The fare box, or operating revenue from the train, will cover all the operating and maintenance costs of the CABR service and cover 50% of the mortgage for the capital cost ($1.5 billion) 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.