Hamilton’s forthcoming LRT line may be operated by a third party, as councillors have backed a staff recommendation citing reduced liability. The proposed framework would have a contractor launch the system and handle most operations for the first decade, with the city having the option to take over afterwards. The director of the LRT project office, Abdul Shaikh, explained that only customer service and fare enforcement would be handled by the city initially, while riskier operations like training staff and conducting maintenance would be managed by the province or a third party. The approval comes with an amendment that solidifies the Hamilton Street Railway’s takeover in year 10, following a transition period after the first five years of operation.
Discussions around Hamilton’s role in the operation of the 17-stop LRT line began in July 2023, in line with a memorandum of understanding between the city, Metrolinx, and the Ministry of Transportation. The subcommittee presented four potential operation models, including complete city control or full privatization of day-to-day operations. However, most elements of the deal fall under the control of Metrolinx, making it uncertain if the city will get what it wants. The choice to have a third party handle operations is similar to Waterloo’s ION network, which launched with a third-party international transportation operator handling maintenance and operations.
Mike Murray, a former Region of Waterloo chief administrative officer, emphasized the importance of having a well-drafted and detailed contract with the third party to avoid disruptions. Close to two dozen delegates provided input before the vote, with the majority pushing for operational control to be given exclusively to the HSR. The Amalgamated Transit Union (ATU) Local 107 expressed concerns about the potential selection of a private operator, citing clauses in their collective agreement that they believe would be violated. The recommendation from the LRT subcommittee will require council ratification, expected during the April 24 meeting.
The proposed third-party operation of Hamilton’s LRT line aims to minimize risks associated with the transition from design and construction to operation and maintenance. The move is expected to result in fewer conflicts and finger-pointing throughout the project’s stages. The mayor emphasized the importance of preparing for a smooth transition into the city of Hamilton operating the LRT, with the HSR set to take over after a ten-year period. The city’s involvement in the operation of the LRT line is based on a qualitative assessment and independent peer review.
The potential transition of the operation of the Hamilton LRT line to a third party follows discussions on various operation models, including complete city control, full privatization, or a split between city staff and a third party. Metrolinx is likely to outsource the operation and maintenance of the line to a third party, similar to the arrangement in place for Waterloo’s ION network. Recommendations for a well-drafted contract and a strong working relationship with the contractor were made to avoid disruptions and ensure smooth operations. The involvement of a third party in operating the LRT line will require the city to navigate potential challenges from stakeholders such as the Amalgamated Transit Union.
