Trans Mountain pipeline's costs soaring due to "poor planning": Ex-construction manager
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- เผยแพร่เมื่อ 7 ส.ค. 2023
- The construction cost overruns for the Trans Mountain pipeline are ballooning to staggering levels.
Initially expected to cost $5.4 billion to build, the price has skyrocketed to $30.9 billion by March, and money is still being spent.
Heather Yourex-West explains how the company's plans to offset those costs have backfired and speaks with one former construction manager about how the expansion project was troubled from the start.
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Does anyone remember this pipeline was going to be built with no cost to tax payers?
Remember when TMX was going to walk away from the project entirely in 2018 and the federal government was left with a choice to either "buy the project and finish it" or "be the government that can't build pipelines." What's happened *since* the purchase is absurd and likely an example of how corporations gouge the government wherever possible as well as how government managers don't adequately scrutinize the expenses they're authorizing, but the initial purchase was appropriate at the time.
Given how unrealistic and unfeasible the initial estimate apparently may have been, hopefully there's an avenue for the government to sue KM for a bit of restitution as well.
@Alex-js5lg lol the pipeline was offered first too purchase by native communities but the feds stepped in overly taking it at ease with tax payers money. The feds didn't need to buy it to save our industry. They only made it 100 times full of nightmares.
@@Alex-js5lgremember how it was the no more pipelines bill that caused Kinder Morgan to walk away? Leaving Justincompetent no other option.
@@Alex-js5lg it was this Government that caused them to walk away.
The taking over of this project by the government was a strategic decision. Canada will recoup in terms of taxes, royalties, etc.
If we call ourselves a democracy, how did Canadians in general allow the government to step in? Most likely apathy and lack of protesters (not that there were none) of sufficient clout.
IMHO, Canadians need to do their part an insist that governments stay out of big business (especially oil/tar sands).
The incompetence is borderline criminal .
@devinfraser9795 - The incompetence is criminal. Trans- Mountain is going to cost taxpayers $16 B. Where did the money really go?
Well, it is a Liberal government project. What did you expect? Last week a $ 8 million barn /shed in Ottawa for storage of heavy equipment. Must be the Taj Mahal of sheds. Fiscal responsibility is something the Trudeau Liberals can't comprehend.
Government oversight of a job turned into a colossal cash dumpster fire? Who would have thought. All you need to do is walk into any public service office to see the waste and mismanagement. My favourite lately was the greener homes grant for heat pumps. All that did was drive up the cost of a heat pump the exact amount of the grant. Can’t make this up.
Try working at ATCO. ATCO Electric is a monument for incompetence and waste. When lay offs hit for over 4 years some of the best people with 15 years of service were walked out the door only to have Nancy Southern ask the Alberta government to use tax payer money to attract newcomers to come work at ATCO.
wow very well planed lots of brown envelopes being passed around
$16 billion expense to taxpayers, while big oil rakes in record profits.
Private company would never allow these cost increases. But the Gov forced Kinder out of this pipeline then turned it into a Gov job. It’s oil and gas industries fault for their poor decisions apparently
Private contractors are the one who build it lol.
Ya. And the company’s that did build it will not have to buy supplies for the next ten jobs because they ordered so much extra it’s unbelievable who would sign off on this. Follow the money and you will find the corruption, I seen it. I was on this job for over 2 years@@martychomik2878
I guess that is why TMX would never have been built without the government getting involved.
Basically the project was sabotage from the start.
The poor planning was well planning 😅
as a construction worker any project on cost plus is gonna take a long time hahahahahhaa
Trudeau Planned To Have It Fail
Purposeful
I can say with confidence that businesses gouge the government left, right, and centre while many public sector managers don't have the experience, knowledge, and/or competence to scrutinize what they're being charged. Surely that's not what's *caused* the enormous price balloon, but I wouldn't be surprised if it's a significant part.
How many houses, community centres, treatment centres & medicines would that money buy??!!
Thanks Trudeau for this debacle
Not Trudeau's fault, Cletus.
@@titusmccarthywho's fault is it then?! Trudeau made the hurdles so difficult for Kinder Morgan, they said enough is enough and pulled out. Trudeau then figured he would buy the 70 year old original Trans Mountain for a whopping 4.5 billion (which was sold by Terason to Kinder Morgan in 2006 for 600 million) Kinder Morgan then took their windfall for an old, detoriating pipeline and pulled right out of Canada and laughed all the way to Texas. It's 100% Trudeau's fault, just one of many he has accomplished to destroy this country.
