Calgary Transit announced today it will sell off about 5,000 vehicles and 2,000 buses, with some buses selling for as much as $5 million each.
The Calgary Transit board of directors voted unanimously to sell all the company’s assets, including its fleet of four-wheeled buses, at a price tag of $1.6 billion, or $25 per vehicle.
It also announced that it is selling the bus company’s fleet of 10,000 electric buses, which will sell for $2.2 million.
The buses, in addition to their gas-powered electric motors, will be equipped with GPS navigation and cameras to make them more reliable.
Calgary Transit also announced today that it will begin selling the Calgary Transit Transit Services (CATS) fleet, which includes the bus fleet, to private investors.
The deal is expected to close by the end of 2019.
It’s unclear how much the buses will cost to sell.
Calgary Transportation is a privately owned company with no publicly traded stock.
It owns and operates the majority of its fleet, including the buses, buses and trains.
Calgary has been grappling with its finances since the fall of 2016, when it reported a $3.3-million deficit and was forced to sell off its fleet.
The company has also faced allegations of mismanagement and the misuse of public funds, including money it spent to replace buses with cheaper buses and buy buses to be sold at scrap prices.
In March, the company filed a lawsuit against the Alberta government and the province’s auditor general for a failure to fully fund the purchase of buses.