THE GLOBE AND MAIL
MONDAY, OCTOBER 15, 2007
F
railways
or Cliff Mackay, a sim-
ple statistic sums up the
importance of Canada’s
railway sector: two-thirds of all
freight that moves in the coun-
try moves by rail.
“Canada’s strength as a
trading nation in a rapidly
expanding global economy is
underpinned by a safe, effi-
cient and environmentally
friendly railway system,” he
says.
As president of the
Ottawa-based Railway Associ-
ation of Canada (RAC), Mr.
Mackay represents the inter-
ests of some 60 member
freight, tourist, commuter and
intercity railways. His organi-
zation 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.
Investment
Canada’s railways expand
to meet growing needs
rince Rupert is the clos-
P est port to Asia by up to
58 hours sailing time
compared to any other west
coast port in North America,
and CN is investing aggres-
sively to maximize the poten-
tial 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 termi-
nal, CN, in partnership with
the Prince Rupert Port Authori-
ty and Maher Terminals, will
offer the most efficient and
most cost-effective routing for
Inside
BeIng enVIRonMenTAlly AWARe.
ThAT, Too, Is a more human
VIA way to travel.
A force in the global economy
“This means demand for
rail services will increase as
trade with Asian markets con-
tinues 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 happen-
ing 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
containerized traffic moving
between Asia and the interior
of North America, including
Toronto, Montreal, Chicago
and Memphis.
Sameh Fahmy, senior vice-
president, Supply Manage-
ment/Engineering/Mechani-
cal 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 Cana-
da.
CN’s investments in sup-
port 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
RAC3
Railway Association of Canada President and
CEO Cliff Mackay outlines how Canada’s railways
are making a positive impact across the nation.
A special information supplement
investment and savings, and
attract foreign direct invest-
ment. Currently, Canadian
railways face a 75 per cent
higher tax burden than their
U.S. competitors.
“The railway industry is
highly capital intensive. Cana-
dian 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 compet-
itive 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, Infra-
structure and Communities
minister Lawrence Cannon
$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., inter-
modal terminal/distribution
centre to maximize opportu-
nities for generating backhaul
traffic destined for Asian mar-
kets.
“In broad terms,” says
Mr. Fahmy, “CN has been
expanding its capacity in
See ‘Capacity’ page RAC4
RAC4
Oilsands. In northern Alberta, Canada’s
railways are working to meet the growing
requirements of the energy sector.
Canada’s
said, “Our vision for this coun-
try 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 Trans-
portation 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 sail-
ing 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-
New agreement, actions
Agreement advances
environmental agenda
he Railway Association
T of Canada believes rail
is the key to significant-
ly reducing greenhouse gas
(GHG) emissions in the coun-
try’s freight transport sector.
Earlier this year, the RAC,
Transport Canada and Envi-
ronment Canada signed a new
Memorandum of Understand-
ing (MOU) to help reduce the
rail sector’s share of air pollu-
tion and greenhouse gas emis-
sions.
Mike Lowenger, the
RAC’s vice president, Opera-
tions & Regulatory Affairs,
says the MOU provides for a
continued improvement of
environmental performance
over the next five years.
“We will focus on working
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 mov-
ing,” he said.
Bombardier Transporta-
tion, now headquartered in
Germany, but founded in
Canada, knows all about glob-
al competition. The company
is a world leader in the devel-
opment, 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 com-
pany has achieved its position
by clearly understanding the
needs of a global market.
smarter, doing more with less,
building teamwork and shar-
ing knowledge and best prac-
tices across the industry and
beyond,” says Mr. Lowenger.
Mr. Lowenger says rail
freight’s fuel consumption per
1,000 revenue tonne kilome-
tres declined 20 per cent
under the previous agreement
between the RAC and Envi-
ronment Canada. In addition,
freight greenhouse gas intensi-
ty from the rail sector declined
by 15 per cent.
“Rail moves a tonne of
freight 168 kilometres on just
one litre of fuel. By compari-
son, a truck uses as much as
six times more energy to trans-
port a tonne of freight one
kilometre than a train,” says
RAC5
Sustainability. The rail sector is working to
help reduce transport-related greenhouse gas
emissions and air pollution.
TM
Trad
mark w
d b VIA Rai Caada Ic.
RAC1
Since first entering the
mass transit market in 1974
PHOTO: CN
with a contract for the Montre-
al metro, the company has
grown into a global power-
house 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 compe-
tition,” 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 busi-
ness. It currently services and
maintains 8,000 rail cars for
customers around the world,
including a 60 per cent market
share in North America.
Mr. Lowenger.
When the new MOU was
announced earlier this year,
Lawrence Cannon, Canada’s
minister of Transport, Infra-
structure 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 emis-
sions.”
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
RAC2 A special information supplement
THE GLOBE AND MAIL
MONDAY, OCTOBER 15, 2007

