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Housing starts likely to cool in 2008
      Residential construction will probably dip next year as rising house prices slow demand for new housing units in most areas of the country.
     According to the latest forecast by Canada Mortgage and Housing Corp. (CMHC), housing starts will decline approximately 6 per cent in 2008 to 214,000 units from the 227,530 starts expected to be recorded in 2007. Despite the drop, 2008 will mark the seventh consecutive year in which housing starts exceed 200,000 units.
     “Continuing high employment levels, income gains and low mortgage rates have been a boon to Canada’s housing markets. Despite this, the pullback in housing starts next year will be mainly due to the increases in house prices in resent years, which have pushed mortgage carrying costs higher,” said Bob Dugan, chief economist at CMHC.
     Provincially, British Columbia’s housing starts will remain above historical averages but are expected to decline slightly moving into 2008. A tight labour market, income growth and high levels of consumer confidence will help offset the dampening effects of rising mortgage carrying costs on the demand for new and existing homes in the province. CMHC expects housing starts to decline slightly from 36,443 units in 2006 to 36,200 units in 2007 and 33,250 units in 2008.
     Alberta continues to benefit from low unemployment, an abundance of job opportunities, and continuing overall prosperity. However, the province is expected to face a drop in net migrants between now and the end of 2008 due to the growing difference in provincial house prices and improved economic conditions in other provinces. With lower migration and higher mortgage carrying costs, housing starts will ease from 48,962 units in 2006 to 47,750 units in 2007 and 42,250 units in 2008.
     Saskatchewan has been experiencing steady economic growth, a healthy employment situation and gains in net migration, all of which has contributed to strong housing demand. Total housing starts are forecast to reach about 6000 units in 2007, the highest level in 24 years. However, escalating costs will push housing starts down to 5500 units in 2008, according to CMHC.
     According to the federal agency, Manitoba is one of five provinces whose economic growth is expected to exceed the national average. This success has contributed to a five-year high in job creation, thus increasing net migration to levels not seen since 1982. These factors will contribute to the high levels of new home construction expected between now and the end of 2008. Total housing starts will reach 5750 units in 2007, the best performance in 20 years. Starts will edge lower to 5600 units in 2008.
     The Ontario economy is expected to improve slightly heading into 2008, states the CMHC report. This will help sustain a high level of housing demand across the province. New home construction activity will be moderate between now and the end of 2008. Housing starts are expected to decline from 73,417 units in 2006 to 67,700 units in 2007. For 2008, a slight up-tick to 68,175 units is forecast by CMHC.
     Solid job creation and steady income growth in Quebec will cause housing starts to increase from 47,877 units in 2006 to 52,400 units in 2007. Looking ahead to 2008, starts are predicted to slide to 48,420 units.
     Positive labour market conditions in New Brunswick will help stem the net outflow of interprovincial migrants in 2008. However, rising mortgage carrying costs and more choice in the resale market will result in lower levels of new home construction. Housing starts are forecast to decline from4085 units in 2006 to 4025 units in 2007 and 3725 units in 2008.
     New home construction activity in Nova Scotia will be restrained between now and the end of 2008 as slower employment growth and population growth pervades the province. Housing starts are forecast to stabilize from 4896 units in 2006 to 4700 units in 2007 and to 4525 in 2008.
     Prince Edward Island’s economy is expected to expand at a modest, but stable pace until the end of 2008 with employment growth in the range of one per cent per year. Consequently, housing starts will slowly decline from 738 units in 2006 to 680 units in 2007 and 630 units in 2008.
     In Newfoundland, a strong economy will push housing demand from 2234 units in 2006 to 2325 units in 2007. However, CMHC expects that higher home ownership and construction costs and lower employment growth will dampen housing demand beyond this year. Housing starts for 2008 are forecast to fall by 3.2 per cent to 2250 units.

Industry PR initiative launched in Ontario
      In what is believed to be the first public relations program of its kind ever undertaken in Canada, the Ontario Stone, Sand and Gravel Association (OSSGA) has launched a billboard campaign the province to raise awareness about the aggregates industry.
Beginning in mid-November, the 20x10 billboard ad will appear for a period of approximately four weeks in 11 cities across southern and eastern Ontario.
The design concept features “before” photo of a wheel loader at the quarry face inset against an “after” shot of Walker Industries Holding Ltd.’s award-winning rehabilitated Vineland Quarries in Niagara, Ont. The OSSGA says it hopes to continue with the program over 2008 with a series of new billboard designs featuring other sites.
The OSSGA’s broad-based public education campaign is an on-going effort designed to better inform the general public about the industry. Last year, the OSSGA developed and ran print ads linked to the provincial government’s announcement regarding infrastructure.
The featured Uniform resource Locator (URL) in the ad “BuildingOntario.com” has been linked to the OSSGA web site (www.ontariossga.com) to track the number of new visitors.

