2014 Rail Trends www.railcan.ca Yukon Territory Northwest Territories Nunavut Hay River C a n a d a British Columbia Churchill Al berta Prince Rupert CN CN S askatchewan RMR KCR HBRY M anitoba Edmonton CTRW RMR RMR CP KPR Vancouver WCE BCR SRY AMTK KFR BNSF Calgary GSR CP Ontario Saskatoon CN APR CP CN Regina PDCR CEMR CP Winnipeg GWR Thunder Bay BNSF CN BNSF St. Paul Minneapolis Rapid City CP CN CP BNSF Kansas City U n i t e d RAC members as of Dec. 31, 2013. For more detailed maps, please see the most recent edition of the Canadian Rail Atlas. ISBN: 978-1-927520-03-1 S t BNSF 99 Bank Street Suite 901 Ottawa, ON K1P 6B9 Telephone: (613) 567-8591 Fax: (613) 567-6726 Email: rac@railcan.ca www.railcan.ca Schefferville Newfound land and Labrador Labrador City WLRS TSH WLR QNSL AMMC Quebec CFA Sept-Îles SCFG Prince SCR Edward Moosonee New Brunswick RS CN ONR CFC Québec NCR CFQG AMT SLQ Montréal Sudbury OVR HCRY CP CSX Chicago NS CSX NS a t e s CN NS CSX Albany Island Moncton NBSR CN EMRY Nova Scotia Sherbrooke AMTK VIA CR BCRY GO SSR Toronto OBRY GEXR SOR OSR NS Detroit ETR CSX CFRR CBNS Halifax MEMBER COMPANIES 2013 AMT Agence métropolitaine de transport KRC Keewatin Railway APR KPR Kelowna Pacific Railway AMTK Amtrak KFR Kettle Falls International Railway AMMCArcelorMittal Mines Canada WLRS Labroador Iron Mines Railway BCRY Barrie-Collingwood Railway LMR Last Mountain Railway BRR Battle River Railway NBSR New Brunswick Southern Railway BCR British Columbia Railway Company NCR Nipissing Central Railway BSR Big Sky Rail NS Alberta Prairie Railway Excursions Norfolk Southern Railway BNSF BNSF Railway ONR Ontario Northland Railway CN Canadian National OSR CP Canadian Pacific OBRY Orangeville-Brampton Railway CBNS Cape Breton & Central Nova Scotia CR Ontario Southland Railway OVR Ottawa Valley Railway Railway PDCR Prairie Dog Central Railway Capital Railway CFQG Quebec Gatineau Railway CTRW Carlton Trail Railway QNSL Quebec North Shore & Labrador CEMR Central Manitoba Railway Railway CFC Charlevoix Railway CFRR Romaine River Railway CFA Chemin de fer Arnaud SCFG Société du Chemin de Fer de la RS Compagnie de chemin de fer CFL CSX Gaspésie Roberval-Saguenay SSR South Simcoe Railway Compagnie du Chemin de Fer SOR Southern Ontario Railway Lanaudière SRY Southern Railway of British Columbia CSX Transportation SLQ St. Lawrence & Atlantic Railroad EMRY Eastern Maine Railway SSRY Stewart Southern Railway ETR Essex Terminal Railway SCR Sydney Coal Railway GO GO Transit TTR Toronto Terminals Railway GEXR Goderich & Exeter Railway TSH Tshiuetin Rail Transportation RMR Great Canadian Railtour Company VIA VIA Rail Canada GSR WLR Wabush Lake Railway Great Sandhills Railway GWR Great Western Railway WCE West Coast Express HBRY Hudson Bay Railway HCRY Huron Central Railway ii 2014 ASSOCIATE MEMBERS 2013 Absopulse Electronics Ltd Marathon Drilling Co. Ltd. Accuworx Inc. Mecfor inc. Alexander Holburn Beaudin & Lang LLP Montréal Port Authority Amsted Rail NARSTCO Bayside Canadian Railway Ogborn Consulting Group, LLC Bombardier Transportation OWS Railcar Inc. CANAC Railway Services Inc. PNR Railworks Inc. Canada Heavy Haul Railway United Progressive Rail Specialized Logistics Technologies Inc. Quantum Murray LP Canadian Heartland Training Railway Rail Cantech Services Inc. Raildecks (2009) Inc. Canadian Rail Research Laboratory RailTerm C-Core RB&C Maintenance of Way Clean Harbors Environmental Services Red Giant Oil Company Contrans Flatbed Group Réparations ferroviaires K.L.N. Inc. Crescent Point Energy RTC Rail Solutions Ltd CSTP Inc. Sandy Cooke Consulting Inc. Davanac Inc. Siemens Canada Limited Drain-All Ltd. Soulanges Railway Services Inc. Envirotec Services Incorporated Stantec Inc. Forma-Train Swift Railroad Contractors GATX Rail Canada Corporation Tanis Peterson Gestion AFM-Séma inc. Tervita HDR Engineering T-Rail Products Inc. Heenan Blaikie Transportation Certification Services Hewitt Equipement Ltd. Vidal Street Industrial Park Inc. IBI Group Whiting Equipment Canada Itech Environmental Remediation X-Rail Signalisation Inc. Kenneth Peel Loram iii 2014 TABLE OF CONTENTS ii Member Companies iii Associate Members 1 Message from the President 2Introduction 3Safety 3 Freight rail accidents 5 Passenger rail accidents 6 Accidents involving dangerous goods 8 Crossing & trespassing accidents 10Economy 10 Freight rail traffic 25 Passenger transportation 29 Financial highlights 35 Employment 37 Fuel management 41 Infrastructure investment and productivity 41 Property additions 44 Productivity 46 Appendix A – Safety definitions 48 Conversion factors iv 2014 MESSAGE FROM THE PRESIDENT O ur annual publication, Rail Trends, provides a snapshot of Canadian railways’ economic, environmental, and safety performance. While the data in this year’s edition shows that Canada’s railway industry continues to fulfill its role as the backbone of a globally competitive economy, the safety statistics remind us of the tragic accident in LacMégantic, Que. on July 6, 2013. This accident deeply affected every railway – and every railroader – in Canada. Canada’s railways have always taken safety seriously, but the safety discussion took on an even greater urgency and importance post-Lac-Mégantic. We know we are in a different environment now, and we accept our position and our responsibility