2010
The Railway Association of Canada www.railcan.ca
December 2009
6970184 Canada Ltd
Agence métropolitaine de transport
Alberta Prairie Railway Excursions
Amtrak
ArcelorMittal Mines Canada
Arnaud Railway Company
Barrie-Collingwood Railway
BNSF Railway Company
Burlington Northern (Manitoba) Ltd.
Canadian Pacific
Cape Breton & Central Nova Scotia Railway
Capital Railway
Carlton Trail Railway
Central Manitoba Railway Inc.
Charlevoix Railway Company Inc.
CN
CSX Transportation Inc.
Eastern Maine Railway Company
Essex Terminal Railway Company
Goderich-Exeter Railway Company Limited
Great Canadian Railtour Company Ltd.
Great Sandhills Railway Ltd.
Great Western Railway Ltd.
Hudson Bay Railway
Huron Central Railway Inc.
Kelowna Pacific Railway Ltd.
Kettle Falls International Railway, LLC
Metrolinx
Montréal, Maine & Atlantic Railway, Ltd.
New Brunswick Southern Railway Company Limited
Nipissing Central Railway Company
Norfolk Southern Railway
Ontario Northland Transportation Commission
Ontario Southland Railway Inc.
Ottawa Valley Railway
Québec Gatineau Railway Inc.
Québec North Shore and Labrador Railway
Company Inc.
Roberval and Saguenay Railway Company, The
Romaine River Railway Company
Société du chemin de fer de la Gaspésie
South Simcoe Railway
Southern Ontario Railway
Southern Railway of British Columbia Ltd.
St. Lawrence & Atlantic Railroad (Québec) Inc.
Steam Train HCW
Sydney Coal Railway
Toronto Terminals Railway Company Limited, The
Trillium Railway Co. Ltd.
Tshiuetin Rail Transportation Inc.
VIA Rail Canada Inc.
Wabush Lake Railway Company, Limited
West Coast Express Ltd.
White Pass & Yukon Route
December 2009
Absopulse electornics Ltd
Accuworx Inc.
Administration portuaire de Montréal
AECOM
Alexander Holburn Beaudin & Lang LLP
AllTrain – Training Solutions
BMT Fleet Technology Limited
Bombardier Transportation Canada Inc.
CANAC Railway Services Inc.
Canadian Heartland Training
Canadian Rail Collision and Refurbish Inc
Consolidated Logistic Inc.
Davanac Inc.
Dessau
Ecopower Hybrid Systems Inc.
Entretien Ferroviaire JMSR inc.
Envirotec Services Incorporated
Fairplast Industries (8151 9405 Québec Inc.)
GATX Rail Canada Corporation
HDR Engineering - Ottawa
Hewitt Equipment Ltée
IBI Group
Kenneth R. Peel, Barrister & Solicitor
MD-UN Inc.
MMM Group Ltd
Neptec Design Group
Newalta Industrial Services Inc
Nord-Lock Inc.
Ozark Mountain RailCar
Peck & Hale L.L.C.
PNR RailWorks Ltd.
Quantum Environmental Group – B.C.
Railway 101 Consulting Services
RIVA Moling - Riva Online
RTC Rail Solutions Ltd,
Sandy Cooke Consulting Inc.
Siemens Canada Limited
SNC Lavalin Inc.
Soulanges Railway Services Inc.
Stantec Inc.
Tessco Technologies Inc.
Transportation Certification Services/
Rail Temps Inc
VIdal Street Industrial Park Inc.
The Railway Association of Canada www.railcan.ca
99 Bank Street, Suite 901
Ottawa, ON K1P 6B9
Telephone: (613) 567-8591
Fax: (613) 567-6726
Email: rac@railcan.ca
Cover photo courtesy of CN ISBN 978-0-9809464-4-4
Table of Contents
1 Overview
11 Highlights
12 Public Policy and Taxation
Statistical Highlights
14 Ten-year comparison
15 Freight revenue per ton-mile (tonne-kilometre)
16 Track operated, by provinces and territories
Rail Operations in Canada
17 Plant – track operated and equipment in service
18 Freight transportation
22 Fuel consumed
23 Train statistics
24 Intercity passenger transportation
26 Rail commuter
27 Additions to property
28 Employment
29 Productivity
Financial Highlights
30 Operating income
31 Operating expenses
32 Taxes by category
33 Taxes by jurisdiction
Glossary
Overview
T his year marks the 18th edition of the Railway Association of Canada’s Rail Trends , a ten-year composite of financial and operating statistics that provides a comprehensive review of the business of transporting goods and people by rail in Canada. This review covers virtually all interveners of rail – the
Class 1s, regional freight companies, short lines, intercity passenger, commuter rail and tourist train services. When the RAC published its first edition of Rail Trends in 1993, we reported 24 member companies. Today, the RAC has more than doubled its membership to 53 with most of this growth resulting from the emergence of short lines.
Historically, Canada only had a handful of short line and regional railways. But that changed considerably in 1996 with the introduction of the
Canada Transportation Act which paved the way for the transfer of more than 5,200 track miles (8,500 kilometres) from CN and CP to short line operators. These short lines provide localized rail services to communities and industries across Canada and are often partnered with the Class 1 railways. The short lines have been vital in retaining rail infrastructure and rail freight service in areas where it may have otherwise disappeared. However, this restructuring process continues to evolve as the Class 1s have been reacquiring some light-density trackage in recent years.
In 2007, the RAC created the Associate Members category of membership which includes rail suppliers and industrial rail operators as well as lawyers and consultants. Counting more than 50 organizations, Associate Members benefit from common services already available to the RAC core members.
Ushered in by a weakening economy in the last quarter of 2008, 2009 was a challenging year for rail in Canada. Declines in volumes were widespread, whether it was goods, intercity passengers, rail commuters or tourist train travelers, no segment escaped unscathed. Despite the recession in the North
American economy and the contraction of the global economy in 2009, our industry succeeded in recording a profitable year, but not as profitable as during the past decade. This was achieved by making the necessary changes to operations to adjust to reduced freight and passenger volumes.
The Economy
Global developments had a significant negative impact on the Canadian economy during 2009. The financial crisis intensified in late 2008 and early
2009, putting severe strains on financial markets, including those in Canada,
1
Overview
2 and the world economy experienced a sharp decline in output. By the end of the year, economic recovery had begun.
