THE GLOBE AND MAIL MONDAY, OCTOBER 15, 2007 RAC1 A special information supplement Canada’s railways PHOTO: CN or Cliff Mackay, a simple statistic sums up the importance of Canada’s railway sector: two-thirds of all freight that moves in the country moves by rail. “Canada’s strength as a trading nation in a rapidly expanding global economy is underpinned by a safe, efficient and environmentally friendly railway system,” he says. As president of the Ottawa-based Railway Association of Canada (RAC), Mr. Mackay represents the interests of some 60 member freight, tourist, commuter and intercity railways. His organization plays a major role in promoting the safety, viability and growth of the railway industry within Canada. Mr. Mackay says economic activity in Canada is expected to grow by approximately three per cent next year in spite of indications of a cooling economy in the U.S., Canada’s main trading partner. F A force in the global economy “This means demand for rail services will increase as trade with Asian markets continues to flourish,” he says. “Canada’s big challenge is to ensure that we keep investing in the infrastructure needed to meet the demand.” Mr. Mackay says projects like the Pacific Gateway in British Columbia are the right way to go, but he is concerned that expansion is not happening quickly enough. “We can’t spend too much time debating what to do. We have to act quickly to avoid bottlenecks that will result in lost opportunities,” he says. However, the climate for private sector investment in rail infrastructure needs to be addressed, says Mr. Mackay. The RAC wants to see a tax system that is internationally competitive to encourage investment and savings, and attract foreign direct investment. Currently, Canadian railways face a 75 per cent higher tax burden than their U.S. competitors. “The railway industry is highly capital intensive. Canadian railways will invest over $2.5 billion this year in order to maintain their infrastructure and ensure that they can move their goods in a safe and cost effective manner. Our competitive environment should not be less favourable than our main competitor, the U.S., but at the moment it is,” says Mr. Mackay. The federal government’s view is that Canada’s railways deserve support. Speaking at an RAC meeting earlier this year, Transportation, Infrastructure and Communities minister Lawrence Cannon said, “Our vision for this country is to make Canada a global powerhouse in the world of transportation logistics. We will support Canada’s railways in their endeavours to become the best railway system in North America and the world.” And in August, Brian Jean, parliamentary secretary to the minister of Transportation, told the North American Transportation Forum in Banff that Canadian railway companies had a track record of working together for the good of the country and the industry as a whole. “For example, Prince Rupert may be closer by sailing time to China, but it’s the speed and efficiency of the port and the railway that will make it a gateway to Chicago. Vancouver may have enor- mous opportunities as a major port, but it’s the willingness of CN and CP to work together on co-production agreements that helps keep the traffic moving,” he said. Bombardier Transportation, now headquartered in Germany, but founded in Canada, knows all about global competition. The company is a world leader in the development, manufacture and export of railway vehicles and locomotives, and the provision of maintenance and servicing systems. It is also the only major rail equipment supplier to maintain a manufacturing presence in Canada. William Spurr, president, Bombardier Transportation, North America, says the company has achieved its position by clearly understanding the needs of a global market. Since first entering the mass transit market in 1974 with a contract for the Montreal metro, the company has grown into a global powerhouse with close to 30,000 employees and revenues of $6.5 billion US. Bombardier has supplied more than 100,000 rail cars to customers in over 60 countries. Spurr’s North American operation, based in Canada, plays a major role in that, generating 90 per cent of its revenue from exports. The secret to Bombardier’s success? “We thrive on competition,” says Mr. Spurr. “We have faced and overcome major competitors in Europe, North America and elsewhere in the world.” The company is now strongly focused on expanding the services side of the business. It currently services and maintains 8,000 rail cars for customers around the world, including a 60 per cent market share in North America. Investment New agreement, actions Canada’s railways expand to meet growing needs Agreement advances environmental agenda rince Rupert is the closest port to Asia by up to 58 hours sailing time compared to any other west coast port in North America, and CN is investing aggressively to maximize the potential of the continent’s newest Pacific Gateway. This initiative is just one example of the ever-increasing prominence Canada’s railways are playing in the world of international shipping and logistics. With the opening this month of the new Port of Prince Rupert container terminal, CN, in partnership with the Prince Rupert Port Authority and Maher Terminals, will offer the most efficient and most cost-effective routing for he Railway Association of Canada believes rail is the key to significantly reducing greenhouse gas (GHG) emissions in the country’s freight transport sector. Earlier this year, the RAC, Transport Canada and Environment Canada signed a new Memorandum of Understanding (MOU) to help reduce the rail sector’s share of air pollution and greenhouse gas emissions. Mike Lowenger, the RAC’s vice president, Operations & Regulatory Affairs, says the MOU provides for a continued improvement