Article content continued

It also estimated the amount of money new machines, with new technology, would save the agency in productivity — new TBMs could shave 1.7 months off the schedule, which translates into $22-million, the TTC said. That means refurbishing the machines would save $3.3-million, an amount the TTC says is “not significant when the risks of refurbished equipment breakdowns or the increased productivity of new TBMs are considered.”

Councillor Maria Augimeri, chair of the TTC, said at first it seemed to her “counter intuitive” to sell the machines when there is more digging to be done. But staff told her there would be “negligible” savings on machines that would be 65% slower than the newer generation. “It is better for someone else to put them in use now, rather than spend a huge chunk of money to mothball outdated technology for eight years,” she wrote in an email.

The TTC’s math assumes that it will cost $54.1-million to purchase four new machines, a small increase from what it paid in 2009 for machines that were slower. The TTC was unavailable for comment Monday.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or

A request for prospective purchasers in North America yielded no interest. Two companies responded to a public ad. The highest bid was $1.5-million (tax included) and it was rejected. The TTC received two more offers, the highest at $4.2-million, but the prospective purchaser never followed through, it said.

In the meantime, Caterpiller sold its Tunnel Boring Machine assets to a Chinese company called Liaoning Censecience Industry Co. Ltd., which later adopted the Canadian corporate name Lovsuns Tunnelling Canada Ltd., the TTC said.

In May, Lovsuns offered to buy Holey, Moley, Yorkie and Torkie for $9-million. “TTC staff requested a better price,” the report stated. “Lovsuns increased their offer to $9.2-million indicating that it would not increase it more and expressed urgency in finalizing the sale.”

National Post

• Email: nalcoba@nationalpost.com | Twitter: nataliealcoba