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2012 Rail Trends - Railway Association of Canada

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www.railcan.ca<br />

<strong>2012</strong> <strong>Rail</strong> <strong>Trends</strong>


Yukon Territory<br />

Northwest Territories<br />

C a n a d a<br />

British Columbia<br />

Hay River<br />

Nunavut<br />

Churchill<br />

Prince<br />

Rupert<br />

CN<br />

RMR<br />

Alberta<br />

CN<br />

Edmonton<br />

Saskatchewan<br />

HBRY<br />

Manitoba<br />

Vancouver<br />

RMR<br />

WCE<br />

SRY<br />

RMR<br />

CP<br />

KPR<br />

KFR<br />

APR<br />

Calgary<br />

GSR<br />

CP<br />

CTRW<br />

CP<br />

GWR<br />

Saskatoon<br />

Regina<br />

CN<br />

BNML<br />

CEMR<br />

Winnipeg<br />

BNSF<br />

BNSF<br />

Rapid City<br />

CP<br />

Minneapolis<br />

Minneapolis<br />

St. Paul<br />

CN<br />

www.railcan.ca ISBN: 978-1-927520-00-0<br />

BNSF<br />

Kansas City<br />

U n i t e d S<br />

BN


99 Bank Street<br />

Suite 901<br />

Ottawa, ON K1P 6B9<br />

Telephone: (613) 567-8591<br />

Fax: (613) 567-6726<br />

Email: rac@railcan.ca<br />

Canadian railway network as <strong>of</strong> Dec. 31, 2011.<br />

Please see the most recent edition <strong>of</strong> the Canadian <strong>Rail</strong> Atlas<br />

for an up-to-date version <strong>of</strong> the network.<br />

Ontario<br />

CP<br />

CN<br />

CN<br />

CP<br />

Moosonee<br />

ONR<br />

Thunder Bay Sudbury<br />

HCRY<br />

Detroit<br />

Chicago<br />

GEXR<br />

NCR<br />

OVR<br />

BCRY<br />

SSR GO<br />

VIA<br />

ETL<br />

Quebec<br />

CN<br />

PCHR<br />

CFQG<br />

CFO<br />

VIA<br />

CR<br />

Toronto<br />

STER<br />

OSRSOR<br />

NS<br />

TSH<br />

Labrador City<br />

Montréal<br />

AMMC<br />

RS<br />

CFC<br />

Québec<br />

CSX<br />

AMT<br />

Schefferville<br />

WLR<br />

SLQ<br />

CP<br />

Newfoundland and<br />

Labrador<br />

MMA<br />

QNSL<br />

CFA<br />

New<br />

Brunswick<br />

NBSR<br />

EMRY<br />

Sherbrooke<br />

Albany<br />

CFRR<br />

Sept-Îles<br />

CFG<br />

Prince<br />

Edward<br />

Island<br />

Moncton<br />

CN<br />

Nova<br />

Scotia<br />

SCR<br />

CBNS<br />

Halifax<br />

i2 012<br />

NS<br />

CSX<br />

SF<br />

NS<br />

t a t e s<br />

CN<br />

CSX<br />

NS<br />

CSX


Member Companies<br />

December 2011<br />

ii2 012<br />

6970184 <strong>Canada</strong> Ltd<br />

AMT Agence métropolitaine de transport<br />

APR Alberta Prairie <strong>Rail</strong>way Excursions<br />

AMTK Amtrak<br />

AMMC ArcelorMittal Mines <strong>Canada</strong><br />

CFA Arnaud <strong>Rail</strong>way Company<br />

BCRY Barrie-Collingwood <strong>Rail</strong>way<br />

BNSF BNSF <strong>Rail</strong>way Company<br />

BNML Burlington Northern (Manitoba) Ltd.<br />

CP Canadian Pacific<br />

CBNS Cape Breton & Central Nova Scotia<br />

<strong>Rail</strong>way<br />

CT Capital <strong>Rail</strong>way<br />

CTRW Carlton Trail <strong>Rail</strong>way<br />

CEMR Central Manitoba <strong>Rail</strong>way Inc.<br />

CFC Charlevoix <strong>Rail</strong>way Company Inc.<br />

CN CN<br />

CSX CSX Transportation Inc.<br />

EMRY Eastern Maine <strong>Rail</strong>way Company<br />

ETL Essex Terminal <strong>Rail</strong>way Company<br />

GEXR Goderich-Exeter <strong>Rail</strong>way Company<br />

Limited<br />

RMR Great Canadian <strong>Rail</strong>tour Company<br />

Ltd.<br />

GSR Great Sandhills <strong>Rail</strong>way Ltd.<br />

GWR Great Western <strong>Rail</strong>way Ltd.<br />

HBRY Hudson Bay <strong>Rail</strong>way<br />

HCRY Huron Central <strong>Rail</strong>way Inc.<br />

KPR Kelowna Pacific <strong>Rail</strong>way Ltd.<br />

KFR Kettle Falls International <strong>Rail</strong>way,<br />

LLC<br />

GO Metrolinx<br />

MMA Montréal, Maine & Atlantic <strong>Rail</strong>way,<br />

Ltd.<br />

NBSR New Brunswick Southern <strong>Rail</strong>way<br />

NCR<br />

NS<br />

ONR<br />

OSR<br />

OVR<br />

Company Limited<br />

Nipissing Central <strong>Rail</strong>way Company<br />

Norfolk Southern <strong>Rail</strong>way<br />

Ontario Northland Transportation<br />

Commission<br />

Ontario Southland <strong>Rail</strong>way Inc.<br />

Orangeville Brampton <strong>Rail</strong>way<br />

Ottawa Valley <strong>Rail</strong>way<br />

CFQG Québec Gatineau <strong>Rail</strong>way Inc.<br />

QNSL Québec North Shore and Labrador<br />

RS<br />

CFRR<br />

CFG<br />

SSR<br />

SOR<br />

SRY<br />

<strong>Rail</strong>way Company Inc.<br />

Roberval and Saguenay <strong>Rail</strong>way<br />

Company, The<br />

Romaine River <strong>Rail</strong>way Company<br />

Société du chemin de fer de la<br />

Gaspésie<br />

South Simcoe <strong>Rail</strong>way<br />

Southern Ontario <strong>Rail</strong>way<br />

Southern <strong>Rail</strong>way <strong>of</strong><br />

British Columbia Ltd.<br />

QNSL St. Lawrence & Atlantic <strong>Rail</strong>road<br />

(Québec) Inc.<br />

CFO Steam Train HCW<br />

SCR Sydney Coal <strong>Rail</strong>way<br />

TTR Toronto Terminals <strong>Rail</strong>way<br />

Company Limited, The<br />

STER/ Trillium <strong>Rail</strong>way Co. Ltd.<br />

PCHR<br />

TSH Tshiuetin <strong>Rail</strong> Transportation Inc.<br />

VIA VIA <strong>Rail</strong> <strong>Canada</strong> Inc.<br />

WLR Wabush Lake <strong>Rail</strong>way Company,<br />

Limited<br />

WCE West Coast Express Ltd.


Associate Members<br />

December 2011<br />

4 Refuel <strong>Canada</strong> LP<br />

Absopulse Electronics Ltd<br />

Accuworx Inc.<br />

Administration portuaire de Montréal<br />

AECOM<br />

Alexander Holburn Beaudin & Lang LLP<br />

AllTrain – Training Solutions<br />

Amsted <strong>Rail</strong><br />

BMT Fleet Technology Limited<br />

Bombardier Inc.<br />

Canac <strong>Rail</strong>way Services Inc.<br />

Canadian Heartland Training <strong>Rail</strong>way<br />

Canadian <strong>Rail</strong> Collision and<br />

Refurbishing Inc.<br />

Consolidated Logistic Inc.<br />

Davanac Inc.<br />

Dessau<br />

Ecopower Hybrid Systems Inc.<br />

Entretien Ferroviaire JMSR inc.<br />

Envirotec Services Incorporated<br />

Fairplast Industries<br />

(9151 9405 Québec Inc)<br />

GATX <strong>Rail</strong> <strong>Canada</strong> Corporation<br />

HDR Engineering<br />

Hewitt Equipment Ltd.<br />

IBI Group<br />

Itech Environmental Remediation<br />

Kenneth R. Peel, Barrister & Solicitor<br />

MD-UN Inc.<br />

Mecfor Inc.<br />

MMM Group Ltd<br />

NARSTCO<br />

Neptec Design Group Ltd.<br />

Newalta Industrial Services Inc.<br />

Ozark Mountain <strong>Rail</strong>car<br />

Peck & Hale L.L.C.<br />

PNR <strong>Rail</strong>works Inc.<br />

Quantum Murray LP<br />

<strong>Rail</strong> Cantech<br />

<strong>Rail</strong>decks (2009) Inc.<br />

<strong>Rail</strong>way 101 Consulting Services<br />

RDG2 Technologies Inc.<br />

Red Giant Oil Company<br />

RTC <strong>Rail</strong> Solutions Ltd<br />

Sandy Cooke Consulting Inc.<br />

Siemens <strong>Canada</strong> Limited<br />

SNC-Lavalin O&M<br />

Soulanges <strong>Rail</strong>way Services Inc.<br />

Stantec Inc.<br />

Stäubli Corporation<br />

Tessco Technologies Inc.<br />

Transportation Certification Services<br />

VIdal Street Industrial Park Inc.<br />

Whiting Equipment <strong>Canada</strong><br />

<strong>2012</strong><br />

iii


Message from the President<br />

<strong>2012</strong><br />

iv<br />

This is our organization’s 20th edition <strong>of</strong> <strong>Rail</strong> <strong>Trends</strong>. The<br />

