Highway 104 Western Alignment Corporation
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Letters to StakeholdersAnnual Report 2000-2001Lee Rankin, PresidentCobequid Pass's construction and opening are now history, and the facility is warmly accepted by the majority of users. While the Corporation's primary focus will always be on customer service, we must now also concentrate on ensuring the highest degree of highway serviceability. It's key that the riding quality and pavement structure are maintained at the levels exhibited immediately after construction was finished. When the highway's warranty expired in November 2000, the Corporation became totally responsible for financing the highway's long term maintenance. Together with our Bondholder's Representative, CIT Structured Finance, our Independent Maintenance Engineer, McCormick Rankin, and our Long Term Maintenance Manager, the Nova Scotia Department of Transportation and Public Works, we have identified and funded approximately $1.2 million in maintenance improvements to be tendered and completed in the coming fiscal year. These projects consist of the re-gravelling of the shoulders, repaving of the Toll Plaza approaches, and seal coating of 24 lane-kilometers. Our Major Maintenance Reserve Agreement will also identify and fund via toll revenues other necessary projects through the life of the tolling period. Toll highways are designed to be totally self-financing; construction, operation and maintenance costs are paid from toll revenues. Cobequid Pass is no different and the Corporation does not rely on the input of public monies for any of its expenditures. During construction, our focus was on delivering the facility on time and at the contracted price. With the co-operation of our partners, the Province of Nova Scotia and Atlantic Highways Corporation, Cobequid Pass was opened on budget and two weeks earlier than expected. Upon opening, our focus changed once again to meet the demands of our patrons at the Toll Plaza and to ensure that the annual maintenance, consisting of such items as snow and ice removal, were kept at a high standard. The work of the Province's Department of Transportation and Public Works, and the Atlantic Highways Management Corporation, in dealing with the unique aspects of this public private partners in this regard cannot be overstated. Maintaining an excellent highway and high levels of customer service through the use of toll revenues will remain the primary goal of the Corporation. Our partners should be congratulated in the professional manner they have strived to meet the requirements embodied in our various agreements. Without the help and the direction provided by our Shareholder, the Province of Nova Scotia, Cobequid Pass would not function as the excellent facility that it is. It is certainly the intent of the Corporation and the wish of all our partners that Cobequid Pass remain an excellent facility and that high standard is our goal.
Don Piercey, General ManagerThe changes we made at the request of the traveling public and our partners over the first two and a half years of operation convince us we are providing what people want: a safe and efficient highway. With only a small number of minor complaints, the Corporation did not find it necessary to implement radical operational changes. However, we remain committed to improving the highway and making the adjustments necessary to provide excellent service. Passenger vehicle traffic during the past fiscal year totaled 2.195 million cars, almost identical to the 2.2 million passenger vehicles processed in the 1999-2000 fiscal year. Commercial vehicles totaled 583,000, or 2.9 per cent higher than the previous year. With the predicted economic slowdown becoming a reality, a leveling-off of traffic volumes is no surprise, yet the facility still receives traffic volumes 51 per cent above the original financial models. The first scheduled toll increase, effective January 1, 2001, ensures that the Corporation is able to meet all of its financial obligations in the event of a marked downturn in traffic volumes. The Corporation, through our Operator, Atlantic Highways Management Corporation, sold an additional 1, 348 Electronic Toll Collection (ETC) transponders and established 1, 315 new accounts during the past fiscal year. The total number of transponders now in use is slightly over 16,000 with a net increase in ETC accounts of 1,170, for a total 9,471. ETC usage by passenger vehicles has increased to 13.4 per cent from 10 per cent, and ETC usage by commercial vehicles remains relatively constant at approximately 80 per cent. All told, 27.5 per cent of the vehicles on Cobequid Pass now use ETC, a figure that is increasing yearly, albeit somewhat slower than we would like to see. Included with this report is our Audited Financial Statements, illustrating our financial position and how toll revenues, our sole source of funding, are spent. Revenues and expenditures of a user-pay facility are always of great interest to the public and particularly our patrons. Net earnings after expenses for the past fiscal year were approximately 5.5 per cent higher than in the previous fiscal year. However, due to the unique nature of our financing and the structure of our debt repayment, I would suggest those interested in evaluating the financial performance of the Corporation consult the notes accompanying the statements. In addition to the Corporation's Audited Financial Statements, this Annual Report outlines the history of the Western Alignment Corporation and the creation of Cobequid Pass. We are always happy to answer any questions you may 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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