ADVERTORIAL

GO Transit improves efficiency and air quality in the GTA

O Transit is in the midst of a major expan- passes, so that GO Trains no longer have to

G sion 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 con-
gestion. Road traffic is still a serious problem in
the GTA; however, for the past 40 years, GO
has offered commuters an attractive alterna-
tive to driving to work. Without GO Transit,
eight more expressway lanes would be
required to transport GTA-dwellers into down-
town Toronto.
Taking cars off the roads reduces emis-
sions 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 facili-
ties, tracks and signals in the Union Station
area; and construction of tracks and bridges on
rail corridors.
RENEWING UNION STATION
The Union Station renewal program involves a
number of projects in this 1920s facility and
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 conges-
tion.
IMPROVING RAIL INFRASTRUCTURE
Work across GO’s rail network includes sepa-
rating GO tracks from intersecting freight
tracks with rail-to-rail underpasses or over-
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 per-
formance.
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.
MORE TRAINS AND BUSES
GO Transit is also in the process of consider-
ably 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 passen-
gers 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.
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 high-
ways 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 attrac-
tive 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 A special information supplement RAC3

Opinion

Strengthening Canada’s backbone

volume and 65 million passen-
gers, yet they generate only
three per cent of greenhouse
gas emissions. This has hap-
pened by design, not by acci-
dent.
The rail industry has out-
performed the Canadian econ-
omy with regard to green-
By Cliff Mackay house gases in the last 10
President and CEO years. Greenhouse gas emis-
Railway Association of Canada sions grew for the economy as
a whole at about 35 per cent,
n addition to the role that and only eight per cent for the
efforts was signed in mid-2007
with Hon. Lawrence Cannon,
minister of Transport, Infra-
structure 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
vious agreement, FCM and
RAC established a website at
www.proximityissues.ca with a
wide range of information and
contacts.
The partnership also estab-
lished several Community
Advisory Panels, published the
first comprehensive Proximity
Guidelines and Best Manage-
ment Practices resource deal-
ing with noise management
and municipal planning, and
developed and tested a formal

I railways play in support-

ing Canada’s economy,
railways are key to helping
Canada and its communities
resolve issues concerning traf-
fic congestion, pollution and
public transportation needs.
Freight, intercity and tourism
services are other ways rail-
ways serve the public.
Unlike Europe, where pas-
senger 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
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 govern-
ment-industry agreement. The
railway industry also reduced
its greenhouse gas emissions
intensity rate by 15 per cent in
the same period. A new agree-
ment to continue the industry’s
greenhouse gas emissions from
railways. “I have great hopes
for rail as an important con-
tributor to green transporta-
tion.”
Canada’s railways are com-
mitted 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 Under-
standing this year to continue
and expand their activities
designed to resolve problems
between the communities and
the railways.
During the life of their pre-
dispute settlement process.
The new agreement is
designed in part to deal with
amendments to the federal
Canada Transportation Act,
which confirmed that regulat-
ing railway noise is a federal
responsibility. The agreement
will build on previous work to
improve municipal planning,
develop new techniques for
mitigating noise and vibra-
tions, 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. Canada and the U.S. are
Finally, Canada’s railways underway.
are working with government In addition to the obvious
and communities to deal with economic benefits that will
critical infrastructure needs. flow from the investment,
Major expansion of the Pacific major improvements in com-
Gateway in Vancouver, Prince munity safety and a reduction
Rupert and inland is under- in congestion are expected.
way to cope with a doubling Canada’s railways have
of traffic moving between Asia been an important part of our
and North America. Similar history. We are committed to
initiatives for international playing an equally important
traffic moving between eastern 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.
• The federal government plays a significant role in
• 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.
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.