with humility. Since the accident, Canada’s railways have worked with Transport Canada to develop new train securement and operating practices to ensure rail safety. The industry has also introduced new information-sharing, emergency preparedness, and first-responder training initiatives, and has made significant investments to ensure the safety of its infrastructure. The Railway Association of Canada now also requires companies to make a commitment to safety culture, as a condition of membership in the association. As we move forward, RAC will continue to work collaboratively with governments and stakeholders to learn from the accident in Lac-Mégantic, and will implement new measures to ensure that the rail sector remains globally competitive, sustainable, and most importantly, safe. Sincerely, Michael Bourque President and Chief Executive Officer Railway Association of Canada 1 2014 INTRODUCTION T his is the 22nd edition of Rail Trends, the Railway Association of Canada’s (RAC) annual report on the performance of Canada’s freight and passenger railway sector. This publication contains a rolling 10-year review of financial and statistical results, reflecting multiple aspects of rail performance in Canada. The data in Rail Trends comes from RAC members – Class I, local and regional freight railways, as well as tourist, intercity and commuter passenger service providers. While RAC represents the majority of non-Class I railways in Canada, it does not represent the whole sector. Data reflects performance in Canada only. Canada’s Class I freight and passenger railways (CN, CP and VIA Rail) account for the majority of Canadian rail activity. For that reason, most of the data presented in Rail Trends reflects Class I carriers.1 This year’s data is categorized into four sub-sections: • Safety • Economy • Fuel management • Infrastructure investment and productivity Year-over-year and 10-year comparison 200420122013 Revenue ton-miles (billions) Revenue tonne-kilometres (billions) Miles of rail operated * Kilometres of rail operated * Locomotives Freight cars (000) Gallons of fuel (millions) Litres of fuel (millions) Employees Annual wage per employee ($) 235.1273.5291.2 343.2399.3425.1 30,551 26,923 27,270 49,167 43,328 43,887 3,2343,0633,043 996459 480472464 2,1842,1442,111 35,73634,62933,167 66,80482,88388,153 * Miles (kilometres) of rail operated includes rail over which a railway has operating rights. 1 Railways are classified according to their operating revenue or the nature of their operations. The threshold for a Class I rail carrier is $250 million. Other railways are classified as Class II and Class III. (Source: Transportation Information Regulations (SOR/96-334).) 2 2014 SAFETY Freight rail accidents Reportable freight-railway-related accidents2 climbed 8.4 per cent in 2013 from the previous year, and increased by 1.1 per cent from the 2008-2012 average. Since 2004, overall reportable rail accidents have dropped by 31.8 per cent. The number of accidents based on the freight sector’s workload, or the rate per billion gross ton-miles (BGTM), 3 rose to 2.17 from a record low of 2.10 in 2012. NOTE: Rail Trends safety data reflects the performance of RAC’s federally and provincially regulated freight and passenger member-railways. The data in this report comes from the Transportation Safety Board of Canada (TSB) and the RAC. The TSB maintains a database of safety performance statistics on federally regulated railways, as well as provincially regulated railways that voluntarily report their data. RAC collects similar statistics for its member-railways. Each organization uses the same safety definitions, and the data reflects operations in Canada only. Photo: CN 2 Please see Appendix A for the definition of a reportable railway accident. 3 The sum of ton-miles handled, calculated using the total weight of the trailing tonnage (both loaded and empty cars) of the trains moved. It excludes the weight of the locomotives pulling the trains. 3 2014 S afety Freight rail accidents Freight accidentsBGTM Rate 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1,685441.47 1,647457.95 1,578459.63 1,497463.36 1,304449.92 1,104397.29 1,155447.05 1,057473.31 1,060503.88 1,149529.56 CANADIAN RAILWAYS – FREIGHT OPERATIONS freight accidents per billion gross ton-miles 5 4 3 2 1 2004 2005 2006 2007 2008 2009 4 2014 2010 2011 2012 2013 3.82 3.60 3.43 3.23 2.90 2.78 2.58 2.23 2.10 2.17 S afety Passenger rail accidents The rate of accidents per million passengers/commuters4 fell by 2.0 per cent to 0.68 between 2012 and 2013. This was the lowest passenger accident rate to date, and 26.3 per cent lower than the five-year average of 0.93. Passenger rail accidents PassengerIntercity Commuter Tourist Total accidentspassengerspassengers passengers(million) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 70 77 64 72 71 73 67 74 52 51 4,18154,905 4,32258,235 4,32060,634 4,47863,393 4,89967,052 4,53865,962 4,47768,562 4,46168,427 4,24670,035 4,25070,092 252 277 360 378 352 175 222 192 214 215 59 63 65 68 72 71 73 73 74 75 Rate 1.18 1.23 0.98 1.06 0.98 1.03 0.91 1.01 0.70 0.68 CANADIAN RAILWAYS – PASSENGER OPERATIONS passenger accidents per million passengers 1.5 1.2 0.9 0.6 0.3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 4 The accident rate for passenger railways is determined by calculating the number of accidents per million intercity and tourist passengers and rail commuters. 