HAHAHAHA@@titusmccarthy
Poor planning and soaring costs, sounds like the hallmark of the Liberal Party of Canada
Well a, private contract turned to government contract of course it's going to sky rocket.
Private contractors milked this project because they know they could hahahaha. That's what happened when you have government projects... They milk them for everything they got because they hire bone heads.
The original Trans Mountain pipeline was approved by charter in 1951. The construction started on Feb.1952 and was completed Oct 1953. The budget for the project was $1 Billion. It came in under budget and on time. Thirty months of construction and it was done. Private enterprises funded the project.
The TMX was proposed in 2012. Started construction in 2017, construction halted and started again in 2019. The newest proposed completion time is 2024. Massive cost overruns and is expected to come in at $31 Billion.
Yes, there is inflation to take into consideration from 1953 to 2023. Basically, the project took 3 years from concept to planning, construction and completion. Canada was amazing in the 1950's we got things done.
Now from concept to completion, it is taking us 11 years to build the TMX from the initial proposal in 2012. Roughly 70% of the TMX is adjacent to the existing Trans Mountain Pipeline. We actually make the pipe needed for the project in Canada now. We have better construction equipment. One has to compare why it took 3 years in 1953 vs. 11 years in 2023 to basically do the same job? Private enterprise got fed up with all the environmentalist and BC government court challenges and the Canadian federal government had to buy the pipeline. Any lawyer would have told you that once the federal government deemed the project in the national interest of the country it was going to be built. However, the BC government and environmental groups kept up the court challenges till it went to the Supreme Court of Canada. Took them less than a week to arrive at the decision that the federal government had the authority to build the pipeline. Go figure.
So why does it take us so long to do anything these days like housing and infrastructure improvements? We need to think and act like we did in the 1950's . When Canada and Canadians had that Can-do attitude. Think about it from the 1950s to 1980s we got things done in Canada. We need to get back to that work ethic and attitude.
And guess who will pay for that?
You can see the Confusion when watching the work along some sections of the Coq, the progress is very slow. Now the terrain is very rough in places and you can sit and watch the confusion and watch discussions going on , no pre planning seems to of been done, idol cranes lying around for days , that costs a lot of money.
I wonder when the mountain got a sex change 😂
Ehhh it's still path you can use that path with or for some other systems of transportation one of these days making it easier later and cheaper to use when in need when that time comes.
Nice going Trudeau!!!
Nothing unpredictable there……..I mean how many pipelines have Federal Government built in the past………Wonder why did oil sands companies not buy this pipeline by making a consortium. They could have built it for cheaper and would enjoy cheaper fees……
The construction cost the oil companies nothing, and they will contest the tolls.
Also you will not report on our wonderful PM . You know the guy that cant seem to keep it in his pants while representing Canada . I would think this would be a security concern .
Has everyone forgotten that the Feds have thrown money at two battery plants in Ontario - about 5 million per job created - except that they intend to hire a proportion of foreign workers. And they'll produce a product that may have a limited life-span once people figure out electric cars are a waste of time. And that the factories are owned by foreign entities. At least with the pipeline WE own it, and it will move 2 million barrels a day at around $60.00 a barrel and the taxes on that will pay back the cost of the pipeline in a very short time. Subsidizing VW ( a corporate criminal ) and Stellantis ( a huge multinational ) with our money for THEIR benefit is insane. About 28 billion dollars of insanity.
I'll take the pipeline anytime over what will soon be a useless battery plant.
I'm sorry but if you told me it was going to cost 6X the initial cost that pipeline would never be made
Right through a state forrest in WV. That was a great move fighting for it JM, will remember that if you run for any office again, dont count on my vote!!
When it was bought out, did the Feds. KEEP the management team?? I did a job for the storage tanks in Burnaby years ago and was warned about the young buck TMP manager. When he showed up, all I saw was a CRACK HEAD shouting and yelling. His 14 year old daughter was in his TMP p/u truck. I asked politely: would you talk that way if your daughter was standing by us??
A big part of the delays were due to Indigenous consultation. The demands were numerous.
This ultimately lays at the feet of trudeau
Sure - and Harper, who gutted our environmental laws to facilitate it - all at the direct behest of industry - as was revealed in the release of government documents through freedom Of Information (FOI) requests.
Under liberal leadership Canada has the worst climate performance in the G7. Under Conservatives, who have even weaker climate policies, Canada would be even worse off.
Nobody was excited except KINDER who made a bundle out of this albatross .
Sounds like too many payouts and fingers in the pie, what a joke.
Hopefully the new government can sell it for 50 cents on the dollar and stop the bleeding.
Wow I am shocked.