The Canadian economy, as measured in Gross Domestic Product (GDP), shrank 2.6 per cent in 2009 after growing by a modest 0.4 per cent during
2008. Since 1961, the only other annual declines in GDP were recorded in 1982 (-2.9 per cent) and 1991 (-2.1 per cent).
In 2009, the Canadian economy recovered from a recession, which lasted three quarters starting in the last quarter of 2008. Production was lower in the first half of 2009, remained essentially flat during the summer, and rose sharply in the last four months. The production of goods dropped
9.2 per cent while the production of services edged down 0.1 per cent. All the goods-producing sectors registered lower output, with manufacturing, mining, oil and gas extraction and construction leading the declines.
Canada’s international merchandise trade was significantly affected by the decline of the global economy in 2009. Canada exported $369.7 billion of merchandise to the world, down 24.5 per cent from 2008. During the same period, imports fell 15.5 per cent to $374.2 billion. As a result, the trade balance went from a surplus of $46.9 billion in 2008 to a deficit of $4.5 billion in 2009, the first deficit since 1975, continuing a declining trade balance trend with the world that started in 2004.
Canada’s trade surplus with the United States tumbled to $34.8 billion in 2009 from $89.1 billion in 2008, the lowest level since 1997. The trade deficit with countries other than the United States narrowed to $39.3 billion in 2009 from $42.2 billion in 2008.
The United States represented 63.0 per cent of Canada’s total merchandise trade (exports and imports combined) in 2009, down from 65.7 per cent in 2008 and 71.1 per cent in 2005. Exports to the United States declined 28.2 per cent to $269.5 billion, led by falling prices of energy products and lower demand for automotive products. Imports fell 17.8 per cent to $186.7 billion, reflecting the weakness of automotive product imports.
For the first time, countries other than the United States accounted for one quarter of Canada’s exports, up from 16.2 per cent in 2005.
Overall, the consumer price index (CPI) increased only marginally by 0.3 per cent in 2009, compared to a 2.3 per cent average increase for 2008. The low percentage increase in the CPI was the lowest since 1994 and reflects a
13.5 per cent decrease in overall energy prices during 2009.
The Canadian dollar began 2009 around U.S. $0.83 but declined against the U.S. dollar to reach a low of U.S. $0.77 in March. By October,
Overview it rose to a high of U.S. $0.98 before finally settling around U.S. $0.95 in
December 2009. The average value of the Canadian dollar against the
U.S. dollar in was $0.876.
Tourism expenditures, including those on transportation, fell 4.4 per cent in 2009. The number of Americans visiting Canada fell 9.2 per cent and the number of foreign visitors other than from the United States fell 12.5 per cent. Overall, total international travel to and from Canada fell 8.8 per cent in 2009.
Industry Workload
The Canadian rail industry’s workload in 2009 was significantly impacted by the global economic slowdown. A key measurement of the industry’s workload is revenue ton-miles (tonne-kilometres). A revenue ton-mile is the movement of one revenue-producing ton of freight the distance of one mile. The industry’s workload shrank to 210.9 billion RTM (307.9 billion RTK) in 2009 from 237.3 billion RTM (346.5 billion RTK) in 2008, a decrease of 11.1 per cent year-over-year. In fact, 2009’s workload was the smallest of the past decade and was 4.4 per cent lower than the 2000 workload of 220.7 billion
RTM (322.2 billion RTK).
Two other industry workload measures are carloads originated and tons
(tonnes) originated. Both these workload measures were down from 2008 levels, 15.5 per cent and 15.6 per cent respectively. Compared to a decade ago, carloads originated were down 19.0 per cent and tons (tonnes) originated contracted 18.0 per cent.
On a percentage basis, the RTM (RTK) workload measures fell less severely than carloads originated and tons (tonnes) originated in 2009 compared to the year earlier. This is explained by the fact that average haul grew
3.1 per cent from 2008 to 2009, lessening the impact of the downturn on the RTM (RTK) workload.
The “Carloads originated by commodity grouping” on page 20 provides us with the year-over-year fluctuations in the number of carloads by major commodity grouping. Note that with the exception of Agriculture and
Manufactured & Miscellaneous, the remaining commodity groupings experienced declines from 2008 volumes. The most severe declines occurred in
Minerals, Metals and Intermodal.
Compared to a decade earlier, 2009 recorded gains in Agriculture, Food
Products, Manufactured & Miscellaneous and Intermodal. With the exception of Intermodal, these gains paled when compared to the declines in
3
Overview
4 the remaining commodity groupings, particularly Coal, Minerals, Forest
Products and Machinery & Automotive. Counts for 2009 Intermodal carloads were 130 thousand higher than 2000, however 2009 also marked the first traffic decline of the decade, Intermodal counts actually shrank by
106 thousand carloads compared to 2008.
Safety
The industry achieved noteworthy improvements in its safety statistics in
2009, by both freight and passenger rail.
Compared to 2004, freight rail lowered the number of federally and provincially-regulated freight rail-related accidents by a third, from
1,681 accidents in 2004 to 1,121 accidents in 2009. The accident rate, representing the number of freight train accidents per billion gross tonmiles of workload, fell to a five-year low of 2.8 in 2009 from 3.8 in 2004, an impressive 26.3 per cent improvement.
Passenger rail recorded 67 train accidents in 2009, down from 80 accidents in 2004. The accident rate for passenger rail is determined by calculating the number of accidents per million intercity passengers and rail commuters. The number of accidents per million passengers/commuters tumbled to 0.95 in
2009 from 1.35 in 2004, a remarkable 29.6 per cent decline.
Rail Accidents and Accident Rate
1,800
1,600
1,400
3.8
3.6
3.5
3.2
2.9
2.8
2.3
1,200
1,000
1.1
2004 2005
Freight train accidents
2006 2007 2008 2009
Freight train accidents per billion gross ton-miles
0
4.5
3.4
1800
4.500
1600
3.375
1400
2.250
1200
1.125
1000
0.000
Overview
Operating Revenues and Expenses
Industry operating revenue totalled $9.6 billion in 2009 representing a $1.6 billion or 14.3 per cent drop compared to 2008. After experiencing gains each year since 2000, the industry experienced its first decline of the decade although still outpacing year 2000 operating revenue of $8.0 billion by
$1.6 billion or 20.0 per cent.
Operating revenue is comprised of three components, freight, passenger and other revenue. Freight revenue of $8.4 billion in 2009 was down
$1.5 billion or 15.2 per cent from 2008 and was the lowest since 2005.
