Highway 104 Western Alignment Corporation
•
|
|
|
Letters to StakeholdersAnnual Report 2004-2005President’s Letter With this annual report the Highway 104 Western Alignment Corporation marks its eighth year of operation in striving to provide the highest level of highway operation and customer service. Working with our associates Atlantic Highways Management Corporation Limited, the Department of Transportation & Public Works, McCormick Rankin, CIT Financial Limited, Grant Thornton LLP, and McInnes Cooper, the Highway 104 Corporation is committed to managing toll revenue collection, maintaining the schedule of repaying the investors, and funding annual and long term maintenance of the facility. Adhering to this mandate the Corporation ensures the traveling public will continue to have a quality driving experience on the Cobequid Pass now and for years to come. The financing structure of the Cobequid Pass provides a unique opportunity for the Corporation to ensure the roadway is maintained as a first class facility throughout its 30 year life. Toll revenues go directly to the annual operating and major maintenance of the highway. With engineering advice from our Independent Maintenance Engineer (McCormick Rankin) and contract management services from the Department of Transportation & Public Works, the Corporation was able to micro-surface another portion of the highway, 12 kilometres of the west bound lanes from the Toll Plaza, to maintain a quality driving surface. The current tolling software and hardware is fast approaching the end of its useful life. This fiscal year the Corporation initiated an investigation of possible toll system replacement opportunities to ensure our technology matches the expected customer service levels of our patrons. Traffic on the Cobequid Pass remains steady and revenues continue to meet our targets. The Corporation, the Bondholders’ Representative (CIT Financial Ltd) and our Auditors (Grant Thornton LLP) continuously assess the management of our resources to ensure sound financial decisions are made in the best interests of the Corporation, our investors, and our patrons. The Corporation’s management made up of General Manager Don Stonehouse, P.Eng., Controller Eva Hislop, CMA, and Administrative Assistant Patricia Belleza are a competent and dedicated team who, along with our Government liaison and advisor Alan MacRae, P.Eng., are providing excellent service to the traveling public maintaining the Cobequid Pass Toll Road as a first class highway facility. As we move forward the Corporation will strive to continue to provide strong financial management and a roadway for a quality driving experience. Lee Rankin. P.Eng. President
General Manager’s Letter As has been mentioned in the past, the Cobequid Pass is a critical link in the Province’s highway system. Traffic volumes on this highway are proof to its importance. In fiscal 2004-05 the Cobequid Pass Toll Plaza handled 2,888,000 vehicles, comprising 2,248,000 cars and 641,000 trucks. This compares to 2,890,000 vehicles, comprising 2,266,000 cars and 622,000 trucks, in the previous fiscal year. In comparison to original forecasted traffic, automobile traffic is up 71%, while truck traffic is up 3.6%. Tolling revenue is up 15.2 % over fiscal 2003-04, reflecting the full impact to the toll increase implemented on January 1, 2004. In fiscal 2004-05, as recommended by our consultants, the Corporation began an investigation of possible replacement tolling systems that could be used at the Cobequid Pass, and met with a number of system suppliers and integrators. The Corporation also reviewed an upgrading option. At the end of the fiscal year, the Corporation was preparing to enter into a contract with the Toll Operator (Atlantic Highways Management Corporation) to develop a toll system replacement plan for the Cobequid Pass facility. Following up on the examination by our Auditors (Grant Thornton LLP) of the financial implications of paying down a portion of the debt, the Corporation entered into discussions with the Bondholders’ Representative (CIT Financial Ltd.) on the appropriate protocols to be followed. By the end of 2004-05, not all of the issues had been resolved. In fiscal 2004-05 the Corporation also worked with Atlantic Highways Management Corporation to develop a disaster recovery plan for the Toll Plaza. A new tolling system will include provisions in case of a major failure at the Plaza. The Corporation, with advice and guidance from the Department of Transportation & Public Works, initiated an assessment of the electrical service at the Toll Plaza facility. In the coming year the Corporation will be reviewing the recommendations from the study. This report provides a broad overview of the history and administrative structure of the Corporation, and the traffic and financial operation of the Cobequid Pass for fiscal 2004-05. I would commend its reading. In regards to the financial statements, the accompanying notes are very important in explaining the financial details. If you have any questions or comments regarding the Cobequid Pass, we would be pleased to hear from. The contact information is printed on the back of this report. Don L. Stonehouse, P.Eng. General Manager |
|
|
Copyright © 2004 Highway 104 Western Alignment Corporation
|
