Highway 104 Western Alignment Corporation
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Letters to StakeholdersAnnual Report 2006-2007President’s Letter This annual report marks the tenth annual report that has been issued by the Highway 104 Western Alignment Corporation. The Corporation continues to strive to provide the highest level of highway operation and customer service, and there have been advances toward those objectives this fiscal year. As a result of amendments to the financial agreements secured last fiscal year with the assistance of our solicitors (McInnis Cooper) and the Bondholders’ Representative (CIT Financial Ltd.), the Corporation was again able to maintain toll rates at 2004 levels. With advice from our auditors (Grant Thornton LLP), the Corporation was able to make a prepayment on the Junior Bond Indenture. Working with the toll plaza operator (Atlantic Highways Management Corporation Limited), the Corporation moved forward the Toll System Replacement Project with the calling of a Request For Proposals for a new tolling system. The Corporation also engaged the Independent Maintenance Engineer (McCormick Rankin) to assess the original pavement renewal strategy and to provide recommendations for future work. A report is expected in the next fiscal year. In consultation with the road maintenance contractor (Department of Transportation & Public Works), a new maintenance assessment and implementation procedure was initiated to ensure there will be a safe and quality driving experience now and in the future. Growth in total traffic on the Cobequid Pass was flat for fiscal 2006-07 with toll revenues experiencing a similar result; the reduction in tourism traffic and high fuel prices continue to be areas that are of a concern. 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 The location of the Cobequid Pass places it as a critical link in the Province’s highway system, providing a portion of the TransCanada Highway that connects Nova Scotia to the rest of Canada and to the United States. In fiscal 2006-07 the Cobequid Pass Toll Plaza handled 2,919,000 vehicles, comprising 2,276,000 cars and 643,000 trucks. This compares to the same number of total vehicles (2,919,000 vehicles, comprising 2,262,000 cars and 657,000 trucks) in the previous fiscal year. In comparison to original forecasted traffic, automobile traffic is up 76%, while truck traffic is down 1.2%. Tolling revenue is down 0.7 % over fiscal 2005-06, reflecting steady toll rates. In fiscal 2006-07, the Toll Operator (Atlantic Highways Management Corporation Limited) undertook the tasks required in the Phase 2 contract to replace our aging tolling system. The specifications for the new system were developed as well as a Request for Proposals to solicit submissions from interested toll system proponents. It is anticipated a toll system provider will be chosen in the next fiscal year. In the meantime the Corporation was required to replace the lane toll terminals. The availability of replacement parts for the original equipment became problematic. The installation of the new touch screens was managed by the Toll Operator. During the fiscal year the Corporation funded from toll revenue a $740,000 major maintenance project to crack fill, seal, and micro-surface 20 km of the eastbound lanes from the toll plaza to Masstown. The comparable westbound lanes are scheduled for micro-surfacing next fiscal year. Construction of an extension to the toll plaza building to provide for an upgraded emergency power supply and an increase in storage area was initiated. Completion is expected to be early in the next fiscal year. 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 2006-07. I would recommend 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 |
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Copyright © 2004 Highway 104 Western Alignment Corporation
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