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IS HIGHWAY 407 REALLY WORTH ANOTHER INCREASE?

January 4th, 2008

Many commuters, sick and tired of the endless gridlock on the 400 series of highways opted to pay the tolls and take the 407 ETR instead. And as a reward for your patronage the toll rates on the 407 ETR have gone up every year on February 1st for the last 4 years. And this year will be no exception. The 407 ETR, the only privately owned toll road in the province, has raised the peak rate price by more than 8 cents in the last 10 years. Just last year the peak rate price increase was 1.35 cents.

Motorists who use the 407 ETR will not be amused to know that the rate is increasing 9.4% on February 1st for cars, minivans, and SUVs, making the new peak rate price 19.5 cents per kilometer in the “regular zone” – from the 401 intersection in the west to the 404 junction in the east. In the “light zone” - the remainder of the highway from the QEW in Burlington to Highway
401 and from Highway 404 to Brock Road in Pickering – the peak rate price will be 19 cents per kilometer. The off-peak rate in both zones will be 18 cents per kilometer. The rates for single unit trucks will be 38.5 cents per kilometer and for 18-wheelers the rate will be 57.75 cents per kilometer. The big price break will be for transponder customers, who will be offered a 30 % discount on the transponder lease fee if they choose an annual transponder lease fee instead of a monthly fee.

Of course the party line is that the increases are so that the company can continue to add new lanes. What do you think? Is it road improvement or a cash grab?

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