This document summarizes information about rail transportation in Canada. It provides an overview of key statistics on rail shipments and accidents. It also discusses government policies that have impacted rail, including ownership rules and regulations. The quality of Canada's rail infrastructure and supply chain is evaluated on a global scale. Analytics and safety reporting requirements are also reviewed.

1. RAIL TRANSPORTATION –
CANADA
BY: PAUL YOUNG, CGA, CPA
OCTOBER 4, 2020

2. 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

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

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
• Analytics / Rail Safety
• Summary

5. CAR LOADING / RAIL – JULY 2020
SOURCE - HTTPS://WWW150.STATCAN.GC.CA/N1/DAILY-QUOTIDIEN/200930/DQ200930E-ENG.HTM

6. RAIL ACCIDENTS AND OIL SHIPMENTS
Source- https://www.cer-rec.gc.ca/nrg/sttstc/crdlndptrlmprdct/stt/cndncrdlxprtsrl-eng.html or https://www.cer-rec.gc.ca/en/data-analysis/energy-commodities/crude-oil-petroleum-
products/statistics/canadian-crude-oil-exports-rail-monthly-data.html or https://www.bst-tsb.gc.ca/eng/stats/rail/2020/08/index.html
Source: BMO Economics
Source - Baker Hughes

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. CP RAIL
Source - https://investor.cpr.ca/financials/default.aspx

9. OIL SHIPMENT AND RAIL
Source - https://www.neb-one.gc.ca/nrg/sttstc/crdlndptrlmprdct/stt/cndncrdlxprtsrl-eng.html or https://www.cer-rec.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/

10. 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.

11. 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

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 and
https://www.tsb.gc.ca/eng/pipeline/ind
ex.html

14. RAIL ACCIDENTS / CANADA
Source - https://www.tsb.gc.ca/eng/stats/rail/2018/sser-ssro-2018.html
Source -
https://globalnews.ca/news/
5029092/canadian-railway-
accidents-tsb/
7% increase in accidents

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

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

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

18. 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

19. 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.

20. ANALYTICS AND RAIL TRANSPORTATION
• Data Analytics / Rail - https://www.globalrailwayreview.com/article/97670/four-benefits-data-analytics-
safety-modern-rail/
• Rail inspection / AI - https://www.railwayage.com/regulatory/ai-machine-learning-enhance-track-
inspection/
• Analytics / Rail - https://www.ibm.com/industries/travel-transportation/rail

21. AUDIT REPORTS
• 2013 audit recommendations - https://tc.canada.ca/en/follow-audit-rail-safety - Majority of the audit
recommendations have been implemented
• CBSA Audits - https://www.cbsa-asfc.gc.ca/agency-agence/reports-rapports/ae-ve/2015/cr-mf-eng.html
- Concerns with oversight and accountability
• VIA rail audits - https://www.oag-bvg.gc.ca/internet/English/parl_oag_201602_07_e_41251.html
• Transportation Canada audits - https://tc.canada.ca/en/corporate-services/transparency/corporate-
management-reporting/internal-audit-reports -
• Transportation Safety changes - https://www.tsb.gc.ca/eng/recommandations-
recommendations/rail/index.html

22. TRAINING AND DEVELOPMENT
• If you like to learn more about
trade and/or other subjects as
part of your professional
learning and development
then feel free to review my
material on
https://www.udemy.com/
(search Paul Young CPA CGA)
• These subjects address how
to fixed issues with housing
and/or systemic issues related
to economy including
government policies

23. RAIL MANAGEMENT AND ANALYTICS
• Data analytics / Safety - https://www.globalrailwayreview.com/article/97670/four-benefits-data-
analytics-safety-modern-rail/
• Big Data / Optimization - https://www.railwayage.com/analytics/big-data-optimized-processes-
analytics/

24. SUMMARY
• 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
• Rebound in rail shipments - https://www.bnnbloomberg.ca/rise-in-rail-shipments-points-to-beginnings-of-rebound-in-
canada-1.1444410
• Rail Strikes and disruptions - https://www.industryweek.com/supply-chain/article/22028620/canadian-railway-strike-
disrupts-steel-copper-trade-with-us or https://business.financialpost.com/news/economy/canada-stalled-as-blockades-
shut-down-rail-networks-and-the-movement-of-goods-and-people
• Liberals have done little to expand ports - https://www.alaskahighwaynews.ca/business/federal-budget-short-on-oil-
and-gas-initiatives-1.23669360
• 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 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
• More focus on use of analytics as part of managing rail movement and safety
• More emphasis on supply management - https://www.slideshare.net/paulyoungcga/how-best-to-reshore-supply-chains