of environmental performance over the next five years. “We will focus on working P Inside containerized traffic moving between Asia and the interior of North America, including Toronto, Montreal, Chicago and Memphis. Sameh Fahmy, senior vicepresident, Supply Management/Engineering/Mechanical at CN, says the company’s investment in Prince Rupert is part of a concerted effort to grow its business through enhanced network capacity, particularly in Western Canada. CN’s investments in support of Prince Rupert include: • $30 million for double-stack clearances along its B.C. North Line and in Fairview terminal trackage at the port; • Roughly $20 million to $30 million for sidings and other track work along the line to Prince Rupert; • About $100 million for new locomotives for the new Prince Rupert service; • Leasing more than 2,000 intermodal car platforms to accommodate new Prince Rupert container traffic; • $20 million for a new Prince George, B.C., intermodal terminal/distribution centre to maximize opportunities for generating backhaul traffic destined for Asian markets. “In broad terms,” says Mr. Fahmy, “CN has been expanding its capacity in See ‘Capacity’ page RAC4 T smarter, doing more with less, building teamwork and sharing knowledge and best practices across the industry and beyond,” says Mr. Lowenger. Mr. Lowenger says rail freight’s fuel consumption per 1,000 revenue tonne kilometres declined 20 per cent under the previous agreement between the RAC and Environment Canada. In addition, freight greenhouse gas intensity from the rail sector declined by 15 per cent. “Rail moves a tonne of freight 168 kilometres on just one litre of fuel. By comparison, a truck uses as much as six times more energy to transport a tonne of freight one kilometre than a train,” says Mr. Lowenger. When the new MOU was announced earlier this year, Lawrence Cannon, Canada’s minister of Transport, Infrastructure and Communities, said, “Actions taken under this agreement are expected to reduce air pollutants from the railway industry and improve railway fuel efficiency, which reduces greenhouse gas emissions.” Environment minister John Baird said the MOU was another good example of industry and government working together to address climate change. “We will begin to regulate See ‘Policy’ page RAC5 RAC3 RAC4 RAC5 Railway Association of Canada President and CEO Cliff Mackay outlines how Canada’s railways are making a positive impact across the nation. Oilsands. In northern Alberta, Canada’s railways are working to meet the growing requirements of the energy sector. Sustainability. The rail sector is working to help reduce transport-related greenhouse gas emissions and air pollution. BeIng enVIRonMenTAlly AWARe. ThAT, Too, Is a more human way to travel. VIA TM Tradmark wd b VIA Rai Caada Ic. RAC2 THE GLOBE AND MAIL MONDAY, OCTOBER 15, 2007 A special information supplement ADVERTORIAL GO Transit improves efficiency and air quality in the GTA O Transit is in the midst of a major expansion program, which will improve rail and road travel in the Greater Toronto Area (GTA) and will reduce harmful greenhouse gas emissions. One of the most successful transit systems in Canada, GO has grown from a single rail line that carried 2.5 million passengers in 1967 into a comprehensive train and bus network that today carries over 49 million passengers per year. GO was established by the Province of Ontario to help deal with highway traffic congestion. Road traffic is still a serious problem in the GTA; however, for the past 40 years, GO has offered commuters an attractive alternative to driving to work. Without GO Transit, eight more expressway lanes would be required to transport GTA-dwellers into downtown Toronto. Taking cars off the roads reduces emissions that are harmful to air quality. One 10-car GO Train carries about the same number of people as 1,400 air-polluting cars, and one bus can replace about 50 cars. On a typical weekday in September 2007, GO operated 181 train trips and 1,804 bus trips, carrying about 195,000 passengers per day an average of 33.5 kilometres each. Expansion projects will help to accommodate demand for more service, allowing GO to carry 50 per cent more customers over the next 10 years. GO Transit’s expansion plan represents a total investment of a billion dollars by the Government of Canada, the Province of Ontario, and the GTA municipalities. Projects fall into two main categories: renewal of facilities, tracks and signals in the Union Station area; and construction of tracks and bridges on rail corridors. passes, so that GO Trains no longer have to stop and wait for freight trains to pass, and building third tracks along busy stretches of CN lines. Adding a third track will allow for more GO Trains and will improve on-time performance. Another important and much-anticipated rail improvement project is the extension of GO Train service to Barrie. This is expected to happen in the next few months. G RENEWING UNION STATION The Union Station renewal program involves a number of projects in this 1920s facility and MORE TRAINS AND BUSES GO Transit is also in the process of considerably expanding its fleet to accommodate the growing number of commuters switching to GO. GO has purchased 27 new locomotives that are more powerful, more fuel-efficient, more reliable and more environmentally friendly than those in its current fleet. The new locomotives can pull 12-car trains, two more than the current maximum of 10 cars per train, allowing GO Trains to carry 300 more passengers each – a 20 per cent increase. GO has also ordered 12 double-decker buses. These buses seat 78 passengers each, 23 more per bus than current vehicles. The new buses will be used on GO’s busy Highway 407 service. GO Transit helps keep Toronto on the move, carrying about 195,000 