Winnipeg Transit employees union want to finance 20 electric buses

Winnipeg’s Amalgamated Transit Union has come up with plan for the provincial government to help finance more electric buses.

The proposed financing deal would rely on what the union is calling a “pay as you save model”, with the province providing the city with an interest-free loan to cover the difference in cost for the electric buses. Winnipeg Transit would then pay back the loan with revenue from operating efficiencies generated from the electric buses.

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“The biggest hurdle for electric buses is the upfront cost,” Aleem Chaudhary, president of Amalgamated Transit Union 1505, said.

“After that, an electric bus costs $62,000 less than a diesel bus to operate on an annual basis. These savings could be used to pay back the province over the term of the loan, and after can be used to improve transit services.”

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The ATU 1505 said a $7 million loan would finance 20 electric buses, with the loan being paid back in about six years based on cost savings.

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The figures are based on a base cost of $850,000 per electric bus, compared to $500,000 for a traditional diesel bus.

The Amalgamated Transit Union 1505 represents over 1,400 transit operators and maintenance workers in Winnipeg and Brandon.