Passenger revenue, representing revenue from intercity, rail commuter and tourist trains, amounted to $627 million in 2009, a drop of $34 million or 5.1 per cent from the prior year. Other revenue totalled $539 million, a decrease of $40 million or 6.9 per cent year-over-year. Freight companies earned 97 per cent of this category of revenue. Other revenue represents revenue for services provided to rail passenger and rail commuter companies, as well as switching, demurrage, miscellaneous rentals and other miscellaneous rail revenue.
Compared to ten years ago, 2009 freight revenue was up $1.2 billion or
16.7 per cent, passenger revenue virtually doubled and other revenue rose
$61 million or 12.8 per cent.
Two factors were largely responsible for the 15.2 per cent reduction in freight revenue from 2008 to 2009. Firstly, lower freight volumes in most markets due to economic conditions in the North American and global economies resulted in an 11.1 per cent reduction in the RTM (RTK) workload. Secondly, revenue per RTM was 4.2 cents per RTM (2.87 cents per RTK) in 2008 compared to only 4.0 cents per RTM (2.74 cents per RTK) in 2009, a drop of 4.8 per cent. Revenue per RTM is a measurement of yield and is defined as revenue earned on the movement of a ton of freight over one mile.
The lower revenue per RTM (RTK) was due in part to reductions in fuel surcharges caused by year-over-year fuel price decreases combined with lower fuel consumption volumes. To illustrate, the cost of diesel fuel fell
30.5 per cent in 2009 compared to 2008 and fuel consumption shrank by 14.4 per cent during the same period. Fuel surcharges are intended to enable railways to adjust rates more quickly as fuel prices change and to provide customers with surcharges that are more closely tied to current fuel prices. Fuel surcharges are recorded to freight revenue.
By comparison to a decade earlier, the industry’s 2009 freight revenue grew by 16.7 per cent. This result was due to a 4.4 per cent smaller work-
5
Overview
6 load, as measured in RTM (RTK), which generated 22.0 per cent higher revenue per RTM (RTK) over the same period.
The industry’s operating expenses amounted to $8.4 billion in 2009 compared to $9.2 billion in 2008, a decrease of $815 million or 8.7 per cent. In order to better understand these results we need to isolate the expenses of the freight companies. Freight expenses totalled $7.3 billion in 2009 compared to $8.2 billion in 2008, a reduction of $854 million or
10.4 per cent. The combined effects of an 11.1 per cent contraction in the RTM (RTK) workload and a 0.6 per cent increase in the cost per unit of workload – expense per RTM (RTK), contributed to the 10.4 per cent decrease in freight expenses. Expense per RTM (RTK) inched-up 0.6 per cent from 3.46 cents per RTM (2.37 cents per RTK) in 2008 to 3.48 cents per RTM (2.39 cents per RTK) in 2009.
From 2000 to 2009, the industry’s operating expenses advanced from
$6.5 billion at the beginning of the decade to $8.4 billion in 2009, an increase of $1.9 billion or 29.2 per cent. Looking once again at the operating expenses of the freight companies only, 2009 expenses were $7.3 billion compared to $6.1 billion in 2000, a rise $1.2 billion or 19.7 per cent. Responsible for this 19.7 per cent increase in freight expenses were a 4.4 per cent decline in the RTM (RTK) workload combined with an 18.4 per cent hike in the cost per unit of workload. Freight expense per RTM (RTK) for
2009 was 3.48 cents per RTM (2.39 cents per RTK) compared to 2.94 cents per RTM (2.01 cents per RTK) ten years earlier, representing an increase of
18.4 per cent.
Overview
On a year-over-year basis, 2009 Transportation expenses (excluding fuel) fell $311 million or 13.1 per cent, exceeding the 11.1 per cent reduction in freight workload, the 7.4 per cent drop in intercity passengers and the 1.6 per cent fewer rail commuters in 2009.
Compared to 2008, fuel expenses fell a remarkable $820 million or
40.4 per cent. Two factors were responsible for this result; the quantity of fuel consumed shrank by 14.4 per cent and the price of diesel fuel fell sharply from $4.23 per gallon ($0.93 a litre) in 2008 to $2.94 per gallon
($0.65 a litre) in 2009, a 30.5 per cent price drop. The fact that the 14.4 per cent decline in fuel consumption exceeded the reductions in freight, intercity passenger and rail commuter workloads is indicative of the success of the industry’s ongoing fuel conservation practices.
Maintenance of equipment expenses fell slightly by $9 million or
0.6 per cent and maintenance–of-way and structures expenses declined a more significant $106 million or 6.2 per cent from 2008 to 2009.
General and administrative expenses were the only expense category to experience an increase in 2009 growing by $431 million or 29.2 per cent over 2008. CP’s higher 2009 General and administrative expenses include statutory payments plus a voluntary prepayment of $500 million to its defined benefit pension plan.
Additions to Property
The industry invests in capital programs for the renewal of its basic plant, the acquisition of rolling stock and other investments that contribute to growth opportunities as well as to improving the industry’s productivity and the fluidity of its network.
In 2009, the industry invested $1.5 billion in capital additions to property, representing a $133 million or 9.6 per cent increase over the year prior. Compared to a decade earlier when the industry spent $1.1 billion on capital additions, 2009 expenditures were $464 million or 43.8 per cent greater. Expenditures of $706 million on track and roadway additions represented almost half of 2009’s total expenditures. Track and roadway additions were $18 million or 2.6 per cent higher than 2008 and almost tripled 2000 expenditures of $259 million. The second highest capital additions category in 2009 was rolling stock additions with $317 million.
This category experienced a $27 million or 9.3 per cent hike in spending compared to the previous year and incurred $54 million or 20.5 per cent more expenditures than 2000.
7
Overview
8
Productivity
The key measurement of employee productivity is RTM (RTK) per employee.
In 2009, this measurement deteriorated by 2.9 per cent year-over-year, the direct result of the RTM (RTK) workload diminishing by 11.1 per cent and the slower paced 9.3 per cent contraction of the freight companies’ workforce.
By comparison, the ten-year scenario contains positive results as RTM
(RTK) per employee expanded by 26.0 per cent during this period. The workforce shrank by 24.1 per cent while workload contracted by a much smaller 4.4 per cent. The industry’s long-term investments in people, technology and infrastructure all contributed to this achievement.
Another measurement of productivity is road miles (kilometres) per employee and it is determined by dividing the total miles (kilometres) of first main track of freight companies by the number of employees they employ.
The industry fared well by achieving a 4.3 per cent gain in this productivity measurement from 2008 to 2009 and a 27.3 per cent improvement during the past decade.
