride from the Airport to Banff using the CPKC Rail corridor with the limited number of stops proposed. In contrast, an alignment connecting the Airport to a new terminus of the Blue Line at 88 St. NE. with a transfer from an Airport People Mover Service to the Blue Line to go downtown is estimated to be a 40-45 minute ride. Detailed design phase studies as recommended by the CABR Proponents with the number of stations and their locations is required to definitively determine ride times.

The City of Calgary is expecting to release an Airport Rail Connection Study this fall which examines passenger rail service options to connect the Calgary Airport to Downtown. In that study passenger rail ride times on a variety of alignments are anticipated.

No ride time analysis has been completed on the Calgary Airport Downtown Express (CADE) Plus 15 Solution with connections to three downtown stations as shown in the Route video have been completed. The Province of Alberta has retained AECOM to determine a preferred alignment solution for the Green Line SE to connect to the Red and Blue Line Downtown by year-end 2024. Presumably, ride times would also be considered as part of that study.

What are all the train stops between Calgary Airport and Banff?

The intention is to have seven stops: Calgary Airport – Downtown Calgary – Calgary West – Cochrane – Stoney Nakoda Nation – Canmore – Banff. Additional information and a map can be seen here.

Rail Stops for Calgary Airport Banff Rail (CABR) Project

How will the location and design of stations be determined?

As a private sector proponent, Liricon/Plenary are best able to design the linear infrastructure which will deliver train services to the communities. The need for stations to be accommodated adjacent to the rail line which follows the CPKC rail alignment provides some limitations to the choice of station locations. However, the municipalities in conjuction with Liricon/Plenary will determine precise station configurations, design and interchanges with local transportation services.

Additional costs beyond those of a basic station will be shared with the relevant community or covered through transit orientated developments (TOD).

How will the train be powered?

The train will be powered by hydrogen. It will be the first hydrogen powered passenger rail service in North America with a zero emissions system, which will help to accelerate Alberta’s developing hydrogen economy. Hydrogen-powered train service has already been successfully introduced in Europe and trialled in Quebec during the summer of 2023.

Why isn’t the train powered by electricity?

There isn’t enough space for electrified trains adjacent to the CP Rail mainline in downtown Calgary. Electrification risks interfering with freight rail performance. Electrification is also very capital intensive especially over the 150km length of CABR.

What is the difference between a brownfield and greenfield project?

For CABR, brownfield refers to the railway being built within the CP Rail corridor and Calgary Airport Authority’s lands. Because there are no land acquisition costs, service relocations and disruptions, and a more simplified approval process, the construction timeline is also drastically reduced as well as the cost ($10 million/km vs $200 million/km for a greenfield rail).

Conversely, a greenfield railway needs to be built on land that’s yet to be acquired and will also require additional permitting time, additional time and cost for land acquisition and additional time and cost for local impact studies, which all add to the overall timeline and project costs.

Why doesn’t the train go to Lake Louise?

Liricon/Plenary are actively exploring the additional costs and benefits 0f extending CABR to serve Lake Louise.

Support for CABR

What do Albertans think about CABR?

Recent polling was undertaken during the Spring 2023 election campaign to explore Albertan’s views of CABR and add greater insight to previous polling which found that an unprecedented 88% of Albertans were supportive of the project.

  • 77% of Calgary residents have a favourable view of CABR, increasing to 85% when questions ask specifically about the fast direct airport to Downtown link
  • 76% of all Albertans also have a favourable view of CABR’s Airport to Downtown Link

Albertans also have a strong understanding of the benefits CABR brings

  • 79% agree that CABR will be good for the Alberta economy
  • 72% agree that park visitors should be encouraged to use public transit instead of personal vehicles
What does the Bow Valley Corridor Alliance think about CABR?

The Bow Valley Corridor Alliance comprises City of Calgary and the municipalities/Townships of Canmore, Cochrane and Banff  to promote a fully operational, efficient, and effective mass public transit service in the Bow Valley Corridor between Calgary and Banff.

The municipalities of Cochrane, Banff, Canmore and Calgary, as well as First Nations and Improvement District 9, initially partnered in 2018 to commission a feasibility study to examine mass transit as a way to reduce the traffic congestion, environmental impacts and several factors along the Bow Valley Corridor and in the Banff national park.The Bow Valley Corridor Alliance has been a strong supporter of CABR.

Clink here to see the support expressed by the Mayors of Calgary, Cochrane, Canmore and Banff for CABR.

What do the indigenous communities think about CABR?

Formal consultation with affected indigenous communities is dependent on the Government of Alberta’s decision whether to progress the project. The Stoney Nakoda have written to Government of Alberta welcoming such consultation.

What does the business community think about CABR?

CABR has exceptionally strong support from diverse businesses who can be partners and beneficiaries in CABR’s success:

  • Canada’s major airlines.
  • All the major banks.
  • Owners of more than 70% of the accommodation in Banff National Park.
  • Rare endorsement from Business Council of Alberta, widespread support in Alberta business community.
  • Strong support for integrated approach to tourism market and willingness to consider additional complementary investments reinforces broad and diverse economic benefits.
  • Increases confidence in ridership and revenue capture and allows further reductions in proposed financial contribution from Government of Alberta.