passengers daily. Already operating one of Canada’s most successful transit systems, GO is now undergoing a major one-billion-dollar expansion to help Toronto address traffic congestion, growing commuter needs and reduce emissions of greenhouse gases and other forms of air pollution. the tracks surrounding it. The shed, or roof, over the train platforms at Union Station is badly deteriorating and will be rebuilt. GO is also continuing to add more stairs from street level to the train platforms for the over 150,000 GO passengers who use Union Station each day. The track and signal system in the Union Station rail corridor is being modernized to more easily handle the high volume of trains that use the downtown Toronto hub each day. A new storage facility for GO Trains, the Don Yard, has been built east of Union Station to improve efficiency and reduce train congestion. IMPROVING RAIL INFRASTRUCTURE Work across GO’s rail network includes separating GO tracks from intersecting freight tracks with rail-to-rail underpasses or over- LESS CONGESTION AND CLEANER AIR: A BRIGHT FUTURE WITH GO Getting people out of their cars and onto GO Trains and GO Buses frees up space on highways for those who need to drive. It also improves air quality by reducing the number of cars on the road: fewer traffic jams mean fewer harmful car emissions. GO Transit’s expansion is vital to the success of the GTA as Ontario’s economic engine and as an attractive place to live and work. For more information about GO Transit, visit gotransit.com. In just one hour on a typical weekday morning, GO Trains carry the same number of people into downtown Toronto as eight congested expressways. 416 869 3200 1 888 GET ON GO (438 6646) TTY 1 800 387 3652 gotransit.com Pour plus de renseignements, veuillez composer les numéros ci-dessus. THE GLOBE AND MAIL MONDAY, OCTOBER 15, 2007 RAC3 A special information supplement Opinion Strengthening Canada’s backbone By Cliff Mackay President and CEO Railway Association of Canada n addition to the role that railways play in supporting Canada’s economy, railways are key to helping Canada and its communities resolve issues concerning traffic congestion, pollution and public transportation needs. Freight, intercity and tourism services are other ways railways serve the public. Unlike Europe, where passenger traffic accounts for 90 per cent of rail revenue because population density is greater and distances shorter, freight rail traffic in North America accounts for 90 per cent of their business. In Canada, railways move two-thirds of surface freight by I volume and 65 million passengers, yet they generate only three per cent of greenhouse gas emissions. This has happened by design, not by accident. The rail industry has outperformed the Canadian economy with regard to greenhouse gases in the last 10 years. Greenhouse gas emissions grew for the economy as a whole at about 35 per cent, and only eight per cent for the railway industry over the past 10 years. Canada’s railways achieved this impressive performance in spite of the fact that freight traffic increased 25 per cent, intercity passenger traffic increased 11 per cent, and commuter traffic a whopping 42 per cent since 1990. At the same time, NOx emissions averaged below the 115 kilotonnes cap set by the previous voluntary government-industry agreement. The railway industry also reduced its greenhouse gas emissions intensity rate by 15 per cent in the same period. A new agreement to continue the industry’s efforts was signed in mid-2007 with Hon. Lawrence Cannon, minister of Transport, Infrastructure and Communities, and Hon. John Baird, minister of the Environment. “By 2010, we expect that from the 1990 levels, (rail’s) fuel efficiency will be 44 per cent better under this new MOU,” said Minister Cannon, adding that the new agreement will also result in immediate reductions in air pollutants and greenhouse gas emissions from railways. “I have great hopes for rail as an important contributor to green transportation.” Canada’s railways are committed to being a key part of meeting our environmental goals. At the same time, they are working to improve our communities. The Federation of Canadian Municipalities (FCM) and the RAC signed a new Memorandum of Understanding this year to continue and expand their activities designed to resolve problems between the communities and the railways. During the life of their pre- vious agreement, FCM and RAC established a website at www.proximityissues.ca with a wide range of information and contacts. The partnership also established several Community Advisory Panels, published the first comprehensive Proximity Guidelines and Best Management Practices resource dealing with noise management and municipal planning, and developed and tested a formal dispute settlement process. The new agreement is designed in part to deal with amendments to the federal Canada Transportation Act, which confirmed that regulating railway noise is a federal responsibility. The agreement will build on previous work to improve municipal planning, develop new techniques for mitigating noise and vibrations, and further enhance public safety around railway operations. The Canadian Association of Municipal Administrators (CAMA), representing city managers and administrators, has also joined the initiative’s Freight rail traffic accounts for 90 per cent of North American rail business. In tandem with rail’s growing contribution to the Canadian economy, Canada’s railways are committed to advancing an array of environmental sustainability practices. PHOTO: SUPPLIED steering committee. Finally, Canada’s railways are working with government and communities to deal with critical infrastructure needs. Major expansion of the Pacific Gateway in Vancouver, Prince Rupert and inland is underway to