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The 407 ETR (Express Toll Route) in Ontario, Canada, is renowned for its cost, often considered one of, if not the most expensive toll roads in the world. If you ask a person in Ontario, they will tell you they think the highway should be free because of the high taxes they pay and how for many, they struggle with their monthly 407ETR bill as they have no other practical alternative to get to work. They also think that a Spanish company owns the 407ETR, but in reality, it is another controlling entity. There have been and continue to be big price increases for taking the 407ETR, far beyond the rate of inflation.
Sydney Harbour Bridge (Australia)
407ETR Promotes Social Disparity
Is Ontario’s 407ETR the world’s most expensive highway? To put this into perspective, let’s compare it with other notable toll roads around the world.
407ETR (Ontario, Canada)
The cost of traveling on the 407 ETR varies based on factors like the time of day, vehicle type, and distance traveled. Peak rates can be quite high, with charges per kilometer that can exceed CAD 0.50. This means a 40-km trip could cost around CAD 20 or more, depending on these variables. During the pandemic, revenues were down 41% as people could take Highway 401 again.
Pennsylvania Turnpike (USA)
In the United States, the Pennsylvania Turnpike is known for its high tolls. However, the cost is generally lower than the 407 ETR. For instance, a passenger vehicle traveling the entire 580 km length of the turnpike is charged around USD 50 with an E-ZPass or USD 90 without it.
Autostrade (Italy)
Italy’s Autostrade, a network of toll highways, is also known for its high tolls. The cost varies, but a trip from Milan to Naples, approximately 770 km, can cost about EUR 55, which is significantly less per kilometer than the 407 ETR.
Sydney Harbour Bridge (Australia)
In Sydney, the toll for crossing the Harbour Bridge or Tunnel can go up to AUD 4.00 during peak hours. While this is a flat rate and not distance-based, it’s considerably less expensive than a long journey on the 407 ETR.
Tōmei Expressway (Japan)
In Japan, tolls are also relatively high. For example, traveling the full length of the Tōmei Expressway, around 350 km, costs about JPY 10,000 (approximately USD 90), which is cheaper per kilometer than the 407 ETR.
AP-7 Motorway (Spain)
This toll road in Spain, running along the Mediterranean coast, is cheaper than the 407 ETR. A journey from the French border to Valencia, around 600 km, costs about EUR 40-50.
M6 Toll (UK)
In the UK, the M6 Toll around Birmingham costs up to GBP 6.90 for a car for the entire 43 km stretch, which is less expensive per kilometer compared to the 407 ETR.
Who Owns the 407ETR?
The company that owns and operates the toll highway west of Pickering is 407 International Inc..
Most people believe that a Spanish company solely owns the 407ETR, but that is not accurate. 407 International Inc. is owned by indirectly owned subsidiaries of Canada Pension Plan Investment Board (total 50.01%), also known as CPP Investments; Cintra Global S.E., a wholly owned subsidiary of Ferrovial S. A. (43.23%); and AtkinsRéalis Canada Inc., formerly SNC-Lavalin Inc. (6.76%). Consequently, while Ferrovial does own a considerable stake, most of the profits from the 407ETR go to support the Canada Pension Plan and the retirement of Canadians across Canada.
In summary, while toll roads are common worldwide, the 407 ETR stands out for its high cost, particularly during peak hours. Its dynamic pricing model, which adjusts rates based on factors like time and traffic, can make it more expensive than many other toll roads, especially for regular commuters or long-distance travelers.
407ETR Big Price Increases
The cost for taking the 407ETR continues to rise. The 407ETR says in their news release that there will be an increase for light vehicles from one to 11 cents per kilometre, depending on the time of day and the zone of the highway travelled. The 407ETR attempts to make the price increase feel less expensive than it is by contending that the “majority of 407 ETR’s personal customers can expect a monthly bill increase of less that $5.” However, the price increase is more like a 20% increase, far more than the rate of inflation, which is now under 4%; or, put another way, the rate of increase on the 407ETR is five times the rate of inflation.
It seems somewhat disingenuous that the federal government would charge large grocery store chains of earning too much profit when the 407ETR, owned mostly by the Canada Pension Plan, is price-gouging Canadians to take a highway most people in Ontario feel should be free. Why? Because previous provincial governments jacked up the cost of fuel on the promise that the money would be used to build more highways, like the 407ETR, but that didn’t happen. People in the GTA often have no choice but to take the 407ETR because governments have failed to implement sufficient infrastructure to support Canada’s increasing population. <link to Toronto’s traffic>
407ETR Promotes Social Disparity
The 407ETR promotes social disparity by moving vast sums of money from working age commuters who have very little wealth due to taxes, high cost of living, and housing affordability issues to wealthy older Canadians who own their own homes, and are enjoying retirement.
The 407ETR promotes social disparity by moving the costs of the 407ETR to average working and away from business customers who can write off the cost of using the 407ETR on a before-tax basis. The 407ETR’s own website has a special page just for business customers where they promote the safety of the 407ETR (in obvious comparison to the dangers of taking other Ontario highways). Further, understanding how congested and impassable many Ontario’s highways are, the 407ETR states:
“A Canadian Centre for Economic Analysis (CANCEA) report released in 2019 found that 407 ETR saved businesses almost 7.7 million hours of driving time annually, which amounts to 3,700 full-time equivalent workers. The economic benefit of time saved amounts to a whopping $371 million annual contribution to Ontario’s economy through greater business productivity.”
407ETR Website
