TORONTO, (Oct. 26, 2004) — 407 International Inc., the private consortium which owns and operates the controversial toll 407 highway north of Toronto, announced it recorded a $5.4-million profit in the third quarter, but that wasn’t enough to get it out of the red for the year to date.

The company said revenue in the three months ending Sept. 30 rose 8 per cent to $107.8 million. The jump was mainly due to an increase in the number of trips and average revenue per trip as compared to last year.

Last year, 407 International lost $1.4 million with $100 million in revenue, the company said.

This past February, the company raised toll rates for the sixth time in the last four years, with the second-to-last increase in February 2003 at almost 13 per cent. The fee for heavy trucks rose three cents (41.85 cents/km for peak times; 39.30 for off-peak), while the price for straight trucks went up two cents (27.90 cents/km for peak hours; 26.20 off-peak).

The company has been in a year-long dispute with the provincial Liberal government, which made a pre-election promise to roll back any toll increase to 2 per cent, plus inflation. However, 407 ETR has maintained the existing contract it signed with the former Conservative government allows the company to raise rates at its own discretion without government interference.

In July, an arbitrator agreed with the company. However, the Transportation Ministry still hasn’t given up on what many experts familiar with the contract describe as a lost legal cause, and is appealing.

— with files from Canadian Press