data in this year’s milestone edition shows the industry’s<br />

continued dedication to growth, safety and sustainability,<br />

and demonstrates why the Canadian rail sector is experiencing<br />

a true renaissance.<br />

The driving force <strong>of</strong> this resurgence has been freight rail<br />

and the positive contributions and investments it has made to<br />

maximize the way goods are moved within North America and<br />

to international markets. Within a globally integrated supply<br />

chain, the country’s railways are working with customers to<br />

ship products in a timely way to new and traditional markets, thereby<br />

enabling them to add value and create more wealth for <strong>Canada</strong>.<br />

In addition to robust freight expansion, there has also been significant<br />

growth in passenger rail. <strong>Rail</strong> moves more than 73 million people<br />

each year and this number is rising. Gas prices and urban sprawl have<br />

boosted the demand for investment in passenger rail infrastructure and<br />

services and <strong>Canada</strong>’s intercity and commuter railways have responded<br />

exceptionally well.<br />

As <strong>Canada</strong>’s rail renaissance continues to gain steam, the country’s<br />

railway sector has garnered very positive impressions among the<br />

Canadian public. Public opinion research has found the overwhelming<br />

majority <strong>of</strong> Canadians view rail to be safe, environmentally friendly and<br />

the best mode <strong>of</strong> transportation for society.<br />

With the recession in the rearview mirror, the <strong>Rail</strong>way <strong>Association</strong><br />

<strong>of</strong> <strong>Canada</strong> and its members are thrilled to see the data in <strong>Rail</strong> <strong>Trends</strong><br />

reflecting a growing and prosperous future for rail in <strong>Canada</strong>. I hope you<br />

find this edition informative and useful. We welcome your feedback.<br />

Sincerely,<br />

Michael Bourque<br />

President and Chief Executive Officer<br />

<strong>Rail</strong>way <strong>Association</strong> <strong>of</strong> <strong>Canada</strong>


We dedicate this issue <strong>of</strong> <strong>Rail</strong> <strong>Trends</strong> to the memory <strong>of</strong><br />

Clifford J. Mackay, President and Chief Executive Officer<br />

<strong>of</strong> the <strong>Rail</strong>way <strong>Association</strong> <strong>of</strong> <strong>Canada</strong>, who passed away<br />

in January <strong>2012</strong>. Cliff spent more than five years at<br />

the helm <strong>of</strong> the RAC, where he worked collaboratively<br />

with various government and regulatory agencies to<br />

improve safety in the industry. A staunch advocate<br />

<strong>of</strong> freight and passenger rail, Cliff spent the twilight<br />

<strong>of</strong> his career ensuring Canadian regulatory agencies,<br />

as well as elected and non-elected <strong>of</strong>ficials, gained<br />

a better understanding <strong>of</strong> the strategic economic role<br />

railways play in <strong>Canada</strong>. His decades <strong>of</strong> experience<br />

and contributions improved the rail sector and <strong>Canada</strong>’s<br />

transportation industry as a whole. Moreover, he<br />

believed this work is good for business, the environment<br />

and our great country’s future.<br />

v2 012


Table <strong>of</strong> Contents<br />

<strong>2012</strong><br />

vi<br />

1 Introduction<br />

2 Economy<br />

4 Revenue ton-miles (Revenue tonne-kilometres)<br />

5 Employment<br />

6 Financial highlights<br />

8 Carloads originated by commodity grouping<br />

9 Passenger and tourist service statistics<br />

10 Infrastructure Investment and Productivity<br />

11 Additions to property<br />

12 Productivity<br />

13 Overview <strong>of</strong> taxes provided by rail sector<br />

14 Safety<br />

15 <strong>Rail</strong> accidents<br />

17 Operation Lifesaver<br />

18 Environment<br />

19 Carbon reporting<br />

20 Fuel and efficiency measures<br />

21 Locomotive fleet inventory<br />

21 Spills performance and response data<br />

22 Public Perception<br />

23 Appendix A – <strong>Rail</strong> Operations in <strong>Canada</strong><br />

35 Appendix B – Financial Highlights<br />

39 Glossary<br />

Conversion factors<br />

40 List <strong>of</strong> acronyms


Introduction<br />

This is the <strong>Rail</strong>way <strong>Association</strong> <strong>of</strong> <strong>Canada</strong>’s<br />

(RAC) 20th edition <strong>of</strong> <strong>Rail</strong> <strong>Trends</strong>, an<br />

annual report on the performance <strong>of</strong><br />

<strong>Canada</strong>’s freight and passenger railway sector.<br />

The publication contains a rolling 10-year<br />

review <strong>of</strong> financial and statistical results,<br />

reflecting multiple aspects <strong>of</strong> rail performance.<br />

This year’s edition provides an overview<br />

<strong>of</strong> 2011 performance and highlights some<br />

clear trends taking place in the Canadian rail<br />

business. The most obvious indication is that<br />

there is a rail renaissance underway. <strong>Canada</strong>’s<br />

integrated global supply chain is relying on rail<br />

more than ever, and this year’s data shows<br />

freight and passenger rail activity is increasing<br />

across the country.<br />

Despite a swell in rail traffic, this year’s data indicates the industry<br />

is improving its environmental and safety records. In fact, Canadian<br />

railways shipped more than 337 millions tons in 2011, a 0.8 per cent<br />

increase from the previous year, while reducing emissions, spills and<br />

accidents. This record <strong>of</strong> improvement is a testament to the sector’s<br />

commitment to sustainability and safety and is one <strong>of</strong> the reasons why<br />

the Canadian public has expressed clear support for rail.<br />

As <strong>Canada</strong>’s vast rail network moves increasingly more goods and<br />

people while getting greener and safer, it is clear the sector is going in a<br />

positive direction and that the resurgence <strong>of</strong> rail is in full force.<br />

This year’s data is categorized into five sections:<br />

••<br />

Economy;<br />

••<br />

Infrastructure Investment and Productivity;<br />

••<br />

Safety;<br />

••<br />

Environment; and<br />

••<br />

Public Perception.<br />

In addition to these sections, Appendix A and B provide details on rail<br />

operations and financial highlights from 2002 to 2011.<br />

12 012


Economy<br />

22 012<br />

Despite financial uncertainty in key<br />

markets around the globe, <strong>Canada</strong><br />

stood out among leading (global)<br />

industrialized countries with a relatively healthy,<br />

export-rich economy in 2011. <strong>Rail</strong>ways were<br />

instrumental in solidifying this status.<br />

As <strong>Canada</strong>’s economy continues to rally<br />

towards pre-recession levels, the nation’s<br />

railways are relied upon more heavily than ever<br />

before to facilitate growth and trade. In recent<br />

years, rail has become the preferred mode <strong>of</strong><br />

ground transportation, facilitating more than<br />

$75 billion in trade, and reinforcing its role as<br />

the backbone <strong>of</strong> an integrated supply chain that<br />

has helped move <strong>Canada</strong>’s resources to global<br />

markets.<br />

The most common barometer for measuring rail workload performance<br />

is revenue ton-miles (revenue tonne-kilometres) or RTM (RTK),<br />

which is the movement <strong>of</strong> one revenue-producing ton <strong>of</strong> freight the<br />

distance <strong>of</strong> one mile (kilometre). It is calculated by multiplying the<br />

weight <strong>of</strong> paid tonnage by the total distance (in miles or kilometres) it<br />

has been transported.<br />

This section highlights the statistical data <strong>of</strong> key areas that point to<br />

the current growth <strong>of</strong> rail in relation to the Canadian economy.