Really?..
Try working at ATCO.
SURPRISE SURPRISE.
Another way Canadians are getting shafted.
What's worse? Oil price is going to be plummeting year after year.
It was always a minimum 15Billion project wasn't it? The tack on the delays and else tack on another 5 Billions. the Extra 11 Billions is most likely just governement allowing balloning and forgot to fix things and just rushed and forgot to replan after it got started wasn't it? And then for politicl reason either side, one the appease the greens, the other to not being forcefull enough to press on with land problems so no one want to look at it unless a emergency and safety reasons, but no one want to open the papers ot tiredsome papers, not my problem not my money I guess, and re-work the planning even at the start it wasn't suppose to be like this and details and re-planning is "planned" to have need be done. And out of mind of gov because of the confrontations when starting the build. So it is simply something that's going but no one want to look at it out of sight out of mind, or even if remembered too exaperate to do anything about it.
I was not suprise I work 30 years on this and people call me 3 times work on this job.the contractor they hire was non-union and was not capable handle huge job like this.they put lots politics like hire native,local ,people welfare yes all this thing add up quick.i work one job they want us hire losers I said no way or union walk off job yes.the planning need lots when you work with bc anti oil well you got result now you figure.
All part of the plan to make sure it fails
Except it won't fail. They are too far into it now... this all comes down to private contractors milking the project and terrible management running TMP
Stop and bail
Trans? Is it a he, she, or it? What's it's pronoun?
I don't know, but Florida and Texas are probably already planning to arrest the pipeline's doctor and parents.
The fruit was so low it was below the ground and you still jumped for it
This project and Arrivecan before that.. figures, that is why 2025 cannot come soon enough
IF for NO other reason Trudeau and co. need to go .
WHAT?! EVEN THE MOUNTAIN PIPELINE IS TRANS?! 🤣
Get a long term job in Canadas Oil Pipeline, you are guaranteed long term employment. How will Canadians pay for this? Carbon Taxes to Support an Expensive Carbon Pipeline.
This is good news because less fossil fuels means less climate change.
I guess using less water to fight fire helps with conserving fresh water
@@bcc5084 Less fossil fuel usage means less carbon will be added to the carbon cycle. That means reduced warming from the greenhouse effect
And the constant legal wrangling from activists has no effect?
We’re actually going to take the word of an ex manager? By He had no responsibility in this?
The reality is, no matter what construction project it is; it’s impossible to predict exactly what the final cost is going to be.
The average person couldn’t tell you exactly how long it’s gonna take you to wash their car inside and out…
The Parliamentary budget officer stated years ago when construction costs soared to over $21+ billion that it was "clearly non-profitable." It's now over $31+ billion!
The biggest disruption to the construction timeline and one of the biggest reasons for cost overruns was the catastrophic BC flooding in 2021. That was caused by a climate change fuelled severe precipitation event - where the TM & TMX route was washed out in 14 places - highlighting that this pipeline was designed and engineered for a climate that no longer exists. The route was also under water in the Sumas flats near where a leak in 2020 spilled 190,000 litres of petroleum product from the Alberta bitumen sands into surrounding farmland above the Abbotsford/Sumas aquifer where there are 19 public/City drinking water wells.
@@garyhaggquist740
“Caused by climate change“.
Is that gonna be the fallback answer for everything now?
I was late for work this morning because of climate change
@@Ont785 Those are your words not mine! Is misquoting people "gonna be the fallback answer for everything now?" What I wrote was "climate change fuelled"!!! Do you see the difference? Do you deny that climate change is influencing the worlds weather?
@@garyhaggquist740
You don’t even know what climate change is.
Your fall back is that you that you’ve never seen such bad weather before therefore it must be climate change…
The fundamental part of climate is it’s a fact over 1000 years minimal… The new mantra is, climate change is affected by pollution and it’s accelerated because we can see it within a few years; therefore we should tax people more…
You agree that climate change is a natural event. Climate change in itself, is not caused by human activity. The argument does that human activity is aggravating climate change that is negative to humans.
Since when did climate have to be purposeful for humans?
Remember the Ice Age? Ontario was under 2 to 3 km of ice. It all melted; how?
"Climate change fueled event". Oh my God bro.... That's the shittiest excuse I have ever heard. Not everything is blamed on climate change.
Thank a Liberal.
Poor planning? How about NO planning at all? Look at the cabinet... mostly inexperienced woke folk. What more would one expect from these clowns?
Any contractor who wins a federal govt contract would know it wasn't well planned to begin with. But they went on and started work anyway. Change orders are lucrative.