Digging In

• Ontario's plan to expropriate Toronto's stake in Billy Bishop Airport for runway expansion.
• Alberta and the federal government's cooperation agreement to streamline infrastructure project approvals.
• Federal initiative to improve construction labor market data with a $94.5 million investment.
• Calgary's water restrictions due to urgent infrastructure repairs.
• BC casino's legal battle over a $10 land expropriation related to the Surrey Langley Skytrain Extension.

In this episode, we explore Canada's construction landscape, uncovering how shifts like daylight savings, geopolitical port deals, and a nuclear supply boom are reshaping the industry. From Saskatchewan's uranium surge to Ontario's Science Centre controversy and a 37% drop in residential productivity, we reveal the impacts on projects, safety, and the bottom line.

• A major U.S. Supreme Court decision that could reshape tariff policy — and President Donald Trump's response.
• B.C. Premier David Eby's move to "re-pace" major infrastructure projects as the province's deficit grows.
• Canada's sweeping plans to realign its defence strategy to prioritize Canadian companies.
• Groundbreaking on the next stage of the Ontario Line, marking another milestone for the major Toronto transit project.

In this episode of Digging In, host Russell Hixson unpacks the political and economic forces threatening a $6.4 billion international bridge project between Canada and the U.S. He also delves into the 15-year effort to deliver Toronto's Eglinton Crosstown LRT and Ottawa's major funding cuts for projects. Finally, some feathery Ontario residents have received justice after their homes were destroyed.

This week we highlight the successful refurbishment of the Darlington Nuclear Generating Station, which finished ahead of schedule and under budget. We then chat about the newly approved $3-billion Steensby Project on Baffin Island. Listeners will also get an essential briefing on the sector's surprising GDP growth in late 2026 and a deep dive into Calgary's Bearspaw water main failure with Water Canada's Warren Frey.

In this episode, host Russell Hixson is joined by John Tenpenny, editor of Renew Canada, to discuss the Top 100 Projects report. They delve into the intricacies of Canada's largest public infrastructure projects, highlighting the significant increase in overall project value - now totalling $343 billion - due to new nuclear initiatives in Ontario. The conversation explores the challenges and trends in project delivery, the impact of the Major Projects Office, and the evolving landscape of infrastructure development in Canada. Tune in to gain insights into the future of nation-building and the role of nuclear energy in powering the country's growth.

This episode highlights:

• Eglinton Cross Town LRT Reaches Substantial Completion: After more than a decade of work beginning in 2011, and following years of detours and delays, Ontario's Eglinton Cross Town LRT has finally reached substantial completion. Control of the line is now transferring from Metrolinx to the TTC, which will handle operations, staff training, and setting an opening date, currently estimated for early 2026. The project, which was originally promised to open in 2020, ran approximately $8 billion over budget and is considered by some to be a cautionary example of how P3 projects can go wrong. • Microsoft's $7.5 Billion Digital Sovereignty Investment: Microsoft has announced a significant digital sovereignty play in Canada, pledging $7.5 billion over the next two years to expand its Azure data centers in Toronto and Quebec City. This investment is part of a broader $19 billion commitment spanning from 2023 to 2027. Microsoft has also promised to keep Canadian government cloud services running even if foreign governments exert pressure to shut things off, addressing a major vulnerability identified by the Canadian government. • Cross-Border Betrayal Over Potash Export Terminal: Federal officials, including Transport Minister Steven McKinnon, are urgently meeting with the Saskatchewan-based fertilizer company Nutrien to persuade them to build a proposed $1 billion potash export terminal in Canada. Nutrien has instead chosen the US port of Longview in Washington state, just across the border from BC. BC Premier David Eby expressed serious frustration, stating that losing the deal "pissed me off" because he believes it was "entirely avoidable". This high-profile effort by Canadian officials may be a form of public pressure intended to keep the investment within Canada. • Ottawa Looks to Modify Tax Code to Lure Real Estate Investment: The federal government is reportedly examining tax tweaks to attract more foreign capital into Canadian real estate projects, focusing particularly on new rental construction due to the essentially frozen current development pipeline. Potential changes include adjustments to withholding tax rules for non-US investors and offering targeted tax incentives for purpose-built rentals. This comes after large international lenders walked away from deals because the existing withholding tax rules made the projects uneconomic. Developers have pushed back against policies like foreign buyer bans, arguing that foreign investment is crucial for financing condo and multi-family projects. • Bonus Story: Historical Fragments Uncovered in Halifax: Dredging work near Pier 6 in Halifax, conducted as part of the expansion of Irving Ship Building's yard, uncovered more than 100 fragments of the Mont Blanc. The Mont Blanc was the munitions-laden ship whose explosion in 1917 killed nearly 2,000 people, injured about 9,000 more, and leveled most of the north end of Halifax. At the time, this blast was the largest humanmade explosion in the pre-atomic age. The recovered car-sized chunk of history is set to go on display at the Naval Museum of Halifax.