Operating revenue per employee is another popular productivity measurement. The industry recorded a 6.7 per cent decline from 2008 to 2009, but a noteworthy 52.0 per cent improvement over the ten-year period since 2000.
As well, the solid long-term gains in employee productivity were achieved by the industry at a reasonable cost. The average annual wage per employee in 2009 increased 0.8 per cent over 2008 and rose 24.0 per cent during the decade from 2000 to 2009.
Another closely watched measurement of productivity is workload per gallon (litre) of fuel consumed. Freight companies reached a record high in
2009 by attaining an average of 545 RTM per gallon (175 RTK per litre) of fuel consumed. Both the year-over-year change and the ten-year change in
RTM per gallon (RTK per litre) of fuel consumed improved by 4.8 per cent.
It is interesting to note that on an industry basis, total fuel consumption in 2009 shrank by 5.9 per cent compared to a decade earlier. During that same period, freight workload contracted by only 4.4 per cent, the number of intercity rail passengers grew 11.6 per cent and the number of rail commuters expanded a significant 40.6 per cent. These gains are achieved through the implementation of fuel-efficiency initiatives, such as scheduling trains based on capacity to minimize congestion, better matching of horsepower to tonnage, improved train handling techniques and the use of fuel-saving devices on locomotives. The single most effective initiative has
Overview been the industry’s ongoing renewal of its fleets as older locomotives are replaced with higher horsepower, more fuel-efficient locomotives.
Productivity gains are also measured in terms of asset utilization. As previously mentioned, freight workload decreased 4.4 per cent from 2000 to
2009 and the number of intercity rail passengers and rail commuters both grew. During this same time, the industry down-sized its locomotive fleet
12.0 per cent, reduced freight car inventory 26.9 per cent and reduced miles
(kilometres) of track operated 2.5 per cent. The industry is certainly doing more with less. However, improved asset utilization cannot be achieved by plant reductions alone. Ongoing plant modernization is another important component and includes upgrading infrastructure, locomotive and freight and passenger car renewal programs as well as investments in information technology.
Passenger Transportation Services
Passenger transportation services represent intercity, rail commuter and tourist train services. Revenue from these three services totalled $627 million in 2009, down $34 million or 5.1 per cent from the year prior. Compared to a decade earlier, passenger transportation services revenue almost doubled in 2009. However, much of this increase was due to companies reporting their financial results in 2009 but not reporting in 2000. Excluding these companies from 2009 for comparability, results in a $32 million or 10.6 per cent increase in revenue over the decade.
Intercity passenger services generated $268 million in 2009, a reduction of $36 million or 11.8 per cent compared to 2008. The same period recorded a 7.4 per cent decrease in the number of passengers which fell from 4.9 million in 2008, a record high for the decade, to 4.5 million in 2009. Compared to a decade earlier when ridership totalled 4.1 million passengers, 2009 was
11.6 per cent higher.
Intercity passenger miles (kilometres) were down 9.3 per cent yearover-year, reflecting the combined effects of a 7.4 per cent lower ridership and a 1.5 per cent drop in the average length of journey. From 2000 to
2009, the average length of journey deteriorated 14.7 per cent from a high of 238 miles (383 kilometres) in 2000 to a decade low of 203 miles
(327 kilometres) in 2009.
VIA represents the majority of Canada’s intercity passenger services, it transported 93 per cent of total intercity passengers in 2009. VIA operates up to 500 trains weekly on 7,665 miles (12,336 kilometres) of track,
9
10
Overview connecting over 450 Canadian communities. Not unlike the freight rail,
VIA also had to deal with the economic recession of 2009. VIA’s passenger revenue slid 11.5 per cent in 2009 compared to the prior year while its passenger miles were down 9.8 per cent. Because the rate of revenue decline was greater than the drop in passenger miles, VIA’s yield or the revenue generated per passenger mile, declined 1.9 per cent. Passenger revenue was affected both by a declining demand for passenger services and by a highly competitive pricing environment as VIA discounted fares throughout the year in order to protect its market share.
During 2009, VIA negotiated improved agreements with the freight railways, thus providing VIA with better access to the national rail infrastructure. These agreements and a revised schedule that better reflects current operating realities resulted in significantly improved on-time performance.
Overall on-time performance climbed eight percentage points to 83 per cent in 2009. In the busy Quebec City – Windsor corridor, on-time performance reached 84 per cent, a 13.0 per cent betterment over 2008.
The Government of Canada provided an additional $407 million investment in passenger rail through the 2009 Economic Action Plan, bringing the total for VIA’s Capital Investment Program to $923 million over the 2007-2011 period. In 2009, capital spending totalled $117 million
(by comparison, the previous two years amounted to $55 million). VIA
Photo courtesy of Matthew G. Wheeler/VIA Rail
Overview proceeded to rebuild and renew its locomotives and passenger cars and began major infrastructure projects throughout the Quebec City – Windsor corridor, as well as station improvements in all parts of its network.
Capital spending will continue to accelerate over the next two years, with over $300 million per year in capital spending planned for 2010 and 2011.
Rail commuter services generated $299 million in 2009 compared to
$270 million a year earlier, representing a $29 million or 10.7 per cent improvement. Commuter trains in British Columbia, Ontario and Quebec carried
66.0 million riders in 2009, down 1.1 million or 1.6 per cent from 2008. It was the first year that ridership recorded a decline since 1997 when the RAC began tracking this statistic. Compared to a decade ago when rail commuters totalled 46.9 million, 2009 experienced an impressive 19.1 million or 40.7 per cent growth in rail commuters. Rail commuter services are contributing to less highway congestion, reduced pollution and better fuel conservation.
Highlights
• A severe, global economic downturn that began in late 2008 impacted the transportation industry as a whole and caused a sharp drop in demand for its services in 2009. Freight workload, as measured in revenue ton-miles (tonne-kilometres) fell 11.1 per cent year-over-year.
The number of passengers travelling on intercity trains experienced a
7.4 per cent reduction in 2009 compared to the prior year. The number of rail commuters fell less sharply during the same period, recording a
1.6 per cent drop in ridership.
• The ten-year statistics fared somewhat better. Freight workload was down only 4.4 per cent compared to 2000 but was the smallest workload of the decade. The number of intercity passengers grew by 11.6 per cent and rail commuter ridership surged 40.7 per cent.
