Alto - Toronto–Québec City High-Speed Rail Initiative
Cadence
The Alto Toronto–Québec City High-Speed Rail (HSR) Initiative represents a groundbreaking advancement in transportation infrastructure, setting a new national standard for innovation in procurement and delivery. Evolving from the High Frequency Rail concept, the HSR Initiative introduced a transformative Design, Build, Finance, Operate, Maintain + Revenue (DBFOM+R) model—marking a significant departure from traditional availability-based P3s. At the heart of this innovation is the Co-Development Phase, a first in Canadian rail procurement. This early-stage collaboration between the Government of Canada and the Private Developer Partner (PDP) enabled the integration of private-sector innovation, risk-sharing, and commercial insights from the outset. The procurement process was rigorous yet flexible, incorporating over 80 confidential meetings, interim submissions, and scenario-based evaluations to ensure alignment with project outcomes. Bidders were required to submit both conventional and high-speed rail proposals, encouraging ambitious, future-ready solutions. The HSR proposals significantly exceeded expectations in ridership, frequency, journey time, and emissions reduction. Canada also secured broad licensing rights to all submitted intellectual property, ensuring the best ideas could be leveraged across the project. The hybrid financial structure—blending regulated asset base and concession elements—aligns public and private interests while incentivizing long-term performance. This model not only reduces lifecycle costs but also supports Canada’s climate and economic goals. Together, these innovations position the HSR Initiative as a model for next-generation transportation delivery in Canada and beyond. Effective risk assessment and transfer: The Alto Toronto–Québec City High-Speed Rail (HSR) Initiative demonstrates a sophisticated and forward-thinking approach to risk assessment and transfer—essential for a project of this scale and complexity. From the outset, the Government of Canada prioritized a balanced risk profile that would protect public interests while remaining attractive to world-class private sector partners. The project’s Design, Build, Finance, Operate, Maintain + Revenue (DBFOM+R) model represents a significant evolution from traditional availability-based P3s. By incorporating revenue responsibility, the model incentivizes the private sector to deliver a commercially viable, customer-focused service. This structure transfers key performance and market risks to the private partner, aligning long-term success with public value. A cornerstone of the risk strategy was the introduction of a Co-Development Phase, enabling early collaboration between the public sector and the Private Developer Partner (PDP). This phase allowed for joint refinement of technical, commercial, and operational assumptions—reducing uncertainty and improving risk allocation before financial close. The procurement process itself was designed to de-risk delivery through iterative engagement, including over 80 confidential meetings, interim submissions, and scenario-based evaluations. These mechanisms provided transparency, validated bidder assumptions, and allowed for real-time adjustments to optimize risk transfer. By blending elements of a regulated asset base (RAB) with concession principles, the HSR Initiative achieves a balanced, resilient framework—one that ensures accountability, encourages innovation, and safeguards public investment. Meeting or exceeding project milestones including financial close: The Alto Toronto–Québec City High-Speed Rail (HSR) Initiative has consistently met or exceeded key project milestones, demonstrating disciplined execution and strong governance across all phases of development. As Canada’s most ambitious infrastructure project in a generation, the initiative has advanced on schedule through a complex, multi-stage procurement process—without requiring extensions to the RFEOI, RFQ, or RFP stages. A major achievement was the on-time completion of the Request for Proposals (RFP), which included over 80 commercially confidential meetings, interim technical submissions, and scenario-based evaluations. This structured yet flexible process enabled real-time feedback and iterative refinement, ensuring alignment with project outcomes while maintaining momentum. The introduction of a Co-Development Phase—a first in Canadian rail procurement—has allowed the Government of Canada and the selected Private Developer Partner (PDP) to collaboratively advance the project toward financial close. This phase has enabled early risk identification, technical optimization, and commercial readiness, significantly de-risking the path to final investment decisions. Strategic funding allocations to Transport Canada, VIA HFR (“Alto”), and Cadence have ensured that critical work continues during this phase, keeping the project on track for future milestones. Together, these efforts reflect a high-performing, milestone-driven approach that positions the HSR Initiative for successful financial close and long-term delivery. Design quality, and sustainability and the promotion of environmental measures: The Alto Toronto–Québec City High-Speed Rail (HSR) Initiative sets a new national benchmark for sustainable transportation design and environmental stewardship. Rooted in a vision to support Canada’s net-zero 2050 goals, the project integrates sustainability and design excellence across every phase—from planning to operations. The HSR system is being designed to operate on a fully electrified or low-emission network, significantly reducing greenhouse gas emissions. The project is targeting a minimum reduction of 10 million tonnes of CO₂ over a 30-year period, with annual and five-year reporting intervals to ensure accountability. The system will also adopt a science-based emissions reduction target, aligned with the Paris Agreement. Design quality is embedded in the project’s DNA. The initiative mandates compliance with LEED, BOMA BEST, and ENVISION standards for buildings and infrastructure, and ISO 14001 for environmental management. Stations and rolling stock will be designed for universal accessibility, exceeding the standards of the Accessible Canada Act and incorporating inclusive design principles. The project also promotes climate resilience, requiring infrastructure to withstand environmental and climatic conditions specific to the corridor. Through the co-development phase, the Private Developer Partner is empowered to propose innovative, low-carbon solutions that exceed baseline requirements—ensuring the final design is both future-ready and environmentally responsible. Together, these measures position the HSR Initiative as a model for sustainable, inclusive, and high-quality transportation infrastructure in Canada. Demonstration of the project’s social impact and the transformative effect it will have on the local community and/or users: The Alto Toronto–Québec City High-Speed Rail (HSR) Initiative is a transformative infrastructure project that will deliver lasting social benefits across the Toronto–Québec City Corridor—home to over half of Canada’s population. Designed to enhance connectivity, accessibility, and equity, the project will reshape how Canadians live, work, and travel. A key feature of the HSR Initiative is its commitment to inclusive access. The system will exceed the standards of the Accessible Canada Act, offering barrier-free travel, level boarding, and inclusive station design. It also integrates Gender-Based Analysis Plus (GBA+) to ensure the system meets the diverse needs of all users. The project mandates new station stops in Peterborough, Laval, and Trois-Rivières, expanding access to smaller communities and unlocking new economic and social opportunities. These stops will improve access to jobs, education, and services, while fostering regional cohesion. The HSR Initiative also supports social equity through a fare policy that includes discounts for Indigenous Peoples, seniors, students, and other groups. It promotes reconciliation by creating socio-economic opportunities for Indigenous communities and ensuring meaningful engagement throughout the project lifecycle. By offering a clean, electrified alternative to car and air travel, the HSR Initiative also contributes to environmental justice, reducing emissions and improving quality of life in urban and rural communities alike. Together, these elements make the HSR Initiative a catalyst for inclusive, sustainable, and community-driven transformation.