• Ontario Power Generation (OPG) has received government approval for a $26.8 billion refurbishment of four candu reactors at the Pickering Nuclear Generating Station. This project intends to extend the facility's operations by up to 38 years, creating approximately 30,500 jobs during construction.
• Once completed in the mid-2030s, the refurbished station will provide up to 2200 megawatt of clean power, enough to power about 2.2 million homes.
• It also secures the long-term, global production of the medical isotope Cobalt 60.

• Prime Minister Mark Carney has unveiled a broad package of sharp measures to shield Canada's steel and lumber sectors from steep US tariffs. The plan centers on a "Buy Canadian" policy requiring Canadian steel, aluminum, and lumber on federal defense and construction contracts over $25 million.
• Measures also include tighter import quotas, hefty surtaxes on foreign steel, and rail subsidies to cut freight costs for shipping Canadian materials across provinces.

• Clean BC's plan has gone under the microscope. An independent review warned that the province's current climate policies will achieve only about half of its 2030 emissions reduction targets and risk slowing down housing and industrial growth.
• The report calls for major proactive expansion of BC Hydro's electricity system and recommends changes to building rules, such as federating step code timelines and pushing most new homes toward heat pumps.
• BC Hydro estimates electricity demand will rise by about 15% by 2030 compared with 2021.

• The Ontario government has secured a $3.2 billion investment from Vianode, a Norway-based synthetic graphite manufacturer, to build a new production facility in St. Thomas, marking the company's entry into the North American market.

• The Mechanical Contractors Association has released a new children's book. "Suzy and the Marvelous World of Me" (M.E. standing for mechanical and electrical), is designed to spark interest in mechanical and electrical careers in young women and challenge gender stereotypes in construction.

This episode highlights:

• BC has launched "Dash," a first-in-Canada digital platform designed to streamline design, zoning, review, and prefabricated construction. This tool allows developers to input land parcel details and building specifications to generate compliant 3D building plans within minutes. Dash is optimized for local zoning regulations and available BC manufactured materials. Developed collaboratively by BC Housing, Metro Vancouver, over a dozen BC-based architects and engineers, and 13 prefab home manufacturers. The platform is open source and free of user access fees. It forms part of BC's strategy to scale construction innovation and has potential for national adoption, though it is currently tailored to the BC regulatory environment.