cope with a doubling of traffic moving between Asia and North America. Similar initiatives for international traffic moving between eastern Canada and the U.S. are underway. In addition to the obvious economic benefits that will flow from the investment, major improvements in community safety and a reduction in congestion are expected. Canada’s railways have been an important part of our history. We are committed to playing an equally important role in Canada’s future! Rail delivers added value to the country’s economy • Canada’s railways collectively operate one of the largest railway systems in the world and are fully integrated with the U.S. railway system. • Rail is an enabler of economic activity within Canada and its international markets. • Canada’s freight railways handle more than 65 per cent of surface traffic; more than 4.3 million carloads of freight and containers annually. • Passenger railways move over 60.6 million commuters to and from work each year, and more than 4.3 million people use intercity rail service to move about the country – 85 per cent to and from communities in Ontario and Quebec. • Overall, Canada’s railways directly employ 34,500 people and contribute approximately $10 billion to the Canadian economy. • The railway industry is highly capital intensive. Canadian railways are currently investing approximately $2.5 billion on an annual basis in order to maintain their infrastructure and ensure that they can move their goods in a safe and cost-effective manner. • The federal government plays a significant role in establishing the operating environment for railways. As such, it must provide regulatory and legislative certainty with respect to the railways’ operating environment, environmental obligations and safety requirements, to allow the rail industry to make the necessary capital investments to increase the capacity and operational efficiency of their operations. This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail. It did not involve The Globe’s reporting or editing staff. Richard Deacon, National Business Development Manager, rdeacon@globeandmail.com. Your way. All ways. Your gateway to North America. Welcome to CN’s unparalleled network. Your way of getting single line service from coast to coast to coast. The smart way to get consistent, reliable shipment delivery. And the best way to access more markets than ever before. For more information call 1-888-MOVIN-CN. www.cn.ca BOMBARDIER NORTH AMERICA’S RAILROAD CN RAC4 THE GLOBE AND MAIL MONDAY, OCTOBER 15, 2007 A special information supplement Gaining efficiencies New technologies address challenges F aced with one of the world’s most challenging physical environments and vast distances, keeping trains running on time has never been easy for Canada’s rail sector. Through the development and implementation of new technologies and practices, however, Canada’s railways are not only meeting historic challenges, they are setting a new pace in logistics efficiencies. The challenges posed by engineering-related delays, for example, led CN to develop its Precision Engineering program. The mobile computer system at the heart of its Precision Engineering initiative will help CN manage engineering processes more efficiently, reduce engineering-related delays to trains, and allow engineering officers to quickly access documentation in the field. Sameh Fahmy, CN’s senior vice-president, supply management/engineering/mechanical, says the staged deployment will begin this month in CN operating regions across North America. The program’s full deployment is expected by the first quarter of 2008. “The first phase will be Railways across Canada are rolling out a spate of new technologies and processes to help improve efficiencies. At CN, shifts to Precision Engineering and SmartYard practices are among the railway’s efforts to enhance productivity. PHOTO: CN track inspection and will combine all information about a section of track – rail flaws, track geometry, visual inspections – in a single database that will be invoked by GPS, while the supervisor is inspecting that section of track. It will also ensure closure of any repair tickets,” says Mr. Fahmy. CN expects the program to deliver numerous benefits including a significant improvement in labour efficiency and reduced supervisor reliance on office-based computer systems. In the field, the system is designed to enable better monitoring of rail lines and improved tracking of maintenance and repair activities, not to mention enhanced material and machine productivity and tighter control of engineering-related capital spending. CN’s introduction of its SmartYard practice is another example of the railway’s efforts to improve service and productivity through technology. Mack Barker, CN’s assistant vice-president, network optimization, says SmartYard is not just technology. “It’s about orchestrated process management,” he says. “Everyone shares the same plan, which is visible through SmartYard. Management of the process is the key. Good people armed with timely information have made SmartYard a success.” Implemented in 2005 as a pilot project at MacMillan Yard – CN’s largest freight car classification yard north of Toronto – SmartYard is a computer information system that takes input from various CN systems, combines the data, and models the optimal sequence for cars in a yard’s inventory. Further, the system continually adjusts to the constantly changing variables and conditions of a busy rail network. “SmartYard produced a six-hour reduction in the average time a train is in MacMillan Yard, and produced a 300 per cent improvement in a train’s dwell time in the receiving track,” says Mr. Barker. When it comes to such productivity enhancements, railways such as CN don’t always work in isolation. As a major supplier