Comment 118666

By Keith (anonymous) | Posted May 17, 2016 at 12:50:45

I think it's important to recognize the way that the "cost" of bus service within the former suburbs is calculated is flawed. Right now, the cost is based on a per kilometer basis. How is this cost calculated

It takes the total operating cost of the ENTIRE HSR system and subtracts the total revenue collected of the ENTIRE system. It then divides it by the total kilometers travelled (both revenue and non-revenue kilometers), or put in a formula

Cost per km = [Total operating costs (full system) - Total revenue collect (full system)] / Total kilometers traveled (full system, revenue and non-revenue)

The problem with this is that the most successful routes (the Main/King/Queenston corridor) that turn a profit or nearly break even, are subsidizing the suburban routes within the current cost structure. The actual cost of providing service in the suburban areas is much higher than what the homeowners are actually paying but the urban subsidy covers the difference. Prior to amalgamation, all the costs were kept separately but now it all pools into one account. It's part of the reason why the urban-suburban area rating structure is such a farce.

Permalink | Context

Events Calendar

There are no upcoming events right now.
Why not post one?

Recent Articles

Article Archives

Blog Archives

Site Tools