Letters to Stakeholders
Annual Report 2002-2003
Lee Rankin, President
The Highway 104 Western Alignment Corporation is pleased to
present our 2002/2003 annual report which represents the sixth operational
year for the Cobequid Pass. As those who travel the highway recognize, the
facility continues to be a first rate facility in appearance, condition and
operation. The continued success result from the strength, dedication and
support of our employees and business partners specifically the Department
of Transportation and Public Works, Atlantic Highways Management
Corporation, McCormick Rankin Ltd. McInnes Cooper, Grant Thornton LLP, and
CIT Structured Finance.
The project continues to received the benefits from the original
financing structure which ensures the availability of funds, received
directly from the toll revenues, for annual operating and major
preventative of the highway condition over time. The Major Maintenance
reserve Fund this year provided funds to micro-surface 14 kilometers
eastbound from Thomson Interchange to Westchester-Collingwood Interchange,
as well as construct a new well and replacement septic system serving the
toll plaza property. Annual investments for major maintenance will graduate
the preservation of the highway condition over the 30 year life of the
project that will satisfy users expectations.
This year the Auditor General for the Province of Nova Scotia had the
opportunity to audit the Corporation's finances. The primary conclusion was
the Corporation conducts its operations with due regard to economy and
efficiency through its application of appropriate systems and practices to
manage the financial aspects of its business. A series of recommendations
were presented to strengthen accountability and business processes. One
recommendation is reflected in this report with the reporting of collision
statistics for the highway. The Corporation acknowledges the time and
effort spent by the Auditor General officials in the conduct of this audit.
The Corporation continues to demonstrate responsible administration,
attention to customer service and delivery of a quality driving experience.
Our future efforts will focus on continued improvement in these areas.
Ralph Hessian, General Manager
During the past year the Cobequid Pass continued its positive
record for operational and financial success. Attention to customer service
and highway conditions improvements resulted in few public complains and
the public's increasing expression of appreciation for the highway and
service. An expression of thanks to the current, and past, Highway 104
Western Alignment Corporation and Atlantic Highways Management Corporation
staff members who are on the front line serving daily our customers with a
friendly and knowledgeable attitude.
This year the highway experience a 3.18% increase in traffic. More and
more customers are becoming regular users taking advantage of the
Electronic Toll Collection (ETC) system. The Corporation recorded a 4.87%
increase in ETC traffic. The convenience of ETC and the fact that our
customers can use their transponder for an account set-up at the
Halifax-Dartmouth bridge Commission promotes participation. Our efforts
will continue to increase the inter-operability and co-operation among the
regional tolling authorities for the benefits of regional traffic flow. The
tolling revenue for the year increased 3% from the previous year while the
actual project tolling revenues exceed the original projections by 24%.
The Auditor General for the Province of Nova Scotia completed a
financial audit of the Corporation with concluded the operations are
conducted with due regard to economy and efficiency through appropriate
systems and practices to manage financial responsibilities.
Recommendations were presented to the Corporation to strengthen specific
accountabilities and business processes. These recommendations are being
addressed by the Corporation. We acknowledge the professional, objective
and co-operative approach by the Auditor General staff in their attention
to the audit.
The Corporation has demonstrated an interest to participate in road
safety initiatives. This year we had the privilege to co-sponsor a high
school speaking tour by. Ms. Cara Johnston. Ms Johnston is Canada's leading
female speaker on road safety and student leadership.
The Corporation's success is driven by the leadership of our President,
Mr. Lee Rankin and the Shareholder, The Province of Nova Scotia.
Professional advice and counsel is received from our legal firm, McInnes
Cooper, our auditor, Grant Thornton LLP and our independent engineering
firm, McCormick Rankin.
Provided within this report are the audited financial statements
illustrating our financial position and toll revenue expenditures. Due to
the unique nature and complexity of the Corporation's financing, I
recommend the notes to the financial statements be consulted in conjunction
with the statements. An overview of the history of the Cobequid Pass is
also provided for interest.
The Corporation will continue to provided professional and prudent
administration, consistent with the governing statute and agreements, to
ensure the Cobequid Pass highway condition and service meets the
expectations of the owner and users.
In closing an expression of thanks to Karen Brown for the annual report
design and Dan Callis for the photography.
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Highway 104 Western Alignment Corporation
