Hong Kong has one of the most successful transportation systems in the world. It has very high profit margins, almost unheard of in North America. Yes, that is correct, Hong Kong’s MTR actually makes money by ferrying people to and from islands.

Calgary Transit, by comparison, is struggling to recoup 55% of operating costs.

Some of you might say this is an unfair comparison, and we will admit, in some sense, it certainly is. Hong Kong is MUCH more dense than Calgary, with around 6 690 people per square kilometre, according to their government, while Calgary has a density of about 1 330 people per square kilometre according to Statscan. However, there are certainly lessons that can be taken from Hong Kong and incorporated here.

Land Ownership

The MTR corporation in Hong Kong owns most of the land their stations sit on. For Calgary, this could be an invaluable concept. The MTR system actually makes only around 35% of it’s revenues from the transportation network. The remainder of it’s revenues come from property ownership both in China and Hong Kong. Could Calgary Transit actually support itself, despite the presence of social equity services (in other words, unprofitable services only for those who need it most)?

We aren’t sure ourselves, but we want to explore and get the idea out. Calgary Transit currently operates on a 55/45 revenue to taxpayer split. Almost all capital projects are funded externally, by provincial, municipal, and federal governments. For the MTR, capital projects are funded both from the network itself, as well as through government grants. We don’t expect much to change on this front. However, where we see the most benefit, is in terms of the frequency and number of routes Calgary Transit can operate.

For most rapid transit capital projects, some degree of property purchase is required. Take, for example, the massive land footprints occupied by Southland, Anderson, and Heritage stations, as well as footprints occupied by massive NW stations like Tuscany and Crowfoot At most of these locations, what riders will find beside the station, are parking lots. This is quite possibly one of the worst uses of the available land possible. The presence of rapid transit, particularly rail, drives up property value. What riders would also appreciate, is having something other than a parking lot in the immediate vicinity of the transit station. Wouldn’t it be great if there were grocery stores located near the massive stations in the NW instead of carparks?

Calgary Transit needs to begin developing these lots. There is nothing to prevent Calgary Transit from constructing condominiums, retail opportunities, or malls on top of the existing parking lots. In fact, these elements would go towards what is currently the best practice of transit-oriented development. By encouraging development in the areas beyond these parking lots, as is the case near the Anderson LRT station, the city is moving in the right direction. However the parking lots occupy a surprisingly large amount of space, and can certainly accommodate additional, closer development. Finally, construction on top of the parking lots does not need to come at the expense of park and ride. Larger towers may include underground or above-ground parking spaces, with pass-protected areas for users of the CTrain system. For example, requiring the purchase of a Train ticket to enter a specific area of the parking available.

Unpurchased Land

Calgary Transit could also start to investigate the purchase of land near transit nodes, such as the Westbrook lot. Constructing a new urban area on top of the CTrain station will improve ridership in the area, establish Westbrook as a major destination, and can also help to deter crime and safety concerns as explained below. Empty lots surrounding transit stations should not be something the city or Calgary Transit accept. These lands should not have to wait for a developer to construct a destination, or worse, construct a destination not conducive to transit, like a soccer dome.

Safety

By integrating existing stations with businesses or other buildings, Calgary Transit may also help alleviate it’s issue of safety and unwanted persons on trains. By encouraging more people to live and use the transit network to access destinations, more individuals will be flowing through LRT stations, even if they do not intend on boarding the CTrain. This foot traffic, however, can serve as a visual deterrent to both property and persons crimes, and can serve to revitalize what are otherwise “dead” spaces surrounding transit stations.

Connections

Finally, one of the other benefits of developing the land near stations is enhanced connectivity, especially given the current state of bus routes in Calgary. Most of our routes operate in a decentralized, hub and spoke fashion. Routes typically connect either downtown or LRT stations to communities. Based on previous service reviews, Calgary Transit appears to be trying to get away from this model to reduce downtown routes. However, most routes will still connect to either an LRT station or a major bus hub (like North Pointe).

Developing the land surrounding these hubs would benefit those who depend on transit to access stores for basic necessities and may encourage other individuals to convert to using transit to access necessities. By bringing storefronts closer to transit an eliminating walks across barren parking lots, the accessibility and connectivity of the non-LRT network can be improved. Instead of needing to take two buses or the LRT to access a shopping destination, developing station land can improve amenity access to the point a single route can adequately connect neighbourhoods to services.

Conclusions

Calgary Transit has a lot of land that it does own, will own, and could own. By capitalizing upon the existence of these areas as well as the increase in value that comes with rapid transit links, Calgary Transit could actually make additional profits on these areas, rather than having them sit as parking lots which tend to empty out after the work day is over. Property and development on their stations could add to the revenue base required to improve service hours on bus routes elsewhere in the city, and could, in the long-term, go towards creating capital to kickstart additional rapid transit projects to dense urban cores outside of the downtown. In fact, Calgary Transit could begin to build it’s own urban cores, creating self-sustaining ridership and improving off-peak security.