5 2014 S afety Accidents involving dangerous goods The number of accidents involving dangerous goods5 rose by 26.6 per cent in 2013 from the previous year, and declined by 9.5 per cent from the 2008-2012 average. The rate of accidents involving dangerous goods per 1,000 originated dangerous goods carloads rose to 0.32 from 0.29 in 2012. More than 85 per cent of reportable dangerous goods accidents in 2013 involved non-main-track trains. Photo: CN 5 Accidents involving dangerous goods include incidents where road vehicles alone were carrying or recently carried dangerous goods. One such accident in 2013 involved a collision between a train and a tanker truck at a railway crossing, resulting in a release of petroleum crude oil. (Source: TSB) 6 2014 S afety Accidents Involving Dangerous Goods Total Accidents Involving Dangerous Goods Dangerous goods (DG) carloads 2004217 2005229 2006196 2007206 2008170 2009145 2010149 2011129 2012124 2013157 DG accidents per 1,000 originated DG carloads 419,031 414,752 406,425 426,789 422,764 379,650 400,318 425,124 428,660 492,515 0.52 0.55 0.48 0.48 0.40 0.38 0.37 0.30 0.29 0.32 ACCIDENTS INVOLVING DANGEROUS GOODS per 1,000 originated dangerous good carloads 500,000 0.6 450,000 0.4 400,000 0.2 350,000 2004 2005 2006 2007 2008 Dangerous Goods (DG) carloads 2009 2010 2011 2012 2013 0 DG accidents per 1,000 originated DG carloads 7 2014 S afety Crossing & trespassing accidents In 2013, crossing accidents6 increased by 4.0 per cent from the previous year, and edged up by 0.6 per cent from the 2008-2012 average. Conversely, trespasser accidents7 dropped by 17.3 per cent, year-over-year, and by 19.9 per cent from the five-year average. 6 A crossing accident is when a railway locomotive or car is involved in a collision with a motor vehicle or pedestrian at a railway crossing, resulting in death, serious injury or property damage. 7 Trespasser accidents occur when people – primarily pedestrians who are not authorized to be on railway rights-of-way – are struck by locomotives or railway cars anywhere other than at railway crossings. 8 2014 S afety Accidents by type of occurence CrossingTrespasser Other accidents accidents accident types 2004287 2005299 2006280 2007246 2008237 2009206 2010204 2011179 2012198 2013206 104 89 122 132 77 75 91 69 75 62 93 26 46 50 54 38 28 47 40 65 ACCIDENTS BY TYPE OF OCCURENCE 300 250 200 150 100 50 0 2004 2005 2006 2007 2008 Crossing accidents Trespasser accidents All others 9 2014 2009 2010 2011 2012 2013 ECONOMY Freight rail traffic Revenue ton-miles (Revenue tonne-kilometres) Freight traffic increased by 6.5 per cent to a record high of 291.2 billion revenue ton-miles8 (or 425.1 billion revenue tonne-kilometres) in 2013 from the previous year. Traffic grew by 19.0 per cent from the 2008-2012 average of 244.8 billion revenue ton-miles. Photo: CPR 8 The sum of ton-miles handled, calculated using the total weight of the commodities moved. RTM excludes the ton-miles involved in moving railway materials or any other non-revenue movement. 10 2014 ECONOMY Revenue ton-miles (Revenue tonne-kilometres) Freight train Freight train miles kilometres (000) (000) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenue Revenue ton-milestonne-kilometres (millions)(millions) 74,284119,548 76,400122,953 76,451123,035 74,100119,253 71,712115,409 59,576 95,877 65,157104,859 66,082106,348 68,145109,668 67,207108,160 235,114343,232 241,745352,912 243,744355,831 247,709361,619 237,323346,457 210,898307,880 247,154360,809 255,001372,264 273,504399,275 291,172425,069 REVENUE TON-MILES (MILLIONS) 300,000 275,000 250,000 225,000 200,000 2004 2005 2006 2007 2008 11 2014 2009 2010 2011 2012 2013 ECONOMY Carload traffic Since 2010, freight rail volumes have risen as Canada’s economy has improved. Freight carloads originated by railways in Canada9 increased by 2.9 per cent in 2013 from the previous year, while the volume of freight loaded into those cars rose by 3.4 per cent. As a result, the tonnage per carload crept up by 0.5 per cent from the previous year to a record 92 tons (83 tonnes) per carload. A summary of carloads by commodity grouping can be found on page 19. In 2013, carloads and tons originated increased by 9.2 per cent and 18.9 per cent respectively from their five-year averages. Photo: CN 9 A detailed profile of railway industry performance by province is available on www.railcan.ca. 12 2014 ECONOMY Carload traffic Carloads Tons Tonnes Tons per Tonnes per originatedoriginatedoriginated carload* carload* (000)(000)(000) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 4,212 337,923306,563 4,290 343,464311,590 4,260 339,394307,897 4,196 337,989306,623 3,984 318,688289,114 3,367 269,028244,062 3,872 334,264303,258 4,044 337,074305,793 4,113 375,780340,907 4,234 388,621352,557 8073 8073 8073 8173 8073 8073 86 78 8376 9183 92 83 * Tons (tonnes) per carload: Tons (tonnes) originated divided by carloads originated. CARLOADS ORIGINATED (000) 4,500 4,000 3,500 3,000 2004 2005 2006 2007 2008 13 2014 2009 2010 2011 2012 2013 ECONOMY Intermodal traffic Total intermodal traffic10 originated in Canada – including container11 and trailer traffic – rose by 4.1 per cent to a record high of 2.7 million units. Traffic in 2013 was 12.6 per cent higher than the five-year average. 