⛏️ AI goldrush

Together with

Good morning! 🕊️ Instead of causing terror, guns in Columbia are being used for construction. Authorities announced they melted down more than 23,000 rifles, pistols, revolvers, mortars and grenade launchers in a single day and are using them as materials for infrastructure projects.

⏰ Today’s read: 5 minutes

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 8:00 PM ET Dec. 9th, 2024.

Economy:  The Bank of Canada’s final 2024 rate decision, set for Dec. 11, is expected to deliver another rate cut, but opinions differ on its magnitude. Banks anticipate either a 25- or 50-basis-point reduction, with most favoring 50. Proponents argue a larger cut could better address slowing growth and easing inflationary pressures, while critics warn of risks, including overheating housing markets and currency depreciation.

NEED TO KNOW

The week's headlines

🖥️ The AI goldrush is on: Alberta aims to attract $100 billion in AI data center investments over the next five years through a new data center attraction strategy, which includes a "concierge program" to streamline regulatory processes for companies like Meta, Google, and Amazon. The province is already attracting AI project investment from Cohere and Dragons’ Den star Kevin O’Leary, who is looking to develop a $70-billion AI industrial park.

🏗️ Hospital expands: Michael Garron Hospital has opened a new pediatric facility featuring 20 specialized clinics. The center aims to provide more accessible and convenient care for children and families, reducing the need to visit downtown specialty clinics. This facility is part of a $498-million hospital redevelopment project funded by Ontario's Ministry of Health, the hospital, and donors.

🍃Gone with the wind: Alberta has introduced new regulations governing renewable energy projects, prioritizing agriculture by banning wind farms on 70,000 square kilometers of agricultural land and "pristine viewscapes" near the Rocky Mountains. Developers must now conduct visual impact and agricultural productivity assessments for solar and wind projects on high-quality farmland, ensuring minimal disruption.

🎨 Back to the drawing board: The Vancouver Art Gallery has decided to scrap its current design and part ways with Swiss architecture firm Herzog & de Meuron for its long-delayed new building project, now estimated at $600 million. Rising costs due to inflation prompted the decision, with the gallery seeking a more financially sustainable and inclusive design.

THE BIG STORY

Fare hike: Why our transit costs are at a global high

A University of Toronto study has revealed that the price tags of building transit projects in Toronto and across Canada have soared in recent decades, despite these costs going down in other major nations. 

Past and present: Researchers examined projects dating back 70 years to find the per-kilometre cost adjusted to inflation. One finding was that Toronto subway construction costs have skyrocketed. For example, the Ontario Line has exceeded $1 billion per kilometer, a tenfold increase from earlier lines due to inflation, neighborhood mitigation, and rising complexities.

Far and wide: After analyzing 1,083 global transit projects, the study found Canada's average construction cost was $396 million per kilometer, ranking ninth-highest worldwide, compared to a global average of $242 million. New Zealand topped the list at $1.04 billion per kilometer, while Chile had the lowest at $89 million.

Blame game: While factors like GDP, cost of living, and unionization are often scapegoated for high transit construction costs, they show only a weak correlation to these expenses. The study found that costs in Canada are largely driven by project delivery practices, policies, and governance. Essentially, we overplan and overbuild. 

Others have come to similar conclusions. Here’s how transit researcher Alon Levy put it:
“The biggest factor behind a project’s cost is what country it is in, and costs are fairly consistent even across different geologies. … This is purely institutional.”

New route: In Ontario the institutions are facing some heat and leadership shuffles have begun. Rising transit project costs and long delays have left residents frustrated. Reply to this email with your thoughts on how to get these projects back on track. 

TOGETHER WITH GERRY ENNS CONTRACTING

Big ambitions, local roots

The Emil Anderson Group (EAG) has been a cornerstone of British Columbia’s construction industry for 87 years, with its Gerry Enns Contracting (GEC) division experiencing transformative growth. Since EAG’s acquisition of GEC, the division has expanded its operations and impact, tripling its annual volumes and earning recognition for community-centered projects. Learn more about their team’s unique approach in our article below.

PROJECT SPOTLIGHT

Vault of heaven

Crews recently wrapped up work framing a dome for the Yellowknife Mosque, designed by Guy Architects. According to the design team, the city’s Islamic community asked that the dome reflect the land and its people. Inspiration was taken from the region’s beavers, which interlock wood to form dams.

PROJECT UPDATES

FIFA construction work to kickoff in new year

Vancouver developer pays $8.5M for 99-year lease

Ontario announces Northlander rail service restoration

Marathon mine builder improves project economics

Taiwan firm halts plan for $1-billion battery plant

Get our full breakdown of the week’s project updates in the link below

WHAT WE’RE TALKING ABOUT

VIDEO: 🏠 Inside Stack’s new modular facility

REPORT: 🦾 PCL predicts AI’s impact on construction

PHOTOS: ⌚ Building a $16B clock

VIDEO: 🥊 Experts debate Alliance vs. P3

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Here’s to a great rest of the week!

Disclaimer: SiteNews is an independently-operated news website. Views expressed are that of the editorial team and are based on publicly available information unless otherwise noted through sponsored content.