Economy<br />

2011 economic highlights:<br />

••<br />

Member railways’ workload increased by 3.2 per cent to a<br />

record 255 billion revenue ton-miles (372 billion revenue tonnekilometres)<br />

or RTM (RTK), and has climbed 20.6 per cent over the<br />

past 10 years.<br />

••<br />

The sector employed an average <strong>of</strong> 33,624 people, a 3.3 per cent<br />

increase from 2010, marking the second consecutive year-overyear<br />

rise.<br />

••<br />

Total industry operating revenue hit a record $11.5 billon,<br />

surpassing last year’s total by 7.1 per cent, and operating<br />

expenses climbed 6.5 per cent to a record $9.8 billion.<br />

••<br />

Canadian freight rates continue to be some <strong>of</strong> the most<br />

competitive in the world.<br />

••<br />

Originated freight carloads increased 4.5 per cent compared to<br />

2010.<br />

••<br />

Total revenue from passenger transportation services, representing<br />

combined intercity, tourist train and commuter rail services, has<br />

climbed 71.4 per cent over 10 years to $667 million.<br />

32 012


Economy<br />

Revenue ton-miles<br />

(Revenue tonne-kilometres)<br />

In 2011, member railways’ workload<br />

totalled a record 255 billion RTM (372 RTK),<br />

an increase <strong>of</strong> 3.2 per cent from last year<br />

and 20.6 per cent over the past 10 years.<br />

The graph below indicates the RTM <strong>of</strong><br />

current member companies throughout the<br />

last decade.<br />

275,000<br />

REVENUE TON-MILES (millions)<br />

250,000<br />

225,000<br />

42 012<br />

200,000<br />

2002 2002 2003 2004 2005 2006 2007 2008 2009 2011<br />

250000


Economy<br />

Employment<br />

<strong>Rail</strong> delivers services that provide shippers<br />

access to domestic and international markets<br />

and connects passengers to destinations near<br />

and far. The increasing demand for services<br />

has prompted a boost in employment across<br />

the industry. In 2011, <strong>Canada</strong>’s rail business<br />

continued to serve as an economic driver<br />

by way <strong>of</strong> employment, both in terms <strong>of</strong><br />

number <strong>of</strong> employees and average annual<br />

wage.<br />

In 2011, the sector employed an average<br />

<strong>of</strong> 33,624 people, a 3.3 per cent increase<br />

from 2010 and the second consecutive yearover-year<br />

rise. The average salary in the sector also rose by 4.8 per<br />

cent from a year ago, outpacing the 2.6 per cent average annual<br />

increase since 2002. The figure below points to the sector’s year-by-year<br />

employment trends throughout the last decade.<br />

90,000<br />

EMPLOYMENT<br />

70,000<br />

52 012<br />

50,000<br />

30,000<br />

2002 2002 2003 2004 2005 2006 2007 2008 2009 2011<br />

Average annual wage<br />

Employees


Economy<br />

Financial highlights<br />

In 2011, year-over-year total industry operating revenue climbed 7.1 per<br />

cent to a record $11.5 billon. There are three components to operating<br />

revenue: freight, passenger and other revenue. Other revenue is largely<br />

composed <strong>of</strong> revenue for services provided to passenger and commuter<br />

rail companies, as well as switching, demurrage and miscellaneous<br />

rentals.<br />

The sector also hit a record $9.8 billion in total operating expenses,<br />

which includes costs <strong>of</strong> fuel, equipment maintenance and administrative<br />

expenditures. The new high was a 6.5 per cent jump from the previous<br />

year.<br />

12,000<br />

Operating REVENUE & expenses (millions)<br />

10,000<br />

8,000<br />

62 012<br />

6,000<br />

2002 2002 2003 2004 2005 2006 2007 2008 2009 2011<br />

Operating income<br />

Operating Expenses<br />

12000


Economy<br />

It’s worth noting that while railways increased their overall operating<br />

revenue in 2011, they did so <strong>of</strong>fering some <strong>of</strong> the lowest freight rates<br />

in the world.<br />

The graph below shows <strong>Canada</strong>’s freight rates throughout the last<br />

five years compared to most <strong>of</strong> the world’s largest economies.<br />

9 ¢<br />

CANADA IS A LEADER WITH LOW RAIL RATES<br />

8 ¢<br />

7 ¢<br />

6 ¢<br />

5 ¢<br />

4 ¢<br />

3 ¢<br />

2 ¢<br />

1 ¢<br />

0 ¢<br />

2006 2007 2008 2009 2010<br />

<strong>Canada</strong><br />

China<br />

France<br />

Germany<br />

India<br />

Japan<br />

Russia<br />

U.S.<br />

Revenue per ton-mile in U.S. dollars, Purchasing Power Parity adjusted<br />

Source: RAC, <strong>2012</strong><br />

72 012


Economy<br />

Carloads originated by commodity<br />

grouping<br />

Another measurement <strong>of</strong> industry workload<br />

that demonstrates rail’s renaissance in<br />

2011 is originated freight carloads by<br />

the sector, which increased 4.5 per cent<br />

compared to 2010. To get a better sense<br />

<strong>of</strong> the freight being carried, the industry<br />

tracks its carloads originated by commodity<br />

grouping. This set <strong>of</strong> data is indicative <strong>of</strong><br />

the products <strong>Canada</strong>’s trains are shipping<br />

across the country and to international<br />

markets.<br />

The chart below illustrates carloads originated by commodity<br />

grouping as a percent <strong>of</strong> all commodity carloads originated among<br />

member railways. Some categories have been grouped together.<br />

Carloads originated by commodity grouping<br />

82 012<br />

14% Agricultural Goods<br />

& Food<br />

10% Pulp &<br />

Wood Products<br />

25% Metals & Minerals<br />

23% Intermodal<br />

7% Machinery & Manufactured<br />

21% Hydrocarburants & Chemicals


Economy<br />

Passenger and tourist service statistics<br />

The 2011 data shows more and more people are choosing rail<br />

transportation as a means to commute and travel. In the same year,<br />

total revenue from passenger transportation services, representing<br />

combined intercity, tourist train and rail commuter services decreased<br />

1.0 per cent to $667 million, but climbed 71.4 per cent over 10 years.<br />

The number <strong>of</strong> rail commuters in British Columbia, Ontario and Quebec<br />

also jumped 36.5 per cent over the decade.<br />

The rise across passenger and tourist service statistics reflects<br />

Canadians’ mounting attraction to intercity and commuter rail. <strong>Rail</strong><br />

is safe, convenient and green and this year’s findings indicate rail is<br />

a preferred method <strong>of</strong> travel among Canadians. The RAC’s member<br />

railways understand the demand for increased passenger rail service<br />

and are effectively adapting in order to meet the needs <strong>of</strong> Canadians by<br />

providing more passenger services more <strong>of</strong>ten.<br />

92 012


Infrastructure Investment<br />

and Productivity<br />

<strong>2012</strong><br />

10<br />

To improve service and increase the value<br />

and performance <strong>of</strong> the supply chain, RAC<br />

member railways continued their substantial<br />

investment in the maintenance and development<br />

<strong>of</strong> infrastructure in 2011. These companies are in<br />

the distinctive position <strong>of</strong> financing the near entirety<br />

<strong>of</strong> the network that forms the backbone <strong>of</strong> the<br />

Canadian supply chain. Their investment is measured<br />

by the industry term “additions to property,” which<br />

includes purchasing rolling stock, improving bridges<br />

and replacing rail and other track materials.<br />

In order to keep pace with shipper demands and<br />

maintain exceptional service at the lowest possible<br />

rates, member railways ensure the existing network<br />

is well-maintained and includes modernized facilities<br />

and information technology systems. This concerted effort to uphold and<br />

improve the efficiency <strong>of</strong> the rail network allows the railways to enhance<br />

their productivity and attract new business. Not only did Canadian railways<br />

keep up with growth in all areas <strong>of</strong> rail in 2011, but they did so while<br />

improving operating efficiencies and <strong>of</strong>fering better service to customers.<br />

The RAC represents effectively all rail companies operating in<br />

<strong>Canada</strong> – the large Class 1s, the regional and short lines railways, intercity<br />

passenger, commuter rail and tourist train operators.<br />

2011 investment and productivity highlights:<br />

••<br />

<strong>Canada</strong>’s rail sector invested $1.8 billion in additions to<br />

property in 2011, a year-over-year rise <strong>of</strong> 7.6 per cent.<br />

••<br />

Employee productivity increased by 2.5 per cent to a record<br />

8.5 million RTM (12.4 million RTK) per employee.<br />

••<br />

<strong>Canada</strong>’s railways contributed a record $158 million in tax<br />

revenue, 7.5 per cent more than the previous year.


