This presentation gives you a high level of rail transportation sector for Canada.

1. RAIL TRANSPORTATION –
CANADA
BY: PAUL YOUNG, CGA, CPA
MARCH 4, 2019

2. DISCLAIMER
• This presentation discusses Rail Transportations including the regulations

3. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

4. AGENDA
• CPC vs LPC – Transportation Shipments
• % change in Transportation Shipments
• Government Policies / Rules
• Summary

5. CAR LOADING / RAIL
Source -
https://www150.statcan.gc.ca/n1/daily-
quotidien/181218/dq181218d-eng.htm

6. RAIL LOADING % BY SEGMENT
SOURCE – STATS CANADA

7. CAPITAL INVESTMENT / RAILROAD
Source - https://www.cn.ca/en/investors and http://s21.q4cdn.com/736796105/files/doc_financials/quarterly-report/2018/q1/Q1-2018-
Presentation-FINAL.pdf
CP

8. OIL SHIPMENT AND RAIL
Source - https://www.neb-one.gc.ca/nrg/sttstc/crdlndptrlmprdct/stt/cndncrdlxprtsrl-eng.html
• 3x the barrels of oil are going by rail
Majority of trains are diesel (How is
this reducing the carbon footprint) -
https://www.statista.com/statistics/54
8143/diesel-fuel-consumption-
canadian-national-railway/

9. AIR TRANSPORTATION ACT
Source - https://www.mccarthy.ca/en/insights/articles/bill-c-49-shakes-air-transportation-law-canada
With the adoption of bill C-49, the terms of these exemptions have now become law and the CTA’s foreign
ownership cap has passed from 25% to 49%. That said, a single foreign corporation or entity can only own up to
25% of the voting interests, and any number of foreign airlines may together own a total of 25% of the voting
interests of a “Canadian” airline. In addition, bill C-49 does not modify the CTA’s requirement that notwithstanding
any foreign participation, a “Canadian” entity must be “controlled in fact” by Canadians.
With the adoption of bill C-49, the CTA requires that the Agency make regulations establishing a new airline
passenger rights regime. The regulations will govern flights to, from and within Canada, including connecting
flights, and will specify the requirements governing a carrier’s obligations in the case of flight delay, cancellation or
denial of boarding, as well as minimum standards of treatment, compensation and assistance in completing the
planned itinerary.

10. RAIL TRANSPORTATION ACT
Source - https://www.mccarthy.ca/en/insights/articles/bill-c-49-brings-important-changes-rail-transportation-
canada
• More reporting on shipments
• Ownership rules changes to CN
• Improvements to monitoring of Rail Systems (i.e. black box)
• Inter switching rate changes

11. TWEET – MARC
GARNEAU
Where is the federal transportation
minister on oil by rail? @MarcGarneau
https://www.canadianmanufacturing.co
m/supply-chain/with-more-oil-to-be-
shipped-by-rail-train-derailments-show-
enduring-safety-gaps-228090

12. OIL BY RAIL
SOURCE - HTTPS://WWW.CBC.CA/NEWS/POLITICS/TASKER-CRUDE-BY-RAIL-EIGHT-FOLD-INCREASE-1.4842410

13. PIPELINE ACCIDENTS
BY YEAR
Source - http://www.bst-
tsb.gc.ca/eng/stats/pipeline/2017/ssep-
sspo-2017.asp

14. SAFEST METHOD OF TRANSPORTING OIL
Source - https://www.fraserinstitute.org/article/pipelines-are-safest-way-transport-oil-and-gas

15. SUMMARY
• Liberals made a commitment to get goods to market. The
changes to rail act is ensure goods get to market like AG products
- http://www.dailyheraldtribune.com/2018/06/04/farmers-
optimistic-about-bill-c-49
• CP and CN have made commitments to expand their fleets,
distribution network, etc. as part of improving the flow of goods
- https://westcentralonline.com/ag-news/agriculture-news-
sk/ag-industry-gathers-in-manitoba-to-celebrate-passage-of-bill-
c-49