Corporate Information
Message from the President

In April of 1946, the Government of the day decided that there was a need for a reliable, province-wide bus transportation service to link the communities of Saskatchewan, and created the Saskatchewan Transportation Company (STC). Sixty years later, some may ask if that need still exists. The simple answer is that it does. For example, public opinion polling conducted by the company in the fall of 2006 showed us that 94 per cent of Saskatchewan residents felt STC provided an important service to the province, and 87 per cent said we provide an important service to their particular community.

STC President & CEO Ray Clayton

In the past 60 years, the demographics of the province have changed significantly, highways have been improved, and more people are able to afford their own automobiles. These developments have resulted in fewer people relying on public transportation than in the past. However, there are sizeable numbers of people who still rely on STC. It is the responsibility of STC to ensure that those who decide to use our company receive high quality services compatible with their needs and preferences.

Since its inception, STC has maintained a reputation for safety, courtesy, reliability and affordability. Saskatchewan people have come to know that when they need to use a bus service, we will be there for them.

But it takes more than a reputation for doing a job, and doing it well, to keep a company strong for 60 years. Adaptation to changing circumstances, innovation and an ongoing commitment to quality are critical.

Responding to the needs of the day is demonstrated by the construction of a new Regina passenger and freight depot and head office. When it became clear that the existing facilities in Regina could no longer meet the needs of our customers and staff, a new facility was designed which will emphasize comfort, safety and functionality. It is designed to enhance the flow of express parcels and passengers through the facility and to give our staff a more efficient workspace. It will exceed energy efficiency standards, be fully accessible for persons with disabilities and will be aesthetically pleasing for the surrounding neighbourhood.

Construction of the new $25.5 million facility began in October of 2006, and will be completed in the spring of 2008.

STC has also had to address the worrisome trend of persistent declines in the number of passengers using our service. While STC is certainly not alone in the less densely populated areas of North America in facing this trend, it was becoming a very serious threat to the viability of the service.

Starting in 2004, STC worked to correct a number of shortcomings in our service that were pointed out by our customers and the general public. Along with improvements to our service, we started a marketing campaign, which was largely aimed at two of our most important passenger groups, young people under the age of 25, and those aged 60 or older.

We also introduced innovative programs, such as the Youth Summer Excursion pass, which allowed people aged 15 to 25 unlimited use of our service for the months of June, July and August for one low price. When the program was introduced in 2005, it was a huge success, with more than 700 passes sold. The program was repeated in 2006, with the cost of the pass increasing by $25 to $100. It was still a successful program, with some 400 passes sold. This pass has been a good way to introduce young people to our service, and build a future customer base.

Thus far, our actions to deal with the decline in passengers seem to have met with success. In 2005, the number of passengers served by STC actually increased by 9,389, or about 3.6 per cent. That was the first increase in ridership in 15 years. And, in 2006, we saw a further increase in our ridership of 9,630 persons, or 3.6 per cent. Beginning in 2007, we have set a corporate goal of increasing our ridership by at least one per cent a year for the next five years.

We demonstrated our commitment to do our part in promoting a sustainable environment and addressing greenhouse gas emissions by introducing a pilot program on the use of bio-diesel fuel in our coaches. In April 2006, we began a one-year trial under which approximately 50 per cent of our fleet is running with a two per cent bio-diesel mixture. After the trial period, we will examine what impact the use of this mixture has had on fuel efficiency and engine lubricity (which contributes to longer engine life), to determine if there is merit in using the bio-diesel product in our entire fleet.

In accordance with our mandate to provide service on as wide a basis as possible, in 2006, STC carried 277,015 passengers 3.2 million scheduled miles to and from 278 communities.

STC?s revenues grew to $15,493,000 in 2006 from $14,859,000 in 2005. Operating expenditures increased to $21,238,000 from $20,297,000. The main increases in our costs were for salaries and fuel for our buses.

The capital grant increased from $3.9 million in 2005 to $4.2 million in 2006, due to costs associated with the construction of a new Regina facility.

STC had budgetary approval for an operating grant subsidy from the Crown Investments Corporation of Saskatchewan of $5 million for 2006. However, because of increased revenues and efforts to minimize expenditures wherever possible, we were able to reduce the actual subsidy needed by $1.0 million down to $4.0 million by the end of the year. It is interesting to note that in the 10 years STC has received an operating subsidy from CIC, in half of those years the company actually used less than what was approved, and has in effect given back some $3 million to the province.

STC is mandated to provide the widest possible service in the province, and this means it will continue to operate a number of routes that just do not have the population or business base to generate the revenues required to cover all of the costs. As long as those areas of the province need our services, STC will, in all likelihood, continue to require a subsidy to provide those services.

Providing a quality public transportation service has been, and remains, a challenge. We at STC are proud that we have met the challenges and have maintained a strong and viable presence in Saskatchewan for the past 60 years. It is our full intention to continue to serve the province for at least another 60 years.

Ray Clayton
President & CEO