Infrastructure Investment and Productivity<br />

Additions to property<br />

The figure below shows the industry invested<br />

$1.8 billion in additions to property in 2011, a<br />

year-over-year increase <strong>of</strong> 6.5 per cent. Compared<br />

to 10 years ago, Canadian railways committed<br />

80.7 per cent more to capital spending, reflecting<br />

the desire among rail companies to expand<br />

and maintain their network to improve service,<br />

facilitate the movement <strong>of</strong> trade and support<br />

the growth <strong>of</strong> the Canadian economy. The graph<br />

below shows the sector’s additions to property<br />

over the last 10 years.<br />

2,000<br />

ADDITIONS TO PROPERTY (MILLIONS CAD)<br />

1,000<br />

<strong>2012</strong><br />

0<br />

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011<br />

11<br />

Today, rail is experiencing a renaissance. Cities are implementing<br />

LRT systems. Metropolitan areas are expanding the reach <strong>of</strong><br />

commuter rail service. And at VIA <strong>Rail</strong>, we are working at<br />

improving inter-city rail transportation. We strive to have a<br />

positive and meaningful impact on the lives <strong>of</strong> millions <strong>of</strong><br />

Canadians.”<br />

Marc Laliberté<br />

President and Chief Executive Officer, VIA <strong>Rail</strong> <strong>Canada</strong>


Infrastructure Investment and Productivity<br />

Productivity<br />

The output <strong>of</strong> the rail business only goes<br />

as far as the efficiency <strong>of</strong> its employees.<br />

Employee productivity is measured in<br />

terms <strong>of</strong> RTM (RTK) per employee, which<br />

gives a sense <strong>of</strong> how well the sector is<br />

allocating its resources.<br />

From a year ago, employee productivity<br />

increased 2.5 per cent to a record 8.5 million<br />

RTM (12.4 million RTK) per employee in<br />

2011. While this figure suggests only a<br />

slight step forward in productivity, it is a<br />

robust long-term improvement from the<br />

6.3 million RTM (9.2 RTK) per employee recorded in 2002. The graph<br />

below illustrates the sector’s efficiency in terms <strong>of</strong> RTM per employee<br />

over the past 10 years.<br />

9,000<br />

REVENUE TON-MILES PER EMPLOYEE (000)<br />

8,000<br />

<strong>2012</strong><br />

12<br />

7,000<br />

6,000<br />

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011


Infrastructure Investment and Productivity<br />

Overview <strong>of</strong> taxes provided by rail sector<br />

While <strong>Canada</strong>’s railways drive the economy by transferring goods across<br />

a vast integrated global supply chain, the taxes the sector pays each<br />

year are <strong>of</strong>ten overlooked as a form <strong>of</strong> substantial economic contribution<br />

to Canadians.<br />

The table below provides a snapshot <strong>of</strong> the taxes by category that<br />

member railways contributed in 2011.<br />

TAXES BY CATEGORY<br />

21% Locomotive fuel<br />

& Excise tax<br />

16% Property tax<br />

7% Other Sales tax<br />

17% Payroll tax<br />

39% Income tax<br />

<strong>2012</strong><br />

13


Safety<br />

<strong>Canada</strong>’s railways run an average <strong>of</strong> 1,100 passenger and freight<br />

trains every day, <strong>of</strong>ten over some <strong>of</strong> the world’s most rugged<br />

terrain and in some <strong>of</strong> the most inclement weather conditions.<br />

Yet, the performance <strong>of</strong> Canadian freight railways in terms <strong>of</strong> safety has<br />

steadily improved over the last decade and <strong>Canada</strong>’s passenger railways<br />

remain among the safest in the world. While rail traffic is increasing<br />

to meet customer demand, the sector continues to be committed to<br />

safety and furthering its reputation as the safest means <strong>of</strong> ground<br />

transportation in <strong>Canada</strong>.<br />

2011 safety highlights:<br />

••<br />

While the sector moved a record 473.3 billion gross ton-miles<br />

(BGTM), it maintained a rate <strong>of</strong> 2.41 total accidents per BGTM,<br />

the lowest rate in the last 10 years.<br />

••<br />

Accidents at railway crossings were down 6.6 per cent yearover-year,<br />

while serious injuries fell 25 per cent over the same<br />

period.<br />

••<br />

Trespasser accidents and fatalities dropped 17.3 and 18.2 per<br />

cent year-over-year, respectively.<br />

<strong>2012</strong><br />

14


Safety<br />

<strong>Rail</strong> accidents<br />

Canadian railways celebrated a banner year <strong>of</strong> reportable railway<br />

accident 1 reduction in 2011. While the sector moved a record<br />

473.3 billion gross ton-miles (BGTM) in 2011, it maintained a rate <strong>of</strong><br />

2.41 total accidents per BGTM, the lowest rate in the last 10 years. In<br />

addition, the industry recorded 1,143 total freight and passenger train<br />

accidents in 2011, the lowest total over the same period.<br />

<strong>Canada</strong>’s railways take measures to reduce technical accidents and<br />

continually enhance the safety <strong>of</strong> rail operations. Work is also being<br />

done in collaboration with Transport <strong>Canada</strong> to improve safety where the<br />

public interacts with rail activities by closing rail crossings and improving<br />

public awareness by promoting accident prevention.<br />

The data collected in order to analyze the safety performance <strong>of</strong> rail<br />

comes from the Canadian Transportation Safety Board (TSB) and the<br />

RAC. The TSB maintains a database <strong>of</strong> safety performance statistics on<br />

federally-regulated railways 2 and the RAC collects similar statistics on<br />

provincially-regulated operations.<br />

1 “Reportable railway accident” means an accident resulting directly from the operation<br />

<strong>of</strong> rolling stock, where:<br />

• (a) (i) a person sustains a serious injury or is killed as a result <strong>of</strong> being on board or<br />

getting on or <strong>of</strong>f the rolling stock, or (ii) coming into contact with any part <strong>of</strong> the<br />

rolling stock or its contents, or<br />

• (b) the rolling stock (i) is involved in a grade-crossing collision, (ii) is involved in a<br />

collision or derailment and is carrying passengers, (iii) is involved in a collision or<br />

derailment and is carrying dangerous goods, or is known to have last contained<br />

dangerous goods the residue <strong>of</strong> which has not been purged from the rolling stock,<br />

(iv) sustains damage that affects its safe operation, or (v) causes or sustains a fire or<br />

explosion, or causes damage to the railway, that poses a threat to the safety <strong>of</strong> any<br />

person, property or the environment.<br />

<strong>2012</strong><br />

15<br />

2 The database is available at http://www.tsb.gc.ca/eng/rail/index.asp.


Safety<br />

The graph below shows the number <strong>of</strong> rail-related accidents over<br />

the previous 10 years, along with the rate <strong>of</strong> freight train accidents per<br />

billion gross ton-miles, which points to the number <strong>of</strong> accidents as they<br />

relate to rail activity.<br />

<strong>Rail</strong> Accidents and Accident Rate<br />

1,800<br />

4.5<br />

1,600<br />

3.4<br />

1,400<br />

2.3<br />

1,200<br />

1.1<br />

1,000<br />

2005 2006 2007 2008 2009 2010<br />

0<br />

Freight train accidents<br />

Freight train accidents per billion gross ton-miles<br />

<strong>2012</strong><br />

16


Safety<br />

Operation Lifesaver<br />

One <strong>of</strong> the programs committed to preventing collisions between trains<br />

and motor vehicles, as well as trespassing incidents that lead to serious<br />

injury or death, is Operation Lifesaver, 3 a joint initiative <strong>of</strong> the RAC<br />

and Transport <strong>Canada</strong>. The program aims to save lives by educating<br />

Canadians about the hazards surrounding public activity near rail<br />

property and trains. Operation Lifesaver works in tandem with the rail<br />

sector, government, police, labour unions, the media and the public to<br />

spread education and prevent tragedies.<br />

In 2011, accidents at railway crossings were down 6.6 per cent yearover-year,<br />

while serious injuries fell 25 per cent over the same period.<br />

Moreover, 2011 trespasser accidents and fatalities were also down<br />

17.3 and 18.2 per cent, respectively, year-over-year.<br />

“Year-over-year we continue to see a decline in both crossing<br />

and trespassing incidents thanks in part to the dedication <strong>of</strong> our<br />

partners, staff and volunteers. That’s definitely a trend worth<br />

repeating.”<br />

Daniel (Dan) Di Tota,<br />

National Director, Operation Lifesaver<br />

Source: Transportation Safety Board, <strong>Rail</strong>way <strong>Association</strong> <strong>of</strong> <strong>Canada</strong>, <strong>2012</strong><br />

<strong>2012</strong><br />

17<br />

3 http://www.operationlifesaver.ca.