Click here to see all our supporters.

Who are the proponents of CABR?

The private sector proponents of CABR are:

  • Liricon Capital Ltd: Family holding company of long-term Banff residents Adam and Jan Waterous.
    • Identified rail as fundamental solution to vehicle congestion in Banff and negative effect on sustainability of National Park and visitor experience.
    • Series of investments to facilitate the project, including:
      • Acquisition from CP Rail of long term lease over historic Banff passenger rail station.
      • Acquisition of Mount Norquay.
      • Development of 600 space intercept parking lot on station lands provided free of charge.
      • Negotiation of MOU with CP Rail to develop passenger rail project.
  • Plenary Group: A public-private partnership (P3) specialist, subsidiary of the Caisse de Depot of Quebec,  with a portfolio of 76 assets under management worth more than $47 billion across Australia, Canada, the US, and the UAE.
    • Developing Montreal’s $6.5 billion REM project, the largest P3 with airport connection and has CIB) financing.
  • Competitively selected as development partner.
  • Canada Infrastructure Bank (CIB): Memorandum of Understanding (MOU) to provide up to 50% of the capital required on a project risk basis over 50 years at a low interest rate.
  • Canadian Pacific Kansas City Railway (CPKC): MOU for dedicated track in CPKC rail right of way for reduced cost and reliable service.
What is Canada Infrastructure Bank (CIB)?

CIB is a federal government agency mandated to invest $35 billion across Canada in transformative projects in the national interest which are revenue generating and can attract private sector capital with the support of CIB. CIB has been a strong supporter of the viability of CABR, funded feasibility studies on linking the airport through downtown Calgary to Banff and have committed to lend up to 50% of the capital costs of the project on a long term project risk basis at low interest rates. CIB are also willing to fund project development costs on a matching basis with Government of Alberta and the private sector.

The CIB financial support, cheaper than Government of Alberta can borrow, makes the proposed P3 solution much more cost effective than the traditional public transit funding model and also supports a much higher level of risk transfer to the private sector and awau from the Alberta taxpayer.

Why shouldn’t government just build and operate CABR?

CABR is challenging as conventional government directed public transit project: Four things changed this:

  • Willingness of private sector stakeholders to step up for development and long term financing cost and performance risks and appetite from Canada Infrastructure Bank to finance 50% of the project at low interest rates with no recourse to Alberta taxpayer.
  • Ability of Liricon to negotiate Strong CP Rail support, creates unique opportunity to permit and build quickly and at very low cost relative to greenfield transit projects.
  • Insight that CABR would only work as a link between Calgary Airport, the downtown and Banff and that premium customers visiting Banff could contribute significantly to help subsidize costs of public mass transit for Albertans if private sector can provide exceptional service quality.
  • National and provincial parks “gate fee” can encourage use of train, taking personal vehicles off road and delivering planned environmental benefits.
What are the precedents for the CABR Project?

Many features of the CABR Project are unique. However, there a several strong examples which demonstrate both the benefits of the project itself and the advantages of the proposed P3 delivery model.

Canada Line, Vancouver

Canada Line provides a fast direct express rail link between YVR Airport and downtown Vancouver as well as a commuter link to the suburb of Richmond.

Canada Line is by many measures the most successful airport rail line in North America carrying over 54 million passengers in 2019. This comprised a market share of 27% of airport to Downtown passengers and approximately 20% of airport employees.

Canada Line was delivered on time and on budget ahead of the 2010 Winter Olympics through a public private partnership which continues to provide operations and maintenance. Canada Line is partly owned by CDPQ, the parent company of Plenary Americas.

The CABR team have close personal experience of the planning and implementation of Canada Line which they have applied to CABR. One of the most important blessons is that traditional public transit planners hugely underestimated the number of riders Canada Line would attract and the willingness to pay a premium for airport access. As a result Canada Line was underbuilt for the number of riders it carries and after only ten years of operations need expensive retrofits to increase its capacity.

Reseau Electrique Metropolitain (REM) Transit Project, Montreal

The REM Project is a 67km 26 station public transit network in Montreal, including a link to YUL airport, being developed by CDPQ Infrastructure (Plenary’s parent) with significant funding from the Canada Infrastructure Bank. The first segment of REM was successfully opened for service in summer 2023.

REM represents a big step forward in the evolution of Canada’s P3 model which is also being used as the basis for CABR.

CDPQ Infrastructure essentially made an unsolicited proposal to develop the system, which had been stuck in the governmental planning process for years. CDPQ accepted ridership risk and established early an affordability ceiling for the project expressed as a payment for each passenger kilometer actually travelled on the network. CDPQ then led the development, design and procurement of the project to fit within this affordability ceiling.  CDPQ also financed more than half the capital costs repaid over the long term through farebox revenues and performance payments.