10 Total intermodal traffic originated in Canada reflects both the Canadian and U.S. operations of Canadian Class I railways. Intermodal units are actual counts of trailers and containers, regardless of size, and are not “twenty-foot equivalent units (TEUs)”. 11 A large, weatherproof box designed for shipping and/or transferring freight between rail, truck or marine modes. Specialized containers are equipped with heating and cooling capabilities for perishable products. 14 2014 ECONOMY Intermodal traffic originated* TrailersContainers Total (000)(000) (000) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1492,0102,159 1122,1342,246 1062,2512,357 1022,3342,436 1012,3962,497 832,0332,116 812,3612,442 802,4242,504 982,5402,638 1182,6282,746 * Reflects both Canadian and U.S. operations of Canadian Class 1 railways. Intermodal units are actual counts of trailers and containers, regardless of size, and are not “twenty-foot equivalent units (TEUs)”. INTERMODAL UNITS ORIGINATED (000) containters and trailers 3,000 2,500 2,000 2004 2005 2006 2007 2008 2009 15 2014 2010 2011 2012 2013 ECONOMY Freight revenue (cents) per ton-mile (tonne-kilometre) Freight revenue per ton-mile (tonne-kilometre)12 in 2013 declined by 0.1 per cent from the previous year, as traffic growth outpaced revenue growth. Freight revenue per ton-mile in 2013 was 1.5 per cent higher than the five-year average. Freight revenue per ton-mile Revenue per ton-mile tonne-kilometre 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Index 2001 = 100 3.372.31 3.642.49 3.872.65 3.842.63 4.202.87 4.002.74 3.992.74 4.042.77 4.142.84 4.132.83 103.1 111.3 118.3 117.4 128.4 122.3 122.0 123.5 126.6 126.5 FREIGHT REVENUE PER TON-MILE 5.0 4.5 4.0 3.5 3.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 12 Freight revenue per ton-mile is calculated by dividing freight revenue by total revenue freight ton-miles. 16 2014 ECONOMY Track operated & Equipment in service Canadian railways operated 27,270 miles (43,887 kilometres) of track13 in 2013, up 1.3 per cent from the previous year. The industry’s freight car fleet fell by 7.9 per cent in 2013, as shippers owned more of their own cars. The number of locomotives in service edged down by 0.7 per cent, year over year. Track operated & Equipment in service Miles Kilometres 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Index 2000 = 100 30,55149,167 30,38048,893 29,97848,243 29,71347,816 29,36647,258 28,16345,323 27,65444,501 27,10243,617 26,92343,328 27,27043,887 105.5 104.9 103.5 102.6 101.4 97.3 95.5 93.6 93.0 94.2 Freight cars in service Locomotives in service 99,141 101,606 99,946 92,373 83,984 75,836 71,788 71,750 64,485 59,395 3,234 3,253 3,271 3,165 3,046 2,742 2,954 2,977 3,063 3,043 NOTE: While Canada’s Class I railways discontinue service on some track segments, they also sell or lease parts of their networks to regional and local railways that serve rural and remote communities. While RAC represents the majority of nonClass I railways in Canada, it does not represent the whole sector. Rail Trends data is reflective of RAC membership only. Thus, track segments acquired by non-RAC members would have the effect of reducing the total track mileage reported in Rail Trends 13 First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. Excludes track used by intercity passenger trains, commuter & tourist trains, and segments of track terminating in the U.S. 17 2014 ECONOMY Track operated, by provinces and territories* 2012 MilesKilometres 2013 MilesKilometres Alberta British Columbia Manitoba Nfld. & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories 4,1546,685 4,060 6,533 2,7034,350 237 381 724 1,165 419 674 6,38210,273 3,5035,638 4,6647,506 75 121 4,1506,679 4,1746,717 2,6624,284 162261 7201,159 419674 6,27010,091 3,5545,719 5,0838,181 75121 Total 26,92243,328 Intercity passenger trains 7,820 12,585 Commuter and tourist trains 2,837 4,565 Segments terminating in the U.S. 152 244 27,27043,887 7,82012,585 2,3653,806 152244 Grand total 37,60760,523 37,730 60,723 * First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. 18 2014 ECONOMY Carloads originated by commodity grouping Rail Trends tracks 11 commodity groupings moved by the railway sector.14 Based on the number of carloads moved, the largest increases among commodity groupings in 2013 (including each grouping’s year-over-year increase) were fuels and chemicals (+12.5%), manufactured and miscellaneous products (+11.2%), and coal (+8.4%). The largest declines were reported in the machinery and automotive (-9.6%) and food products (-7.4%) groupings. The chart below illustrates carloads originated by commodity grouping as a percent of all commodity carloads among RAC member railways. Some categories have been grouped together. CARLOADS ORIGINATED BY COMMODITY GROUPING 12% Agriculture 9% Coal 20% Minerals 5% Forest Products 4% Metals 5% Machinery & Auto 13% Fuels & Chemicals 4% Paper Products 1% Food Products 3% Manufactured & Miscellaneous 24% Intermodal 14 Statistics Canada provides monthly statistics of rail car loadings in Canada in its Railway Carloadings publication. This publication offers a brief analysis, along with a number of tables showing carloadings and tonnes carried for 63 commodity groupings. 