Environment<br />

<strong>Canada</strong>’s legacy <strong>of</strong> pr<strong>of</strong>ound scenic beauty is<br />

recognized around the world, and rail is part <strong>of</strong><br />

maintaining the country’s natural splendour. In<br />

addition to moving people, goods and the economy,<br />

<strong>Canada</strong>’s railways boast a first-rate environmental<br />

record and commitment to sustainability. While the<br />

country’s rail sector <strong>of</strong>ten moves more than 70 per<br />

cent <strong>of</strong> all surface goods each year, it only accounts for<br />

3.4 per cent <strong>of</strong> the transportation sector’s Greenhouse<br />

Gas Emissions (GHG) and less than 1 per cent<br />

<strong>of</strong> <strong>Canada</strong>’s overall GHGs. 4 Since 1995, <strong>Canada</strong>’s<br />

freight and passenger rail sectors have participated<br />

in a Memorandum <strong>of</strong> Understanding (MOU) with<br />

the Government <strong>of</strong> <strong>Canada</strong> to voluntarily reduce<br />

GHGs and Criteria Air Contaminants (CAC). Under this<br />

initiative, the sector has committed to GHG and CAC reduction targets for<br />

freight, short line, intercity and commuter railways, and it will continue to<br />

work with governments, communities and other private sector partners to<br />

increase the sustainability <strong>of</strong> the Canadian supply chain.<br />

<strong>2012</strong><br />

18<br />

2011 environmental highlights:<br />

••<br />

The sector reduced fuel consumption by 3.1 per cent compared<br />

to 2010.<br />

••<br />

The industry’s number <strong>of</strong> freight car inventory was basically<br />

unchanged from a year before and its locomotive fleet increased<br />

by 23 locomotives. However, Canadian railways managed to<br />

lower the miles (kilometres) <strong>of</strong> road operated (road over which<br />

a railway has operating rights) by 1.8 per cent from 2010.<br />

••<br />

Dangerous goods (DG) leaker incidents accounted for 25 per<br />

cent <strong>of</strong> all reportable incidents, the lowest share to date.<br />

4 Source: United Nations Framework Convention on Climate Change (UNFCCC), 2010.


Environment<br />

Carbon reporting<br />

The Locomotive Emissions<br />

Monitoring (LEM) data is<br />

compiled in accordance with<br />

the terms <strong>of</strong> the MOU between<br />

the RAC, Environment <strong>Canada</strong><br />

and Transport <strong>Canada</strong>. It<br />

concerns the emissions <strong>of</strong> GHGs<br />

and CACs from locomotives<br />

operating in <strong>Canada</strong>. 5 An<br />

updated MOU covering the<br />

period 2011-2015 is being<br />

developed by the RAC and<br />

TC, and will ensure Canadian<br />

railways continue to monitor<br />

their emissions and strive to<br />

become more efficient.<br />

In addition to this initiative,<br />

both Canadian National <strong>Rail</strong>way<br />

and Canadian Pacific <strong>Rail</strong>way<br />

participate in the Carbon<br />

Disclosure Project (CDP) – an<br />

independent not-for-pr<strong>of</strong>it organization that works with the world’s<br />

largest investors, businesses and governments to reduce GHGs and<br />

promote sustainable water use through the measurement, disclosure,<br />

management and sharing <strong>of</strong> environmental information. To date, the<br />

CDP holds the largest collection <strong>of</strong> self-reported climate change data in<br />

the world. 6<br />

<strong>2012</strong><br />

19<br />

5 To see the RAC’s Locomotive Emissions Monitoring program,<br />

visit http://www.railcan.ca/publications/emissions.<br />

6 Additional information is available at: www.cdproject.net.


Environment<br />

Fuel and efficiency measures<br />

The rail sector has been faced with the challenge <strong>of</strong> dealing with rising<br />

diesel fuel prices. In 2011, diesel fuel prices hit $4.25 per gallon, a record<br />

high and a 30.8 per cent jump from the previous year. To cope, Canadian<br />

railways have faced pressure to optimize fuel consumption productivity,<br />

and have answered the call. The sector reduced fuel consumption by<br />

3.1 per cent in 2011 compared to 2010, and the graph below illustrates<br />

RTM (RTK) per gallon (litre) <strong>of</strong> fuel consumed grew 10.5 per cent during<br />

the same period and improved 25.5 per cent since 2002. This result<br />

speaks to the industry-wide efforts being made to improve efficiency<br />

while keeping pace with demand.<br />

Because <strong>of</strong> high diesel fuel prices, member railways have strived<br />

to adopt new sustainability measures and implement initiatives that<br />

will cut costs by improving fuel efficiency. These improvements<br />

include scheduling trains based on capacity to minimize congestion,<br />

better matching <strong>of</strong> horsepower to tonnage, enhancing train handling<br />

techniques and standardizing fuel-saving devices on locomotives. The<br />

most effective fuel efficiency initiative continues to be locomotive fleet<br />

renewal, the process in which older, less fuel-efficient locomotives are<br />

replaced by new and improved higher-horsepower locomotives.<br />

650<br />

RTM PER GALLON OF FUEL CONSUMED (000)<br />

<strong>2012</strong><br />

20<br />

550<br />

450<br />

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011


Environment<br />

Locomotive fleet inventory<br />

While freight, passenger and<br />

rail commuter workloads have<br />

been increasing steadily over<br />

the last decade, the sector<br />

has made a conscious effort<br />

to improve efficiency via<br />

asset utilization. In 2011, the<br />

industry’s freight car inventory<br />

was basically unchanged<br />

from a year before and its<br />

locomotive fleet increased<br />

by 23 locomotives. However,<br />

Canadian railways managed to<br />

lower the miles (kilometres)<br />

<strong>of</strong> road operated (road over which a railway has operating rights) by<br />

1.8 per cent from 2010. By replacing older locomotives, adding more<br />

fuel-efficient versions and reallocating resources, railways saved fuel by<br />

doing more with less.<br />

Spills performance and response data<br />

The TSB collects data on spills, or “dangerous good (DG) leaker”<br />

incidents – occurrences involving the unintentional release <strong>of</strong> a hazardous<br />

material while in transit. This type <strong>of</strong> incident does not involve an<br />

accident and <strong>of</strong>ten concern small quantities <strong>of</strong> products. In 2011, DG<br />

leaker incidents accounted for 25 per cent <strong>of</strong> all reportable incidents, the<br />

lowest share to date. Over the last five years, on average, DG leakers<br />

accounted for 33.8 per cent <strong>of</strong> incidents. Furthermore, reported DG<br />

leaker incidents totalled 51 in 2011, a 28 per cent decrease from the<br />

five-year average <strong>of</strong> 70.<br />

One <strong>of</strong> the primary functions <strong>of</strong> the RAC is to promote and continually<br />

improve the safe handling <strong>of</strong> dangerous goods. This means ensuring rail<br />

cars carrying dangerous goods meet strict standards, the consignments<br />

are properly packaged, labeled, placarded and documented, and that<br />

carriers handle the rail cars safely.<br />

<strong>2012</strong><br />

21


Public Perception<br />

As <strong>Canada</strong>’s rail industry<br />

ex periences a renaissance,<br />

the sector continues to<br />

garner very positive impressions<br />

among the Canadian public.<br />

Polling conducted by the RAC in<br />

2011 found the vast majority <strong>of</strong><br />

Canadians view freight, commuter<br />

and intercity rail options to be the<br />

safest, greenest and the best for<br />

society overall. Canadians also have a positive view <strong>of</strong> the railway sector<br />

as a source <strong>of</strong> employment in the near future.<br />

Canadians have expressed the want and need for more rail. From<br />

an economical, environmental and social standpoint, the widespread<br />

sentiment is that there needs to be more money and resources put<br />

toward the sector as a whole. Between limiting pollution and dramatically<br />

reducing congestion, Canadians agree that allocating resources to rail as a<br />

mode <strong>of</strong> transportation makes the most sense going forward.<br />

<strong>2012</strong><br />

22<br />

2011 public perception highlights:<br />

••<br />

When asked which mode <strong>of</strong> transportation should be the<br />

highest transportation priority in <strong>Canada</strong>, 56 per cent choose<br />

rail, which is more than five times any other means <strong>of</strong><br />

transportation. Cars rank a distant second at 11 per cent,<br />

followed by buses and planes at 10 per cent each.<br />

••<br />

Two-thirds <strong>of</strong> Canadians (67 per cent) agree with the statement<br />

that “rail transportation should be the highest transportation<br />

priority in <strong>Canada</strong>.”<br />

••<br />

A full 85 per cent <strong>of</strong> Canadians believe the government should<br />

invest to improve tracks for commuter and inter-city train travel.<br />

••<br />

Nearly three-quarters (72 per cent) would recommend jobs in<br />

the railway sector to their friends or family members.


