Deputy Minister's appearance at the Committee of the Whole (CoW) Senate, June 16, 2025

26. Confederation Bridge Tolls

Location: Confederation Bridge, Borden, Prince Edward Island to Cape Jourimain, New Brunswick

Issue/Source: Confederation Bridge

Date: May 2025

SUGGESTED RESPONSES

  • The Confederation Bridge fulfils Canada’s constitutional obligation to provide a year-round transportation link between Prince Edward Island and the mainland. The Bridge is a federally owned asset operated by Strait Crossing Bridge Limited.
  • As a strategic interprovincial corridor for Prince Edward Island’s economy, the Government of Canada has interest in keeping the bridge affordable for users, particularly for Prince Edward Island residents and businesses.
  • Since 2021, the Government of Canada has implemented revenue shortfalls and inflation relief measures to restrain toll increases. In doing so, tolls remain at the 2022 rate of $50.25 per passenger vehicle.
  • The Government of Canada remains committed to reducing interprovincial barriers and improving the flow of goods and services across Canada – infrastructure like the Confederation Bridge plays a vital role in connecting provinces and supporting our shared economic growth.
  • The Government of Canada is looking into a longer-term solution for the future of Bridge tolls to keep transportation to/from Prince Edward Island affordable.

IF PRESSED

On reduction to $20 and/or future tolls:

  • The Government of Canada is assessing options for the future of tolls.

On the renaming of the Confederation Bridge:

  • Transport Canada is committed to advance reconciliation with First Nations, Inuit and Métis Peoples through collaboration and meaningful consultation in a way that aligns with federal obligations stemming from the United Nations Declaration Act.
  • This is a commitment to supporting Reconciliation, which aligns with the Government of Canada’s own Call to Action.

BACKGROUND INFORMATION

Confederation Bridge Tolls

  • The Confederation Bridge fulfils Canada’s constitutional obligation to provide a year-round transportation link between Prince Edward Island (PEI) and the mainland. In 1993, Strait Crossing Development Inc. (the Operator) signed agreements with Canada to design, build, finance, operate and maintain the 12.9 kilometers bridge at a cost of approximately $1 billion.
  • The Government of Canada makes an annual subsidy payment toward the cost of designing, financing, building, operating, and maintaining the Bridge, adjusted annually for inflation. In 2025, a subsidy payment of $80.9 million was made.
  • The toll rates and their structure are governed by the Bridge Operating Agreement (the Agreement). The operator has exclusive rights to impose and collect tolls and is permitted to increase tolls annually by an amount equal to 75% of the Consumer Price Index and to recover any shortfall below the toll revenue floor, a guaranteed minimum revenue for the developer.
  • The Government of Canada has made efforts to curb toll increases relating to the pandemic and to ensure the re-start of the economy is not negatively impacted by high inflation. As such, since 2021 the Government of Canada has implemented revenue shortfall and inflation relief measures to restrain toll increases.
    • Revenue shortfall: Canada issued one-time payments in 2021 ($2.87 million) and 2022 ($1.62 million) to recover toll revenue shortfalls in 2020 and 2021 respectively.
    • Toll Freeze: Canada made a payment of $2.5 million in 2023, $4.5 million in 2024, and $5.4 million in exchange of the bridge Operator waiving its right to increase tolls in 2023, 2024, and 2025.
  • Stakeholders, including the province of Prince Edward Island, regularly express concerns with the cost of the Bridge tolls.
  • There has been steady criticism of the toll rate since the Government’s decision in 2015 to remove tolls from the Champlain Bridge in Montreal. Regular critics include Prince Edward Island Senator Percy Downe, the Prince Edward Island Fishermen’s Association, and the Summerside Chamber of Commerce in Prince Edward Island.

Confederation Bridge Renaming

  • On April 29, 2022, the Legislative Assembly of Prince Edward Island voted on a unanimous motion to “urge the Government of Canada to take this opportunity for reconciliation and rename the Confederation Bridge to Epekwitk Crossing.”

The motion voted by the Legislative Assembly of Prince Edward Island cites that the renaming of the Confederation Bridge to Epekwitk Crossing is a commitment to supporting Reconciliation, which aligns with the Government of Canada’s own Call to Action.

  • Transport Canada continues to work with federal partners in reviewing the motion passed in the Prince Edward Island Legislature proposing to rename the Confederation Bridge.
  • All proposals to name bridges and other structures are carefully weighed before a decision is made.
  • A timetable for a decision regarding this proposal has not been set.
  • Transport Canada is considered the custodian of the Confederation Bridge, however, the responsibility for naming federal structures falls under the Minister of Public Services and Procurement Canada in accordance with the Public Services and Procurement Canada’s Policy on Naming Government of Canada Structures. Public Services and Procurement Canada’s policy is to rename federal structures only under “exceptional circumstances”.
  • A consultative due diligence process is required to determine whether a name change is supported by Canadians prior to renaming a federal structure.