Confederation Bridge Tolls
Location: Confederation bridge, Borden, Prince Edward Island to Cape Jourimain, New Brunswick
Issue/Source: Confederation Bridge / TRAN
Date: March 2024
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.
- In an effort to support recovery from the pandemic and Hurricane Fiona, the Government of Canada has taken steps to provide relief to Islanders. Since 2021, the Government of Canada has implemented revenue shortfalls and inflation relief measures to restrain toll increase. In doing so, tolls remain at the 2022 rate of $50.25 per passenger vehicle.
- 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 understands and appreciates your interest regarding the future of tolls. Your views on this topic are important. Canada is in an information gathering stage; and exploring options for future tolls; a decision in this regard has not been made.
- On a working group: Transport Canada officials have engaged with the Government of Prince Edward Island known as “Confederation Bridge and Eastern Ferries Engagement Sessions” to gather input on the future of bridge and ferry 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.
- The Government of Canada continues to review the motion passed in the Prince Edward Island legislature. At this time there is not a specific timetable for decision.
Background Information
Confederation Bridge Tolls
- The Confederation Bridge fulfils Canada’s constitutional obligation to provide a year-round transportation link between Prince Edward Island 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 2023, a subsidy payment of $77.18 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 and $4.5 million in 2024 in exchange of the bridge Operator waiving its right to increase tolls in 2023 and 2024.
- The Premier of Prince Edward Island has publicly requested that tolls on the Confederation Bridge be reduced to $20 and the creation of a working group to discuss the future of tolls.
- In November 2023 and January 2024, officials from Transport Canada met with officials from the Prince Edward Island Department of Transportation and Infrastructure to discuss the rising cost of interprovincial travel to and from Prince Edward Island.
- In addition to the Premier, other members of the public and industry groups regularly express concerns over the current toll rates. Stakeholders expressing concerns about the cost of tolls are not new. However, the measures to bring economic relief during the pandemic, in particular increasing federal funding to reduce toll increases, have emboldened local elected officials to request that tolls not only be frozen but also reduced.
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. Public Services and Procurement Canada identifies this motion by the Government of Prince Edward Island as an official naming request.
- 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.