Location: From Prince Deward Island to New Brunswick
Issue/Source: Concern that tolls may increase due to the pandemic
Date: April 29, 2021
Suggeted responses
- The Confederation Bridge is a federally-owned asset operated by Strait Crossing Bridge Limited.
- The operator has the exclusive right to impose and collect toll rates.
- Transport Canada’s responsibility is limited to the annual review of toll rates proposed by the operator to ensure they are in compliance with the operating agreement.
If pressed
- Provincial travel restrictions due to COVID-19 had a significant impact on bridge traffic which resulted in lower toll revenues collected by the operator.
- Toll rates for next year will only be finalized in the fall of 2021.
Background information
- The Confederation Bridge toll rates are governed and based on a formula set-out in the Bridge Operating Agreement. Review of the toll rates is the responsibility of Transport Canada and is limited to ensuring contractual provisions have been followed. The toll rates established in 1997 were based on previous ferry rates.
- Under the agreement, the operator may increase tolls by no more than 75% of the Consumer Price Index. As a result, over time the real cost to the travelling public actually decreases.
- The operator submits updated toll rates in the fall of each year and Transport Canada’s role is to validate those calculations. New rates take effect on January 1.
- Over the past several years, there has been pressure to reduce or remove the tolls at the Confederation Bridge, which has received attention from media.
- Although there are confidential provisions within the BOA to address exceptional circumstances like the COVID-19 pandemic, toll rates have not yet been determined for 2022.