If you drive between Fredericton and Moncton, you know the drill. You slow down, merge into a single lane, and navigate a sea of orange traffic cones. This heavy roadwork on the Trans Canada Highway is not a random project. It is the result of a looming deadline.

According to a recent report from CBC News, crews are resurfacing nearly 195 kilometres of asphalt. The private company that maintains the highway, Maritime Road Development Corp, is preparing to hand responsibility back to the province.

The 2028 Handover Deadline

The 30 year contract that financed this stretch of Highway 2 expires in January 2028. Before the company returns the highway to the New Brunswick government, they must ensure the road meets specific quality standards. Deputy Minister of Transportation and Infrastructure Kelly Cain recently spoke to lawmakers about the project.

“We’ve never heard so many compliments about that road and how good of quality it is,” Cain said. “They are obligated to have the road surface back and structures back to a certain level before they hand it back to us.”

A Controversial History

This highway opened in 2001 as one of Canada’s first major public private partnership infrastructure projects. The original plan required the province to pay for maintenance while recouping the $600 million construction cost through tolls. Former Premier Frank McKenna announced the project in 1997 with high hopes.

“We’re going to have this highway built within four years, open, functional, available and saving lives,” McKenna said.

The toll plan faced massive public backlash. Bernard Lord and the Progressive Conservatives won the next election on a promise to scrap the tolls. The government replaced the tolls with volume based payments to the maintenance company, which they later amended to a fixed fee schedule in 2013. Assistant Deputy Minister of Transportation Serge Gagnon noted the learning curve involved.

“The first P3 that we did was Fredericton to Moncton,” Gagnon told a legislative committee. “It was a bit of a learning experience. We grew from that agreement to the other two agreements, so the second and the third agreement are more robust.”

What Happens Next

The relationship between the province and the maintenance company faced challenges over the years. In 2018, the two parties went to arbitration over maintenance payments for the final 10 years of the contract. The province offered $164.3 million, while the company asked for $438.8 million. The arbitration panel settled the figure at $307.6 million.

The province does not want to take over the daily maintenance of the highway. The government launched a search for a new operator last summer. Until the current contract expires on Jan 22 2028, you can expect more heavy roadwork during the summer months.

Frequently Asked Questions

Why is there so much construction on Highway 2?

The private company that maintains the highway must repair and resurface the road to meet specific quality standards before their contract expires in 2028.

Who currently maintains the highway between Fredericton and Moncton?

Maritime Road Development Corp maintains the highway under a 30 year public private partnership contract.

Will the province take over maintenance in 2028?

No. The provincial government is currently searching for a new private operator to handle the maintenance once the current contract ends.

Were there supposed to be tolls on this highway?

Yes. The original plan included tolls to pay for the $600 million construction cost. The provincial government scrapped the tolls after public backlash and a change in political leadership.