• Total industry revenue of $9.6 billion slid $1.6 billion or 14.3 per cent year-over-year. Freight revenue, the largest component of industry revenue, fell $1.5 billion or 15.2 per cent and was at its lowest level since 2004. The decline in passenger revenue was less severe, down
$34 million or 5.1 per cent from 2008. Other revenue for 2009, almost totally generated by freight rail, experienced a $40 million or 6.9 per cent reduction from the year prior.
• Total operating income of $1.2 billion fell $0.8 billion or 38.6 per cent in 2009 compared to 2008 as the $1.6 billion revenue decline was only partially offset by the $0.8 billion reduction in operating expenses. The industry recorded its lowest operating income of the past decade.
11
Public Policy and Taxation
12
C anada’s railways are an important enabler of economic activity in Canada, moving approximately 70 per cent of freight on a tonne-km basis and over 70 million passengers last year. The country’s strength as an exportoriented trading nation depends on a stable regulatory environment and a competitive taxation system in order to attract investment necessary for future economic growth. Rail is also a green transportation solution and is well positioned to assist efforts in achieving Canada’s environmental performance goals. Rail is the most efficient form of freight surface transportation as it can move one tonne of freight more than 180 kilometres on just one litre of fuel.
Canadian railways continue to face a significantly higher tax burden than their U.S. competitors. The federal government took a step towards improving the taxation environment for rail in the 2008 Federal Budget by increasing the capital cost allowance (CCA) for locomotives from 15 to 30 per cent.
However, more needs to be done with respect to fuel, excise, property, capital and income taxes in order to have a true levelling playing field with U.S. rail. A competitive taxation system will allow Canadian rail to renew their locomotive fleet and rolling stock at a more effective pace and to increase capital investments, thereby improving productivity and environmental performance.
The 2009 Federal Budget Plan announced a $4 billion Infrastructure
Stimulus Fund which is to be allocated by March 31, 2011. To date, $18 million was announced, in partnership with the Government of New Brunswick, to improve New Brunswick Southern Railway infrastructure. Further, in
October 2010, the Federal Government and the Government of Ontario announced a $30 million infrastructure investment in the Huron Central line.
Additional short line infrastructure proposals, totalling $9 million, in Ontario have been presented to the federal and Ontario governments.
On the public policy front, the federal government continues efforts in developing the Ontario-Quebec Continental Gateway and Trade Corridor and the Atlantic Gateway . This focus on improving trade flows and the competitiveness of Canada’s multi-modal transportation are welcomed by Canada’s rail community. In addition, the federal government continues to invest in the Asia-Pacific Gateway and Trade Corridor .
The rail community is anticipating the completion of the Federal Rail
Freight Service Review. Over the last two years, freight rail have continued to work with their customers in developing commercial based services offers that meet the requirements of both parties. Clearly a commercial based approach, as opposed to regulatory measure, to optimize service will benefit rail customers and all participants in the rail freight supply chain.
Public Policy and Taxation
The continued success of Memorandums of Understanding to achieve common goals involving safety, security, community relations and the environment demonstrate the rail community’s commitment to public policy management in the best interests of Canadian industry and society. The guiding principles of non-regulation and flexibility have shown positive results and should continue.
Highlights
• The industry’s taxes totalled $853 million in 2009 compared to $930 million a year earlier, a $77 million or 8.3 per cent reduction. All categories of taxes fell or remained flat year-over-year. Compared to a decade earlier, 2009 taxes climbed $213 million or 33.3 per cent.
• Most of the year-over-year decline in the industry’s taxes was due to lower income taxes which fell $58 million or 18.0 per cent, a reflection of the 38.6 per cent drop in operating income. The ten-year snapshot is significantly different as 2009 income taxes were seven-fold greater than
2000’s income taxes of $38 million.
• Locomotive fuel and excise tax was $10 million or 5.3 per cent less than
2008. This reduction falls short of the year-over-year 14.3 per cent reduction in fuel consumption due in part to the timing of the introduction of the carbon tax in British Columbia. The carbon tax took effect in the second half of 2008 whereas 2009 includes the full year impact of this tax. Compared to a decade earlier, 2009 locomotive fuel and excise tax was $1 million or 0.6 per cent less.
• In 2009, payroll taxes were $7 million or 4.5 per cent lower than the previous year as the smaller workforce resulted in a 7.4 per cent reduction in total compensation. Canada and Quebec Pension Plan payments and unemployment insurance premiums both fell $3 million and Health taxes were down $1 million. Payroll taxes dropped $2 million or 1.3 per cent from 2000 to 2009.
I hope that you find “ Rail Trends ” interesting and useful. Your feedback is always welcome.
Sincerely,
J.C. (Cliff) Mackay
President and Chief Executive Officer
The Railway Association of Canada
13
Statistical Highlights
14
Ten-year comparison
2000 2008 2009
Revenue ton-miles (billions) 220.7 237.3
Revenue tonne-kilometres (billions) 322.2 346.5
Miles of road operated (1) 28,889 29,366
210.9
307.9
(2) 28,162
Kilometres of road operated (1) 46,491 47,258 (2) 45,322
Locomotives
Freight cars (000)
Gallons of fuel
Litres of fuel
Employees
(millions)
(millions)
Annual wage per employee ($)
3,115
104
437
1,989
3,046
84
481
2,185
2,742
76
412
1,871
41,118 35,208 32,337
60,795 74,790 75,415
1. Miles (kilometres) of road operated include road over which a railway has operating rights.
2. 2008 “Miles of road operated” (kilometres) were restated.
Percentage change
2009 versus:
2000 2008
-4.4
-4.4
-2.5
-2.5
-12.0
-26.9
-5.8
-5.8
-21.4
24.0
-11.1
-11.1
-4.1
-4.1
-10.0
-9.5
-14.3
-14.3
-8.2
0.8
Freight revenue ($) per ton (tonne)
Freight revenue per ton (tonne) is calculated by dividing freight revenue by total tons
(tonnes) originated.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009 ton
22.03
22.43
22.89
22.53
23.47
25.60
27.78
28.16
31.24
31.34
Revenue per tonne
24.29
24.73
25.23
24.83
25.87
28.22
30.63
31.04
34.44
34.55
Index
2000=100
100.0
101.8
103.9
102.3
106.5
116.2
126.1
127.8
141.8
142.3
Consumer Price
Index
100.0
102.5
104.8
107.8
109.7
112.2
114.4
116.9
119.6
120.0
Statistical Highlights
Freight revenue (cents) per ton-mile (tonne-kilometre)
Revenue per ton-mile tonne-kilometre
Index
2000=100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
3.28
3.27
3.44
3.32
3.37
3.64
3.87
3.84
4.20
4.00
2.24
2.23
2.35
2.28
2.31
2.49
2.65
2.63
2.87
2.74
100.0
99.7
104.9
101.2
102.7
111.0
118.0
117.1
128.0
122.0
Freight revenue (cents) per ton-mile
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
15
Statistical Highlights
16
Track operated, by provinces and territories (3)
Alberta
British Columbia
Manitoba
Newfoundland & Labrador
New Brunswick
Nova Scotia
Ontario
Quebec
Saskatchewan
Northwest Territories
Total
Intercity passenger trains
Commuter and tourist trains
Segments terminating in the U.S.