These same features have been adopted for the CABR unsolicited proposal to Government of Alberta and transfer design, construction, operations, maintenance and ridership risk to the private sector.

These Canadian projects are part of a resurgence of private sector interest in accepting commercial risks including ridership and revenue in major rail projects – especially those which serve unique leisure destinations. These projects all involve the private sector taking a larger role in development and design often under unsolicited proposal type models.

Other examples include:

  • The RFP recently issued by Government of Canada (and CIB) for a private sector development partner to develop higher frequency/higher speed passenger rail services in the Toronto-Ottawa-Montreal- Quebec City corridor.
  • The All Aboard Florida project to link Miami and Orlando by high speed passenger rail.
  • The Desert Express project to provide passenger rail services between Los Angeles and Las Vegas.
Public transit is experiencing many issues at the moment – why will CABR be different?

Operations and Services

The Covid -19 pandemic resulted in significant declines in ridership on traditional public transit services which supported a daily commute to a downtown workplace. This resulted in loss of revenues, service cutbacks and safety issues on underutilized services. With an increase in remote working, some public transit ridership may never come back. However, Calgarians are still travelling for services and leisure and lines which support these activities have rebounded quickly.

CABR is a service which meets post – pandemic travel needs, including the rebound of airport traffic to pre-pandemic levels. As just one example, airport rail services such as Canada Line in Vancouver tend to have stronger ridership in the evenings, at weekends and on public holidays than at the peak hour daily office commute. This leads to better economic use of the infrastructure, higher quality services and improved safety as more staff and more passengers deter anti-social behaviour.

Construction

Public transit projects in Canada have also struggled with construction delays and cost overruns. The characteristics of CABR are different allowing an improved delivery model with significantly lower risks to government.

Economic Benefits

Who receives the economic benefits?

CABR is a multi dimensional project with large and diverse economic benefits.

Government of Alberta (and all Albertan taxpayers) receive direct monetary benefits in the form of increased tax revenues from the CABR project itself and the increased economic activity generated by the project. These additional tax revenues greatly exceed the maximum $30 million pa performance payments requested from the Province meaning that the net fiscal cost is zero and the project returns a multiple of investment.

City of Calgary

The most direct quantifiable benefit of CABR for City of Calgary is an extra $1.3 billion of tourism spending (Calgary Economic Development) in Calgary from Banff visitors who without the train would bypass the City entirely.

In addition CABR would attract significant additional visitors to the downtown and the Rivers District and support downtown revitalization for residential, commercial and leisure activities. These economic benefits would be huge.

Calgary International Airport Authority (YYC)

YYC would benefit from additional services and passengers destined for Banff and other business and leisure destinations in Calgary and Southern Alberta. Major airlines supporting the project, including Air Canada and Westjet, are keen to be able to market tickets directly to Banff using CABR for the final leg of the journey.

Employees of YYC and other airport employers would accrue significant benefits from reduced travel time and costs to access their work. YYC would be able to free up significant land currently used for employee parking and grow other commercial activities on airport lands, In the same way as the Canada Line acted as the catalyst for commercial use of airport lands, CABR will open up huge opportunities at YYC and in the vicinity.

Banff, Kananaskis and the Bow Valley Communities

The Bow Valley will receive significant economic benefits from increased tourism activity and reduced congestion. The Economic Impact Assessment estimates that CABR will generate over 22,500 new long term jobs, many of which will be in the Bow Valley.

Communities will benefit from improved labour mobility, opening up employment opportunities in Banff or Calgary which would not otherwise have been accessible. This in turn will mitigate the workforce challenges of communities such as Banff. This will also have a significant impact on mitigating regional economic disparities including access to commercial services and healthcare.

Southern Alberta Commuters and Leisure Travellers

Some of the largest economic benefits will be enjoyed by the riders using CABR (80% of whom will be making trips within City of Calgary). These benefits will be seen in reduced travel times, lower travel costs and greater accessibility of leisure and commercial activities.

Is the cost-benefit ratio for CABR strong?

The cost-benefit ratio conservatively forecast for CABR of 2.6x is extremely strong for a public transit project. It compares with a high end cost benefit ratio for the Green Line of 0.60x. Large scale public transit investments in Canada are routinely made at cost benefit ratios as low as 0.30x.

It may seem to make no sense to invest in a project which returns fewer benefits than the costs. In part this is due to limitations of the cost-benefit methodology where construction cost benefits are not included and benefits of a network may not be fully attributable to a first stage.

CABR is an integrated project on a manageable scale which delvers diverse benefits, resulting in a much higher ratio of benefits compared to costs than typical.

Economists also like to take into account the losers from an investment as well as the winners. If a train replaces bus service then only the incremental riders or travel time savings are taken into account. CABR in contrast provides a lot of incremental economic benefits which would otherwise simply not exist.

Timeframes

How long will CABR take to build?