to Canada’s railways, Acklands-Grainger knows the challenges facing its rail customers and has developed processes to enhance its customers’ operating efficiencies through integrated supplychain management systems. Through a network of five regional warehouses and 155 branches throughout Canada, the Richmond Hill, Ontariobased company provides its customers with access to more than 100,000 items. Acklands-Grainger president Court Carruthers says some customers consider the company’s inventory as simply an extension of their own instock supplies. “We are never very far from a customer, which means we are ready and able to quickly slot into their supply chains to serve both planned and unplanned purchasing needs. It’s like having their own supplies on hand, but without having to manage a large inventory,” says Mr. Carruthers. tion Centre that handles other steel goods, and the Edmonton Bissell CargoFlo, which handles methanol and similar products. There should be growth opportunities for many of the commodities produced at these upgraders, including sulphur, petroleum coke, asphaltenes and LPGs. “Although shipments will not move for a few years, planning is already in progress, and CN is playing an increasingly important advisory role on the logistics, engineering and marketing fronts for these upgrader projects,” he said. Fred Green, CP president and CEO, says extending the track network is a strategically important initiative. The expansion “will provide rail access to new markets for the industries that have made, or will make, the decision to invest in the Industrial Heartland. Our objective will be to build in tandem with the oilsands upgraders and related businesses to create a new network of rail access and strengthen the industry’s supply chain competitiveness in world markets.” CP is investing $15 million in new infrastructure to increase fluidity and distribution and logistics capacity, Mr. Green said. The railway will begin with expanded transload capabilities for in-bound construction materials, including dimensional shipments required by the upgraders. Railways help oilsands projects advance he national railways are adding tracks and transload and distribution centres in northern Alberta to meet the growing requirements of the booming energy sector. Improved transportation infrastructure including rail service to new industrial sites T and additional freight handling centres were identified as priorities by the Alberta Heartland Industrial Association in a report released earlier this year on the region’s economic growth challenges. Association chairman Roy Lopushinsky says crude oil is delivered from the oilsands by pipeline to the Heartland area north of Edmonton for upgrading. Rail is important to shipping many of the byproducts created during processing and delivering supplies to the companies. CP is waiting for regulatory approval to build 16 miles of tracks to connect existing and future heavy oil upgraders in the Heartland area. The lines would link with the railway’s North American network. Meanwhile, CN is investing about $30 million in the Fort Saskatchewan Oil and Gas Distribution Centre, said spokesman Mark Hallman. It “is designed to meet the transportation, storage and distribution needs arising from the burgeoning demand for steel and construction materials from the oilsands and energyrelated industry and for petrochemical byproducts generated by these sectors.” The new facility will complement CN’s Oil and Gas Services Centre, which handles primarily pipe and long products; the Edmonton Distribu- Rail expanding to meet growing needs From page RAC1 ‘Capacity’ RAC engines of change The Railway Association of Canada www.railcan.ca Western Canada consistently in recent years to accommodate longer, more efficient freight trains and increased traffic.” Mark Hallman, director, Communications, Media & Eastern Region at CN, says the company is also continuing to expand its routing protocol effort to improve service to customers. Routing protocols, which are part of co-production arrangements with other railway companies, serve to reduce rail-freight costs industry-wide by placing traffic on the most efficient routing – regardless of ownership without undermining competitive options. The result is a structured plan to direct rail traffic flows through the most efficient interchange locations in order to improve both transit times and asset utilization – thereby making the most efficient use of capacity. “Customers can now reach key markets in Canada, the U.S. – and beyond – more efficiently thanks to increased traffic velocity, reduced number of handlings, shortened routes, and the use of less congested gateways,” says Mr. Hallman. For Canadian Pacific, the recently announced Alberta Heartland Strategy and the acquisition of the DM&E railroad signal the company’s willingness to extend the reach of the railway as a value creation strategy, says president and CEO, Fred Green. “CP’s performance track record demonstrates that we are transforming this railway With the opening this month of the new Port of Prince Rupert container terminal, CN, in partnership with the Prince Rupert Port Authority and Maher Terminals, will offer the most efficient and most cost-effective routing for containerized traffic moving between Asia and central North America. PHOTO: SUPPLIED into a highly efficient business. Our focus on execution excellence has now positioned us to pursue both operating efficiency and growth opportunities as ways to create value for our shareholders and customers,” he says. The Heartland Strategy includes a proposal to construct rail lines to serve planned and existing bitumen upgraders northeast of Edmonton. The company has arranged for 26 kilometres of right of way that provide the ability to develop direct rail