Grand total
Miles
4,277
4,252
2,994
286
721
411
7,069
3,844
5,437
75
29,366
7,751
2,186
154
39,456
2008
Kilometres
6,883
6,843
4,818
459
1,160
661
11,376
6,186
8,750
121
47,258
12,474
3,518
248 (4)
63,498 (4)
Miles
2009
Kilometres
4,234
4,158
2,764
286
721
406
6,851
3,844
4,823
75
28,162
7,824
2,116
154
38,256
6,814
6,692
4,448
459
1,160
654
11,026
6,186
7,762
121
45,322
12,592
3,405
248
61,567
3. First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks.
4. 2008 “Segments terminating in the U.S.” (kilometres) and “Grand total” (kilometres) were restated.
Freight Transportation
Intermodal traffic originated (5)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Trailers
(000)
206
192
214
217
149
112
106
102
101
83
Containers
(000)
1,595
1,636
1,820
1,937
2,010
2,134
2,251
2,334
2,396
2,033
Total
(000)
1,801
1,828
2,034
2,154
2,159
2,246
2,357
2,436
2,497
2,116
5. 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)”.
Rail Operations in Canada
Plant – track operated (6)
Miles
Index
Kilometres 2000=100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
28,889
28,951
29,087
29,138
30,551
30,380
29,978
29,713
29,366
28,162
46,491
46,591
46,811
46,893
49,167
48,893
48,243
47,816
47,258
45,322
100.0
100.2
100.7
100.9
105.8
105.2
103.8
102.9
101.7
97.5
Equipment in service
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Freight cars Locomotives in service
103,976
102,790
98,001
97,039
99,141
101,606
99,946
92,373
83,984
75,836 in service
3,115
3,142
3,129
3,170
3,234
3,253
3,271
3,165
3,046
2,742
6. First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. Excludes intercity passenger trains, commuter & tourist trains and segments terminating in the U.S.
Miles of track operated
32,000
31,200
30,400
29,600
28,800
28,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
17
Rail Operations in Canada
Freight Transportation
Carload traffic
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Carloads originated
(000)
4,157
4,017
3,992
4,092
4,212
4,290
4,260
4,196
3,984
3,367
Tons originated
(000)
328,172
321,127
317,432
327,126
337,923
343,464
339,394
337,989
318,688
269,028
Tonnes originated
(000)
297,718
291,326
287,974
296,768
306,563
311,590
307,897
306,623
289,114
244,062
7. Tons (tonnes) per carload: Tons (tonnes) originated divided by carloads originated.
Tons per carload (7)
80
80
80
81
80
80
79
80
80
80
Tonnes per carload (7)
73
73
73
73
73
73
72
73
73
73
Carloads Originated (000)
4,500
18
4,000
3,500
3,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Rail Operations in Canada
Freight transportation
Freight train miles
(000)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
72,453
70,704
72,194
72,873
74,284
76,400
76,451
74,100
71,712 (8)
59,576
8. 2008 “Freight train miles” were restated.
Freight train kilometres
(000)
116,598
113,784
116,185
117,278
119,548
122,953
123,035
119,253
115,409
95,877
Revenue ton-miles
(millions)
220,678
220,374
211,500
221,653
235,114
241,745
243,744
247,709
237,323
210,898
Revenue tonne-kilometres
(millions)
322,157
321,714
308,759
323,581
343,232
352,912
355,831
361,619
346,457
307,880
Revenue ton-miles (millions)
250,000
225,000
200,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
19
Rail Operations in Canada
20
Freight Transportation
Carloads originated by commodity grouping (9)
Agriculture Coal Minerals
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
457,089
452,423
364,754
345,025
412,099
416,473
453,151
454,034
430,292
474,980
370,467
349,992
342,432
327,182
337,592
353,197
321,266
349,983
324,931
277,048
479,240
495,078
601,004
627,288
639,764
657,410
600,823
609,422
574,645
368,631
Fuels &
Chemicals
Paper
Products
Forest
Products
398,466
398,430
403,908
430,662
442,689
433,138
388,035
317,158
253,279
182,395
Food Manufactured &
Products Miscellaneous Intermodal
Metals
282,470
250,153
289,619
284,718
326,020
295,022
362,000
359,982
369,475
273,800
Total
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
445,575
425,976
469,514
474,342
485,197
469,655
470,833
470,876
443,125
401,141
240,624
237,380
274,219
302,994
333,061
333,830
274,092
252,150
228,072
175,693
33,894
38,322
30,391
32,652
40,587
44,169
41,454
41,822
42,365
42,232
68,346
56,269
55,624
51,652
63,890
65,629
66,333
65,923
75,160
79,445
611,765
646,692
691,417
712,377
3,654,848
3,598,153
3,800,170
3,859,303
722,412
769,936
819,552
832,663
4,056,314
4,073,939
4,041,934
3,988,843
847,647 3,784,299
741,807 3,165,295
9. 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.
