Financial close for Highway 401 rail tunnel in Ontario

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Financial close for Highway 401 rail tunnel in Ontario

Infrastructure Ontario (IO) and Metrolinx have awarded a fixed-price contract to Toronto Tunnel Partners (TTP) to design, build and finance the Highway 401 Rail Tunnel project, in support of the province's GO Regional Express Rail (RER) program.

The contract is valued at CA$116.9 million (US$ 90.80 million), which reflects the substantial completion payment.

Members of the TTP team include:

  • Applicant Lead: EllisDon Capital Inc. and STRABAG Inc.
  • Construction: EllisDon Civil Ltd. and STRABAG Inc.
  • Design: WSP Canada Inc., Dr. Sauer & Partners, Amec Foster Wheeler
  • Financial Advisor: EllisDon Capital Inc. and STRABAG Inc.

The consortium will construct a new rail tunnel under Highways 401 and 409 to accommodate two tracks, future signaling and communications infrastructure, and replace footings of retaining walls that support the ramp from eastbound Highway 409 to eastbound Highway 401.

Construction is scheduled to begin in spring 2018, and be completed by late summer 2021. At the peak of construction, TTP anticipates approximately 50 workers on-site, with the majority coming from the Greater Toronto Area.

The project is being delivered using IO's Alternative Financing and Procurement model, which transfers the appropriate risks associated with design, construction and financing of the project to the private sector.​

Steven Del Duca, Minister of Transportation, stated:

“Ontario is moving forward to build the infrastructure we need to deliver GO Regional Express Rail. Improving service on the Kitchener GO corridor will make it easier for people to use public transit to travel to work or school or for appointments. The 401 Rail Tunnel Project, which will also support potential high speed rail service between Toronto and Windsor, is another step forward in building the transportation system Ontario needs to continue to grow and prosper.”

Bob Chiarelli, Minister of Infrastructure, said:

“The province continues to provide faster, more frequent service by implementing GO Regional Express Rail in the Greater Toronto and Hamilton area, one of the largest transit infrastructure investments in North America. Our investments in public transit and transportation across Ontario are managing congestion, connecting communities and giving people more travel options, as we support economic development for all Ontarians.”

Phil Verster, President and CEO, Metrolinx, commented:

“Building a new tunnel under the 401 will allow us to expand service on the Kitchener GO corridor to make it easier for our current and future customers between Toronto and Kitchener to choose GO Transit as a way to travel. We are excited to be working with the Toronto Tunnel Partners consortium to build this new infrastructure to add more track to deliver our future electrified 15-minute all-day service in core areas to get our customers to their destinations faster and easier.”

Ehren Cory, President and CEO, Infrastructure Ontario, added:

“The Highway 401 Rail Tunnel is one of many infrastructure projects required in order to expand rail service in the Greater Toronto and Hamilton Area. We have great partners with Metrolinx and Toronto Tunnel Partners, to not only complete the project on time and on budget, but to the high standards and safety measures required to complete this project within the busiest transportation hub in the province.”

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