Appendix A <strong>Rail</strong> Operations in <strong>Canada</strong><br />

Title<br />

Ten-year comparison<br />

Percentage change<br />

2011 versus:<br />

2002 2010 2011 2002 2010<br />

Revenue ton-miles (billions) 211.5 247 255.0 20.6 3.2<br />

Revenue tonne-kilometres (billions) 308.8 361 372.3 20.6 3.2<br />

Miles <strong>of</strong> road operated (1) 29,087 27,652 27,167 -6.6 -1.8<br />

Kilometres <strong>of</strong> road operated (1) 46,811 44,501 43,721 -6.6 -1.8<br />

Locomotives 3,129 2,954 2,955 -5.6 0.0<br />

Freight cars (000) 98 72 72 -26.8 -0.1<br />

Gallons <strong>of</strong> fuel (millions) 451 451 437 -3.2 -3.2<br />

Litres <strong>of</strong> fuel (millions) 2,051 2,049 1,984 -3.3 -3.2<br />

Employees 37,296 32,549 33,624 -9.9 3.3<br />

Annual wage per employee ($) 64,229 79,346 83,176 29.5 4.8<br />

1. Miles (kilometres) <strong>of</strong> road operated include road over which a railway has operating rights.<br />

Freight revenue ($) per ton (tonne)<br />

Freight revenue per ton (tonne) is calculated by dividing freight revenue by total tons<br />

(tonnes) originated.<br />

Revenue per Index Consumer Price<br />

ton tonne 2001 = 100 Index<br />

2002 22.89 25.23 102.1 102.2<br />

2003 22.53 24.83 100.4 105.1<br />

2004 23.47 25.87 104.6 107.1<br />

2005 25.60 28.22 114.1 109.4<br />

2006 27.78 30.63 123.9 111.6<br />

2007 28.16 31.04 125.5 114.0<br />

2008 31.24 34.44 139.3 116.7<br />

2009 31.34 34.55 139.7 117.1<br />

2010 30.59 33.71 136.4 119.1<br />

2011 30.57 33.70 136.3 122.6<br />

<strong>2012</strong><br />

23


Appendix A<br />

Freight revenue (cents) per ton-mile (tonne-kilometre)<br />

Revenue per<br />

Index<br />

ton-mile tonne-kilometre 2001 = 100<br />

2002 3.44 2.35 105.2<br />

2003 3.32 2.28 101.5<br />

2004 3.37 2.31 103.1<br />

2005 3.64 2.49 111.3<br />

2006 3.87 2.65 118.3<br />

2007 3.84 2.63 117.4<br />

2008 4.20 2.87 128.4<br />

2009 4.00 2.74 122.3<br />

2010 3.99 2.74 122.0<br />

2011 4.04 2.77 123.5<br />

Freight transportation<br />

Intermodal traffic originated (2)<br />

Trailers Containers Total<br />

(000) (000) (000)<br />

<strong>2012</strong><br />

24<br />

2002 214 1,820 2,034<br />

2003 217 1,937 2,154<br />

2004 149 2,010 2,159<br />

2005 112 2,134 2,246<br />

2006 106 2,251 2,357<br />

2007 102 2,334 2,436<br />

2008 101 2,396 2,497<br />

2009 83 2,033 2,116<br />

2010 81 2,361 2,442<br />

2011 80 2,424 2,504<br />

2. Reflects both Canadian and U.S. operations <strong>of</strong> Canadian Class 1 railways. Intermodal units<br />

are actual counts <strong>of</strong> trailers and containers, regardless <strong>of</strong> size, and are not “twenty-foot<br />

equivalent units (TEUs)”.


Appendix A<br />

Freight transportation<br />

Carload traffic<br />

Carloads Tons Tonnes Tons Tonnes<br />

originated originated originated per per<br />

(000) (000) (000) carload (3) carload (3)<br />

2002 3,992 317,432 287,974 80 73<br />

2003 4,092 327,126 296,768 80 73<br />

2004 4,212 337,923 306,563 80 73<br />

2005 4,290 343,464 311,590 80 73<br />

2006 4,260 339,394 307,897 80 73<br />

2007 4,196 337,989 306,623 81 73<br />

2008 3,984 318,688 289,114 80 73<br />

2009 3,367 269,028 244,062 80 73<br />

2010 3,872 334,264 303,258 86 78<br />

2011 4,044 337,074 305,793 83 76<br />

3. Tons (tonnes) per carload: Tons (tonnes) originated divided by carloads originated.<br />

Freight transportation<br />

Freight train Freight train Revenue Revenue<br />

miles kilometres ton-miles tonne-kilometres<br />

(000) (000) (millions) (millions)<br />

2002 72,194 116,185 211,500 308,759<br />

2003 72,873 117,278 221,653 323,581<br />

2004 74,284 119,548 235,114 343,232<br />

2005 76,400 122,953 241,745 352,912<br />

2006 76,451 123,035 243,744 355,831<br />

2007 74,100 119,253 247,709 361,619<br />

2008 71,712 115,409 237,323 346,457<br />

2009 59,576 95,877 210,898 307,880<br />

2010 65,157 104,859 247,154 360,809<br />

2011 66,082 106,348 255,001 372,264<br />

<strong>2012</strong><br />

25


Appendix A<br />

Freight Transportation<br />

Carloads originated by commodity grouping (4) Forest Machinery &<br />

Agriculture Coal Minerals Products Metals Automotive<br />

2002 364,754 342,432 601,004 403,908 289,619 277,288<br />

2003 345,025 327,182 627,288 430,662 284,718 270,411<br />

2004 412,099 337,592 639,764 442,689 326,020 253,003<br />

2005 416,473 353,197 657,410 433,138 295,022 235,480<br />

2006 453,151 321,266 600,823 388,035 362,000 244,395<br />

2007 454,034 349,983 609,422 317,158 359,982 234,830<br />

2008 430,292 324,931 574,645 253,279 369,475 195,308<br />

2009 474,980 277,048 368,631 182,395 273,800 148,123<br />

2010 462,445 327,419 703,270 205,120 160,895 185,962<br />

2011 466,305 348,556 790,520 228,448 160,827 186,522<br />

Fuels & Paper Food Manufactured &<br />

Chemicals Products Products Miscellaneous Intermodal Total<br />

<strong>2012</strong><br />

26<br />

2002 469,514 274,219 30,391 55,624 691,417 3,800,170<br />

2003 474,342 302,994 32,652 51,652 712,377 3,859,303<br />

2004 485,197 333,061 40,587 63,890 722,412 4,056,314<br />

2005 469,655 333,830 44,169 65,629 769,936 4,073,939<br />

2006 470,833 274,092 41,454 66,333 819,552 4,041,934<br />

2007 470,876 252,150 41,822 65,923 832,663 3,988,843<br />

2008 443,125 228,072 42,365 75,160 847,647 3,784,299<br />

2009 401,141 175,693 42,232 79,445 741,807 3,165,295<br />

2010 419,905 170,823 52,240 92,949 847,832 3,628,860<br />

2011 432,657 157,780 54,948 94,935 890,168 3,811,666<br />

4. Not all member companies record carloads originated by commodity grouping. The Intermodal counts represent<br />

an average load factor that determined the number <strong>of</strong> carloads reported.


Appendix A<br />

Freight transportation<br />

Revenue from carloads originated by commodity grouping ($ millions) (5)<br />

Forest<br />

Machinery &<br />

Agriculture Coal Minerals Products Metals Automotive<br />

2002 732 416 623 619 364 477<br />

2003 761 405 645 615 360 460<br />

2004 875 513 763 798 404 397<br />

2005 948 738 811 969 429 414<br />

2006 1,125 676 764 928 489 433<br />

2007 1,157 709 819 780 476 445<br />

2008 1,161 706 833 646 531 443<br />

2009 1,259 502 525 478 317 337<br />

2010 1,221 598 772 500 381 394<br />

2011 1,297 713 898 564 424 381<br />

Fuels & Paper Food Manufactured &<br />

Chemicals Products Products Miscellaneous Intermodal Total<br />

2002 777 502 55 92 1,679 6,336<br />

2003 739 518 58 96 1,760 6,417<br />

2004 771 595 70 93 1,885 7,164<br />

2005 804 642 74 112 2,152 8,093<br />

2006 836 582 81 114 2,377 8,405<br />

2007 837 541 81 116 2,452 8,413<br />

2008 902 531 89 126 2,702 8,672<br />

2009 818 423 94 113 2,273 7,139<br />

2010 853 437 128 130 2,592 8,006<br />

2011 928 427 146 133 1,893 7,805<br />

5. Not all member companies record revenue from carloads originated by commodity grouping.<br />

<strong>2012</strong><br />

27


Appendix A<br />

Track operated, by provinces and territories (6)<br />

2010 2011<br />

Miles Kilometres Miles Kilometres<br />

Alberta 4,199 6,758 4,094 6,589<br />

British Columbia 4,144 6,669 4,148 6,675<br />

Manitoba 2,724 4,384 2,730 4,394<br />

Nfld. & Labrador 244 393 244 392<br />

New Brunswick 724 1,166 724 1,165<br />

Nova Scotia 409 657 409 658<br />

Ontario 6,549 10,540 6,365 10,244<br />

Quebec 3,695 5,947 3,690 5,938<br />

Saskatchewan 4,889 7,868 4,687 7,543<br />

Northwest Territories 75 121 75 121<br />

Total 27,652 44,501 27,167 43,721<br />

Intercity passenger trains 7,820 12,585 7,820 12,585<br />

Commuter and tourist trains 1,961 3,155 2,746 4,419<br />

Segments terminating in the U.S. 152 245 152 245<br />

Grand total 37,585 60,486 37,884 60,969<br />

6. First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks,<br />

spurs and yard tracks.<br />

<strong>2012</strong><br />

28


Appendix A<br />

Plant - track operated (7)<br />

Equipment in service<br />

Index<br />

Freight cars Locomotives<br />

Miles Kilometres 2001 = 100 in service in service<br />

2002 29,087 46,811 100.5 2002 98,001 3,129<br />

2003 29,138 46,893 100.6 2003 97,039 3,170<br />

2004 30,551 49,167 105.5 2004 99,141 3,234<br />

2005 30,380 48,893 104.9 2005 101,606 3,253<br />

2006 29,978 48,243 103.5 2006 99,946 3,271<br />

2007 29,713 47,816 102.6 2007 92,373 3,165<br />

2008 29,366 47,258 101.4 2008 83,984 3,046<br />

2009 28,163 45,323 97.3 2009 75,836 2,742<br />

2010 27,654 44,501 95.5 2010 71,788 2,954<br />

2011 27,167 43,721 93.8 2011 71,750 2,977<br />

7. First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks,<br />

spurs and yard tracks. Excludes intercity passenger trains, commuter & tourist trains and segments terminating<br />

