Surrey-Langley SkyTrain costs increase to nearly $6B

Key Takeaways:

• The cost of the Surrey-Langley SkyTrain extension has risen by 50%, now totalling $5.996 billion. This increase is attributed to rising inflation, supply-chain issues, and labor-market challenges.
• All three contracts for the project have been awarded, with major construction expected to begin this year. The project, originally scheduled to be completed by 2028, now has an anticipated in-service date of late 2029.
• Once completed, the SkyTrain extension will significantly improve transit times, allowing people to travel between Langley City and Surrey Centre in approximately 22 minutes and from Langley to downtown Vancouver in just over an hour.

The Whole Story:

The Surrey-Langley SkyTrain extension price tag has increased by 50% to $5.996 billion.

The price update comes as B.C. officials announced that all three contracts have been awarded for the work.

Major construction on the first rapid-transit project south of the Fraser River in 30 years is expected to begin this year, with guideway, stations, and systems and trackwork contractors now in place. Once complete, people in the region will be able to travel between Langley City and Surrey Centre in approximately 22 minutes and between Langley and downtown Vancouver in just more than an hour.

“The populations of Surrey, Langley and other communities across Metro Vancouver are growing quickly, and we are committed to building infrastructure to meet these needs,” said Rob Fleming, Minister of Transportation and Infrastructure. “This project will transform how people get around, helping create a more affordable, livable and greener future for people in the region.”

Following competitive procurement processes, the Province has selected three teams to deliver the Surrey Langley SkyTrain project.

SkyLink Guideway Partners (SLGP) will design, build and finance the elevated guideway and associated roadworks, utilities and active transportation elements. SLGP is comprised of:

• Dragados Canada Inc.
• Ledcor Investments Inc.
• Ledcor Mining Ltd.

South Fraser Station Partners (SFSP), which will build the eight new stations, is comprised of:

• Aecon Constructors, a division of Aecon Construction Group Inc.
• Acciona Infrastructure Canada Inc.
• Pomerleau BC Inc.

Transit Integrators BC (TIBC), which will design and build the systems and trackwork, is comprised of:

• AtkinsRéalis Major Projects Inc.
• AtkinsRéalis Canada Inc.
• Western Pacific Enterprises Ltd.

The project’s business case, which was approved in 2022 prior to significant market and industry changes, determined that the extension could be built in one stage by late 2028, two years quicker than if it was built in two stages. Following extensive planning work and impacts of the current market climate, the anticipated in-service date is late 2029.

“Like all public- and private-sector infrastructure projects, the Surrey Langley SkyTrain project is being delivered during a time of significant market challenges in British Columbia, across Canada and around the world,” said officials in a press release. “The cost of the project, now $5.996 billion, has been updated in response to market conditions, including rising inflation costs and key commodity escalation, supply-chain pressures and labour-market challenges. This has resulted in higher price proposals from contractors.”

Early works have been ongoing for many months along the new SkyTrain alignment, including BC Hydro work to relocate power lines, as well as pre-construction site surveys, utilities location, geotechnical investigations and design work.