service to industries locating on either side of the North Saskatchewan River. The “project description,” the first step in the regulatory process, has been filed with the Canadian Transportation Agency. The DM&E acquisition, which is subject to review and approval from the U.S. Surface Transportation Board, will expand CP’s current network by approximately 4,000 kilometres and increase its access to U.S. Midwest markets including agri-products, coal and ethanol. The DM&E is the largest regional railroad in the U.S. and the only Class II railroad that connects and interchanges traffic with all seven Class I railroads. CP is also in the process of acquiring the necessary land and seeking regulatory approvals for a new intermodal complex near Montreal. The Les Cèdres Intermodal Complex will be built on 300 hectares of land located in the municipality of Les Cèdres (Vaudreuil-Soulanges RCM), mainly on the former site of Soulanges Industries, an industrial site recently acquired by CP. THE GLOBE AND MAIL MONDAY, OCTOBER 15, 2007 RAC5 A special information supplement Environment Rail sector rolls out sustainability practices A s public priorities increasingly focus on the environment, Canada’s railway sector is proving its mettle as a means of helping reduce transportrelated greenhouse gas (GHG) emissions and air pollution. William Spurr, president, Bombardier Transportation, North America, says global concern about climate change is good news for the rail sector, particularly in the context of urban transportation. “Modern cities cannot be environmentally sustainable and provide a good quality of life unless they can offer a clean and efficient public transit system, which is what we specialize in,” he says. While VIA Rail Canada has been including explicit environmental goals in its strategic business planning since 2003, executives at the Crown corporation say VIA is constantly striving to do even better. Established in 1977, VIA provides coast-to-coast passen- VIA Rail’s sustainability practices extend throughout its operations including its policy of “green procurement,” which emphasizes VIA’s use of environmentally responsible products. PHOTO: SUPPLIED ger service, operating up to 492 trains weekly on 12,500 kilometres of track that connect over 450 Canadian communities and carrying more than four million passengers annually. Despite VIA’s significant passenger load, chief operating officer John Marginson says that since 1990, VIA has cut its fuel consumption by 25 per cent per passenger-kilometre, and greenhouse gas emissions by 13 per cent. “Significant reductions were achieved by modernizing VIA’s transcontinental equipment in the 1990s, and through the purchase of 21 new cleaner-running locomotives in 2001,” says Mr. Marginson. Plans for rebuilding VIA’s older locomotives would reduce fuel consumption by another five million litres per year – and eliminate another 15 million tonnes of GHG emissions annually. “We have worked hard to manage our entire fleet more efficiently and increase productivity. So while fuel consumption is down significantly, VIA has actually increased passenger miles per train – quite literally, doing more with less,” says Mr. Marginson. Mark Hallman, director, Communications, Media & Eastern Region at CN, says his company is in the process of acquiring 130 new fuel-efficient, high-horsepower locomotives for delivery this year and in 2008. “The new locomotives will help us improve the efficiency and reliability of our fleet, reduce fuel consumption significantly and lower exhaust emissions,” says Mr. Hallman. “Rail is the environmentally friendly mode, and our new locomotives will further enhance our environmental performance.” CN’s new units are about 15 per cent more fuel-efficient than the locomotives they will replace, and will comply fully with the latest regulatory requirements for reduced locomotive emissions. The orders will allow CN to retire 145 older locomotives. “All the locomotives we have purchased since 2005 comply with U.S. Environmental Protection Agency limits, resulting in approximately 40 per cent less nitrogen oxide emissions compared to unregulated locomotives,” says Mr. Hallman. Beyond VIA’s infrastructure investments and improved operating procedures, the company has also implemented sustainability practices that include its “Green Procurement” handbook, which emphasizes the use of environmentally responsible products in all business activities. For example, recycled paper is used for onboard products such as napkins and toilet paper, and for printed materials such as train schedules. The corporation has also been particularly successful in reducing the environmental impact of train maintenance operations. VIA maintenance centres in Montreal, Winnipeg, Mission (B.C.) and Vancouver have achieved ISO14001 certification, a testament to their sound environmental practices. Over the past two years, maintenance teams have reduced the use of chemicals for processes such as water treatment and train cleaning by almost 50 per cent. New technology showcase General Electric has developed a 4,400-horsepower hybrid locomotive that meets strict air emission reduction guidelines and is capable of recycling thermal energy generated during the braking of the locomotive. This system will reduce fuel consumption and greenhouse gas emissions by 10 per cent. The energy dissipated in braking a heavy locomotive would power 160 households annually. Railpower Technologies of Montreal plans to produce more than 200 hybrid switcher units a year with a range of 1,400 and 2,700 horsepower for use in branch-line operations and away from freight yards. Railpower’s products, built from recycled locomotives, exceed U.S. Environmental Protection Agency airquality regulations. The innovative switchers stop idling when not