A government-led infrastructure project on the scale of CABR will usually take more than ten years to complete (if it ever gets done), comprising:

  • 1-2 years of feasibility studies and planning
  • 1-2 years of design
  • 3 years plus of permitting
  • 1-2 years of procurement
  • 5-6 years of construction

Total 11- 15 years

This long time frame creates huge risks of uncertainty, changes, cost inflation, changes in interest rates and financing terms and added costs of management and supervision. The communities affected have to deal with uncertainty and disruption and have to wait much longer  to receive the benefits.

A key advantage of the proposed P3 is timely completion which in turn dramatically reduces costs and risks:

  • Feasibility work is complete and design and permitting can proceed in parallel over 18 months using the CPKC brownfield rail alignment.
  • Construction and commissioning will take three years meaning CABR can be in service by 2028 compared to mid 2030’s under government led construction.
What are the advantages of using the CPKC Rail Corridor?

The project offers several key benefits: a direct Airport-Downtown alignment, a drastic reduction in development time (10+ years to 1.5 years) with low Capex (<10% of greenfield LRT), minimal construction disruption and environmental impact, improved CPKC freight operation resilience without corridor electrification, and reliable on-time performance with a dedicated passenger rail system.

Development Costs

Who has paid for all the work that has been done on the project to date?

The proponents, the Government of Alberta and the CIB have paid for all studies on the CABR project to date.

Who normally pays for the development costs of an infrastructure project?

Government (provincial or municipal) typically pay the majority of development costs for a public transit project, including feasibility and planning studies, initial design and permitting. Under a P3, this work establishes a “reference design” which is then put out to the market to tender. Government typically also funds an honorarium payment to unsuccessful bidders for the project to offset some of their costs of bringing design up to the level at which they can submit a committed bid.

How much will the Design Phase cost before a final investment decision can be made on the CABR project?

The total cost of the Design Phase is estimated at $105 million required to achieve financial close and commence construction. This is phased with a final investment decision made during this process.

This is a typical development, design and permitting budget. For context, Calgary Green Line LRT has invested nearly $1,000 million (10 times as much) and has not yet awarded its main construction contracts.

The first $30 million cost is to be paid equally by the proponents, the Canada Infrastructure Bank (CIB) and the Government of Alberta, as required by the CIB. The first $30 million will determine the project feasibility and will be done in two stages to minimize risk in making a final investment decision. The remaining $75 million cost of the Design Phase is the responsibility of the proponents and provides sufficient detailed design to complete permitting and award construction contracts.

How much is City of Calgary and other municipalities being asked to pay?

City of Calgary and the Bow Valley communities are not being asked to contribute any development funding but would be responsible for their own costs in determining station locations, designs and connection to local transit services.

Delivery Mechanism

How are public transit projects funded and procured in Canada?

Significant investments have been made in Canada over the past 20 years in mass transit rail projects with many more projects in the planning stage.

Typically, the federal and provincial governments each provide one third of the project capital costs in the form of grant payments during the construction period. These payments do not directly cost the project interest, but the federal and provincial governments bear the borrowing costs of this funding.

The municipality typically contributes the remaining third of capital costs (including responsibility for any cost overruns) and provides an operating subsidy (sometimes with provincial support) which covers the approximately 60% of operating costs which are not covered by farebox revenues.

Under traditional government delivery, consultants employed by government design the project and then put it out for tender for construction by private sector builders (“design – bid – build”). Government retains responsibility for design changes, delays and cost overruns.

Under a P3 model, government consultants still undertake preliminary planning and design but the private sector contractors take on more risk by undertaking to complete the design and construction for a fixed price and provide some financing to guarantee this. Government still bears significant risks of project planning and definition.

Under the enhanced P3 model proposed for CABR, the private sector partner undertakes the planning and development of the project to ensure that it’s able to deliver the ridership revenues and operational performance necessary to make it viable; the government’s risks are very limited.

What is a public-private-partnership (P3)?

Public-private partnerships are collaborations between a governments and their agencies (in CABR’s case the Province of Alberta and the Canadian Infrastructure Bank) and a private-sector company (Liricon/Plenary) to finance, build, and operate projects. Financing a project through a P3 can allow it to be completed quicker, or even make it a viable possibility.

What’s an unsolicited proposal?

Many countries, including the United States and Australia, have successfully used unsolicited proposals to give the private sector greater opportunity to propose innovative solutions to infrastructure challenges on which the government planning process has not yet focused. The private sector can often bring a commercial focus, particularly on revenue generating opportunities, which government may lack.

An unsolicited proposal framework was a key part of the Canada Infrastructure Bank’s mandate to invest alongside the private sector in transformative revenue generating infrastructure. At the same time, several provinces, including Alberta, introduced their own unsolicited proposal processes.

Click here to view the Government of Alberta Unsolicited Proposal framework.

Unsolicited proposal frameworks provide much greater flexibility than traditional government procurement but ensure there’s a disciplined approach to the investment of taxpayer dollars and sufficient competitive tension to ensure cost effective outcomes.

An unsolicited proposal sounds like it’s an unwanted proposal, which it’s not. In many cases, projects which start off as unsolicited private sector proposals become part of a more formalized selection process as they evolve.

