The rising cost of replacing buses is a major concern for municipalities across Alberta. The City of St. Albert recently approved an additional $1.5 million for ten new buses, bringing the total cost to nearly $2.5 million. The increase is attributed to a number of factors, including supply chain disruptions and increased demand for zero-emission buses.
A report from the City of Edmonton shows that it will need to replace 322 buses during the 2023-26 budget cycle at an estimated cost of $257.6 million. The report notes that the costs would be even higher if the buses are replaced with zero-emission buses.
The Canadian Urban Transit Association (CUTA) says that key components for buses, such as batteries and computer chips, have seen ‘substantial’ price hikes in recent years. David Cooper of Leading Mobility, a transportation planning firm, says that the transition to hybrid and electric buses is also impacting costs.
The federal government has announced a $3-billion annual fund for public transit starting in 2026, but Cooper says that the wait for funding could come at a cost as the prices of buses continue to rise.
Municipalities like St. Albert are already facing the financial pressures of rising bus replacement costs. Councillor Wes Brodhead says that the city will need to find ways to manage the costs within its budget.
The surge in bus replacement costs is a major challenge for municipalities across Alberta. The factors driving the increase, such as supply chain disruptions and the transition to zero-emission buses, are complex and will require long-term solutions.
