A new report from the Parliamentary Budget Office reveals that the proposed high-speed rail project connecting Toronto and Quebec City may cost between $75 billion and $113 billion, surpassing the initial estimates. The report, released in response to a request from the Senate finance committee, attempts to quantify the cost of the Alto high-speed rail corridor, which aims to link Toronto and Montreal in a three-hour journey.
Alto, the Crown corporation overseeing the project, is considering a potential stop in Kingston, Ont. The Parliamentary Budget Office’s analysis, based on international construction data and assumed characteristics of the Canadian route, suggests that the baseline route (excluding Kingston) could require an investment ranging from approximately $75 billion to $113 billion. The report emphasizes the substantial uncertainty inherent in large-scale rail infrastructure projects.
According to the report, the major cost drivers are the tunnels and elevated structures integral to the project. International evidence indicates that each additional kilometre of tunnel could add $169 million to the project cost, while an extra kilometre of elevated structures may add $153 million.
The potential addition of a stop in Kingston, Ont., is expected to introduce further uncertainty due to varying factors like construction geography, regional population density, and ecological considerations. Liberal Transport Minister Steve MacKinnon views the project as a means to bolster the economy and create opportunities for Canadians, while Conservatives criticize it as an expensive “boondoggle.” The project has faced opposition from residents in Eastern Ontario living along the proposed route.