What’s the requested Government of Alberta support?
  • Match $1.5 million of funding from CIB and Liricon/Plenary to ensure the Airport Connection Rail Study has necessary and timely information to optimize regional rail decisions for the benefit of all Albertans.
  • Assuming CABR is a recommended solution (by Feb 2024), enter into Project Development Agreement and match additional $8.5 million of phased funding from CIB and Liricon/Plenary to achieve a final investment decision (by end 2024).
  • At financial close (by end 2025), agree GoA financial contribution (which would repay capital) contingent upon CABR’s performance, share in upside revenues and capped at no greater than $30 million per year.
  • GoA financial contribution may also be reduced by municipal contributions.
  • Initiatives to increase rail market share of park visitors (to 40%) eliminates government financial contribution.
  • Performance payments commence only upon completion in 2028.
What is the Federal Government’s support?

The federal government is a strong supporter of the CABR project. While different from the conventional federal grant funding of municipal transit, federal support provides a very significant portion of the project funding and financing.

1) The 50 year low interest project risk loan from Canada Infrastructure Bank significantly reduces costs and risks to Government of Alberta and as part of a P3 offers new sources of funding and financing which do not crowd out funding available for other public transit or transportation infrastructure.

This represents cost saving of $29 million per year compared to GoA financing (differential to GoA cost of borrowing); overall P3 solution saves 75% compared to government delivery (difference between CPCS government base case and Liricon/Plenary proposal).

This financing technique results in a significantly lower cost to Government of Alberta and to City of Calgary than the traditional transit funding model.

2) Consistent with other airport rail projects, CABR anticipates receiving grant funding of approximately $200 million in capital contributions from Transport Canada for airport specific costs.

3) Parks Canada can reduce or eliminate Government of Alberta  contributions through gate fee/parking initiatives to discourage personal vehicle use, consistent with Banff National Park Net Zero 2035 initiative and Banff Management Plan 2022 – Key Strategy 8: Moving People Sustainably.

What is the Municipal Government support?

Municipalities will contribute to station infrastructure and connectivity to local transit services and could be asked by Government of Alberta to contribute to the annual performance payment proportionate to the benefits they receive.

Funding & Financing

What is the construction cost of CABR? How much will it cost to construct the rail line and all the stops along the way?

Liricon/Plenary based our 2021 unsolicited proposal on government cost estimates, however we were willing to accept higher costs without any increase in the requested financing from the government.

Original Cost Estimate

The new 150km rail line, rolling stock (trains) and stations were estimated by the government to cost $1.5 billion in 2019.

Building most of the new rail line within the existing CP Rail corridor is a fraction (5-10% estimate) of the cost to acquire land and build a new ”greenfield” rail corridor. CABR was estimated to cost $10 million per kilometer while the Green Line LRT, which is typical for greenfield urban rail and LRT projects, is approximately $200 million per kilometer.

Updated Cost Estimate

Government estimated (2019$) capital costs of $1.5 billion. Today with an expanded project scope and increased service levels, expected capital costs are $2.5 + billion.

Liricon/Plenary expect to buy almost three times the number of trains as the original government feasibility study to accommodate the much higher ridership projections which we believe are achievable. Hydrogen powered trains are also more expensive than the diesel trains proposed in the government study. This larger number of more expensive trains will require more infrastructure investment and maintenance and refuelling facilities than contemplated in the original government studies.

Liricon/Plenary after extensive stakeholder consultation has agreed to provide free “people mover” infrastructure and services between four proposed stations at YYC airport providing the multi-modal transit hub and interchanges which provide the foundation for future rail services including high speed rail and regional commuter rail.

Liricon/Plenary have also proposed to extend CABR by 4 kms to connect the Blue Line with the airport, saving City of Calgary the estimated $650 million cost of a standalone Airport Transit Line.

Over 50% of the capital costs of CABR will be in the airport to downtown section which represents about 10% of the total distance.

Finally construction cost inflation and rising interest rates have significantly increased the cost of all infrastructure projects.

Operating costs estimates are also now significantly higher than in the government studies due to higher service levels, greater frequencies and inflationary pressures.

Under the public-private-partnership model (P3), design changes can be maintained proportionate to ridership revenues and other benefits. Ridership revenues are much stronger now than forecast in the government studies meaning that the government contribution can remain proportionate to the benefits and  remain, on a like for like basis, capped at $30 million per month.

How is the train and rail line being funded?

The entire train and dedicated rail line in the CPKC Rail corridor is being funded by a public-private-partnership (P3). This approach to infrastructure funding is being supported by the federal government and the federally owned Canada Infrastructure Bank (CIB) so all levels of government are not required to provide the upfront capital and bear the risks associated with this investment.

Up to 50% of the capital funding required to build CABR is projected to be provided by the CIB over 50 years at a low interest rate (1% pa at the time of the MoU between Alberta and CIB). The remaining capital costs will be financed by the proponents (Liricon/Plenary) through equity and debt at commercial rates.