19 2014 ECONOMY Carloads originated by commodity grouping* Forest Machinery Agriculture Coal MineralsProducts Metals & Auto 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 412,099337,592639,764442,689326,020253,003 416,473353,197657,410433,138295,022235,480 453,151321,266600,823388,035362,000244,395 454,034349,983609,422317,158359,982234,830 430,292324,931574,645253,279369,475195,308 474,980277,048368,631182,395273,800148,123 462,445327,419703,270205,120160,895185,962 466,305348,556790,520228,448160,827186,522 472,474353,201805,952209,654161,541220,216 465,340383,013810,750215,254 150,906199,068 Fuels & Chemicals Paper Products Food Manufactured Products & Misc. IntermodalTotal 485,197333,061 469,655333,830 470,833274,092 470,876252,150 443,125228,072 401,141175,693 419,905170,823 432,657157,780 479,669149,740 539,566150,029 40,587 63,890 722,4124,056,314 44,169 65,629 769,9364,073,939 41,454 66,333 819,5524,041,934 41,822 65,923 832,6633,988,843 42,365 75,160 847,6473,784,299 42,232 79,445 741,8073,165,295 52,240 92,949847,832 3,628,860 54,948 94,935890,168 3,811,666 60,906 93,129946,223 3,952,706 56,405103,605 987,1864,061,122 * Not all member companies record carloads originated by commodity grouping. The Intermodal counts represent an average load factor that determined the number of carloads reported. 20 2014 ECONOMY Revenue from carloads originated by commodity grouping On a revenue basis, the largest increases among commodity groupings in 2013 (including each grouping’s year-over-year increase) were fuels and chemicals (+23.0%), manufactured and miscellaneous (+14.1%), and coal (+11.2%). Year-over-year, revenues decreased in the machinery and automotive (-5.3%) and food products (-3.9%) groupings. The chart below illustrates revenues from carloads originated by commodity grouping as a percent of all revenues from commodity carloads among RAC member railways. Some categories have been grouped together. REVENUE FROM CARLOADS ORIGINATED BY COMMODITY GROUPING 16% Agriculture 9% Coal 11% Minerals 7% Forest Products 5% Metals 5% Machinery & Auto 16% Fuels & Chemicals 5% Paper Products 2% Food Products 2% Manufactured & Miscellaneous 22% Intermodal 21 2014 ECONOMY Revenue from carloads originated by commodity grouping ($millions)* Forest Machinery & Agriculture Coal MineralsProducts MetalsAutomotive 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 875513763798404397 948738811969429414 1,125676764928489433 1,157709819780476445 1,161706833646531443 1,259502525478317337 1,221598772500381394 1,297713898564424381 1,374749926611455508 1,433833973660448481 Fuels & Chemicals Paper Products Food Manufactured Products & Misc. Intermodal Total 2004 771595 70 931,8857,164 2005 804642 741122,1528,093 2006 836582 81114 2,377 8,405 2007 837541 811162,4528,413 2008 902531 891262,7028,672 2009 818423 941132,2737,139 2010 8534371281302,5928,006 2011 9284271461331,8937,805 2012 1,1554111611531,9978,499 2013 1,4204061551742,0199,001 * Not all member companies record revenue from carloads originated by commodity grouping. 22 2014 ECONOMY Average: Length of haul/cars per train In 2013, the average length of haul15 by transcontinental railways (CN & CP) and regional and local railways increased by 0.3 per cent and 87.9 per cent, respectively, from 2012. The average number of cars per freight train16 increased by 10.0 per cent in 2013. Photo: CN 15 Calculated by dividing revenue ton-miles by revenue tons. 16 Calculated by dividing loaded and empty car miles by train miles. 23 2014 ECONOMY Average: Length of haul/cars per train Miles (kilometres) hauled by transcontinental railways (CN and CPR) Miles (kilometres) hauled by regional and local railways Average cars per freight train MilesKilometres Miles Kilometres 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 7871,267 7891,270 8031,292 8071,299 8181,316 8301,336 8501,368 8491,366 8681,396 8711,402 161 149 159 151 146 159 138 170 99 186 259 78 24079 25679 24381 23582 25687 16392 27481 15990 300 99 LENGTH OF HAUL (MILES) 1,000 750 500 250 0 2004 2005 2006 2007 2008 Class I Regional and local railways 24 2014 2009 2010 Cars 2011 2012 2013 ECONOMY Passenger transportation Intercity passenger transportation In the intercity passenger sector, passenger miles (kilometres) decreased 1.1 per cent in 2013 from 2012. A passenger mile denotes one mile travelled by one passenger, and is used to measure the volume of passenger traffic. Passenger train-miles fell 3.8 per cent, year-over-year, continuing a downward trend that began in 2008. The average number of intercity passengers per train grew by 2.4 per cent, while the average length of journey edged up by 0.5 per cent. Photo: VIA Rail 25 2014 ECONOMY Intercity passenger transportation Passenger cars in service Number of passengers (000) 20044654,181 20055384,322 20065374,320 20075384,478 20085404,899 20095594,538 20105454,477 20115444,461 20125424,246 20135524,186 Passenger train miles kilometres (000)(000) 20047,214 11,611 20057,415 11,933 20067,381 11,879 20077,330 11,796 20087,414 11,932 20097,334 11,803 20107,331 11,799 20117,273 11,705 20127,075 11,386 20136,809 10,958 26 2014 Passenger miles kilometres (millions) (millions) 8941,439 9191,479 9061,458 9121,468 9861,588 8941,439 8771,412 8881,428 8711,402 8611,386 Passenger car miles kilometres (000) (000) 49,707 79,995 49,966 80,412 49,400 79,501 48,708 78,388 49,140 79,083 47,290 76,106 46,275 74,472 48,239 77,633 48,725 78,415 43,673 70,285 ECONOMY Intercity passenger transportation (continued) Average intercity passengers per train 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 124 124 123 124 133 122 120 122 123 126 Average passenger load factor* (%) 200453 200555 200654 200755 200859 200957 201057 201155 201254 201356 * A measure of the capacity utilization of public transport services. 