Highway 104 Western Alignment Corporation
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Letters to StakeholdersAnnual Report 2001-2002Lee Rankin, PresidentAs Cobequid Pass completes its fifth year of Operation, the highway continues to be an excellent and efficient transportation facility. Those who travel Cobequid Pass will notice its smoothness, cleanliness and high degree of maintenance. Maintaining Cobequid Pass as a first rate facility could not be accomplished without the help, support and dedication of our partners - the Nova Scotia Department of Transportation and Public Works who represents our Shareholder, the Province of Nova Scotia, our Bondholders Representative - CIT Structured Finance, and our Independent Maintenance Engineer - McCormick Rankin. The Department of Transportation and Public Works is at the forefront of our efforts as they provided Annual Maintenance Services in the form of snow plowing and ice control and are also the Maintenance Manager for our long-term major maintenance projects. The ability to maintain Cobequid Pass as a first class facility is due to its unique financing and the foresight to fund major maintenance out of toll revenues. The Major Maintenance Reserve Fund is required to have sufficient funds throughout our 30-year concession period to pay for all programmed maintenance such as surface treatments, shoulder re-gravelling and repaving. The fund established at the opening of the highway in November 1997 receives quarterly contributions out of toll revenues and is periodically reviewed by the Corporation, Bondholders' Representative and Independent Maintenance Engineer to ensure that sufficient funds are available to meet all major maintenance needs. Any additional improvements that are identified as being beneficial to the Cobequid Pass are evaluated and after consultation with the Bondholders' Representative and Independent Engineer, may be funded with additional contributions to the Major Maintenance Reserve Fund. Our initial Major Maintenance work was completed this past fiscal year. The Corporation funded $1.17 Million in Major Maintenance consisting of re-gravelling the shoulders over the entire length of Cobequid Pass, repaving of the approaches to the Toll Plaza and 24 lanes kilometers of Micro-surfacing on the Eastbound Lanes. Our Major Maintenance Reserve Fund model is recognized as being one of the best models available in ensuring the highest possible level of serviceability and preventive maintenance. Ensuring our patrons of an excellent and efficient highway is of prime concern to the Corporation. The Corporation has demonstrated over the past five years its commitment to customer service and I am certain with the aid of our partners Cobequid Pass will continue to provide this degree of service well into the future.
Don Piercey, General ManagerWhen the Corporation begins compiling the information for our Annual Report one always hopes to be able to comment about major events or significant milestones to highlight the performance of Cobequid Pass. As time passes I am often unable to point to any one particular occurrence or event to showcase our facility. Hopefully this is an indication that Cobequid Pass is an efficient well-run facility where the Corporation's commitment to customer service, excellent administration, and continued high quality is paramount. The positive comments I receive from the public and commercial users regarding Cobequid Pass is most gratifying and the Corporation will continue to strive in providing the utmost in service to our patrons. Cobequid Pass's financial performance continues to exceed original baseline modeling however overall traffic showed a 0.5% decrease from last year. Revenues, however, showed a significant increase due to the effect of the 2001 toll increase being fully realized. Interest income was affected by lower interest rates; however, the overall financial performance was such that total revenues continues to be 25% higher than projections and 15% higher the past fiscal year. Cobequid Pass appears to have weathered world events that have decreased traffic and interest rates and indications are that traffic growth is returning. The Corporation welcomes the financial performance as it allows a degree of flexibility with a number of major contracts due for renewal next year. The Western Alignment Corporation could not run efficiently or effectively without the direction of our President Lee Rankin nor without the wise counsel and advise by our lawyers McInnis Cooper, our auditors Grant Thornton LLP, our Independent Maintenance Engineer McCormick Rankin and our Shareholder the Province of Nova Scotia represented by the Department of Transportation and Public Works. Included with this report are 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. Due to the complexity and unique nature of our financing I would suggest those evaluating the Corporation's financial performance to consult the notes accompanying the statements. In addition to the 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 page. |
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Copyright © 2004 Highway 104 Western Alignment Corporation
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