Canada’s first high-speed rail line could cost as much as $113 billion to build, according to an analysis published by the Parliamentary Budget Officer (PBO) on Thursday — significantly higher than the federal government’s previous $90-billion estimate.
The project, which has been assigned to Crown corporation Alto, would create a roughly 1,000-kilometre rail corridor linking Toronto and Quebec City.
Skeptics of the project have questioned the cost of the line — both financially and in terms of the land that would need to be expropriated — while proponents have argued the “nation-building” project is essential for Canada’s long-term growth.
The PBO said the range reflects the uncertainty involved in estimating the cost of large-scale rail infrastructure projects, drawing on international construction experience and assumptions about the proposed Canadian route. The analysis also does not account for a possible change to the preferred route that would take the line through Kingston.
The federal office further estimated the project would provide a “modest economic stimulus.” Its first proposed segment, connecting Ottawa and Montreal, is projected to increase real GDP annually by about $1.8 billion in 2029 and $2.0 billion by 2033.
Construction on the line would also generate additional employment, with the number of jobs projected to rise from about 4,300 to 9,000 during the construction period.
This is a developing story.