•The Ontario government has secured a $3.2 billion investment from Vianode, a Norway-based synthetic graphite manufacturer, to build a new production facility in St. Thomas, marking the company's entry into the North American market. •The Post, a landmark major heritage redevelopment in downtown Vancouver (originally a Canada Post office built in 1958), has been sold for approximately $1.1 billion to Pontag Gadilla. This transaction is considered one of the largest office transactions in the region's history. The building was transformed into a 1.1 million square foot office facility anchored by Amazon. While the price and buyer have not been officially confirmed by Quadreel, insiders note the sale. Quad Real plans to remain on as the property manager. The sale is speculated to be a strategy by the large developer to shuffle assets, create cash flow, pay off debt, or fund new rental projects amidst the real estate sector taking a hit. • Toronto Tower Sets New Record: Sky Tower at Pinnacle One Yonge in Toronto has reached its 100th floor, marking a major milestone as the first building in the nation to do so. The tower is heading toward a final height of 106 stories, which will make it the country's tallest building. Designed by Heri Pont Ptorini architects, the super-tall tower anchors a major mixed-use development on Toronto's eastern waterfront. It features about a thousand residential units, a major hotel, retail, extensive amenities, and future transit integration. Construction began in 2020, accelerated recently, with completion and resident move-in expected in about 2026. • Bonus Story: A high-stakes rescue in Calgary. The fire department successfully rescued a crane operator who experienced a medical emergency and could not descend from about 50 meters (approximately 16 stories) up at a downtown construction site. The 45-minute operation involved a technical rescue safety team using a rope system anchored at the top of the crane to lower the alert and conscious operator to the ground for treatment. This incident highlights the fire department's specialized skills in high-angle rescues using rope and vertical rescue techniques.

• Canada's Expanded Nation Building Pipeline: Ottawa has added a second wave of projects worth over $56 billion to its major projects office, bringing the total investment pipeline referred to more than $116 billion. This is part of a broader push toward Canadian economic diversification and self-sufficiency. The priorities focus heavily on the Northwest Critical Conservation Corridor, requiring major new infrastructure—including transmission lines, highways, telecom ports, and rail—to unlock critical mineral deposits in Northwest BC and the Yukon. Key energy projects include the North Coast transmission line and Sylmus LNG, an electrified Nisga Nation-led facility that could draw nearly $30 billion in investment and potentially help double national LNG output. Northern clean energy is also prioritized, including a major hydro project in Nunavut that would be the region's first fully Inuit-owned hydro development, replacing massive diesel use and delivering emissions-free power.

• The Condo Takeover on the West Coast: Apartments are projected to account for 55% of all Metro Vancouver homes by 2050, rising significantly from 46% in 2024. Simultaneously, single-detached homes are forecasted to fall to just 14%. Officials anticipate the region will need roughly 20,500 net new homes per year to reach about 1.7 million dwelling units by 2050. Approximately two-thirds of all new housing is expected to be apartments, reflecting policies that prioritize compact, transit-served development, such as the growth along the Broadway corridor. While townhouses are expected to hold a steady share, the decline of single-detached construction is attributed to land constraints and shifting municipal planning priorities. However, there is controversy, as many view these smaller, expensive condo units as being built more for investors than for people raising families.

• Quebec's REM Deux-Montagnes Branch Opens: Part of one of Canada's largest transit projects under construction, the REM's Deux-Montagnes branch, has finally opened to riders, marking the second major segment to be completed. The complex build, which took seven years and involved tunnel rehabilitation under Mount Royal, now connects directly into three existing metro lines (via McGill, Édouard-Montpetit, and Central Station Bonaventure). While it started as roughly a $6.9 billion project, costs are now expected to be around $9.4 billion due to delays, tunnel surprises, and pandemic impacts. The project is built and operated by CDPQ Infra, Quebec's pension fund's infrastructure arm, which has publicly stated it is absorbing the cost overruns, making it an interesting case study for risk transfer in Canadian mega project delivery.

• 3D Printing Creates a Living Laboratory in Ontario: The University of Windsor has begun constructing Canada's first multi-story 3D printed net-zero student residence. The printing is happening on site using a large-format concrete 3D printer. The building, which will contain seven residential units, is designed to serve as a living laboratory for researchers and engineering students to study 3D printed construction in real time, focusing on long-term structural performance, energy use, and durability. This project aims to demonstrate how 3D printing can potentially make construction faster, more affordable, and more sustainable by dramatically reducing the need for formwork and traditional framing, which can cut down on required skilled labor. The federal government has expressed interest in supporting new construction technologies, making this a pivotal example of additive construction moving from concept to reality