27 2014 Average length of journey miles kilometres 219352 217349 214344 209336 206332 203327 204328 204328 213342 214344 On-time performance (%) 70 81 84 77 75 83 82 84 82 82 ECONOMY Commuter transportation Within the passenger sector, the total number of rail commuters in British Columbia, Ontario and Quebec – the three provinces with commuter rail services – increased by 0.3 per cent in 2013 from the previous year. However, the average number of commuters per train dropped 16.1 per cent from 2012. Rail commuters Commuter passenger17 mileskilometres (000)(000) 2004214,089 344,544 2005224,833 361,834 2006237,781 382,672 2007247,066 397,615 2008256,123 412,190 2009245,942 395,806 2010256,134 412,209 2011278,244 447,791 2012288,161 463,752 20132,570,664 4,137,075 Average rail commuters per train Commuter train miles kilometres (000) (000) 2,749 2,820 2,730 2,808 2,832 2,876 3,008 3,171 4,356 4,477 4,425 4,539 4,394 4,518 4,558 4,628 4,841 5,103 7,011 7,205 Rail commuters (000) in British Columbia, Ontario and Quebec 2004287 2005283 2006300 2007339 2008340 2009301 2010310 2011255 2012342 2013287 54,905 58,235 60,634 63,393 67,052 65,962 68,562 68,427 70,035 70,266 17 Commuter passenger-miles (passenger-kilometres) data from 2004 to 2012 excludes GO Transit, while 2013 data includes it. 28 2014 ECONOMY Financial highlights Operating revenue Operating revenue grew by 5.5 per cent between 2012 and 2013. There are three components to operating revenue: freight, passenger and other revenue. Freight revenue accounted for more than 90 per cent of total operating revenue in 2013, while passenger revenue accounted for just over 5 per cent. Other revenue is largely composed of revenue for services provided to passenger and commuter rail companies, as well as switching, demurrage and miscellaneous rentals. Operating revenue ($millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 FreightPassenger* Other Total 7,931386506 8,823 8,794576570 9,940 9,430622561 10,613 9,516624564 10,704 9,957661579 11,197 8,433627539 9,599 9,551673544 10,768 10,305667560 11,532 11,322674637 12,633 12,040668622 13,330 * Federal, provincial and municipal funding of $435 million in 2009 for Intercity passenger and commuter services is excluded. 29 2014 ECONOMY Operating expenses Operating expenses declined 1.8 per cent to $10.4 billion in 2013, from the record high reported in 2012. Lower general and administrative (-18.5%) as well as transportation costs (-0.5%) outweighed jumps in maintenance of equipment (+9.7%), maintenance-of-way and structures (+5.1%), and fuel (+2.9%). Operating expenses ($millions)* Maintenance Transportation Fuel of equipment 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Maintenance-of-way General and and structures administrative 2004 2005 2006** 2007 2008 2009 2010 2011 2012 2013 * 2,180 8621,290 2,241 1,1591,382 2,224 1,3671,575 2,337 1,5131,634 2,376 2,0321,564 2,065 1,2121,555 2,195 1,4641,452 2,381 1,8541,570 2,534 2,0021,549 2,521 2,0611,698 Total operating expenses 1,421 1,3667,119 1,493 1,5017,776 1,408 1,6378,211 1,549 1,4628,495 1,718 1,4779,167 1,612 1,9088,352 1,766 2,2949,171 1,910 2,0549,769 1,873 2,61710,575 1,968 2,13210,380 Charges for restructuring, relocation and write-down of assets are excluded. ** CN restated 2006 Maintenance of equipment and Maintenance-of-way and structures expenses. The net impact on 2006 Total operating expenses were nil. 30 2014 ECONOMY Operating income Operating income18 jumped by 43.3 per cent in 2013 from the previous year. The following table and graph illustrate the rail sector’s operating income trend. Operating income ($millions) Income 20041,704 20052,164 20062,402 20072,209 20082,030 20091,247 20101,598 20111,763 20122,058 20132,950 OPERATING INCOME (MILLIONS) 3,500 2,500 1,500 500 2004 2005 2006 2007 18 Operating income data from 2011-2013 has been revised. 31 2014 2008 2009 2010 2011 2012 2013 ECONOMY Taxes In 2013, total railway industry taxes increased by 55.6 per cent to $1.2 billion. The main contributor to this overall rise was income tax, which quadrupled from the previous year as a result of deferred payments and increased income tax rates in certain jurisdictions. Taxes by category ($millions) Locomotive fuel & Property excise tax tax 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 174 180 188 188 187 177 195 204 220 219 141 155 155 154 152 152 150 153 158 169 Other sales tax Capital tax & customs duties 90 98 102 97 99 97 96 70 70 43 25 31 21 15 14 14 14 0 0 1 Income tax 118 101 471 381 323 265 185 372 159 629 TAXES BY CATEGORY 18% Locomotive fuel and excise tax 14% Property tax 4% Other sales tax 52% Income tax 12% Payroll tax 32 2014 Payroll taxes 150 151 147 154 155 148 147 158 170 150 Total 698 716 1,084 989 930 853 787 957 777 1,209 ECONOMY Payroll taxes ($millions) Canada/ QuebecUnemployment