in the U.S.<br />

Employment<br />

Employment<br />

Total Average Average<br />

compensation number <strong>of</strong> annual wage<br />

($ millions) (8) employees per employee ($)<br />

2002 2,392 37,296 64,229<br />

2003 2,412 36,599 65,901<br />

2004 2,387 35,736 66,804<br />

2005 2,548 35,389 71,994<br />

2006 2,535 34,558 73,356<br />

2007 2,566 34,938 73,440<br />

2008 2,633 35,208 74,790<br />

2009 2,439 32,337 75,415<br />

2010 2,584 32,565 79,346<br />

2011 2,797 33,624 83,175<br />

<strong>2012</strong><br />

29<br />

8. Compensation includes salaries and compensation paid and excludes company paid benefits such as<br />

<strong>Canada</strong>/Quebec Pension Plan, Unemployment Insurance and health taxes.


Appendix A<br />

Train statistics<br />

Average: Length <strong>of</strong> haul/Cars per train<br />

Miles (kilometres) hauled Miles (kilometres) hauled Average<br />

by transcontinental by regional/short line cars per<br />

railways (CN and CPR) railways freight train<br />

Miles Kilometres Miles Kilometres Cars<br />

2002 795 1,279 150 241 74<br />

2003 794 1,278 151 243 74<br />

2004 787 1,267 161 259 78<br />

2005 789 1,270 149 240 79<br />

2006 803 1,292 159 256 79<br />

2007 807 1,299 151 243 81<br />

2008 (9) 818 1,316 146 235 82<br />

2009 830 1,336 159 256 87<br />

2010 850 1,368 138 163 92<br />

2011 849 1,366 170 274 81<br />

9. 2008 “Miles (kilometres) hauled by regional/short line railways” were restated.<br />

Passenger transportation<br />

Intercity passenger transportation<br />

<strong>2012</strong><br />

30<br />

Passenger cars Number <strong>of</strong> Passenger<br />

in service passengers miles kilometres<br />

(000) (millions) (millions)<br />

2002 473 4,223 992 1,597<br />

2003 505 4,024 931 1,498<br />

2004 465 4,181 894 1,439<br />

2005 538 4,322 919 1,479<br />

2006 537 4,320 906 1,458<br />

2007 538 4,478 912 1,468<br />

2008 (10) 540 4,899 986 1,588<br />

2009 559 4,538 894 1,439<br />

2010 545 4,477 877 1,412<br />

2011 544 4,461 888 1,428<br />

10. 2008 “Passenger kilometres” were restated.


Appendix A<br />

Passenger transportation<br />

Intercity passenger transportation<br />

Passenger train<br />

Passenger car<br />

miles kilometres miles kilometres<br />

(000) (000) (000) (000)<br />

2002 7,406 11,919 50,035 80,523<br />

2003 7,252 11,671 50,087 80,607<br />

2004 7,214 11,611 49,707 79,995<br />

2005 7,415 11,933 49,966 80,412<br />

2006 7,381 11,879 49,400 79,501<br />

2007 7,330 11,796 48,708 78,388<br />

2008 7,414 11,932 49,140 79,083<br />

2009 7,334 11,803 47,290 76,106<br />

2010 7,331 11,799 46,275 74,472<br />

2011 7,273 11,705 48,239 77,633<br />

Average intercity passengers<br />

Average length <strong>of</strong> journey<br />

per train miles kilometres<br />

2002 134 238 383<br />

2003 128 226 364<br />

2004 124 219 352<br />

2005 124 217 349<br />

2006 123 214 344<br />

2007 124 209 336<br />

2008 133 206 332<br />

2009 122 203 327<br />

2010 120 204 328<br />

2011 122 204 328<br />

<strong>2012</strong><br />

31<br />

Average passenger load factor (%) On-time performance (%)<br />

2002 57 84<br />

2003 53 73<br />

2004 53 70<br />

2005 55 81<br />

2006 54 84<br />

2007 55 77<br />

2008 59 75<br />

2009 57 83<br />

2010 57 82<br />

2011 55 84


Appendix A<br />

Passenger transportation<br />

<strong>Rail</strong> commuter<br />

Commuter train<br />

Commuter car<br />

miles kilometres miles kilometres<br />

(000) (000) (000) (000)<br />

2002 199,957 321,801 2,592 4,171<br />

2003 204,198 328,626 2,724 4,384<br />

2004 214,089 344,544 2,749 4,425<br />

2005 224,833 361,834 2,820 4,539<br />

2006 237,781 382,672 2,730 4,394<br />

2007 247,066 397,615 2,808 4,518<br />

2008 256,123 412,190 2,832 4,558<br />

2009 245,942 395,806 2,876 4,628<br />

2010 256,134 412,209 3,008 4,841<br />

2011 278,244 447,791 3,171 5,103<br />

Average rail commuters <strong>Rail</strong> commuters (000)<br />

per train<br />

in British Columbia, Ontario and Quebec<br />

<strong>2012</strong><br />

32<br />

2002 284 50,132<br />

2003 260 52,688<br />

2004 287 54,905<br />

2005 283 58,235<br />

2006 300 60,634<br />

2007 339 63,393<br />

2008 340 67,052<br />

2009 301 65,962<br />

2010 310 68,562<br />

2011 255 68,427


Appendix A<br />

Additions to property<br />

Additions to property ($ millions)<br />

Buildings &<br />

Signals,<br />

Track & related machinery communications Terminals &<br />

roadway & equipment. & power fuel stations<br />

2002 374 310 42 17<br />

2003 333 202 47 24<br />

2004 364 188 38 11<br />

2005 582 189 95 27<br />

2006 613 212 74 37<br />

2007 618 255 44 43<br />

2008 688 189 79 26<br />

2009 706 257 72 24<br />

2010 804 231 109 16<br />

2011 971 314 108 15<br />

Work equipment<br />

Rolling Intermodal & roadway Other Total<br />

stock equipment machines equipment additions<br />

2002 208 16 34 14 1,015<br />

2003 313 25 41 21 1,006<br />

2004 337 30 36 39 1,043<br />

2005 416 39 31 15 1,394<br />

2006 352 48 44 28 1,408<br />

2007 350 30 41 18 1,399<br />

2008 290 29 68 22 1,391<br />

2009 317 34 42 72 1,524<br />

2010 427 15 49 55 1,706<br />

2011 297 11 53 64 1,834<br />

<strong>2012</strong><br />

33


Appendix A<br />

Productivity<br />

Revenue ton-miles per employee<br />

Revenue Revenue Road Road<br />

ton-miles per tonne-kilometres per miles per kilometres per<br />

employee (000) employee (000) employee employee<br />

2002 6,319 9,225 0.87 1.40<br />

2003 6,764 9,874 0.89 1.43<br />

2004 7,352 10,733 0.93 1.50<br />

2005 7,679 11,210 0.96 1.54<br />

2006 7,963 11,625 0.98 1.58<br />

2007 8,045 11,745 0.96 1.54<br />

2008 (11) 7,625 11,132 0.94 1.51<br />

2009 7,404 10,809 0.98 1.58<br />

2010 8,287 12,098 0.96 1.54<br />

2011 8,496 12,402 0.90 1.46<br />

11. 2008 Productivity statistics were restated.<br />

<strong>2012</strong><br />

34


Appendix B Financial Highlights<br />

Operating Income<br />

Operating revenue ($millions)<br />

Freight Passenger (12) Other Total<br />

2002 7,266 389 487 8,142<br />

2003 7,369 364 484 8,217<br />

2004 7,931 386 506 8,823<br />

2005 8,794 576 570 9,940<br />

2006 9,430 622 561 10,613<br />

2007 9,516 624 564 10,704<br />

2008 9,957 661 579 11,197<br />

2009 8,433 627 539 9,599<br />

2010 9,551 673 544 10,768<br />

2011 10,305 667 560 11,532<br />

12. Federal, provincial and municipal funding <strong>of</strong> $435 million in 2009 for Intercity passenger and commuter services<br />