Machinery &
Automotive
266,912
247,438
277,288
270,411
253,003
235,480
244,395
234,830
195,308
148,123
Rail Operations in Canada
Freight Transportation
Revenue from carloads originated by commodity grouping ($millions) (10)
Agriculture Coal Minerals
Forest
Products Metals
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
732
761
875
948
1,125
1,157
1,161
1,259
Fuels &
Chemicals
777
739
771
804
836
837
902
818
416
405
513
738
676
709
706
502
Paper
Products
502
518
595
642
582
541
531
423
623
645
763
811
764
819
833
525
619
615
798
969
928
780
646
478
364
360
404
429
489
476
531
317
Food Manufactured &
Products Miscellaneous Intermodal
55
58
70
74
81
81
89
94
92
96
93
112
114
116
126
113
1,679
1,760
1,885
2,152
2,377
2,452
2,702
2,273
10. Not all member companies record revenue by commodity grouping.
Machinery &
Automotive
477
460
397
414
433
445
443
337
Total
6,336
6,417
7,164
8,093
8,405
8,413
8,672
7,139
Carloads originated by commodity grouping
15% Agriculture
9% Coal
12% Minerals
6% Forest Products
9% Metals
5% Machinery & Automotive
12% Fuel & Chemicals
5% Paper Products
1% Food Products
3% Manufactured &
Miscellaneous
23% Intermodal
21
Rail Operations in Canada
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
F uel Consumed
Total fuel consumed gallons (000) litres (000)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
437,495
444,245
451,100
458,023
480,499
485,915
486,218
492,125
480,661
411,612
1,988,749
2,019,436
2,050,729
2,082,207
2,184,384
2,209,007
2,210,384
2,237,237
2,185,120
1,871,221
Gross ton-miles Gross tonne-km
(millions) (millions)
401,506
399,457
398,681
415,290
441,467
457,950
459,633
463,356
449,922
397,293
586,140
583,149
582,016
606,263
644,478
668,540
670,997
676,433
656,821
579,990
Revenue ton-miles Revenue ton-km per gallon of per litre of fuel consumed fuel consumed
1.78
1.82
1.65
1.73
1.81
2.38
2.81
3.07
4.23
2.94
520
522
495
510
513
523
527
529
520
545
Cost of diesel fuel per gallon ($) per litre (cents)
167
168
159
164
165
168
169
170
167
175
39.1
40.1
36.2
38.0
39.8
52.5
61.8
67.6
93.0
64.8
22
Fuel consumed in gallons (000)
500,000
450,000
400,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Rail Operations in Canada
Train Statistics
Average: Length of haul/Cars per train
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Miles (kilometres) hauled by transcontinental railways (CN and CP)
Miles
787
789
795
794
787
789
803
807
818
830
Kilometres
1,267
1,270
1,279
1,278
1,267
1,270
1,292
1,299
1,316
1,336
Miles (kilometres) hauled by regional/short line railways
Miles Kilometres
187
162
150
151
161
149
159
151
146 (11)
159
301
261
241
243
259
240
256
243
235 (11)
256
11. 2008 “Miles (kilometres) hauled by regional/short line railways” were restated.
Average cars per freight train
Cars
78
79
79
81
82
87
73
73
74
74
Average cars per freight train
90
80
70
60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
23
Rail Operations in Canada
Passenger Transportation
Intercity passenger transportation
Passenger cars in service
Number of passengers
(000)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
450
421
473
505
465
538
537
538
540
559
4,068
4,112
4,223
4,024
4,181
4,322
4,320
4,478
4,899
4,538
12. 2008 “Passenger kilometres” were restated.
miles
(millions)
Passenger kilometres
(millions)
954
965
992
931
894
919
906
912
986
894
1,535
1,553
1,597
1,498
1,439
1,479
1,458
1,468
1,588 (12)
1,439
Number of passengers (000)
5,000
24
4,500
4,000
3,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Rail Operations in Canada
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Intercity passenger transportation miles
Passenger train
(000) kilometres (000)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
7,236
7,338
7,406
7,252
7,214
7,415
7,381
7,330
7,414
7,334
11,645
11,809
11,919
11,671
11,611
11,933
11,879
11,796
11,932
11,803
Average intercity passengers per train
132
132
134
128
124
124
123
124
133
122
Average passenger load factor (%)
53
55
54
55
59
57
56
57
57
53
Passenger car miles (000) kilometres (000)
46,945
47,991
50,035
50,087
49,707
49,966
49,400
48,708
49,140
47,290
75,549
77,232
80,523
80,607
79,995
80,412
79,501
78,388
79,083
76,106
Average length of journey miles kilometres
238
238
238
226
219
217
214
209
206
203
383
383
383
364
352
349
344
336
332
327
On-time performance (%)
70
81
84
77
75
83
83
85
84
73
25
26
Rail Operations in Canada
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Passenger Transportation
Rail commuter miles
Commuter passenger
(000) kilometres (000)
2002
2003
2004
2005
2006
2007
2008
2009
199,957
204,198
214,089
224,833
237,781
247,066
256,123
245,942
Average rail commuters per train
321,801
328,626
344,544
361,834
382,672
397,615
412,190
395,806
Commuter train miles (000) kilometres (000)
2,592
2,724
2,749
2,820
2,730
2,808
2,832
2,876
4,171
4,384
4,425
4,539
4,394
4,518
4,558
4,628
Rail commuters (000)
British Columbia, Ontario and Quebec
284
260
287
283
300
339
340
301
46,918
47,968
50,132
52,688
54,905
58,235
60,634
63,393
67,052
65,962
Rail commuters (000)
70,000
60,000
50,000
40,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Rail Operations in Canada
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Additions to Property
Additions to property ($millions)
Track & roadway
Buildings & related machinery
& equipment
259
331
374
333
364
582
613
618
688
706
334
236
310
202
188
189
212
255
189
257
Rolling stock
263
315
208
313
337
416
352
350
290
317
Intermodal
30
39
48
30
29
34
32
56
16
25
Work equipment
& roadway
Signals, communications
& power
95
64
42
47
38
95
74
44
79
72 equipment machines equipment
21
13
34
41
36
31
44
41
68
42
Other
39
15
28
18
22
72
23
16
14
21
Terminals & fuel stations
11
27
37
43
26
24
33
44
17
24
Total additions
1,060
1,075
1,015
1,006
1,043
1,394
1,408
1,399
1,391
1,524
27
Rail Operations in Canada
Employment
Employment
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Total compensation
($millions) (13)
2,498
2,474
2,392
2,412
2,387
2,548
2,535
2,566
2,633
2,439
Average number of employees
41,118
39,511
37,296
36,599
35,736
35,389
34,558
34,938
35,208
32,337
Average annual wage per employee
60,795
62,675
64,229
65,901
66,804
71,994
73,356
73,440
74,790
75,415
($)
13. Compensation includes salaries and compensation paid and excludes company paid benefits such as Canada/Quebec
Pension Plan, Unemployment Insurance and health taxes.
28
Average number of employees
50,000
40,000
30,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Rail Operations in Canada
Productivity
Revenue ton-miles per employee
Revenue ton-miles per employee (000)
Revenue tonne-kilometres per employee (000)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
5,878
6,167
6,319
6,764
7,352
7,679
7,963
8,045
7,625 (14)
7,404
8,581
9,003
9,225
9,874
10,733
11,210
11,625
11,745
11,132 (14)
10,809
14. 2008 Productivity statistics were restated.