What is a public-private-partnership (P3)?
Public-private partnerships are collaborations between a governments and their agencies (in CABR’s case the Province of Alberta and the Canadian Infrastructure Bank) and a private-sector company (Liricon/Plenary) to finance, build, and operate projects. Financing a project through a P3 can allow it to be completed quicker, or even make it a viable possibility.
How much will taxpayers have to pay for the construction of the train?

The farebox, or operating revenue from the train, will cover all the operating and maintenance costs of the CABR service and cover at least 50% of the mortgage for the capital cost to build the CABR project.

The Province of Alberta (Alberta taxpayers) are being capped at a $30 million per year mortgage for 50 years, based on current ridership projections. Under the proposed funding model, the Government of Alberta will own the CABR train and rail assets after the 50-year mortgage. Increased ridership as a result of increased Banff National Park entrance fees (to reduce personal vehicle access to the park) could significantly reduce the Province of Alberta’s mortgage obligation.

The multi-level fare structure allows for increased revenue for first-class passengers, premium economy passengers and out-of-province passengers to increase affordability and ridership for Alberta residents.

How much equity financing will Liricon/Plenary contribute?

We anticipate that the equity investment by Liricon/Plenary and any additional partners brought on during development, will be approximately 20% of total project costs. This could be as much as $500 million.

This compares with roughly 2% equity (one tenth as much) for typical Canadian transit P3s.

The exact equity amount will be determined by the risk profile of the project and will be negotiated with CIB and commercial project lenders. Equity is the first party to lose its investment and should be sufficient to cover ridership and cost risks.

How much money will Liricon/Plenary make from the CABR project?

Liricon/Plenary have proposed a long term internal rate of return on the equity invested of 12%, which is typical for Canadian P3 projects.

Upside ridership revenues will be shared with the Government of Alberta to reduce any performance payments which limits the profits Liricon/Plenary may make from a successful project.

There are many downside risk scenarios which could result in Liricon/Plenary losing all or a portion of their investment.

Most Canadian P3 transit projects in recent years have resulted in private sector investors and/or contracting partners losing money.

Why does the Government of Alberta need to make a commitment to long term performance payments instead of making an upfront contribution to construction costs?

Typically governments find it easiest to make an upfront contribution to the capital costs of a project, write this off in their accounts an then ignore any future performance failures.

This is not a commercial approach and leads to the government bearing more of the risk since their money is spent regardless of outcomes.

By making long term performance payments instead, the government can ensure that they receive a long term warranty on the performance of the project. If trains are not being run because of future maintenance issues then performance payments are not made until the problem is fixed at the expense of the private sector partner.

People borrow to buy a house so that they can spread the costs over their full lives and don’t have to save up before they have enough money. Governments should think in the same way when investing in long term infrastructure. But imagine a mortgage which you didn’t have to pay if the roof of your house is leaking or if the windows need repainting. This is the long term risk transfer government is achieving through the P3 model.

Why can’t a tourist train be funded entirely by the private sector like the Rocky Mountaineer?

The Rocky Mountaineer is an extremely successful example of a private sector tourist train, providing additional comfort that CABR can charge a premium for leisure travellers to experience Alberta’s exceptional mountain scenery by train.

The Rocky Mountaineer runs trains on the CPKC Rail freight lines. On-time performance is not a priority since the service is a tourism experience and not a practical mode of transportation. The longer passengers spend on the train the more time they have to experience the scenery and the luxury food and beverage services.

Rocky Mountaineer would not be able to afford to pay to build new infrastructure. The benefits of CABR exist because it is a practical and efficient transportation solution requiring significant new infrastructure investment which also provides a core public transit need. Premium fares charged for CABR’s premium services cross subsidize public transit services for Albertans and the infrastructure required to support them.

Nowhere in the world has the scale of infrastructure investment proposed by CABR been made without significant government financial support.

How much will it cost annually to run and maintain the train once operational?

The annual costs to run and maintain the CABR train service are covered by the fare box operating revenue plus at least 50% of the capital cost to build the train. The proponents are assuming all the risk to achieve this projected revenue and not the Government of Alberta (the Alberta taxpayer).

How much will taxpayers have to pay each year the train is operational?

The proposed funding model caps the spending by the Government of Alberta (Alberta Taxpayer) at $30 million per year based on current ridership projections with the likelihood of this reducing with higher ridership forecasts. Any further costs are the responsibility of the proponents.

Is the Alberta taxpayer responsible to repay the CIB loan?

No; the CIB loan is project risk (non-recourse). If CIB cannot be repaid because of delays, cost overruns, operating cost increases or ridership revenue shortfalls. The government of Alberta’s only responsibility is to make any annual performance payments agreed (less any surplus ridership revenues) only if the train is operational and services are being delivered to the agreed standard. At the end of 50 years, the Government of Alberta will own CABR and if the project defaults and ceases operations then the Government of Alberta will have the right to take over the project.

How does the maximum $30 million per year of requested performance payments compare with other public transit projects?

