(Bloomberg) -- CDPQ Infra, owned by Canada’s second biggest pension fund, will delay again the opening of a $5 billion light-rail transportation system in Montreal, a setback for a firm that hopes to export the concept around the world. 

The 67 kilometer (42 mile) rail line, known as the Reseau Express Metropolitain, is one of the largest construction projects currently underway in North America. The division of Caisse de Depot et Placement du Quebec launched it in 2015 and plans to operate it once it’s finished. If it proves successful, CDPQ Infra intends to sell and operate similar projects in other countries. 

The first leg of the REM, between Montreal’s downtown and the suburb of Brossard, was supposed to be ready in 2021. It was pushed to mid-2022, then December. The new target is next spring because of “exceptional and unpredictable events” such as the discovery of old explosive charges underground, supply chain problems, the war in Ukraine and inflation, said Jean-Marc Arbaud, chief executive officer of CDPQ Infra. The infrastructure firm also wants to avoid launching it during the coldest part of the year in Quebec. 

“Users must have a high level of reliability,” Arbaud said. “Because of this exceptional context, commissioning would take place in the middle of winter, which is far from ideal for our partners and users.”

Last year, CDPQ raised the cost projection to C$6.9 billion ($5 billion) from an earlier estimate of C$6.3 billion. Costs will rise further, but Arbaud would not give a new number on Friday.

Transit Systems Face Future in Which Many US Riders Never Return

The last commissioning of the 26-station line, which would link Montreal’s international airport to the city’s downtown, was expected in 2024, but a new schedule is being discussed with the airport authorities.

The Caisse de Depot had pledged to build a C$10 billion second phase of the REM in the eastern part of the island of Montreal, but the Quebec government pulled the plug in May to review the project because of local opposition.

©2022 Bloomberg L.P.


 The Opening Of Montreal's First REM Light Rail Branch Has Officially Been Postponed

No hopping on a new train this year after all.🚆

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Montreal REM train crossing the Samuel de Champlain Bridge.

Montreal REM train crossing the Samuel de Champlain Bridge.

Courtesy of CDPQ Infra

The first branch of the Montreal REM (Réseau express métropolitain) is now not scheduled to open until spring 2023. The light-rail train network was previously supposed to open between Montreal's Gare Central and Brossard on the South Shore by the end of 2022.

The company behind the project, CDPQ Infra, confirmed the news Friday morning after La Presse broke the story Thursday night.

"We fully understand the users who are eager to see the REM's service launch," CDPQ Infra President and CEO Jean-Marc Arbaud said in a press release.

"Our teams have worked hard in the last few months in a challenging environment to deliver a reliable network. Taking a few more months to deliver an experience that lives up to expectations was the responsible decision to make."

CDPQ Infra says obstacles related to supply chain disruptions, inflation and the labour shortage would have pushed the REM launch to the "middle of winter," a time the company says is "not optimal for the implementation of a new transportation network," especially given the changes to local bus networks that the REM opening will facilitate.

The South Shore branch is otherwise nearing completion, even if its trains won't run until the spring. A social media post coinciding with the announcement of the postponement shows the extent of construction progress, including gleaming new stations and track.

Two other REM branches, to Deux-Montagnes on the North Shore and across the West Island, are still on track to open by the end of 2024 (that's already a postponement).

A fourth branch to Montreal-Trudeau Airport still doesn't have an estimated opening date.