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.
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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.
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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.
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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
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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. PHOTO: SUPPLIED