In: Operations Management
when the sky train Canada Line was in progress, the organization that was working for it faced two challenges i.e. financial crisis and use of alternate light rail transit(LRT) which was not providing any sense in the project. Explain these issues completely and accurately and explain how both of the problems were solved?
Explain accurately and in two paragraphs.
One of the major projects of Expo 86 was the development of a high-speed transportation system ie.Sky train in the Metro Vancouver region. In the '70s the need was felt for a high-speed transportation system to avert the traffic congestion. But due to a shortage of funds, the dream of high-speed transportation could not be achieved. But in 1980, a high-speed transportation system was chosen to be built in Vancouver. Its construction started in 1982 and it started its full operation in January 1986. But when the sky train Canada Line was in progress, the major crisis that it faced was that of the debt which arises due to the high cost of operation and as well as the expansion of the lines and stations that had happened periodically. Its debt accumulation becomes almost four times the cost of its operation. During the extension of the lines to Surrey, it has run into a debt of many million crores. Later, in 1991the the provincial government agreed to pay off the debt in 3 years.
Another major problem that was faced was that there was a don't that for a high-speed transport system, the technology should be that of the sky train or that of the alternate light rail transit(LRT). For solving this problem, a survey was conducted to know about the preferences of the people regarding this kind of transportation to that of light rail transit shows that more than half of the people are in favor of Sky train as -
1. It is better than light rail transport despite the fact of being costly.
2. It reduces traffic more than LRT.
3. Out of all the other modes of transportation, sky rail gains more than half of the votes of the people, who preferred to use it over other means of transport.
Thus, in this way, the Sky train was able to overcome its financial and use of alternate light rail transit(LRT) crisis.