Higher prices and parts shortage for new buses impact London Transit service improvements
Emerging economic pressures are tightening their squeeze on London Transit.
Inflation will take a bigger bite out of the budget for new city buses and supply chain shortages will delay this year’s planned service improvements.
New Flyer, which has a contract to manufacture 22 buses for London Transit, has advised that due to a global computer chip shortage, delivery of 17 replacement buses and a five bus service expansion won’t be completed until the first quarter of 2023.
According to a report to the London Transit Commission (LTC), delaying the five expansion buses, “will limit the ability to implement the 2022 service improvements until such time as the buses have been received and prepped for service.”
Meanwhile, the cost of new buses has climbed.
A letter sent to London Transit explains that New Flyer is adding seven per cent to the contract price of the 22 buses ordered by London Transit — the combined total will increase $995,900.
The letter blames rapid inflation being experienced including:
- raw material shortages and resulting price escalation;
- price increases and surcharges from major component suppliers;
- delays, shortages and exorbitant premiums paid on the broker market for microchip and electronic component supply; and
- escalating freight costs.
New Flyer explains that the seven per cent increase will not offset all of the inflationary costs that the company is experiencing.
London Transit will cover the bulk of the additional cost with provincial gas tax revenue and other senior government funding.
The LTC will receive the report about the delivery schedule and higher costs at its meeting on June 29.
CTVNews.ca Top Stories
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Canada Disability Benefit needs to be safeguarded from clawbacks, MPs unanimously agree
The federal government needs to safeguard the incoming Canada Disability Benefit from clawbacks and do more to ensure it actually meets the stated aim of lifting people living with disabilities out of poverty, MPs from all parties agree.
Testifying in hush money trial, adult film actor Stormy Daniels describes first meeting Trump
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had in 2006 that resulted in her being paid off to keep silent during the presidential election 10 years later.
King Charles too busy to see son Prince Harry during U.K. trip
Prince Harry will not be seeing his father King Charles during his current visit to Britain as the monarch will be too busy, Harry's spokesperson said on Tuesday.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
opinion Tom Mulcair: Turfing Poilievre from House a clear sign of desperation by Trudeau Liberals
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca
Security guard shot, seriously injured outside of Drake's Toronto mansion
A security guard working at Drake’s Bridle Path mansion in Toronto was seriously injured in a shooting outside the residence early Tuesday morning, police said.
Katy Perry's mom was fooled by AI images of the singer at the Met Gala
Katy Perry did not attend the Met Gala on Monday, but some of the singer’s fans – and even her mom – thought she did.
Your body needs these three forms of movement every week
Movement is movement, right? Not exactly. Here’s what your body is looking for in addition to your morning walk or yoga session, according to experts.