Road miles per employee
0.77
0.81
0.87
0.89
0.93
0.96
0.98
0.96
0.94
(14)
0.98
Road kilometres per employee
1.24
1.30
1.40
1.43
1.50
1.54
1.58
1.54
1.51
(14)
1.58
Revenue ton-miles per employee (000)
8,500
7,500
6,500
5,500
4,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
29
Financial Highlights
30
Operating Income
Operating revenue ($millions)
Freight
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
7,231
7,203
7,266
7,369
7,931
8,794
9,430
9,516
9,957
8,433
Passenger (15)
323
346
389
364
386
576
622
624
661
627
Other
478
503
487
484
506
570
561
564
579
539
Total
8,031
8,052
8,142
8,217
8,823
9,940
10,613
10,704
11,197
9,599
15. Federal, provincial and municipal funding of $435 million in 2009 for Intercity passenger and commuter services is excluded.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Operating income ($millions)
Income
1,576
1,434
1,428
1,484
1,704
2,164
2,402
2,209
2,030
1,247
Financial Highlights
Operating expenses
Operating expenses ($millions) (16)
Transportation
2000
2001
2002
2003
2004
2005
2006 (17)
2007
2008
2009
1,920
1,997
2,037
2,086
2,180
2,241
2,224
2,337
2,376
2,065
Fuel
777
798
734
781
862
1,159
1,367
1,513
2,032
1,212
Maintenance of equipment
1,416
1,476
1,300
1,280
1,290
1,382
1,575
1,634
1,564
1,555
2000
2001
2002
2003
2004
2005
2006 (17)
2007
2008
2009
Maintenance-of-way and structures
1,254
1,227
1,374
1,421
1,421
1,493
1,408
1,549
1,718
1,612
General and administrative
1,088
1,120
1,269
1,165
1,366
1,501
1,637
1,462
1,477
1,908
16. Charges for restructuring, relocation and write-down of assets are excluded.
17. CN restated 2006 Maintenance of equipment and Maintenance-of-way and structures expenses.
The net impact on 2006 Total operating expense was nil.
Total operating expense
6,455
6,618
6,714
6,733
7,119
7,776
8,211
8,495
9,167
8,352
31
Financial Highlights
32
Taxes by category ($millions)
Total
Locomotive fuel & excise tax
Property tax
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
640
654
654
742
698
716
1,084
989
930
853
178
164
168
173
174
180
188
188
187
177
134
139
143
139
141
155
155
154
152
152
Other Capital tax sales & customs Income Payroll tax duties tax taxes
103
104
118
101
90
98
102
97
99
97
37
58
42
64
25
31
21
15
14
14
38
36
27
110
118
101
471
381
323
265
150
153
156
155
150
151
147
154
155
148
Payroll taxes ($millions)
Canada/Quebec
Pension Plan
Unemployment
Insurance
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
71
72
72
75
77
74
58
65
68
73
37
36
32
33
33
30
52
47
45
42
Health
Taxes
40
41
43
40
42
43
43
46
45
44
Total
150
153
156
155
150
151
147
154
155
148
Financial Highlights
Taxes by jurisdiction ($000)
Alberta
British Columbia
Manitoba
Nfld. & Labrador
New Brunswick
Nova Scotia
Ontario
Quebec
Saskatchewan
Northwest Territories
Federal
Total
Alberta
British Columbia
Manitoba
Nfld. & Labrador
New Brunswick
Nova Scotia
Ontario
Quebec
Saskatchewan
Northwest Territories
Federal
Total
Locomotive fuel
& excise tax
2008
10,553
0
0
2009
4,458 4,066
20,565 26,230
9,376
0
1,477
0
1,138
0
30,613 24,301
4,735 4,984
36,011 38,732
0
78,755 68,569
Fuel tax per litre
(cents)
2009
1.5
3.0
6.3
0.0
4.3
0.0
4.5
3.0
15.0
11.4
4.0
Property tax
2008 2009
11,153 12,778
37,035 37,771
13,654 13,588
69 65
1,463
1,754
1,500
2,518
38,250 37,517
33,295 32,843
15,558 13,649
71 96
0 0
187,168 177,396 152,302 152,325
Other sales tax
2008
0
2009
0 0
24,848 21,659
10,444 10,402
0 0
22
1,598
0
0
30,474 30,441
9,663 10,733
6,408 6,035
0
15,098 17,598
0
13
3,323
0
252
206
4,238
5,009
872
0
162
Capital tax &
customs duties
2008 2009
Income tax
2008 2009
2,926
0
0
2
0
286
5,594
4,894
19,396 15,029
24,666
12,200
0
4,462
1,786
35,466
12,296
353
0
0
1,740
413
29,059
14,093
-179
0
15,966
226
420 196,376 204,793
0
0
98,554 96,868 14,075 13,943 322,840 265,480
33
34
Glossary
Average length of haul: Calculated by dividing revenue ton-miles by revenue tons.
Average cars per freight train: Calculated by dividing loaded and empty car miles by train miles.
Container: 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.
Gross ton-miles (Gross tonne- kilometres): 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.
Intermodal service: The movement of trailers or containers by rail and at least one other mode of transportation. Import and export containers generally are shipped via marine and rail. Domestic intermodal service usually involves truck and rail.
On-time performance: The ability to meet customer requirements as to pick-up and delivery schedules.
Reload centre: A transfer facility enabling the railway to expand market share through truck-to-rail service.
Revenue ton-miles (Revenue tonnekilometres): The sum of ton-miles handled, calculated using the total weight of the commodities in the cars of the trains moved.
It excludes the ton-miles involved in the movement of railway materials or any other non-revenue movement.
Scheduled railroad: A railroad that handles individual car movements according to a specific plan where possible and manages expectations to meet agreed upon customer commitments.
Track operated: First main track only.
Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks.
Trip plan: A detailed chain of train handling events describing car handling from shipper’s door to consignee’s door. Trip plans are expressed in hours and are tailored for each specific customer location.
Unit train: A train with a fixed, coupled consist of cars operated continuously in shuttle service under load from origin and delivered intact at destination and returning usually for reloading at the same origin.
Conversion factors miles to kilometres tons (short) to metric tonnes gallons to litres revenue ton-miles to revenue tonne-kilometres kilometres to miles metric tonnes to tons (short) litres to gallons revenue tonne-kilometres to revenue ton-miles
1.6093
0.9072
4.5461
1.4599
0.6214
1.1023
0.2200
0.6850