This month we had an opportunity to see mockup of new streetcar that will be coming to Toronto in near future, we hope. The vehicle is sometimes referred to with more up-to-date label, as LRV. It stands for Light Rail Vehicle. For those who love public transit and look forward to our future, seeing this mockup is a must. We have to allow that there are many people who will talk down about public transit and prefer cars at any cost. However, such attitudes are not urban. New rail vehicles can bring many changes, and we can hope that it will change attitudes, as well. Taking rails downtown for concert in Roy Thompson Hall of to go to Sony Centre for an opera should be as glamorous as taking a cab or driving a car there. Riding new low-floor streetcars should not be just for those on a budget, or a green thing to do, but a status symbol. Imagine, if, during International Film Festival in Toronto, some movie stars would go to the red carpet with our new LRV, rather than take a limo there? These pictures splashed all over the news might help to change minds of many stalwarts. I have seen some unfriendly comments about the event, posted on transit blog site. I think that these people are just ignorant and need some time.
At the time when cities in North America with streetcars transportation were ripping the tracks and substituting buses, in fifties and sixties, Toronto resisted the trend. Montreal dismantled their trams during August 1959. It is a city that always followed European trends, but Europe always kept their trams. In our capital Ottawa, they dismantled trams during April 1959. Toronto’s rail vehicles were in danger in sixties and seventies, and only strong support from activists saved them until now. North American streetcar manufacturer disappeared from the scene. If you keep the vehicles, how do you replace them, when their useful life is at the end? In North Bay Ontario, there was a plant that had manufactured subway cars for TTC.
Ontario Government had some vision of the future in urban rail transport and set up Urban Transit Development Corporation to develop rail systems and sell it world-wide. This corporation designed and built our present Scarborough RT or ICTS (Interim Capacity Transit System). The cars that are smaller than traditional subway cars are propelled by Linear Induction Motor (LIM). It was a new and untried technology, and only two other buyers were found. City of Vancouver for SkyTrain, and as UrbanMover in Detroit, USA. Other CANADIAN CITIES LIKE Edmonton and Calgary planned to build rail system, but opted for German style LRT from Siemens. In seventies, Urban Development Corporation also designed and built our present streetcar, CLVR (Canadian Light Rail Vehicle) and few years later its bigger sister, ALRV (Articulated Light Rail Vehicle). It is a stretched version of CLRV. Both vehicles have become symbols for Toronto. They ride old rail network, dating back to 19th century. It is referred to as the legacy network. Unfortunately, no other cities in North America were eager to buy our streetcars or ICTSs, and that spelled the end of UTDC.
Ontario Government decided to sell the company to a private company in 1986. It sold it to Lavalin of Quebec that sold the assets to another Quebec Company, Bombardier. First subway line opened in Toronto in 1954, and the trains were built in Thunder Bay, Ontario by company Hawker Siddeley Canada. It was a division of British hawker Siddeley Group. Government owned, and Kingston-based UTDC acquired Hawker Siddeley in nineties. Bombardier Company bought UTDC and hawker Siddeley. The previous company and the plant in Thunder Bay had a long relationship with Toronto Transit Commission. It has been recognized as favored supplier to TTC. Toronto Transit Commission (TTC) is a public transport agency that was established in 1954. It operates subways, streetcars and buses in Toronto. The Commission is governed by councilors who are elected as municipal councilors, but appointed to TTC. Council is just a, municipal, political, group. It reflects prevailing political directions and those usually change with every municipal election.
In 2005, Toronto Transit Commission handed over an order to Bombardier for 234 new subway cars. It was a closed order negotiated with the company, with no public tender. TTC came under a strong criticism. Biggest competitor Siemens claimed that it could have saved TTC at least $ 100-million on the purchase. It became apparent that TTC can no longer hand over any future orders. Without letting them win it in public tender.
Portland City in Oregon, USA was the first North American City to introduce modern streetcars in 50 years. The cars were supplied by Czech based Skoda-Inekon consortium. This streetcar was close to the TTC’s expectation. Portland had Siemens built LRT to connect downtown with the airport. LRTs are traditionally built for longer runs with gentle curving and can’t make 50 degrees turns in the city environment and share the roads with cars. Portland streetcar can ride on LRT track, if necessary. People often call RTT or LRV any vehicle modern looking rail vehicle for city.
During 2006 Toronto Transit Commission issued a Request For Information (RFI) to several known manufacturers of streetcars around the world and held a preliminary discussion with them. TTC had a number of options. Refurbishing and modernizing old CLRVs or buying new vehicles. What type of vehicles might be most suitable? 70% low-floor vehicles that are preferred by USA cities, or to be swayed by 100% low-floor cars? There is no single answer, which type is better. It all depends on preferences and requirements. Final Request For proposal (RFP) was issued in January 2008 to all builders that have pre-qualified. In fact, the builders had to purchased complete tendering package. The package called for 100% low-floor car and required all builders to submit $1 000 000.00 security payment with their tender envelope. Further, builders had to provide minimum 25% of Canadian content. Although tender was expected to be impartial, to get the best proposal for 100% low-floor vehicle at the best price and to fulfill all Toronto’s unique technical requirements. The existing rail track has wider-gauge, tighter turning radiuses of 11m, steep hills and single-point switches.
