This presentation discusses Rail Transportations including the regulations

1. RAIL TRANSPORTATION –
CANADA
BY: PAUL YOUNG, CGA, CPA
JULY 19, 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
• Global Ranking / Quality of Infrastructure
• Global Ranking / Quality of Supply Management – Infrastructure
• Summary

5. CAR LOADING / RAIL – APRIL 2019
SOURCE - HTTPS://WWW150.STATCAN.GC.CA/N1/DAILY-QUOTIDIEN/190529/DQ190529B-ENG.HTM

6. 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

7. 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 -
https://www.neb-
one.gc.ca/nrg/sttstc/crdlndptrlmprdct/stt/cn
dncrdlxprtsrl-eng.html
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/

8. 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.

9. 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

10. 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

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

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

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

14. RAIL SYSTEMS / QUALITY
Source - https://www.theglobaleconomy.com/rankings/railroad_quality/

15. GLOBAL / SUPPLY MANAGEMENT - INFRASTRUCTURE
Source - https://lpi.worldbank.org/international/global?order=Infrastructure&sort=asc

16. BLOG – RAIL
• https://www.washingtontimes.com/news/2019/mar/4/patrick-moore-greenpeace-co-founder-shreds-
ocasio-/?fbclid=IwAR0fESqntHu3nYg0IF0pk9GDsn6VcwEhzcljtJUKET3wHXbDmdkfVHV8BAI
• Where is the federal transportation minister on oil by rail? @MarcGarneau
https://www.canadianmanufacturing.com/supply-chain/with-more-oil-to-be-shipped-by-rail-train-
derailments-show-enduring-safety-gaps-228090/
@MichelleRempel @emilia_suze

17. EMISSIONS AND OIL
• Are these all lies?
• Oil pipelines have very little carbon foot print - https://www.canadaaction.ca/greenhouse-gas-emissions-pipelines-canada
• Railway have emissions - https://www.cpr.ca/en/community/rail-environmental-facts
• Railway sparks can lead to forest fires - https://www.cbc.ca/news/canada/sudbury/railway-sparks-caused-massive-timmins-fire-mnr-
1.1331900
• Oil Pipelines safety – http://www.bst-tsb.gc.ca/eng/stats/pipeline/2018/12/p2018-12-t1.html
https://www.canadaaction.ca/reasons_why_pipelines_are_good_for_the_environment
• Record level of oil by rail - https://globalnews.ca/news/4824795/canadian-oil-exports-rail-safety/. BTW: there is opportunity costs as
more oil by rails means less cars/engines for other aspects of the economy like grains or metals or other areas –
https://www.slideshare.net/paulyoungcga/2019-election-goods-to-market-trudeau-vs-cpc-may-2019
• https://www.slideshare.net/paulyoungcga/2019-election-rail-transportation-canada-may-2019 (see slide 12 - Rail Safety)
• Pipeline still are the most efficient way to get oil to market. https://www.slideshare.net/paulyoungcga/2019-election-oil-and-gas-
pipelines-canada-june-2019 - I would stop looking at emissions, because Canada absorbs more CO2 than it emits.
https://www.slideshare.net/paulyoungcga/2019-election-climate-change-and-the-environment-canada-june-2019 or
https://policyoptions.irpp.org/magazines/june-2018/canadas-carbon-sinks-dont-mean-we-can-ease-off-on-climate-policy/
•
• I am for debates, but not when you take scripts without factual evidence to support your post.

18. 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
Liberals have done little to expand ports - https://www.alaskahighwaynews.ca/business/federal-budget-short-on-oil-and-gas-initiatives-1.23669360
Liberals talk about CO2, but say little when it comes to the amount of product moved by rail
No where is there any discussion of CO2 emissions by rail - https://knoema.com/atlas/topics/Transportation/CO2-Emissions-from-transport/CO2-emissions-from-
rail-transport