ON TRACK FOR THE FUTURE Rail Day on the Hill - PowerPoint PPT Presentation

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ON TRACK FOR THE FUTURE Rail Day on the Hill

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We are the Canadian Rail industry. 57 members: virtually all of the industry ... KPMG 2001. Can. Railways = 13.4% U.S. Railways = 6.4% Can. Trucking = 10.4 ... – PowerPoint PPT presentation

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Title: ON TRACK FOR THE FUTURE Rail Day on the Hill


1
ON TRACK FOR THE FUTURERail Day on the Hill
Railway Association of Canada October 30th and
31st, 2002
2
WHO WE ARE ?
  • We are the Canadian Rail industry
  • 57 members virtually all of the industry
  • Core representation from all sectors
  • Class 1s CN and CPR
  • Short lines Over 40 across Canada
  • Passenger
  • Commuter AMT, GO, WCE, Capital Railway
  • Intercity VIA
  • Tourist 8 across Canada
  • RAC One Industry Voice

3
RENAISSANCE OF RAIL 1992-2002
  • For freight a deregulation success story
  • Class 1s
  • Rates are down, lowest in the world
  • CN, CPR now best operating ratios in NA
  • Labour productivity up 127 since 1992
  • Freight subsidies have been eliminated (700 mil
    in 1995)
  • Lowest level of accidents/incidents in North
    America
  • Short lines
  • Completely new entrepreneurial focused sector
  • Vital to regional economies, 30 of originated
    carloads
  • Growing the business, competing directly with
    trucks

4
RENAISSANCE OF RAIL 1992-2002
  • For passenger more efficient, reducing
    congestion and improving sustainability in the
    corridor and in urban areas
  • Intercity passenger
  • Business is increasing
  • Operating subsidies down considerably
  • Exciting new developments, esp. in Quebec
    City/Windsor corridor operations
  • Commuter
  • Considerable growth, new routes and operations
  • Increased recognition of public benefits by
    decision makers

5
RAIL TRUCK MARKET SHARE Tonne - Kilometres 2001
Truck 34
Rail 66
6
Down 21 since 1992, 35 since 1987
Freight Rates Revenue per tonne-kilometre
Indexed 1992100
1.1
1
0.9
cents
0.8
0.7
0.6
92
93
94
95
96
97
98
99
2000
2001
7
Up 127 since 1992
Labour Productivity RTK per employee (000)
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
92
93
94
95
96
97
98
99
2000
2001
8
Railways paid 654 million in taxes in 2001
Taxes Paid by Railways - 2001
Percent of Revenue Paid as Tax KPMG 2001 Can.
Railways 13.4 U.S. Railways 6.4 Can.
Trucking 10.4
Payroll taxes 23 153 mil
Locomotive fuel excise tax 25 164 mil
Income tax 6 36 mil
Property tax 21 139 mil
Capital tax customs duties 9 58 mil
Other sales tax 16 104 mil
9
Federal freight subsidies have been eliminated
Cdn Mil
696
683
248
28
27
25
26
25
1995
1998
1994
1997
1996
1999
2000
2001
10
Huge growth in short lines, over 40 new
shortlines since 1992
Originated Carloads 2001
Shortlines 30
Class 1s 70
11
Intermodal is the fastest growing line of business
12
Rails NAFTA corridors parallel the highway system
13
Canadian Pacific
CPR Lines
Haulage
Mexican Rwy.
Canadian railways are continental, with global
reach
14
Canadian National
Canadian railways are continental, with global
reach
15
Originated carloads by commodity grouping - 2001
1992 percentage for CN shown in yellow
Agriculture
Manufactured Miscellaneous 2 3
12 16
Intermodal
18 14
Coal
Food Products 1 2
10 12
Paper Products 6 8
Minerals
14 12
Fuels Chemicals 12 12
Forest Products
11 11
Machinery Auto 7 6
Metals 7 5
Rail is just-in-time not just bulk
16
GHG Emissions per tonne-kilometre
Freight Total
Freight Marine
Freight Rail
Freight Truck
0
100
200
300
400
grams/tonnes kilometre
Rail is virtually Kyoto compliant
17
Up 17.6 since 1992
18
Up 37.2 since 1997
Rail Commuters in Canada
Trips per year (000s)
60,000
55,000
50,000
45,000
40,000
35,000
30,000
1997
1998
1999
2000
2001
19
Over 10 billion in investment since 1996 Rail is
the most capital intensive industry
CN and CPR Investment 1996 to 2001
2,500.0
2,000.0
1,500.0
1,000.0
500.0
0.0
1996
1997
1998
1999
2000
2001
20
Rail has grown, but at a much slower rate than
trucking
Modal Distribution of Transportation Gross
Domestic Product 1981 - 1997
40
35
30
25
Rail
20
Truck
Water
15
10
5
0
1981
1991
1997
21
ITS A FRAGILE RECOVERY
  • Railways face intense competition
  • Other Canadian railways
  • US carriers
  • Other modes
  • Source competition
  • Financial stability is new
  • Imbalances in Govt policy a significant
    challenge, gains made in period of robust growth
  • Significant economic uncertainty especially in
    the US

22
GOVERNMENTS AGENDA
  • In the Speech from the Throne four themes
    relevant to surface transportation in Canada
  • Climate Change and Kyoto
  • Urban Sustainability and Congestion
  • Transportation Corridors and Borders
  • Smart Regulation

23
GOVERNMENTS AGENDA
  • These involve six relevant public policy
    criteria
  • Congestion
  • Emissions
  • Competitiveness
  • Cost to Government
  • Land Use
  • Safety

24
HOW CAN WE HELP YOU
  • Congestion
  • 1 freight train up to 280 trucks
  • 1 passenger train 1000 cars
  • Emissions
  • 5 times less GHG emissions per unit of work
  • Significantly lower on other emissions as well
  • Competitiveness
  • Significant productivity gains which have been
    passed on to customers in lower rates
  • Service levels increased considerably (new
    scheduled services)

25
HOW CAN WE HELP YOU
  • Cost to Governments/Society
  • Rail corridors are privately owned, built,
    maintained and financed
  • Land use
  • 1/3 of that of highways
  • Several studies have shown that trucks cover only
    50 of their highway/environmental costs
  • Safety
  • Private, dedicated, secure corridors
  • Safest mode of transportation

26
YOU CAN HELP US HELP YOU
  • Level the Playing Field
  • - Smart Regulation
  • No re-regulation especially forced access
  • Rate regulation only in exceptional circumstances
  • Use safety systems not a prescriptive approach
  • Tax equity
  • Reduce railway fuel tax
  • Reduce property tax on the rail corridor
  • Capital cost allowance on par with US rail/Can
    trucking
  • Capital tax should be eliminated
  • Full cost highway accounting and road pricing (a
    requirement for federal highway spending)
  • HR Cooperation

27
YOU CAN HELP US HELP YOU
  • Other options
  • Support selected railway infrastructure projects
  • Explore tax incentives
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