Public tenders of such a size, they are politically influenced processes above all. They have to meet with political objectives set by Mayor and council, regardless of their costs. Our former city administration never considered costs of their new policies as important. They just introduced new taxes. Land transfer tax and new car registration tax. Lobbyists also play an important part in the process and bidders employed lobbyists. TTC hired a consulting company to analyze Canadian manufacturing base and find out, how many potential subcontractors can have their input in streetcar building. The resulting recommendation was that no more than 10%. If more is requested, the builders might be discouraged from bidding. That was a warning from consulting company.
During the TTC public meeting in December 2007, the councilors have changed the amount of Canadian content required to 25%. It was purely political decision but had an impact on the process. Request For proposal was also explicit about a “preferred supplier,” without naming the company. Most overseas-based builders saw-through the process that was designed with some partiality in mind and refused to participate. In July 2008, only one favored builder submitted tender envelope together with required $1 000 000.00 security cheque. Actually there was another tender from an upstart English company that was quickly disqualified on two grounds. Not fulfilling; commercial part of the tender and not having any reference. A reference means any vehicle in a revenue service, anywhere. No transit authority wants to buy any unproven vehicles. The other tender submitted was also disqualified since the vehicle offered was not technically compliant with technical specifications published in RFP.
Toronto newspaper had a fitting cartoon describing the process and the end. Not exactly flattering but reflected disappointments that we have all felt. Who in the TTC let us down? Was it procurements department, streetcar engineering department or management, including the politician? Somebody must have been responsible. TTC had to reopen process. They approach builders with investigative questions. They wanted to know the reasons for not bidding and their level of interest in the new process. Important was if the builders were able to offer 100% low-floor design. That was the most important since they did not want to 70% low floor offers. Some industry insiders were of the opinion that taking into account Toronto’s unique requirements, only 70% low floor design is suitable.
Minimum of, 25% Canadian content requirement presented another major obstacle for overseas companies. If builder has no established manufacturing base, nor contacts with companies in Ontario, than looking for quick partnership or subcontractors can be a costly adventures. When you can sense the difficulties and see that the process is skewed toward domestic company, why would you participate? Your bid can only provide enough useful information for the Commission to negotiate with preferred supplier from a better position.
During July 2008, Commission started one-to-one preliminary negotiations with all builders. At the end, they preselected 3 builders for closed negotiating process. As expected, it was our Canadian Builder, overseas Siemens and French Alstom. Rumors have it that Alstom was not interested at all, but was just persuaded to join the process. TTC used reference for 100% low-floor vehicle as the main criteria to select builders for further negotiations. Some professional opinions differed from the official line, saying that local requirements are so unique that no company has yet, built a car to these specifications. Required reference should not be the most important one, but TTC should negotiate with all interested builders.
Transit Commission needed 204 new cars to be delivered over several years. The budget price was $ 1.2 Billion to be divided among three funding sources. City, Federal and Provincial Government. The Feds have refused funding, so the City is left to pick up the extra cost. The second round of negotiation ended in April 2009. At this time process was successful and the contract was awarded to the expected company. The second bid was $500-million higher, and that differential must account for expected difficulties with fulfilling requirements of Canadian content. Alstom did not submit a proposal in the second round.
The contract was won in April 2009. It has taken more than 1 year, and a half to see mockup, but TTC has yet to test the vehicle on our rails. It is not very encouraging state of situations. The exact date for arrival of test cars has not been given yet. One might think that Torontonians might enjoy more seeing a car on the rails first, than to look inside. If there are any problems then, we might expect further delays.
Tendering process is a text-book example of protectionism at its best. As Canadians, we might root for and prefer Canadian company to fill the tender. It is important to keep many jobs in Canada. Transportation is paid by levels of Government, not private. It is, therefore, right for the party paying the bills to attach the conditions. IN USA, when Federal money is required for transportation project, 40% of the content must be US origin. If all money is secured on the local level or from private sources, than the condition does not apply. You can buy vehicles from anywhere with no-strings attached. It is clear that all companies that produce vehicles for public projects operate in a difficult environment. It is not enough to have the” best product at the best price,” but the company has to be able to navigate trickery of politics. International trade and its principle are the losers. The costs of projects are artificially stretched for higher overhead due to political administration.
Politics aside, we hope that the project will come to a successful conclusion. We should see new streetcar coming to the city in few years. Toronto residents and visitors to our city should accept them with great pride and prefer them over cars. There have been some negative comments on the record. I do not believe that they represent the general population. New streetcars in Toronto will have an appeal and that should reflect in higher ridership. Subway lines are currently priority of our city administration. The city need subway lines, but they have to be complemented by streetcars. Both modes will create city-wide transportation. Subways are great for long trips, but streetcars can serve more people on shorter trips with more frequent stops. Transit City project to built new surface rail lines will be resurrected with the next administration.
New low-floor LRVs will come to our cityConsider new alternative to the use of your car. Recycle, re-use and take public transit anywhere!