TORONTO, Ont. — The Province of Ontario has initiated the dispute resolution provisions of the contract between itself and 407 ETR.
The government wants to stop the 407 from raising its toll rate.
407 International Inc., for its part, plans to increase the toll rate regardless, say company officials. “The dispute resolution process does not prevent us from raising the toll rate,” explained public relations manager Dale Albers.
“The increase will go ahead.”
The company plans to raise the rate by one cent per kilometre as of Feb. 1, said Albers.
That means while light traffic (cars) will be start paying nearly 14 cents per km, heavy trucks and buses (single units) will pay twice that amount and two piece transport vehicles (truck/trailers and dumps with pups attached) will pay thrice that amount.
In a letter earlier this week, the Government provided notice of its use of provisions in the Concession and Ground Lease Agreement (CGLA) to determine whether a toll increase requires a change request. In short the government believes the 407 must ask its permission to raise the rate.
The 407 dispute the government’s claim. “The contract clearly stipulates that we have to go to dispute resolution, but it doesn’t state we have to ask for permission to raise the rates,” said Albers.
407 International Inc. is the sole shareholder, operator and manager of 407 ETR, which extends 108 kilometres east-west, just north of Toronto. 407 International Inc. is owned by a consortium comprised of the Canadian subsidiary of Cintra Concesiones de Infraestructuras de Transporte (co-owned by Grupo Ferrovial and Australian-headquartered Macquarie Infrastructure Group) and Canadian-based SNC-Lavalin.
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