in use and use only their batteries to boost engine power. Bombardier Transportation of Montreal has developed a commuter train that can use its braking system to generate electricity for the train’s batteries. The system saves 30 per PROUD SUPPORTERS OF THE CANADIAN RAILWAY INDUSTRY Railpower Technologies’ hybrid-powered switcher units exemplify innovation seen across the rail sector. PHOTO: SUPPLIED cent of the energy that would be used to power a conventional transit train and reduces power demand by 50 per cent. Relying on fewer power substations, the new train can travel over a kilometre on its battery power, reducing the need for overhead power lines. ZTR Control Systems have developed an idling reduction system for locomotives that shuts them off when not in use. This feature saves fuel and reduces air emissions. Portec Rail last year introduced a system that deposits a thin bead of lubricant on the rail when a train passes. The lubricant reduces friction and reduces noise, wear and energy consumption. Kelsan Technologies of Vancouver, a world leader in wheel/rail friction control, has developed unique friction modifiers. The product is applied by trackside and onboard units and hi-rail trucks to reduce greenhouse gas emissions, improve fuel efficiency and minimize rail squeal. Acklands Grainger Pollution reduction measures accelerate From page RAC1 ‘Policy’ emissions from the rail industry in 2011, but while regulations are being put in place, this agreement provides a framework for realizing reductions in both air pollutants and greenhouse gas emissions,” he said. The MOU was another step in a broader plan to reduce air pollution from railway operations consistent with the requirements of the worldleading standards of the U.S. Environmental Protection Agency (EPA). The agreement will help Canada build towards its goal of an absolute 150-megatonne GHG reduction by 2020. Because CN, CP, VIA and GO Transit account for the majority of locomotives and emissions, they are at the core of the industry’s emission reduction and fleet renewal strategies. According to the MOU, these companies will: • Acquire only new, EPA-certified locomotives; • Retire 130 medium-power units built between 1973 and 1999; • Upgrade all high-horsepower locomotives to EPA standards, and • Upgrade to Tier O the remaining medium-power units, beginning in 2010, to the EPA standards in effect at that time. For its part, the RAC will encourage all its members to make every effort to reduce GHG emissions from rail operations. The 2010 emission targets for the industry are: • Class 1 Freight • Short Lines • Intercity Psgr. • Commuter 16.98 kg CO2 eq per 1,000 rtk (revenue tonne-kilometres) 15.38 kg CO2 eq per 1,000 rtk 0.12 per CO2 eq per 1,000 passenger-km 1.46 kg CO2 eq per 1,000 passengers-30 MAKE US YOUR SINGLE SOURCE SUPPLIER. SAVE TIME AND MONEY. HERE’S HOW: Canada’s largest distributor of industrial and safety supplies, serving Canadian industry since 1889 155 branches and 5 distribution centres coast to coast Canada’s largest inventory supporting the immediate requirements of the railway industry Knowledgeable product and technical expertise to help you in your product selection Our own factory trained technicians to service and repair your critical industrial and safety equipment A wide range of customized inventory management and e-business solutions INDUSTRIAL FLEET SAFETY FASTENERS ® ™ The Acklands-Grainger logo is a trademark of W.W. Grainger Inc., used under license by Acklands-Grainger Inc. © Acklands-Grainger Inc. 2007. All rights reserved. RAC6 THE GLOBE AND MAIL MONDAY, OCTOBER 15, 2007 A special information supplement Flexibility among advantages Shortline railways fill important niche S hortline railways are often credited with taking over tracks the major railways no longer wanted to operate and restoring them to profitability. What Robert Grindrod says shortlines don’t get enough credit for is making it possible for their customers to remain open. The president of the 745mile Montreal, Maine & Atlantic (MM&A) Railroad says that a major shipper of particle board in Quebec’s Eastern Townships undertook an expensive rebuilding after its operation was gutted by fire in 2006. “Without the service we were providing, I don’t think that would have happened.” Marc Laliberte, president of the Quebec Railway Corp., which operates shortlines in New Brunswick, Quebec and Ontario, also identifies customer service as key strength of shortlines. “Shortlines are important to the Canadian transportation systems because they provide an advantage to shippers.” The lower-cost structure of shortline railways allows them to keep light-density lines profitable, he says. “Thanks to shortlines, shippers do not depend only on highway transport to move their product. Shortlines also react quickly to shippers’ needs and concerns, because they are more flexible than larger railways, and their main focus is on customer service.” Cliff Mackay, president and CEO of the Railway Association of Canada, says nearly a quarter of the freight carried by CN and CP either begins or concludes its journey on a shortline. There now are more than 40 shortlines in Canada operating on about 16,000 kilometres of track, much of it originally slated for abandonment. Like many other shortlines, the MM&A is reaching out to customers that aren’t served by a rail siding with transload The Railway Association of Canada reports there are more than 40 shortline railways in Canada operating on about 16,000 kilometres of track, much of which was formerly slated for abandonment. These independent railroads operate over relatively short distances, typically linking industries requiring rail freight, interchanging revenue traffic with larger railroads and fulfilling niche tourism-sector needs. PHOTO: