Ontario Premier Opens Door to Highway 407 Buyback

Ontario Premier Doug Ford has stirred attention with his recent comments hinting at the potential buyback of the privately-controlled Highway 407, a decision that could reshape the transportation landscape in the Greater Toronto Area and come with a hefty price tag of nearly $29 billion.

During a media interaction on Wednesday, Ford responded to queries regarding his controversial plan to create up to 60 kilometers of underground tunnels for roads and transit beneath the heavily trafficked Highway 401 in Toronto. Experts have estimated that this ambitious tunneling plan could cost between $60 billion to $120 billion, bringing skepticism about its efficacy in alleviating traffic congestion, which has increasingly strangleholded the region.

"We're keeping all options on the table. Who knows? Maybe both options could work," Ford remarked, referring specifically to the possible buyback of Highway 407 and the proposed tunnel initiative. This marks a noteworthy shift in Ford’s stance, as he had previously dismissed both strategies just days ago during a talk radio interview, asserting that the government had considered and ultimately decided against the buyback.

Toronto is notorious for its congested roadways, with all 400-series highways projected to reach or exceed capacity within the next decade. Traffic delays are estimated to be costing the Ontario economy a staggering $11 billion annually, with projections indicating that travel times on Highway 401 could double by 2051 if no action is taken.

The 108-kilometer Highway 407, first leased out to a private consortium for 99 years at $3.1 billion in 1999 by the Progressive Conservative government of Mike Harris, has since skyrocketed in value. Its current ownership comprises the Canadian Pension Plan Investment Board, which owns a slim majority, alongside Spanish-based Ferrovial’s subsidiary, Cintra Infraestructuras, and a small stake held by AtkinsRéalis. Financial analysts estimate the highway's total value could be as high as $29 billion, although it carries a substantial debt load of $10.6 billion.

Despite these staggering figures, Ford has pledged not to impose tolls on the proposed tunnel project or any new highways he aims to construct, despite the financial burden a buyback strategy would entail.

In the midst of these discussions, the Premier has also been vocal about raising speed limits on Ontario’s 400-series highways from 100 to 110 kilometers per hour where safe, further reflecting his desire to address highway congestion, even as his government continues to grapple with the delayed opening of the Eglinton Crosstown light-rail transit line—now nearly four years behind schedule.

In addition to the discussions surrounding the buyback of Highway 407, Ford is exploring alternatives such as elevated lanes over Highway 401 to ease traffic flow. He claimed that insights from leading construction unions were supportive of tunneling over elevated approaches, emphasizing the need for innovative solutions to combat Toronto's ever-growing traffic challenges.

As the province considers its options, the question remains: will Premier Ford's infrastructure ambitions truly resolve the congestion crisis facing Ontario, or are these just political maneuvers to win favor among constituents? As the situation unfolds, the public and traffic analysts alike are left to ponder the implications of Ford's plans on Toronto's troubled transit future.