Vancouver bike share going forward despite Montreal flop

The impending bankruptcy of Montreal-based bike-sharing company Bixi has one Vancouver city councillor questioning the City of Vancouver's plans for a multi-million-dollar bike-sharing program.

Yesterday it was announced that the company that ownsBixi owes $50 million to various creditors, including the City of Montreal and the company is headed for bankruptcy.

In July, Vancouver'scity council approved a $6-million planto install 25 solar-powered docking stations for 250 bikes in the city's downtown core by spring 2014. The program will be operated by Alta Bicycle Share Inc., but will depend on bicycles and infrastructure supplied by Bixi.

NPA councillor George Affleck says with the bankruptcy filing, it's time the City of Vancouver gave up its plans to launch a bike share program.

"Should the city get involved in an industry that has no examples of success anywhere in the world?" said Affleck.

"I am not sure why Vision is so obsessed with this that they can't let it go. We have to move on. Now is not the time for bike sharing. We need to be careful of the taxpayer dollars and move on from there."

But Vision Vancouver Councillor Heather Deal points out while no contracts have been signed, there are no plans yet to shelve the idea.

"We're going to be touch with Alta and find out what's going on as we move forward. We're hoping that another bike producer can be found," said Deal.

Local company to the rescue?

One of the companies hoping to get another shot at running Vancouver's bike share program is SandVault Group, which lost its original bid to Alta and Bixi.

The Richmond-based company helped design Tulsa's bike share operation several years ago, then the first of its kind in North America. It also designed a profitable bike share programin Miami and is shipping a prototype to Philadelphia for a bid.

SandVaultpresident Rick Murray says the company has already designed a "made-in-Vancouver" bike share solution.

"The primary thing is that we deliver a product at a much lower price and as far asthe nature of the products, they are in factvery similar," says Murray.

Murray says he has been in contact with Alta, but no agreement has been made.

Vancouver's plan calls for an additional $500,000 every year to expand the program with along-term goal of 125 docking stations for 1,500 bikes throughout the city.

Long-term troubles

It is not the first time the company that ownsBixi the Public BikeSystem Company, known in French as the Socitdevlosenlibre-service(SVLS) has been in financial trouble.

The Quebec-born bike-sharing service haslost millions of dollarssince hittingMontreal streets in 2008.In 2011 Montreal approved a $108-million bailout package for the operation.

DespiteBixi's financial problems, Montreal Mayor Denis Coderre says he believes the service can be viable.

If Bixi can be saved, its through the Bankruptcy and Insolvency Act," Coderre said.

The company's cash-flow problems began when it tried to develop new proprietary technology for international clients.

Persistent delays and problems with the technology prompted many clients to withhold payments Chicago and New York refused to pay out $5.6 million to Bixi because of the prolonged snags in the development of each city's bike-sharing service.