$30 million per year represents just 0.0004% of the budgeted expenses ($68.7 billion) for the Government of Alberta for 2023-2024.

$30 million per year represents just 1% of the Ministry of Transportation and Economic Corridors operating budget for 2023-2024 or just 1.6% of the transportation capital budget for 2023-2024.

$30 million represents just 5.9% of the costs of the Government of Alberta’s municipal transit grant programs for 2023-2024.

For context, $30 million also represents only 6.7% of the Calgary Transit Service 2023 operating budget or 6.9% of the Calgary Transit capital budget for 2023.

The proposed CIB financing represents cost saving of $29 million per year compared to GoA financing (differential to GoA cost of borrowing); the overall P3 solution saves 75% compared to government delivery (difference between CPCS government base case and Liricon/Plenary proposal).

Canada Line costs government twice as much as CABR annually and Calgary Green Line forecast to cost nearly seven times as much annually (with the provincial government contribution alone being three times as much as CABR).

The GoA is subsidizing each new passenger on Green Line Stage One by $16 compared with <$2.60 requested for CABR.

Service Levels & Fares

How often will the train run?

The train will travel from the Calgary Airport to downtown Calgary every two to three minutes with an express service that will take 15-20 minutes (depending on final station configuration).

The train will offer service from the Calgary Airport to Banff at least every hour with more frequent peak services, depending on seasonality and demand.

Additional stops and services to Calgary West (Keith), Cochrane, Stoney Nakoda Nation, and Canmore will be scheduled to accommodate both local commuter and tourism demands.

How much will it cost to ride the train?

Residents of Alberta can ride the train for a lower rate than out-of-region visitors. Alberta residents’ economy tickets (in 2021$):

Calgary Airport – Downtown Calgary: $10

Downtown Calgary – Banff: $20

There will be three classes of service (economy, premium economy, and first class), adopting European best practices.

Will discounts and transit passes be available?

CABR will have a full range of discounted fares and passes to encourage use of the train, to reduce the costs for local residents and to reward frequent use.

These will include:

  • Annual and monthly passes for frequent users. CABR will work with employers, particularly at YYC Airport, to make available discounted passes. Passes will also be available for commuters and other frequent users.
  • Discounted fares will be available for seniors, children and other communities.
  • Group discounts will be available for families and other groups travelling together.
Will I be able to take bicycles, skis, camping gear and other heavy luggage on the train?

CABR trains are serving the airport and the leisure destinations of Banff and Kananaskis. Provisions will be made to transport luggage and outdoor equipment including bicycles and skis that might otherwise be carried in personal vehicles.

 

Where will the train station be located in Banff?

CABR would stop at the existing Banff Train Station.

Once dropped off a the Banff Train Station, how can I be transported to various destinations (ie. downtown, resorts, Norquay, etc.)?

Improvements will be made to the Banff Train Station to accommodate public transit service to downtown Banff and various park destinations. CABR will work closely with Parks Canada to ensure that high quality low emission services are available for intra-Park transportation to provide an optimal and cost-effective visitor experience.

Potential increases to gate fees and parking charges within Banff National Park for those choosing to continue to use personal vehicles will likely pay for improved public transit services within the Park for those arriving by train. New sources of revenue will also develop, for example rental car fees for people choosing to arrive in Banff by rail but renting a vehicle or camper van for onward travel into Alberta and British Columbia.

Will there be an additional cost for other transportation modals once in Banff?

At this time one can expect additional costs for additional transportation services within Banff and the park. Packaging of CABR and Banff-centred transportation services will be encouraged and deployed to reduce cost and enhance service delivery.

Why is Exshaw excluded as a stop?

At this time the CABR proponents have developed a rail service serving seven stops – YYC, Downtown Calgary, Calgary West, Cochrane, Stoney Nakoda Nations, Canmore and Banff. To date, ridership studies were prepared based on the previously referenced stops/stations.

The Design Phase of the CABR project will examine all stop/station locations and will consider additional or alternative locations and the feasibility to service those local markets. Friends of CABR’s objective is to inform residents of the Bow Valley Corridor of the CABR project and its merits. We also want to activate supporters of the CABR project to ensure the Government of Alberta proceeds with the Design Phase before making a final investment decision on proceeding with the CABR project.

We expect that additional stops/stations will be considered in and around the Airport (YYC) as well as in Downtown Calgary. As a result, a more robust review of station locations and the costs to service those locations will be conducted in the Design Phase.

There needs to be a stop at K-Country, Hwy 40 on the east side of Hwy 1; there’s already an off-ramp to the Morley Reserve and it would link public transportation, hopefully, to shuttle tourists/Calgarians to everything heading into the park.

The location of the stations serviced by CABR will be the responsibility of the local municipalities and the First Nations (Stoney Nakoda) serviced by CABR in partnership with the CABR proponents. This will be determined as part of the CABR Design Phase which is to be funded by the CABR proponents, the Canadian Infrastructure Bank and the Government of Alberta. The Design Phase is the next required step to determine project feasibility and will ultimately lead to an investment decision on the CABR project.

