Regarding innovative technologies, we can ask ourselves three questions. How can we better use what we already have today? How can we better use the technologies available elsewhere in the world? Finally, how can we maximize our investments in research and development?
Concerning the way we can better use what we have today, there is an emerging technology called BRT, bus rapid transit. This technology allows us to use existing buses and have transit that costs a lot less. In Ottawa, there is a pretty effective example of BRT, which is having bus lanes and organizing a bus system that is much closer to a subway or train system.
BRT has very significant advantages both environmentally and financially. If there is a 3 km/hr increase in commercial speed, the average speed of a bus on a given route, pollution is reduced by half. It is therefore very significant environmentally. The time for routes is also reduced significantly. It is the factor that most encourages people to take the bus rather than their car. With BRT, people realize quickly that they can reach their destination in less time than if they took their car. Finally, there is the fact that people stuck in traffic mean big economic losses. In 2006, Transport Canada determined that these losses were between $2.7 billion and $3.2 billion per year for Canada.
We will send you more information by email describing exactly what bus rapid transit is. This system has different characteristics that are very important: exclusive bus lanes; level-boarding, so that people do not have to go up any steps; prepayment outside the bus, which is very important because it greatly reduces the time needed to get on and off; priority at intersections so that buses travel more quickly than vehicles; passenger information; traffic control; and, especially, high-capacity buses.
Current systems are comparable, in terms of capacity, to light rail and subway, but they cost a fraction of the price. With a $1 billion investment, 8 km of subway can be built, 40 km of elevated rail, but 310 km of bus rapid transit. Three hundred and ten kilometres are therefore covered with $1 billion, which is much less expensive than building a very demanding system like a subway or a rail system.
How can you help us set up these systems? BRT must be promoted and supported. It is important to invest in exclusive lanes and to help transit companies that want to set up BRT. Often, they want to do so, but either the train or the subway is more attractive. If you support transit companies that want to build something new, you will reduce traffic congestion as well as investments in transit infrastructure.
The second way you can help us is by harmonizing standards and certifications. For example, environmental standards should be changed regarding motors. Canada's standards are the same as those in the United States. European standards are a bit different, even though emissions in Europe are roughly the same and a little lower, depending on the year. In general, they're not tested in exactly the same way, so the standards do not match.
Systems from elsewhere in the world cannot be used in Canada if they do not meet these standards. Harmonization of international standards is very important, because it will avoid having to certify motors again in Europe and the United States. The cost of that is very high, tens of millions of dollars, which currently come up every three years.
A large part of Volvo's investment budget is used strictly for truck and bus motors. Consequently, all other innovations are set aside. If we were able to harmonize these standards, we could use the money available for other innovations. Canada could allow as is the use of motors that meet European standards and that are available today. That would allow us to provide those motors and not have to obtain a certification.
It would also be good if you supported the harmonization of international standards. It is a very long process, which started a number of years ago. A good boost is needed to reach the goal more quickly. All sorts of technologies that are available elsewhere could also be available here.
The last point, which is much more about new technologies, deals with supporting electric buses. Nova Bus, a division of Volvo Group Canada, Inc., has a modular approach to electromobility. It would allow us to meet the needs of our clients. Since 2006, we have been making hybrid vehicles. To date, we have sold hundreds. To get to the electric bus, we are continuing in that direction by electrifying all of the major components. Last year, in 2011, we introduced our first electric bus on the North American market. We work on its deployment and its design. There are significant challenges on the components side, but it is especially challenging when it comes to the quantity of energy stored to allow acceptable autonomy for our clients.
And that is the focus of our request for assistance. The first thing would be to make green funds available for development, then to simplify and facilitate comprehension of as well as access to different forms of federal aid. For us, it is not always easy. Some forms of aid are only accessible to transit companies. There need to be some for industrial companies. Finally, we are asking you to support and help companies that work on battery systems, storage elements and charging. It is very important. In fact, it is the basis of electric vehicles. Once advanced technologies in this field are available, we can integrate, use and develop them.
That is the main message we wanted to communicate to you this morning.