No. H006/06
For release March 22, 2006
TORONTO — Lawrence Cannon, Minister of Transport, Infrastructure and Communities, today announced the findings of a
study entitled The Cost of Urban Congestion in Canada. The study examined the cost
of urban traffic congestion for Canada's nine largest urban areas: Quebec City, Montreal, Ottawa-Gatineau, Toronto,
Hamilton, Winnipeg, Calgary, Edmonton and Vancouver.
"This government recognizes the importance of addressing congestion when implementing urban transportation plans and
meeting transportation sustainability goals," said Minister Cannon. "Our study on the cost of congestion provides the
first systematic analysis of recurrent urban congestion in Canada."
Transport Canada commissioned the study in 2002 as a long-term project to better understand the nature and extent of
congestion in Canada, and to develop a consistent approach to estimating related costs. The study reviewed data and
situations where congestion occurs daily because demand exceeds the cities' capacity to move people and goods. It also
served to examine costs due to travel delay, additional fuel consumed, and additional greenhouse gases produced.
The study found that recurrent congestion in urban areas costs Canadians between $2.3 billion and $3.7 billion per
year (in 2002 dollar values.) More than 90 per cent of this cost is associated with the time lost in traffic to drivers
and passengers; seven per cent occurs because of fuel consumed; and three per cent is from increased greenhouse gas
emissions.
These estimates are conservative as there was insufficient data on the cost associated with non-recurrent congestion
(i.e., congestion caused by random events, such as bad weather, accidents, stalled vehicles and other incidents),
freight transportation, off-peak congestion, and other congestion-related costs, such as noise and stress. In addition,
the study focused on the costs of greenhouse gas emissions, while there is a need to gather more data to better
understand the costs of increased air pollutant emissions caused by congestion.
Transport Canada is committed to promoting sustainable transportation and to continuously exploring viable options
for reducing greenhouse gas emissions, enhancing air quality, and reducing traffic congestion. Understanding congestion
and how to measure it is an important area for future research and collaboration among different levels of government.
The Government of Canada will continue to work with the provinces and municipalities to build upon the study announced
today, and develop standardized approaches and guidelines to measure congestion and its effects.
The study was carried out by a team of consultants comprised of Delcan, iTRANS and ADEC on behalf of Transport
Canada. To obtain a summary and backgrounder on the study please visit
www.tc.gc.ca/programs/Environment/EconomicAnalysis/menu.htm
or call Cristobal Miller at (613) 991-6409.
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Contact:
Robin Browne
Communications
Transport Canada, Ottawa
(613) 993-0055
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
This news release may be made available in alternative formats for persons with visual disabilities.
BACKGROUNDER
TRANSPORT CANADA STUDY
THE COST OF URBAN TRAFFICCONGESTION IN CANADA
What is congestion?
"Congestion" is commonly cited as a major and growing urban economic and environmental issue. Many Canadian drivers
encounter congestion and traffic jams every day, although their severity and frequency vary from area to area. Urban,
regional and provincial transportation authorities aim to manage congestion through a variety of measures.
What is the cost of urban congestion in Canada?
The study on the cost of urban congestion in Canada was carried out by a team of consultants comprised of Delcan
(prime consultant), iTRANS and ADEC on behalf of Transport Canada.
The study examined the impact of traffic congestion on time lost to travellers, added fuel costs and greenhouse gas
(GHG) emissions. The study served to develop congestion indicators for the nine largest urban areas in Canada: Quebec
City, Montreal, Ottawa-Gatineau, Toronto, Hamilton, Winnipeg, Calgary, Edmonton and Vancouver. It focused on recurrent
congestion, which is the congestion caused by excessive traffic volumes at peak periods.
The study estimates that the total annual cost of congestion in 2002 dollar values ranges from $2.3 billion to $3.7
billion for the major urban areas in Canada (see table at end for breakdown by city).
More than 90 per cent of this cost represents the value of the time lost to auto travellers (drivers and their
passengers) in congestion. The remainder represents the value of fuel consumed (around seven per cent) and GHG emitted
under congestion conditions (around three per cent). The study estimates an increase of 1.2 to 1.4 megatonnes of
greenhouse gas due to congestion every year.
It is important to note that these estimates of congestion costs are conservative because there was insufficient
data on the costs associated with non-recurrent congestion (i.e., congestion caused by random events, such as bad
weather, accidents, stalled vehicles and other incidents), freight transportation, off-peak congestion, vehicle
operating costs other than fuel, and other congestion-related costs such as noise and stress. In addition, the study
focused on the costs of greenhouse gas emissions, while there is a need to gather more data to better understand the
costs of increased air pollutant emissions caused by congestion.
The study concludes that the need for more data and the considerable variation in the models used by municipalities
to assess congestion prevent a comprehensive assessment. It is especially difficult to draw accurate comparisons among
the cities studied, as the data and how it is collected in each city is different. There are structural and
methodological differences among their data, such as the definition of expressways and arterials. The study shows
consequently, the relative congestion among the major urban centres, while avoiding a simple comparison of the cost
of congestion across all nine urban areas.
How could the findings of this study be used?
By determining the costs of urban congestion in Canada, Transport Canada's study will assist the Government of Canada
to better estimate the cost effectiveness of urban measures to reduce GHG emissions, such as transportation demand
management actions (i.e., parking restrictions and pricing, carpooling, teleworking, etc.) and investments in public
transit. In addition, some parts of the study could be used in many transportation policy analyses, planning and decision-making.
For example, the estimated congestion cost will be used by Transport Canada in its current investigation of the
full costs of transportation. The full cost of transportation includes the full environmental cost.
In the past, some Canadian transport authorities have attempted to measure and quantify the cost of congestion for
specific urban areas. However, methods and data have varied. Transport Canada's study on congestion provides the first
systematic analysis of urban congestion in Canada. In this respect, it represents a major contribution to our
understanding of the issue.
Understanding congestion and how to measure it is an important area for future research and collaboration among
different levels of government. The Government of Canada will continue to work with the provinces and municipalities to
build upon the congestion study, and develop standardized approaches and guidelines to measuring congestion and its effects.
Annual Total Costs of Congestion by City (millions of 2002 $)
Urban Area
at 50 per cent threshold
at 60 per cent threshold
at 70 per cent threshold
Quebec City
$37.5
$52.3
$68.4
Montreal
$701.9
$854.0
$986.9
Ottawa-Gatineau (all)
$39.6
$61.5
$88.6
Toronto
$889.6
$1,267.3
$1,631.7
Hamilton (all)
$6.6
$11.3
$16.9
Winnipeg
$48.4
$77.2
$104.0
Calgary
$94.6
$112.4
$121.4
Edmonton
$49.4
$62.1
$74.1
Vancouver
$402.8
$516.8
$628.7
Total all urban areas
$2,270.2
$3,015.0
$3,720.6
Note: Urban congestion levels were measured using a speed threshold that reflects a percentage of
free flow speed along a roadway. Estimated cost of congestion is strictly based on the value of time
lost to auto travellers (due to delays), the value of incremental fuel used, and GHG emissions
induced by the congestion conditions.
March 2006
