Surrey’s light rail “plan B” for P3 doesn’t work

The City of Surrey’s proposed “Plan B” for delivering Light Rail Transit through a public‑private partnership (P3) is fundamentally compromised by the omission of key financial realities—specifically, lower ridership relative to SkyTrain and the resulting fare-revenue shortfall.

A joint TransLink–Province study found that the LRT system would require an annual operating subsidy of $22 million at opening, increasing to $28 million by 2041. This subsidy is in addition to the $60 million per year in capital financing publicly acknowledged by Mayor Linda Hepner, as well as long‑term repayment obligations to private investors under a P3 structure.

When these factors are combined, Surrey taxpayers would face nearly $100 million per year in ongoing costs to finance and operate the LRT through a Canada Line–style Design‑Build‑Finance‑Maintain‑Operate (D.B.F.O.M.) “P3” model.

The underlying issue is performance: Street‑level LRT attracts lower ridership because it is slower, less reliable, and more vulnerable to traffic disruptions. By contrast, a SkyTrain extension would draw significantly higher ridership, generate enough fare revenue to cover its operating costs, and deliver a faster, safer, and more dependable rapid transit option for Surrey residents.

SkyTrain for Surrey has previously highlighted that the City’s latest LRT study sidestepped core transportation considerations and overlooked concerns raised by our organization and others. The proposed Phase I LRT would save commuters just one minute compared with today’s 96 B‑Line service—an outcome that fails to justify the financial and operational risks of pursuing LRT under a P3 model.

Surrey deserves a rapid transit solution that is fiscally responsible, performance‑driven, and aligned with long‑term regional mobility goals. SkyTrain remains the only option that meets those standards.