Highway 104 Western Alignment Corporation
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Letters to StakeholdersAnnual Report 1999-2000Lee Rankin,PresidentCobequid Pass provides a safe and efficient highway in and out of Nova Scotia for all users-truckers, tourists, commuters, business travelers and local residents. As in previous years, the volume of traffic exceeds original expectations. This fiscal year, increased traffic and the resulting revenues allowed the Corporation to retire the Subordinate debt significantly ahead of schedule. It is the Corporation's intent to continue on a program of debt reduction aimed at retiring the Junior Bond issue by the year 2004. Our focus as the highway matures is to provide a superior level of customer service to meet the high expectations of the public. Our success is measured not only by high traffic volumes, but also in the many letters we still receive from drivers praising the highway's efficiency, safety and beauty. Needless to say, we extend this excellence in service to our partners and shareholder, the Province of Nova Scotia. Recently, the government of Nova Scotia enacted legislation to provide for more accountability in the financial affairs of government business enterprises, such as the Highway 104 Western Alignment Corporation. We welcome this initiative, and, as in the past, we will work hard to meet all government requests and requirements to its satisfaction. During the past year, the Corporation initiated a process to address warranty items under our Warranty Agreement that expires in November 2000. This proactive approach resulted in the resolution of all warranty items to the benefit of the Corporation. There has been no need to go to arbitration. Such measures ensure Cobequid Pass remains a first class facility for drivers. We are also ensuring that the Highway 104 Western Alignment Corporation remains a first class business operation, trusted by partners, and responsive to government.
Don Piercey, General ManagerThe second full year of operation for Cobequid Pass has presented a range of challenges to the Highway 104 Western Alignment Corporation, due largely to the exceptionally high usage the facility continues to enjoy. Traffic on Cobequid Pass totalled 2.2 million passengers and 567,000 commercial vehicles for the fiscal year ending March 31, 2000. These figures represent a six per cent increase in total traffic over the fiscal year ending March 31, 1999. This significant increase demonstrates a high degree of acceptance of Cobequid Pass and its management. We strive to earn this ongoing acceptance with high quality customer service and facility maintenance. We have added more construction to our Major Maintenance Reserve Fund, installing advance warning and information signs on the highway. More improvements are in the early stages of planning: expanded public washrooms and a new toll plaza security system. We feel these improvements can be made while still limiting overall operating cost increases, as we proved in the 1998/99 fiscal year. One of our upcoming challenges is to increase the use of Electronic Toll Collection (ETC). Twenty-six per cent of the total traffic volume uses ETC. However, sixty per cent of this volume is commercial traffic. While ETC transponder sales have increased by 1,700 units this fiscal year to a total of 14,700, and although the number of ETC accounts has gone to 8,334 from 8,000, ETC use by passenger vehicles remains at ten per cent of the total traffic volume. This figure has remained constant since the facility opened in November 1997, despite the ETC subsidy program allowing passenger vehicles a 50 per cent reduction in the toll rate. The Corporation is exploring the feasibility of one transponder and one account that can be used on the majority of toll facilities in the Maritime Provinces. In addition to the Corporation's Audited Financial Statements, this annual report outlines the history of the Highway 104 Western Alignment Corporation and the creation of Cobequid Pass. Our financial statements illustrate the Corporation's financial position, and detail how toll revenues are spent. Toll revenues remain the Corporation's sole source of funding. Staff of the 104 Corporation are always happy to answer any questions you have. Information on how to reach us is listed on Contact us. |
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Copyright © 2004 Highway 104 Western Alignment Corporation
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