There would appear to be strong interest in locating a station at Hwy 1 and Hwy 40 for the reasons questioned. The final decision on that will be made in consultation with the Stoney Nakoda Nation.

Environmental

The Y2Y (Yelowstone to Yukon Conservation Initiative) published a critique of early plans for CABR entitled “What’s Missing from the CABR Proposal?

A transportation solution that meets the needs of the Bow Valley’s communities — and its natural spaces — must include:

  • Strategies to keep wildlife habitat connected — to prevent further damage to landscapes and to decrease wildlife deaths on roads and rail.
  • Connection to a larger regional tourism planning strategy that mitigates cumulative effects from development and tourism.
  • Commitment to green hydrogen power to mitigate greenhouse gas emissions.
  • Solutions to regional affordability and workforce challenges.

CABR has focused on and is continuing to develop solutions to these important issues.

How will wildlife and the landscape be protected during construction?

Liricon/Plenary has investigated various mitigation alternatives to minimize CABR’s impact on wildlife. The Design Phase will be critical to determining the optimal wildlife impact mitigation approach, be it the adoption of fencing and wildlife crossings or the use of technology including both lighting and sound to warn wildlife of approaching trains. In the Design Phase, the potential of using this new technology and other mitigation strategies will be further pursued.

Construction of CABR within the CPKC corridor will allow for opportunities to improve wildlife mitigation for both the existing freight traffic and the new passenger trains.

The CABR construction strategy using existing CPKC Rail corridor to deliver construction personnel and material by rail minimizes the need for any construction access roads in Banff National Park.

Will CABR worsen visitor numbers and congestion in Banff National Park and Kananaskis Country

“ Banff doesn’t have a people problem…it has a car problem”

Albertans and visitors to our Province alike appreciate the opportunity to enjoy our spectacular mountain environment. Visitor numbers to both Banff National Park and Kananaskis Country have grown annually at over 3% for the past decade despite growing congestion. Both destinations also experienced a spike in visitation post pandemic reflecting increased desire for travel and natural experiences.

The choice we have is to mitigate the cumulative negative effects of visitors, which are largely caused by emissions and congestion from large numbers of personal vehicles, through a mode shift to rail and zero emission transit or to ration visitation to the detriment of  both Albertans and visitors to the province. Imagine if in the future you have to buy a ticket at the beginning of the year to visit Banff National Park on a specific date. Much like popular concerts, rationing would benefit large tourism operators taking bookings far in advance at the expense of ordinary Albertans.

What effect will CABR have on Banff National Park emissions?

Banff National Park currently produces approximately 105,000 metric tons/CO2/year or 63 times the per visitor emissions of Zion National Park (Transition Accelerator August 2020).

Zion National Park is among the environmental leaders in the United States and has eliminated personal vehicles from the core park sites by using low emission buses. Zion charges US$35/vehicle (C$45/vehicle) to access outer regions of the park with no mass transit alternative.

CABR will provide Parks Canada with a unique opportunity to reduce emissions  through gate fee/ parking initiatives to discourage personal vehicle use, consistent with the Banff National Park Net Zero 2035 initiative and Banff Management Plan 2022 – Key Strategy 8: Moving People Sustainably. CABR is the only way to achieve Parks Canada objectives in any realistic timeframe fostering enhanced visitor opportunities and more sustainable transportation to the Park and  reducing GHG emissions by Park visitors.

Will CABR reduce emissions through hydrogen trains?

When CABR was first proposed the service was based on diesel trains which significantly reduce emissions compared to individual fossil fuel vehicles.

In the intervening years hydrogen fuel cell trains have become a commercial reality following several years of successful operation in Northern Germany and a successful trial in Quebec in the summer of 2023.

Hydrogen trains would result in zero emission operations by CABR.

Are hydrogen trains commercially practical?

Hydrogen trains are more expensive than diesel or electrified equivalents (although the infrastructure costs of electrification over the 150km from Calgary to Banff are also very high).

Their use in Germany and other parts of Europe is likely to be commercially limited by the very high costs of producing the green hydrogen necessary to fuel them.

Alberta is uniquely positioned to produce very low cost hydrogen and the use of hydrogen trains by CABR would be a high profile catalyst for the transition of Alberta to a hydrogen economy, with North American and global export potential.

How will CABR mitigate regional affordability and workforce challenges?

Frequent services between Banff, Bow Valley Communities and Calgary will significantly improve labour mobility giving residents of communities such as Stoney Nakoda safe, reliable and affordable transportation options to take jobs in places like Banff which are otherwise impossible due to high costs and low accommodation availability due to development limitations. Bow Valley communities could also access Calgary for employment, education and access to commercial and medical services mitigating regional disparities in opportunities. Similar labour mobility improvements will be seen in the City of Calgary with downtown employment and residential options more accessible and employment opportunities at YYC Airport more accessible to all Calgary residents especially those living in the northeast quadrant of the city.

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