Health Pension Plan Insurance Taxes 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total 713742150 723643151 723243147 753346154 773345155 743044148 733143147 773447158 843749170 753243 150 Photo: CN 33 2014 ECONOMY Taxes by jurisdiction ($000) Locomotive Fuel tax fuel & excise tax per litre (cents) Property Tax 2012 2013 20132012 2013 Alberta4,787 4,7391.513,950 15,825 British Columbia 53,221 56,90410.740,035 42,011 Manitoba10,865 10,6876.313,922 14,118 Nfld. & Labrador 0 016.555 33 New Brunswick 1,182 1,1954.31,396 1,865 Nova Scotia 0 015.43,089 3,000 Ontario25,590 23,8354.536,182 34,300 Quebec4,621 4,1433.034,029 38,863 Saskatchewan38,912 38,64515.015,283 18,542 Northwest Territories 0 0 11.474 61 Federal80,453 78,791 Total219,631 218,939 4.0 0 0 158,016 168,617 Capital tax & Other sales tax customs duties 2012 201320122013 Alberta69 73 136 British Columbia 1,532 16,674 0 Manitoba11,890 14,089 -183 Nfld. & Labrador 0 0 0 New Brunswick 0 0 0 Nova Scotia -5 0 2 Ontario1,590 26 406 Quebec12,944 469 0 Saskatchewan7,200 10,908 90 Northwest Territories 0 0 0 594 0 137 0 0 23 118 0 88 0 Federal34,788 380 0 Total70,008 42,618 451 -376 584 34 2014 Income Tax 2012 2013 13,826 627 454 0 0 937 22,952 7,307 0 0 46,384 0 612 0 0 4 47,248 28,471 649 0 112,721 505,634 158,824629,002 ECONOMY Employment The average number of people employed by the Canadian railway industry fell by 4.2 per cent in 2013, while rail sector compensation grew by 1.9 per cent. As a result, the average annual wage per employee increased by 6.4 per cent from the previous year. Photo: VIA Rail 35 2014 ECONOMY Employment Total compensation ($millions)* 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 AverageAverage number of annual wage employees per employee ($) 2,387 2,548 2,535 2,566 2,633 2,439 2,584 2,797 2,870 2,924 35,73666,804 35,38971,994 34,55873,356 34,93873,440 35,20874,790 32,33775,415 32,56579,346 33,62483,163 34,62982,883 33,16788,153 * Compensation includes salaries and compensation paid and excludes company paid benefits such as Canada/ Quebec Pension Plan, Unemployment Insurance and health taxes. EMPLOYMENT 90,000 70,000 50,000 30,000 2004 2005 2006 2007 2008 Average annual wage ($) Employees 36 2014 2009 2010 2011 2012 2013 FUEL MANAGEMENT F reight railways consumed 1.6 per cent less fuel in 2013 than in 2012. With the increase in revenue ton-miles in 2013, the freight railway sector’s fuel efficiency improved by 8.0 per cent in 2013 from the previous year, and has improved by 29.4 per cent since 2004. The freight railway sector tracks its fuel efficiency in revenue ton-miles (revenue tonkilometres) per gallon (litre) of fuel consumed. This measure is calculated by dividing the sum of ton-miles handled by the total volume of fuel consumed. Photo: CPR 37 2014 FUEL MANAGEMENT Freight railways – Fuel Consumed RevenueRevenue Total fuel consumed ton-miles per tonne-kilometres gallons litres gallon of fuel per litre of (000) (000) consumed fuel consumed 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 480,4992,184,384513 485,9152,209,007523 486,2182,210,384527 492,1252,237,237529 480,6612,185,120520 411,6121,871,221545 450,7822,049,289562 436,5581,984,178621 471,9122,145,346615 464,2752,110,651 664 165 168 169 170 167 175 182 202 198 214 REVENUE TON-MILES PER GALLON OF FUEL CONSUMED (000) 700 600 500 2004 2005 2006 2007 2008 38 2014 2009 2010 2011 2012 2013 FUEL MANAGEMENT While the freight rail industry’s gross ton-miles increased by 5.1 per cent in 2013, the cost of diesel fuel per gallon rose 4.6 per cent. GTM & cost of diesel fuel per gallon Gross ton- Gross tonne- Cost of diesel fuel miles kilometres per gallon per litre (millions)(millions) ($) (cents) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 441,467 457,950 459,633 463,356 449,922 397,293 455,047 473,312 503,879 529,379 644,4781.81 668,5402.38 670,9972.81 676,4333.07 656,8214.23 579,9902.94 664,3033.25 690,9604.25 735,5904.24 772,8164.44 COST OF DIESEL FUEL per gallon 5 4 3 2 1 2004 2005 2006 2007 2008 39 2014 2009 2010 2011 2012 2013 39.8 52.5 61.8 67.6 93.0 64.8 71.40 93.46 93.33 97.63 FUEL MANAGEMENT NOTE: Under the 2011-2015 Locomotive Emissions Monitoring (LEM) Memorandum of Understanding (MOU) with Transport Canada, the railway industry is committed to helping Canada to reduce its total GHG emissions by 17 per cent below 2005 levels by 2020. The annual LEM report contains locomotive fleet data, as well as information on railway sector emissions and other sustainability issues. Visit www.railcan.ca for more information. Photo: CN 40 2014 INFRASTRUCTURE INVESTMENT AND PRODUCTIVITY Property additions The railway industry’s property additions19 in Canada edged down by 1.7 per cent in 2013 from the previous year, but increased by 6.8 per cent from the five-year average. Investment (including year-over-year changes) decreased for terminals and fuel stations (-21.2%), intermodal equipment (-21.0%), track and roadway (-7.2%), and rolling stock20 (-6.5%). These declines were offset by investments in buildings and related machinery and equipment (+32.9%), as well as work equipment and roadway machines (+2.6%). Additions to Property ($millions) Buildings & relatedSignals, Track & machinery communications roadway & equipment & power Terminals & fuel stations 2004 2005 2006 2007 2008 2009 2010 2011 2012 364188 38 582189 95 613212 74 618255 44 688189 79 706257 72 804231 109 971314 108 961269 122 11 27 37 43 26 24 16 15 41 2013 892357 100 32 19 Expenditures that seek to acquire or upgrade physical assets, such as equipment or buildings. 