Calgary Transit said in October 2024 that it would seek a new supplier for an electric shuttle-bus pilot after cancelling a 2021 contract with Vicinity Motor Corporation. The city said repeated production delays made delivery uncertain and that it had not paid the company because payment depended on buses being delivered.
The original order
The contract called for 14 battery-electric shuttle buses. These are smaller vehicles used on routes where a full-size transit bus may not be necessary, and the pilot was intended to test whether electric models could reliably perform that role in Calgary’s climate and operating conditions.
Senior transit engineer Stephen James said no vehicle arrived, so the contract’s milestone-based structure protected the city from paying for undelivered equipment. Cancellation still cost time and delayed the evidence the pilot was meant to collect.
A smaller replacement procurement
Officials planned a new request for proposals for five to seven electric shuttles rather than the original 14. A reduced first fleet could limit risk and let the city assess range, charging, maintenance and accessibility before a larger purchase.
The pilot budget was $14 million, including $7 million from Alberta’s Emissions Reduction Alberta programme. A new tender needed to specify how grant deadlines, chargers and unused funds would be handled after the first procurement failed.
Questions about the supplier
Reports about Vicinity’s financial position had prompted public concern. Mayor Jyoti Gondek said the city was no longer under contract with the company and rejected claims that Calgary remained tied to a failed supplier.
Vendor solvency matters in long-life fleet purchases because warranties, parts and software support can continue for years. Future evaluation should examine financial capacity and service infrastructure as well as purchase price and vehicle specifications.
Why test electric shuttles?
Calgary Transit said full-size electric buses already had operating experience in climates comparable to Calgary, but small battery-electric shuttles were less proven in that service. Cold weather can reduce range while cabin heating increases energy demand.
A useful pilot should publish energy use by season, service availability, charger performance, maintenance cost and the effect of passenger load. A demonstration route that avoids demanding conditions would not answer the fleet-planning question.
Other fleet projects
The city was separately pursuing up to 180 full-size zero-emission buses as part of a longer plan to replace 259 diesel buses. That programme involved federal grants, a Canada Infrastructure Bank loan and municipal funding.
Calgary was also expanding compressed-natural-gas buses. A diverse fleet can reduce dependence on one fuel or technology, but multiple propulsion systems require different training, parts, facilities and emergency procedures.
The spending debate
Councillor Dan McLean called the cancelled contract a warning sign and questioned spending on the pilot amid other infrastructure pressures. His concern represented a legitimate budget choice, although a supplier’s failure did not by itself prove the technology could not work.
The city needed to compare total lifecycle cost, including fuel, electricity, maintenance, batteries, chargers and emissions. Purchase price alone can favour a vehicle that costs more to operate over its useful life.
A stronger second attempt
The next contract could use delivery milestones, performance bonds, cold-weather acceptance tests and rights to technical data. Compatibility with installed chargers should be confirmed before an award.
Calgary avoided paying for buses it never received, but residents also lost time. Success would mean more than signing a replacement deal: it would require delivered vehicles, transparent testing and evidence showing whether electric shuttles can provide dependable, affordable service.
