Toronto’s Transit System Faces Challenges After Eglinton LRT Opens

Toronto has recently celebrated the long-awaited opening of the Eglinton Crosstown Light Rail Transit (LRT) line, a project that has been plagued by significant delays and escalating costs. Initially projected to cost $4.6 billion, the final expenditure soared to over $13 billion, according to the provincial agency Metrolinx. Construction began in 2011, with the line originally scheduled to commence operations in 2020. The project faced numerous setbacks, culminating in a recent announcement that the line would open in September 2025, which turned into a seven-month delay.

The Eglinton Crosstown LRT opening follows the December 8, 2025, launch of the Finch West LRT, which also experienced delays and budget overruns. Initially set for a 2023 opening with a budget of $2.5 billion, the Finch West line ended up costing $3.7 billion and was reportedly slow and unreliable, leading to multiple shutdowns during its first weeks of operation.

Ongoing Service Issues for Commuters

In addition to these troubled projects, Toronto commuters continue to face unreliable service from both Metrolinx and the Toronto Transit Commission (TTC). On February 2, 2026, a GO train derailed at Union Station, disrupting commuter service for a week and prompting an apology from the Metrolinx CEO. The TTC has also struggled with frequent delays and service interruptions. The latest performance report indicated that subways were on time only 88.2% of the time, while buses and streetcars recorded on-time rates of 73% and 55%, respectively, all falling short of the 90% target.

Customer satisfaction has plummeted, with the report revealing a mere 72% approval rate compared to an 84% target. Year-to-date transit rides were reported to be 5.4% below budget and down 1.1% year-over-year. Adding to these woes, Metrolinx and the City of Toronto have reportedly spent $97 million on two SmartTrack stations that may never be constructed.

Exploring Privatization as a Solution

As Toronto grapples with these ongoing challenges, various studies suggest that privatization could enhance operational efficiency and financial performance. The MTR Corporation in Hong Kong serves as a successful case study. While it is majority-owned by the government, its structure operates similarly to a private enterprise, with some shares publicly traded. A 2016 McKinsey report highlighted that MTR maintained an impressive on-time performance record of 99.9% for its trains, in stark contrast to the 55% on-time rate for TTC streetcars.

Cities like London and Melbourne have also seen improved transit performance after transferring operational control to private entities, underscoring the potential benefits of privatization. While some critics argue that privatization is not a comprehensive solution to transit issues, it could foster greater accountability and financial discipline compared to the current status quo.

Matthew Lau, an adjunct scholar with the Fraser Institute, emphasizes that while transit systems will never function perfectly, an expanded role for the private sector could offer a more effective approach to resolving Toronto’s transit challenges. The need for change is evident, as commuters express growing frustration with the persistent service issues and operational inefficiencies plaguing the city’s transit network.