Highway 104

operational

Opportunity The two-lane section of the Trans-Canada Highway between Truro and Amherst, Nova Scotia serves as a gateway for tourists, travelers and goods but had a high accident rate—in the ten years before the provincial government decided to build a new route the road had claimed over 50 lives. The government wanted to build a bypass highway but, not wanting to add to the provincial debt,  they sought out a public-private partnership. Challenges The 21-month construction schedule was made difficult by the terrian conditions including passing over wilderness areas and watercourses, and through a mountain. This required both extensive earth moving and rock blasting and extra caution was taken to respect environmental concerns. Innovations The project was the first highway in Canada to include private financing and is considered a milestone in infrastructure development. The private sector had to raise $61 million for the project while the federal and provincial governments each contributed $29.5 million through the Strategic Highways Initiative Program. This effectively converted any future obligations the province would have for the project into a one-time, up-front payment. The parties agreed that the private sector would assume the risks of revenue and traffic flow in exchange for certain commitments from the province, which makes the owner liable for any damages during its operations. These commitments gave investors confidence that their money would be relatively secure despite the toll road being on a fairly remote stretch of highway. In order to fast-track construction, Atlantic Highways used comprehensive management and control systems, and integrated the work of designers and constructors though a “construction design review” process where designs and approvals were carried out concurrently as construction progressed. The use of pre-cast concrete deck panels and cast-in-place toppings rather than the usual formwork method, increased safety, allowed a CN rail line to remain open during construction, and helped environmentally safe construction over streams. Results Highway 104 is a 45 kilometre, twinned four-lane bypass to the Trans-Canada Highway section (Route 4) that runs between Masstown and Thomson Station, Nova Scotia. The road includes five full interchanges, six major bridges, five tunnels and 18 kilometres of access road. The Province owns the toll highway while Atlantic Highways will operate it for 30 years. The highway is maintained using toll revenues by the Nova Scotia Department of Transportation and Public Works. The road was completed within 20 months, two weeks ahead of schedule, and significantly sooner than would have been possible with traditional procurement. It is estimated it would have taken ten years to complete the new bypass using traditional procurement. Tolls are either paid electronically through a transponder or by cash at toll booths. The transponder technology Canadian Highways selected works in all weather conditions and customers can set it up to also work with bridges in nearby Halifax and Dartmouth. Over the 30-year Project Agreement revenue from tolls will pay for the tolling operation including staff salary, cover the $650,000 cost of annual maintenance, and provide investors with return on their investments. A 1997 report by the House of Commons Standing Committee on Transport called Highway 104 “the best example of how a public-private partnership should work.” The Province is responsible for setting toll rates, and has ensured they are reasonable with increases tied to the Consumer Price Index. In order to assure investors that the roadway would be used and that their investment was secure the government made several commitments including requiring all non-local truck traffic to use the new highway and introducing a fine for trucks using the old route without proper paperwork and reducing the speed limit on the old non-toll highway, creating a 30km per hour differential and committed to enforcing it. In 2005-2006 approximately 8,000 vehicles used the highway per day, exceeding expectations. Safety has improved compared to the former section of the Trans-Canada Highway, with only one single-vehicle fatality in the two years after it opened. At the peak of construction more than 400 people were employed on the project in manufacturing, construction, and technical sectors. The majority of workers were from Nova Scotia. Subcontracts in engineering, design and construction were worth a total of $96 million and the majority were given to regional firms. The Project Co. employs approximately 40 people at the Toll Plaza, most from Cumberland and Colchester Counties. Atlantic Highways received a Certificate of Recognition from the Nova Scotia Construction Safety Association for its safety program on the project. The lost-time frequency rate was 38 per cent lower than the provincial average.

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