$634 million infrastructure agreement
     The governments of Canada and Nova Scotia have signed a $634 million framework agreement under the $33 billion Building Canada Fund, the federal government’s new long-term infrastructure plan.
     The two governments have identified the construction of Phase 1 of a new Highway 104 twinning project outside Antigonish between Addington and Forks Rd. and Beech Hill Rd. as an early priority for funding under the new agreement. Under the agreement, Ottawa will consider funding up to a maximum of 50 per cent of the eligible costs of the 16-km long project, up to a maximum of $25 million. Total costs of the first phase are estimated at $50 million. The provincial government also announced its intention to provide matching funding in support of this highway improvement plan. The overall cost of the twinning project is approximately $94 million.
     Federal financing support for the Highway 104 project is conditional on its meeting all applicable federal eligibility requirements under the Building Canada infrastructure plan, including completion of any environmental assessments required under the Canadian Environmental Assessment Act.
     Under the new framework agreement, $235.68 million from the Building Canada fund will go towards infrastructure initiatives in Nova Scotia. Of this amount, $37 million will be allocated to smaller-scale projects in communities with populations of less than 100,000. As well, $198.68 million of the Building Canada fund will be dedicated to major infrastructure projects, particularly in priority areas such as the National Highway System, transit, water and wastewater treatment and green energy. The province will also receive $25 million base funding annually, for a total of $175 million through to 2014 for core infrastructure priorities in Nova Scotia. A further $223.7 million will flow to Nova Scotia municipalities through the extension of the Gas Tax Fund agreement from 2010 to 2014.

Alberta’s first P3 highway project completed on schedule
     The 11 km southeast leg of Edmonton’s Anthony Henday Dr. has opened to traffic. With six lanes extending between Highway 2 and 50th St. and four lanes between 50th St. and Highway 14, the new controlled access ring road features 20 bridge structures, including five interchanges. With the opening of the southeast leg, the ring road extends 50 km and is 63 per cent complete. According to Alberta’s Premier Ed Stelmach, the project serves as an excellent example of partnership between the public and private sector. To date, the Alberta government has spent $800 million on the southeast and southwest sections of Anthony Henday Dr. The federal government contributed $75 million to the project through the Canada Strategic Infrastructure Fund (CSIF).
     The made-in-Alberta public-private partnership process is credited with completing the highway sooner than conventional construction. The P3 process also protected taxpayers from rising costs due to inflation.
     Macquarie Essential Asset Partnership (MEAP) provided the financing to Access Roads Edmonton Ltd., the consortium responsible for designing, building, financing, operating and maintaining the new highway.
     Based on the success of the Anthony Henday Dr. Southeast P3 project, the provincial government is following the same P3 process for the Calgary Northeast Ring Road, currently under construction and scheduled to open in 2009, and the northern leg of Anthony Henday Dr., expected to open by 2011.

Contract awarded
     A $16.5 million contract has been awarded to BA Blacktop of North Vancouver to design and build the 156th St. underpass project in Surrey, B.C.
     According to the provincial Ministry of Transportation, the new underpass is being constructed to help connect Surrey neighbourhoods separated by Highway 1 and will pave the way for future rapid bus service on Highway 1, connecting Surrey to communities north of the Fraser River.
     A memorandum of understanding was signed in October between the province and TransLink to ensure rapid bus service across the Port Mann Bridge. The $180 million cost-sharing project will provide fast, frequent bus service between Burnaby, Coquitlam, Surrey and Langley, with connecting buses to Abbotsford and communities north of the Fraser River via the new Golden Ears bridge.
     “The 156th St. underway will provide a much-needed direct link between Fraser Heights and the rest of Surrey,” said Surrey mayor Dianne Watts. “It will greatly reduce congestion and provide quick and convenient access for pedestrians, cyclists and commuters alike.”
     Design and survey work will take place over the winter with construction expected to start in the spring.
     The total cost of the projects is $19.6 million. The ministry is providing $11.8 million, and the City of Surrey, which is managing the project, is contributing $7.8 million. The project is expected to be completed by the spring of 2009.