is excluded.<br />

Operating income ($millions)<br />

Income<br />

2002 1,428<br />

2003 1,484<br />

2004 1,704<br />

2005 2,164<br />

2006 2,402<br />

2007 2,209<br />

2008 2,030<br />

2009 1,247<br />

2010 1,598<br />

2011 1,763<br />

<strong>2012</strong><br />

35


Appendix B<br />

Operating expenses<br />

Operating expenses ($millions) (13) Maintenance (14)<br />

Transportation Fuel <strong>of</strong> equipment<br />

2002 2,037 734 1,300<br />

2003 2,086 781 1,280<br />

2004 2,180 862 1,290<br />

2005 2,241 1,159 1,382<br />

2006 2,224 1,367 1,575<br />

2007 2,337 1,513 1,634<br />

2008 2,376 2,032 1,564<br />

2009 2,065 1,212 1,555<br />

2010 2,195 1,464 1,452<br />

2011 2,381 1,854 1,570<br />

Maintenance-<strong>of</strong>-way General and Total operating<br />

and structures administrative expense<br />

<strong>2012</strong><br />

36<br />

2002 1,374 1,269 6,714<br />

2003 1,421 1,165 6,733<br />

2004 1,421 1,366 7,119<br />

2005 1,493 1,501 7,776<br />

2006 1,408 1,637 8,211<br />

2007 1,549 1,462 8,495<br />

2008 1,718 1,477 9,167<br />

2009 1,612 1,908 8,352<br />

2010 1,766 2,294 9,171<br />

2011 1,910 2,054 9,769<br />

13. Charges for restructuring, relocation and write-down <strong>of</strong> assets are excluded.<br />

14. CN restated 2006 Maintenance <strong>of</strong> equipment and Maintenance-<strong>of</strong>-way and structures expenses.<br />

The net impact on 2006 Total operating expense was nil.


Appendix B<br />

Taxes by category ($millions)<br />

Locomotive Other Capital tax<br />

fuel & Property sales & customs Income Payroll<br />

Total excise tax tax tax duties tax taxes<br />

2002 654 168 143 118 42 27 156<br />

2003 742 173 139 101 64 110 155<br />

2004 698 174 141 90 25 118 150<br />

2005 716 180 155 98 31 101 151<br />

2006 1,084 188 155 102 21 471 147<br />

2007 989 188 154 97 15 381 154<br />

2008 930 187 152 99 14 323 155<br />

2009 853 177 152 97 14 265 148<br />

2010 787 195 150 96 14 185 147<br />

2011 958 204 153 70 0 372 158<br />

Payroll taxes ($millions)<br />

<strong>Canada</strong>/Quebec Unemployment Health<br />

Pension Plan Insurance Taxes Total<br />

2002 68 45 43 156<br />

2003 73 42 40 155<br />

2004 71 37 42 150<br />

2005 72 36 43 151<br />

2006 72 32 43 147<br />

2007 75 33 46 154<br />

2008 77 33 45 155<br />

2009 74 30 44 148<br />

2010 73 31 43 147<br />

2011 77 34 47 158<br />

<strong>2012</strong><br />

37


Appendix B<br />

Taxes by jurisdiction ($ 000)<br />

Locomotive fuel Fuel tax per litre<br />

& excise tax (cents) Property tax<br />

2010 2011 2011 2010 2011<br />

Alberta 4,535 4,482 1.5 12,616 13,071<br />

British Columbia 38,949 44,265 10.7 39,520 38,437<br />

Manitoba 9,765 9,877 6.3 13,505 13,773<br />

Nfld. & Labrador 0 0 16.5 53 55<br />

New Brunswick 1,559 1,283 4.3 1,660 1,737<br />

Nova Scotia 17 17 15.4 2,760 2,771<br />

Ontario 24,127 25,413 4.5 34,784 36,930<br />

Quebec 4,852 4,807 17.2 31,012 31,141<br />

Saskatchewan 35,158 36,875 15.0 14,040 14,917<br />

Northwest Territories 0 0 11.4 75 73<br />

Federal 76,436 77,296 4.0 0 0<br />

Total 195,397 204,314 150,025 152,905<br />

Capital tax &<br />

Other sales tax customs duties Income tax<br />

2010 2011 2010 2011 2010 2011<br />

<strong>2012</strong><br />

38<br />

Alberta 44 43 0 124 11,586 22,325<br />

British Columbia 11,507 403 2 0 229 0<br />

Manitoba 11,810 12,378 2,486 169 0 597<br />

Nfld. & Labrador 0 0 0 0 0 0<br />

New Brunswick 0 0 0 0 1,617 1,620<br />

Nova Scotia 0 0 200 171 290 381<br />

Ontario 17,084 1,550 7,747 -130 44,763 38,840<br />

Quebec 12,892 13,080 2,900 81 6,412 13,814<br />

Saskatchewan 7,672 7,598 0 -386 36 -31<br />

Northwest Territories 0 0 0 0 0 0<br />

Federal 35,218 35,311 270 42 119,732 294,341<br />

Total 96,227 70,363 13,605 71 184,665 371,887


Glossary<br />

Average length <strong>of</strong> haul: Calculated by dividing revenue ton-miles by<br />

revenue tons.<br />

Average cars per freight train: Calculated by dividing loaded and empty<br />

car miles by train miles.<br />

Container: A large, weatherpro<strong>of</strong> box designed for shipping and/or<br />

transferring freight between rail, truck or marine modes. Specialized<br />

containers are equipped with heating and cooling capabilities for<br />

perishable products.<br />

Gross ton-miles (Gross tonne-kilometres): The sum <strong>of</strong> ton-miles<br />

handled, calculated using the total weight <strong>of</strong> the trailing tonnage (both<br />

loaded and empty cars) <strong>of</strong> the trains moved. It excludes the weight <strong>of</strong><br />

the locomotives pulling the trains.<br />

Intermodal service: The movement <strong>of</strong> trailers or containers by rail and<br />

at least one other mode <strong>of</strong> transportation. Import and export containers<br />

generally are shipped via marine and rail. Domestic intermodal service<br />

usually involves truck and rail.<br />

On-time performance: The ability to meet customer requirements as to<br />

pick-up and delivery schedules.<br />

Reload centre: A transfer facility enabling the railway to expand market<br />

share through truck-to-rail service.<br />

<strong>2012</strong><br />

39<br />

Revenue ton-miles (Revenue tonne-kilometres): The sum <strong>of</strong> tonmiles<br />

handled, calculated using the total weight <strong>of</strong> the commodities in<br />

the cars <strong>of</strong> the trains moved. It excludes the ton-miles involved in the<br />

movement <strong>of</strong> railway materials or any other non-revenue movement.<br />

Scheduled railroad: A railroad that handles individual car movements<br />

according to a specific plan where possible and manages expectations to<br />

meet agreed upon customer commitments.


Glossary<br />

Track operated: First main track only. Excludes second and other main<br />

track, passing tracks and crossovers, industrial tracks, spurs and yard tracks.<br />

Trip plan: A detailed chain <strong>of</strong> train handling events describing car<br />

handling from shipper’s door to consignee’s door. Trip plans are<br />

expressed in hours and are tailored for each specific customer location.<br />

Unit train: A train with a fixed, coupled consist <strong>of</strong> cars operated<br />

continuously in shuttle service under load from origin and delivered<br />

intact at destination and returning usually for reloading at the same<br />

origin.<br />

CONVERSION FACTORS<br />

miles to kilometres 1.6093<br />

tons (short) to metric tonnes 0.9072<br />

gallons to litres 4.5461<br />

revenue ton-miles to revenue tonne-kilometres 1.4599<br />

kilometres to miles 0.6214<br />

metric tonnes to tons (short) 1.1023<br />

litres to gallons 0.2200<br />

revenue tonne-kilometres to revenue ton-miles 0.6850<br />

<strong>2012</strong><br />

40<br />

LIST OF ACRONYMS<br />

BGTM Billion gross ton-miles<br />

CAC Criteria Air Contaminants<br />

CDP Carbon Disclosure Project<br />

DG Dangerous Goods<br />

GHG Greenhouse Gas Emissions<br />

LEM Locomotive Emissions Monitoring<br />

MOU Memorandum <strong>of</strong> Understanding<br />

RAC <strong>Rail</strong>way <strong>Association</strong> <strong>of</strong> <strong>Canada</strong><br />

RTK Revenue ton-kilometres<br />

RTM Revenue ton-miles<br />

TSB Transportation Safety Board

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