Montreal, 8 April 2003 ; The Société de transport de Montréal has deposited its showing a surplus of $12.8 million. This

Press release

STM 2002 Financial Report
Results that demonstrate the importance of supporting the growth of public transit

Montreal, 8 April 2003 – The Société de transport de Montréal has deposited its showing a surplus of $12.8 million. This surplus is attributable to an increase in readership of 2.3 %, to favourable interest rate conditions, to the decision to sign a currency fluctuation agreement to counter fluctuations in the cost of diesel fuel and to the tightening of operating and investment expenditures. It is however, $ 1.2 million less than anticipated in the 2003 budget.

According to the chairman, Claude Dauphin, "the results obtained are a mark of the efforts expended to offer quality services within a difficult budgetary context and are evidence of our commitment to ensuring sound management of public funds. They also show the importance of re-examining the financial framework for public transit in order to support its growth and invest in keeping the public heritage, valued at more than $ 5.5 billion, in a state of good repair."

8.3 million more trips
The STM registered 363.2 million trips on its system in 2002, an increase of 2.3 % in comparison with 2001. Two factors contributed to this performance : the healthy economic situation in the Montreal region where more than 50,000 jobs were created (with a direct effect on individual mobility) and the introduction of the Carte privil�ge giving full-time students, aged 18 to 25, a reduction of 50 % on the cost of their monthly pass. This measure, implemented at the planned cost of $ 19 million, was a great success. In fact, more than 70,000 students took advantage of it and are thus saving $ 312 per year. "This initiative clearly demonstrates that investment in new measures contributes directly to an increase in usage. These results speak for themselves and encourage us to continue our efforts to convince the various levels of government to increase the sources of financing for public transit", Mr. Dauphin stated.

A system in great need of modernization
The flood in line 4-yellow, caused by the break in a pipe supplying the sprinkler systems, was another of the main events of 2002. This incident, which forced the STM to interrupt service between the Berri-UQAM and Longueuil stations for some 30 hours, demonstrated the urgent need for investment in the system. The métro was inaugurated in 1966 and is in need of modernization. Various programmes have already been developed to modernize the fixed equipment, renovate the stations, replace the 336 first-generation cars (MR-63) and redesign the 423 second-generation cars (MR-73). These needs, evaluated at more than $ 2.2 billion over the next ten years, justify the increase in investments that the STM plans to make to ensure the reliability of its service.

Mr. Dauphin hopes, therefore, that the Quebec government will commit itself to implementing the recommendations in the report submitted by Mr. Louis Bernard in January 2003. "If it does not approve the proposed financial framework, the STM would find itself obliged to take another look at its expenditures, its service offer and its fares. This is a decision that the STM does not wish to make as it would nullify the efforts dedicated to promoting public transit and increasing ridership", he concluded.

Key figures
Total ridership
355 M
363,2 M
Passenger revenue
$318,3 M
$321,9 M
$699 M
$725,5 M
Total revenue
$708,3 M
$728,1 M
Total expenditures
$692,4 M
$715,3 M
$15,9 M
$12,8 M