Record road spending in northern Saskatchewan
     A record $21 million is being invested in northern Saskatchewan this year under the province’s Northern Economic Infrastructure Strategy (NEIS).
     NEIS is one of the six pillars under Saskatchewan’s Transportation for Economic Advantage strategy – a 10-year, $5 billion program to realign the province’s transportation network. The goals of NEIS are to provide greater opportunities to northern residents; to initiate economic growth and expansion, particularly in the resource-based industries; and to enhance social and economic connections between northern residents and those in southern regions of Saskatchewan.
     Of the $21 million worth of NEIS road construction, major projects include the all-weather road into Wollaston Lake. The 102-km northern road will cut through dense brush and muskeg to connect the more than 1200 residents of Wollaston lake with Highway 905. The community currently relies on a winter road and summer barge to move necessary supplies in and out. Five northern contractors have submitted proposals to clear brush from the first 35 km of the proposed new route. Selection of additional contractors will continue this winter, with completion of the entire road slated for 2009.
     Another major project is the Garson Lake Road. Known as the La Loche to Fort McMurray connector, work got underway in late August to widen and upgrade the Saskatchewan side of this northern connector. While the road ends at the Alberta border, the province has received a commitment from the Alberta government that completion of the rest of the route is also a priority. Work on the Saskatchewan side is expected to be complete in September 2008.
     Earlier this year, the Department of Highways and Transportation announced an agreement under NEIS with Assiniy Gravel Crushing, a made-in the-north partnership company between two First Nations and their economic wings. The agreement will see 350 000 tonnes of gravel crushed annually for up to four years to help build and maintain roads in the north. The value of the work is in excess of $20 million and will create up to 20 full-time jobs. While this NEIS project is proceeding entirely with provincial money, two other NEIS initiatives are currently waiting for federal participation. They include upgrading to all-weather status the 180 km road to Stony Rapids/Black Lake, as well as constructing an 80 km access road from Stony Rapids to the south shore across from Fond du Lac.

Award-winning bridge
     The Highway Design and Construction Division and the Labrador Regional Operations Division of the Newfoundland and Labrador Department of Transportation and Works have won a prestigious award from the Canadian Institute of Steel Construction.
     The 2007 Steel Design Award of Excellence was recently awarded in Montreal in recognition of the department’s achievement in minimizing environmental impacts during design and construction of the bridge over the Churchill River, Labrador.
     Dianne Whalen, Minister of Transportation and Works, offered congratulations on behalf of the provincial government.
     “Our employees involved in this project have done government proud,” said Minister Whalen. “It is always rewarding to have your hard work recognized by your peers and I extend our government’s appreciation of their efforts.”
     Located approximately eight kilometres upstream from the Town of Happy Valley-Goose Bay, the crossing of the Churchill River bridge is one of the highlights of Phase III of the Trans-Labrador Highway. The crossing consists of a 500 m causeway and a three-span, 360 m bridge.
     Construction of the crossing commenced during the fall of 2004 and was completed in the fall of 2006.

Stability technology boosts truck safety

Aggregates & Roadbuilding recently had the opportunity to see an advanced truck stability system in action in Waterloo, Ont.

     The three-day demonstration event was held at the Waterloo Region Emergency Services Training & Research Complex, where qualified drivers had the opportunity to put Volvo Enhanced Stability Technology (VEST) to the test. On the complex’s special test track, drivers were able to compare truck response to simulated emergency manoeuvres and overspeed turns, first with the system turned off and then turned on. With the VEST system deactivated, trucks in both tanker and train configuration frequently relied on temporary outriggers to prevent rollovers. By contrast, the activated system detected potential rollover conditions and rapidly brought the same trucks to a safe stop. VEST has been standard equipment on Volvo VN and VT highway tractors since the summer of 2005 and also standard equipment on VHD vocational trucks since March 2007.
     The VEST system utilizes Bendix ABS-6 Advanced with Electronic Stability Program (ESP). According to product literature, the ESP helps mitigate jackknifes and loss of control through advanced monitoring of many different vehicle parameters, plus automatic and selective application of all vehicle brakes. Its Roll Stability Program (RSP), a subset of ESP, helps mitigate rollovers through advanced sensing and automatic application of vehicle brakes. The Bendix Smart ATC system makes constant adjustments based on vehicle orientation (straight vs. curve) and the driver’s throttle input while the core Anti-Lock Braking system (ABS) prevents wheel lock-up to help drivers maintain steering control while braking.
     Numerous sensors provide data input to the control system. Wheel speed sensors monitor wheel rotation at individual wheels to determine vehicle speed and monitor wheel lock-up to optimize braking. A lateral acceleration sensor also detects the side or lateral forces acting on the vehicle to detect a roll situation. In addition, the steering angle sensor senses the driver’s steering demand and direction, with this early indicator of a critical manoeuvre helping VEST to respond faster and more accurately. Brake pressure sensors measure the driver’s braking demand, and allows VEST to assist the driver throughout the manoeuvre. A load sensor detects the vehicle’s load situation, allowing VEST to match braking power to weight distribution. A yaw rate sensor senses the vehicle’s rotation in order to compare actual vehicle orientation with the driver’s intention. On top of all these sensor inputs, the several features enhance overall system performance. Multi-level sensing cross checks the multiple system sensors for improved reaction time and accuracy while performance tuning recognises the different stability characteristics of different trucks or towing vehicles. System performance is also enhanced by all axle braking to provide the best opportunity to reduce vehicle speed in the shortest time. At the same time, individual wheel end braking, the ability to apply individual tractor brakes and trailer brakes, provides the capability to control under and over-steer situations.

November/December 2007 issue

Aggregates and Roadbuilding Magazine
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