A new terminal will be built at Toronto's Kipling Station as part of a $35.5-million redevelopment to turn it into a major regional transit hub, the Ontario government announced Monday afternoon.

The construction of a new terminal and other facilities will turn the western-most subway station on Bloor-Danforth line into a connecting station for three public transportation systems: the Toronto Transit Commission, the inter-regional GO Transit and Mississauga Transit.

"This is good news for the environment and good news for the air we all
breathe," said Environment Minister Laurel Broten in a news release.

The new transit hub will provide more passenger pickup and drop-off locations, allowing passengers to travel more quickly between transit systems, the government says.

Representatives from GO and Mississauga transit systems were present at the announcement. TTC officials were notably absent, despite that the news conference took place inside its subway station.

Transportation Minister Donna Cansfield brushed aside questions about the TTC's finances, instead trumpeting the integration of regional transit systems.

'Make commuting easier'

"This new transit hub together with our new Presto integrated fare card will
make commuting across the [Greater Toronto Area] easier," said Cansfield.

Toronto's transit system is struggling to sustain its current level of service after it was forced last Friday to find $6 million in reductions as part of widespread city budget cuts.

Planning and design are currently underway with construction set to begin in 2008 and completion expected in 2010.

The province and GO Transit are investing $30 million over three years to redevelop the station and build the new transit terminal and related facilities. Mississauga is contributing $5.5 million to the project.