Presenting forIranian Association of Rail Transport EngineeringRailway Operations in Canada(Potentials and Challenges)Majid Babaie2010/01/11
Did you know? With 48,000 kilometers of track, Canada has oneof the largest rail networks in the world. Transport Canada regulations, standards andprograms work to make railway systemsafe, secure, accessible, competitive and moreenvironmentally responsible.
Did you know? More than 4.8 million passengers travel by rail each year, atotal distance of about 1.5 billion kilometers(tripaverage,332 Kilometers). Canadas rail system moves over300 million tones of cargo each year(400 billion Tone-kilometers). Average cars per freight train(1999-68, 2008- 82) Average passenger load factor 59% Passenger trains’ on-time performance 75% Average annual wage per employee $75000 There are 13 commuter rail lines in total inMontreal, Toronto and Vancouver. Commuter trainshandled 58.6 million passengers in 2006.
Did you know? $1.7 billion of goods traded daily with the U.S;efficient and cost-effective border is critical From 1992 to 2002, goods exports to the US rose from72% to 85% of Canadian total Rail handles a significant share of surface trafficacross the border; Ontario Corridors handle 65% ofall Canada/US trade by value (with 80% of rail traffichandled through Ontario gateways)
Did you know? Over 40% of GDP comes from exports of goods andservices. Highest in G-8. Rail moves half of goods. Most Canadian exports go to U.S.
The Railways’ Commitment Be the safest and most reliable mode oftransportation for people and products. Provide superior, reliable, and cost-effective service toCanadas intercity passengers and urban commuters. Be the most energy-efficient surface mode oftransportation, reduce highway congestion andoptimize land use for future transportation needs. The railway industry employs over 35,000 peopledirectly, another 60,000 indirectly withsuppliers, from coast to coast.
The Railways’ Commitment. Environmentally friendly- Rail has a significant environmental advantage overother surface modes of transportation whencomparing greenhouse gas emissions (GHG).- Despite carrying 65% of the nation’s surface tone-kilometers of freight, rail produces only 3% oftransportation GHG emissions; rail moves one tone offreight 168 kilometers on just one liter of fuel
For freight: a deregulation success story• Rates are down, lowest in the world• CN, CPR now best operating ratios in NA• Labor productivity up substantially• Freight subsidies have been eliminated ($ 700M in1995)• Lowest level of accidents/incidents in NorthAmerica• Growing the business, competing directly withtrucks• But short of capital funds
Up 18% since 1990PASSENGER KILOMETRES1,2001,2501,3001,3501,4001,4501,5001,5501,6001,6501990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002millions
LOWEST RATES IN THE WORLD...• Canadian rail rates have declined 40%, now the lowest in the worldU.S. Cents per Tonne-Kilometre0 2 4 6 8 10 12SwitzerlandU.K.FranceNetherlandsU.S.Source: RACCanadian rates are60% lower than theinternational averageRailroads passing on their efficiency gainsas a result of competition …
CHALLENGES Population growth is significant Truck growing rapidly: 61% by 2020 Congestion is unsustainable in Toronto,Vancouver, etc. Quality of life concerns growing: land use, air,safety Infrastructure costs to government
PERCENTAGE OF CAPITAL SPENDING TO REVENUES25%18%16%16%11%10%10%9%9%8%6%5%10%0 5 10 15 20 25 30Weighted Group AverageMetalsForest ProductsSteelPaper Products/PackagingIndustrial ProductsChemicalsAutomotiveTransportationOil and Gas ServicesCementIntegrated OilsRailways (Average)Railways are the most capital intensive industry …Source: Globe and Mail
HOW RAIL CAN HELP Congestion:- 1 freight train = up to 280 trucks- 1 passenger train = up to 1400 cars (GO trains = 48 lanes) Emissions:- 5 times less GHG emissions per unit of work- Significantly lower on other emissions as well- Commuter trains generate 25% as many GHG’s as urbanautos/km Competitiveness: Significant productivity gains which have been passed onto customers in lower rates Service levels increased considerably (new scheduledservices)
HOW RAIL CAN HELP (cont’d)• Cost to Governments/Society:– Rail corridors are privately owned, built, maintained and financed– User pay ; mini reliance on publicly funded highways• Land use:– 1/3 of that of highways– Several studies have shown that trucks cover only 50% of theirhighway/environmental costs• Safety:– Private, dedicated, secure corridors with own police service– Safest mode of transportation
91%91%73%66%60%25%32%Perceived Strengths of Rail and TruckFor Freight TransportationDifferent modes of transporting freight, such as trucks and trains, have different advantages anddisadvantages. I’m going to read you a list of characteristics and I would like you to tell mewhether that word most accurately describes truck transportation or rail transportation.Percent Choosing Rail Percent Choosing Trucksenvironmentally friendlySafestsociety overallMost cost effectivereliable6%6%22%Base = 1,000 adult Canadians
Directions to GovernmentBase = 1,000 adult CanadiansIm going to read you a list of statements about transportation in Canada, and I wouldlike you to tell me whether you strongly agree, somewhat agree, somewhat disagree,or strongly disagree.92%82%76%75%74%6%17%22%24%24%Total Agree Total DisagreeGovernment should invest to improvetracks for commuter and inter -citypassenger railGovernment should help rail to competewith other modes of freight transportationGovernment should pass laws requiringmore freight be moved by trainRail transportation should be the highesttransportation priority in CanadaRailways should receive specialassistance from government
GOVERNMENT’S AGENDA These involve six relevant public policycriteria:- Congestion- Emissions- Competitiveness- Cost to government- Land use- Safety
• Competitive equity• Recognize rail’s role and benefits• Assist with investment• Assess rail as solutionWhat Can Government Do?
Infrastructure Overview (New Rail Paradigm)Past• Significant rail restructuring in the last twenty years• Deregulation has benefited shippers and general public – since1987• Rates declined 40%• Productivity improvements of over 200%Present• More rail capacity needed in key corridors in North America for fulleconomic growth potential• Rail is not a mature industry – it is a growth industry again
Rail Association of Canada (RAC) Member Companies 54 Associate Members 40
ABOUT THE RAC• Formed in 1917 to help the war effort. Mandate:– Promote the benefits of railways in Canada– Provide input into public policy decisions related to therailway sector in Canada– Provide information for public, government and industry– Coordinate rulemaking and regulatory affairs for industry– Provide safety and operational assistance to membership
ABOUT THE RAC (cont’d)• Some 60 members: We are the Canadian rail industry• Represents virtually all Railway operating in Canada today• Class 1s: CN and CPR• Short lines: Over 40 across Canada• Passenger• Commuter: AMT, GO, WCE, Capital Railway• Intercity: VIA• Tourist: 8 across Canada• Together members carry• 4 million carloads annually• 1.8 million containers and trailers• 53 million commuters and other train travellers
ABOUT THE RAC (cont’d)• Created policy and advocacy capacity• Bolstered ongoing Safety and Operations capacity• Working to create a more rail-friendly public policyenvironment
RAC’s Members of the Board of Directors Mr. Mario Brault, President, Genesee & Wyoming Canada Inc. Mr. Paul Côté, President and CEO ,VIA Rail Canada Inc. Mr. Keith Creel, Executive Vice-President, Operations CN Mr. Sean Finn,Senior Vice-President, Public Affairs CN Mr. Mike Franczak,Vice-President, Transportation CP Mr. Fred Green, President and CEO, CP Mr. Gordon Peters, CEO, Cando Contracting Ltd. Mr. Peter Touesnard, General Manager, Ottawa Valley Railway