SUPPLIED facilities, Mr. Grindrod says. These warehouses, located in a yard or siding, can be used to store materials until customers pick them up or load rail cars for outbound shipments. “It allows them to gain the longhaul economic advantage of shipping by rail.” David Church, director of transportation and recycling for the Forest Products Association of Canada, credits shortlines for tailored service for paper, lumber and other products for the forestry sector. “Service to individual mills by shortlines is very good.” There are concerns about the ability of some shortlines to handle fully loaded modern freight cars and getting an adequate supply of those cars from the major railways, he cautioned. The important role of shortlines in keeping industries viable has been recognized by the federal and Quebec governments, which are investing $55 million in projects to restore track and structures, add sidings to improve operations and enable them to carry fully loaded modern freight cars. Mr. Mackay would like to see a similar program in Ontario, which has 13 shortline and regional railways. “The shortlines inject an estimated $1.2 billion into the province’s economy and play a vibrant role in ensuring sustainable, green growth.” Shortlines play an important role in reducing shipping costs, alleviating highway congestion and lowering the amount of greenhouse gas emissions in Canada. Mr. Grindrod says, “It would be a much different life for our customers without us.” Human resources Harnessing talent increasingly important to railways ike other business sectors in Canada, railways are putting increasing emphasis on HR practices as companies face the dual challenges of meeting rising demands while replacing a wave of long-time employees now approaching retirement. Cliff Mackay, president and CEO of the Railway Association of Canada (RAC), sees it as one of the big issues that companies are addressing. Broad action – both by individual railways and through industry initiatives – has taken shape. Among its organized efforts, industry is working with technical schools across the country to develop new conductor-training curricula. The goal is to develop skilled workers to fill the some 500 conductor jobs expected annually over the next five years. “Across Canada, the number of conductor graduates has grown sixfold since 2004,” says Kent Flint, director of the RAC’s Institute of Railway Training and HR Planning. “But the demand is – and will be – so high in the coming years that we would still like to double the output of those students.” Four schools across Canada are now offering the program: the British Columbia Institute of Technology, Edmonton’s Northern Alberta Institute of Technology, the Southern Alberta Institute of Technology in Calgary, and George Brown College in Toronto. Students learn to work as members of a train crew and manage tasks ranging from switching and marshalling cars to making or splitting up trains in yards and moving cars between yards, sidings or tracks. Conductors are considered essential to efficient operations. For its part, VIA Rail’s HR initiatives includes its transformation of its HR management function to strategically align OUR TRAINS OF THOUGHT L CREATE A POWERFUL ENGINE OF GROWTH. At Canadian Pacific, we have over 15,000 trains of thought pulling together every day. This combined intelligence provides innovative solutions that keep industry moving. And creates a powerful engine of growth for the Canadian economy. CP the talents of its employees with the corporation’s goals. The importance of a welltrained and happy workforce at VIA is clear. With growth in travel and tourism markets having slowed in recent years, VIA has made customer service the core of its business strategy. “To ensure passenger rail keeps thriving, and to grow our revenues, we have to provide the best possible experience to every passenger who boards our trains,” says VIA president and CEO Paul Côté. “That means understanding how and why customers are choosing VIA Rail, anticipating their needs, and delivering a service, every day, that goes beyond their expectations.” Denis Pinsonneault, VIA’s chief people officer, says the talent of VIA’s 3,000 employees is the one competitive advantage that no one else can duplicate. “And all VIA’s major objectives for the foreseeable future depend on harnessing that talent.” Court Carruthers, president of Ackland Grainger, whose business includes training programs for railway staff, says attracting talent requires more than just offering people jobs. “It’s about providing an environment in which people want to work, and that includes a safe environment.” Mr. Carruthers says, “We believe standardization of safety products is key to the development of an effective safety culture. If an employee knows that the product will be the same and work in the same way, regardless of where they may be in the country, there is a far better chance that product will be used properly and safely.” Steve Del Bosco, VIA’s new chief customer officer, says safety also helps promote customer confidence as well as customer-focused service. “Our 98 per cent customer satisfaction rating is one of the highest in the industry. And 40 per cent of our customers say that we not only meet, but exceed their expectations – a 10 per cent increase over the past five years.” To help ensure it keeps its roster full, VIA recently launched e-Careers, an online recruitment and career development service to help attract new people and new ideas into the corporation. Students at George Brown College in Toronto are among those gaining practical, hands-on experience working on local railways as part of new industry-supported conductor programs taught at post-secondary schools across Canada. 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