20 Rolling stock includes a locomotive, engine, motor car, tender, snow-plough, flanger and any car or railway equipment that is designed for movement on its wheels on the rails of a railway. 41 2014 INFRASTRUCTURE INVESTMENT AND PRODUCTIVITY Additions to Property ($millions) (continued) Work equipment Rolling Intermodal & roadway Other Total stock equipmentmachinesequipmentadditions 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3373036391,043 4163931151,394 3524844281,408 3503041181,399 2902968221,391 3173442721,524 4271549551,706 3071153641,844 2552249771,795 2391750771,764 ADDITIONS TO PROPERTY ($MILLIONS) 2,000 1,500 1,000 2004 2005 2006 2007 2008 42 2014 2009 2010 2011 2012 2013 INFRASTRUCTURE INVESTMENT AND PRODUCTIVITY ADDITIONS TO PROPERTY IN 2013 50% Track & roadway 20% Buildings & related machinery & equipment 4% Other equipment 3% Work equipment & roadway machines 1% Intermodal equipment 14% Rolling stock 2% Terminals & fuel stations 6% Signals, communications & power 43 2014 INFRASTRUCTURE INVESTMENT AND PRODUCTIVITY Productivity The best measure of freight railway labour productivity is the rate of revenue ton-miles (revenue ton-kilometres) per employee, which divides the annual sum of revenueproducing tonnage by the average number of employees. Employee productivity climbed by 9.5 per cent in 2013, as traffic rose and the average number of freight railway employees fell. Photo: Genesee & Wyoming 44 2014 INFRASTRUCTURE INVESTMENT AND PRODUCTIVITY Revenue ton-miles per employee RevenueRevenue Road Road ton-miles tonne-kilometres miles per kilometres per employee per employee per employee per employee (000) (000) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 7,35210,733 7,67911,210 7,96311,625 8,04511,745 7,62511,132 7,40410,809 8,28712,098 8,49612,402 8,77212,806 9,60814,026 0.93 1.50 0.96 1.54 0.98 1.58 0.96 1.54 0.94 1.51 0.98 1.58 0.96 1.54 0.90 1.46 0.86 1.39 0.91 1.47 REVENUE TON-MILES PER EMPLOYEE (000) 10,000 9,000 8,000 7,000 2004 2005 2006 2007 2008 45 2014 2009 2010 2011 2012 2013 APPENDIX A SAFETY DEFINITIONS The following definitions apply to railway occurrences that are required to be reported under the Canadian Transportation Accident Investigation and Safety Board Act and its associated regulations. Railway occurrence 1. Any accident or incident associated with the operation of rolling stock on a railway, and 2. Any situation or condition that the Board has reasonable grounds to believe could, if left unattended, induce an accident or incident described in paragraph (a) above. Reportable railway accident An accident resulting directly from the operation of rolling stock, where: 1. A person sustains a serious injury or is killed as a result of: a. being on board or getting off the rolling stock, or b. coming into contact with any part of the rolling stock or its contents, or 2. the rolling stock: a. is involved in a grade-crossing collision, b. is involved in a collision or derailment and is carrying passengers, c. is involved in a collision or derailment and is carrying dangerous goods, or is known to have last contained dangerous goods the residue of which has not been purged from the rolling stock, d. sustains damage that affects its safe operation, or causes or sustains a fire or explosion, or causes damage to the railway, that poses a threat to the safety of any person, property or the environment. 46 2014 APPENDIX A SAFETY DEFINITIONS Reportable railway incident An incident resulting directly from the operation of rolling stock, where: 1. a risk of collision occurs; 2. an unprotected main track switch is left in an abnormal position; 3. a railway signal displays a less restrictive indication than that required for the intended movement of rolling stock; 4. an unprotected overlap of operating authorities occurs; 5. a movement of rolling stock exceeds the limits of its authority; 6. there is runaway rolling stock; 7. any crew member whose duties are directly related to the safe operation of the rolling stock is unable to perform the crew member’s duties as a result of a physical incapacitation that poses a threat to the safety of any person, property or the environment; or 8. any dangerous goods are released on board or from the rolling stock. Serious injury An injury that is likely to require admission to a hospital. Dangerous goods involvement An accident is considered to have dangerous goods involvement if any of a train’s cars carrying (or having last contained) a dangerous good derails, strikes or is struck by any other locomotive, car or other object. It does not mean that there was any release of any product. Also included are crossing accidents in which the motor vehicle involved (e.g. tanker truck) is carrying a dangerous good. 47 2014 C O N V E R S I O N FA C T O R S miles to kilometres 1.6093 tons (short) to metric tonnes 0.9072 gallons to litres 4.5461 revenue ton-miles to revenue tonne-kilometres 1.4599 kilometres to miles 0.6214 metric tonnes to tons (short) 1.1023 litres to gallons 0.2200 revenue tonne-kilometres to revenue ton-miles 0.6850 48 2014