Mayor, TTC at odds over tunnel boring machines

TorontoSun.com
July 22, 2014
Don Peat

A deal to sell the TTC’s Spadina subway extension tunnel boring machines has gone off the rails and now Mayor Rob Ford wants to keep them.

On Wednesday, TTC commissioners were set to debate approving the deal to sell off the four machines for $9.2 million, much less than the original 2009 purchase price of $51.7 million. But Lovsuns Tunneling Canada Ltd. notified the TTC on Sunday that it was withdrawing the letter of intent to sell the machines nicknamed Holey, Moley, Yorkie and Torkie.

“After three weeks of continued prompts, the ministry of commerce of the People’s Republic of China has unfortunately rejected the import application for the four sets of TBMs,” the letter stated. “Lovsuns Tunneling Canada Limited is continuing to actively look for potential clients in the Asian area in hopes of the opportunity to co-operate with TTC once again.”

Ford has a meeting with TTC CEO Andy Byford on Wednesday to discuss the sale of the machines.

“Obviously, I think we should keep them, that’s my opinion because we want to build subways,” Ford said Tuesday. “I’ll listen to what Andy has to say but I think we should keep them and, obviously, get Sheppard done, get Finch done, get the (downtown relief line) done.”

The possible sale price of $9.2 million is below the $15.5-million resale figure originally included in the subway extension budget.

A TTC staff report recommended against keeping the machines.

According to the TTC, the TBMs are now in storage and “partly unprotected from the elements” in a location northwest of Toronto.

“It is expected that the TBMs will progressively degrade with time,” the report states. “There is currently no facility or organization that builds, repairs or maintains similar machines in Canada.”

The report also looked at whether the TBMs could be used to dig the Scarborough subway extension.

While the TTC estimated around $25.3 million could be saved in purchasing costs, officials noted new machines could save around $22 million due to productivity improvements.

With all the costs factored in, the TTC estimated the old TBMs would save $3.3 million if they are used on the Scarborough subway project.

“The amount is not significant when the risks of refurbished equipment breakdowns or the increased productivity of new TBMS are considered,” the TTC stated.

“The preferred option given consideration of all factors is to sell.”