TRACCS Urges National Framework as Canada Spends Up to $1.2 Billion Per Kilometer on Transit Rail

"We don't have to be spending four times more than other countries…"

TORONTO, Dec. 4, 2025 /CNW/ - Canada risks overspending and under-delivering on passenger rail projects as it embarks on one of the largest infrastructure investments in its history. TRACCS (Transit Rail Association for Canadian Construction Standards) is calling for a national regulatory framework to guide how passenger rail is planned, built, and maintained.

A database collecting transit costs from around the world by NYU Marron Institute (www.transitcosts.com) reveals that Canadian rail projects can cost more than $1.2 billion per kilometer, up to four times higher than similar projects in Europe which average about $250 million per kilometer. Transit experts say one of the biggest drivers is how Canadian projects are structured and delivered.

Canada spends up to 50 per cent of every rail dollar on planning, management, and advisory costs, while the global benchmark is closer to 20 per cent," says Mark Salsberg, Co-Founder and Chairperson of TRACCS. "It's not sustainable. There's no reason our taxpayers should pay four times more than other countries."

TRACCS warns that Canada's major rail projects are being delivered years behind schedule, adding billions more to their overall project budget.  Projects across Canada experience repeated delays due to fragmented oversight, inconsistent standards, and duplicated and often redundant approval processes.

"Our delivery model has become overly bureaucratic," says Salsberg. "Too many layers of advisors and consultants means decisions that should take weeks now take months… and sometimes years. Meanwhile, taxpayers are footing the bill."

In contrast, countries such as Spain, France, and Japan operate under clear national frameworks that enable faster approvals, standardized designs, and consistent workforce training.

TRACCS is a national non-profit representing more than 100 companies and passenger rail agencies employing tens of thousands of workers. Salsberg, a Professional engineer with an MBA, argues that the issue is not a lack of funding but a lack of understanding, accountability, and the need for national passenger-rail standards, training, supplier assurance, efficiency, and national coordination.

"Everyone says we need more money, but that's not always the answer," Salsberg explains.  "The real solution is to improve standards, streamline procurement, and invest in Canadian talent so we can build smarter and faster."

TRACCS has proposed a National Framework for Passenger Rail Delivery, built on four key pillars:

• Standards: Establish clear, consistent technical and safety benchmarks for all projects
• Training: Build workforce capacity through hands-on programs such as TTC's award-winning Hands On Training Centre (HOTC).
• Procurement Reform: Simplify and modernize bidding and contracting systems to reduce overhead and duplication.
• Competency Development: Ensure every worker, contractor, and supplier meets verified best-practice thresholds for skills, safety, and quality.

"We don't need to reinvent the wheel.  Just look at the model of excellence within the TTC's Hands On Training Centre, which is already producing the next generation of skilled rail professionals," says Salsberg.

"If we want to use tax dollars wisely and get passengers moving faster, we need a national strategy… and we need it now."

www.traccs.ca

SOURCE Transit Rail Association for Canadian Construction Standards

Mark Salsberg -- 647-550-0090 | [email protected]; Andrea Roncoroni Martins -- 416-893-9520 | [email protected]