Interim Implementation of GoBus Recommendations - March 14, 2019

As part of the ongoing review of public transit that is intended to help Council improve both conventional and paratransit services, the Transportation Commission asked for and has received preliminary recommendations to address rising costs and issues with the GoBus system.

While all public transit systems need municipal investment to offset the difference between revenue generated from passenger fares and the cost to operate the system, our current costs for GoBus are substantial. The City of St. John’s invests $13.7 million annually towards Metrobus operating costs and $3.9 million annually towards GoBus operating costs; in 2018, the net cost per ride (operating cost minus passenger fare revenue) that the City invests in GoBus transit is $24.3 per ride, or a 90 per cent subsidy.

To be clear, Council understands the need for and values the GoBus service and is deeply committed to ensuring that the services continues. We are also very aware of the need to provide this service in a sustainable way and to make every effort possible to manage the costs of operating this valued service. This is why we asked Dillon consulting to make some recommendations now that we can begin working on for 2019.

The recommendations focus on two main topics – eligibility requirements and contractual matters with our service provider, MVT.

To read the full Council Statement, click here.