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Lessons Learned Key To 407 Eastern Extension

Archived Backgrounder

Lessons Learned Key To 407 Eastern Extension

Ministry of Transportation

In 1998 Ontario announced an international tender for the operation of the initial 68 kilometres and the construction of the remaining 40 kilometres on what is now known as 407ETR. The highway was subsequently sold to the private sector in 1999.

Drivers are choosing to use 407ETR on a daily basis - more than 900,000 transponders are currently in circulation. In 2007 407ETR reported an average of 374,348 daily trips on the now 110 kilometres of tolled highway with 41 interchanges.

Lessons Learned

The McGuinty Government has learned important lessons over more than a decade of tolled highway driving in Ontario.

  • The province needs to retain public ownership of the highway
  • The length of any operating contract must be significantly less than 99 years
  • Toll rates must be regulated by the province
  • Customer service expectations must be set out from the start

The new business model for the extension of Highway 407 is based on theselessons learned.


Then
Now
Taxpayers paid initial construction costs Private sector to pay contruction costs
Ontario sold highway asset to private sector Ontario will retain ownership of the highway
Ontario lost ability to regulate tolls Ontario will set and regulate tolls
Ontario cannot set customer service objectives Ontario will set customer sevice objectives, including complaint resolution

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Driving and Roads