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call 1-888-MOVIN-CN.

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NORTH AMERICA’S RAILROAD

RAC4
Gaining efficiencies
New technologies address challenges
aced with one of the
F world’s most challeng-
ing physical environ-
ments and vast distances,
keeping trains running on
time has never been easy for
Canada’s rail sector. Through
the development and imple-
mentation of new technolo-
gies and practices, however,
Canada’s railways are not
only meeting historic chal-
lenges, 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 pro-
gram. The mobile computer
system at the heart of its Preci-
sion 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 manage-
ment/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 help oilsands projects advance
he national railways are
T adding tracks and
transload and distribu-
tion centres in northern Alberta
to meet the growing require-
ments of the booming energy
sector.
Improved transportation
infrastructure including rail
service to new industrial sites
engines of change
The Railway Association of Canada
www.railcan.ca
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 com-
bine all information about a
section of track – rail flaws,
track geometry, visual inspec-
tions – in a single database
that will be invoked by GPS,
while the supervisor is inspect-
ing that section of track. It will
also ensure closure of any
and additional freight handling
centres were identified as prior-
ities 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
RAC
A special information supplement
repair tickets,” says Mr.
Fahmy.
CN expects the program to
deliver numerous benefits
including a significant
improvement in labour effi-
ciency and reduced supervisor
reliance on office-based com-
puter systems. In the field, the
pipeline to the Heartland area
north of Edmonton for upgrad-
ing. Rail is important to ship-
ping many of the byproducts
created during processing and
delivering supplies to the com-
panies.
CP is waiting for regulatory
approval to build 16 miles of
tracks to connect existing and
system is designed to enable
better monitoring of rail lines
and improved tracking of
maintenance and repair activi-
ties, not to mention enhanced
material and machine produc-
tivity and tighter control of
engineering-related capital
spending.
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 Dis-
tribution Centre, said
spokesman Mark Hallman. It
“is designed to meet the trans-
portation, storage and distribu-
tion needs arising from the
burgeoning demand for steel
and construction materials
from the oilsands and energy-
related industry and for petro-
chemical byproducts generated
by these sectors.”
The new facility will com-
plement CN’s Oil and Gas Ser-
vices Centre, which handles
primarily pipe and long prod-
ucts; the Edmonton Distribu-
Rail expanding to meet growing needs
From page RAC1 ‘Capacity’
Western Canada consistently
in recent years to accommo-
date 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 rail-
way companies, serve to
reduce rail-freight costs indus-
try-wide by placing traffic on
the most efficient routing –
regardless of ownership with-
out undermining competitive
options. The result is a struc-
tured plan to direct rail traffic
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
CN’s introduction of its
SmartYard practice is another
example of the railway’s efforts
to improve service and pro-
ductivity through technology.
Mack Barker, CN’s assis-
tant vice-president, network
optimization, says SmartYard
is not just technology. “It’s
about orchestrated process
management,” he says. “Every-
one shares the same plan,
which is visible through Smart-
Yard. Management of the
process is the key. Good peo-
ple armed with timely infor-
mation 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 com-
puter 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 con-
stantly changing variables and
conditions of a busy rail net-
work.
“SmartYard produced a
six-hour reduction in the aver-
age time a train is in MacMil-
lan Yard, and produced a 300
per cent improvement in a
tion Centre that handles other
steel goods, and the Edmonton
Bissell CargoFlo, which han-
dles 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 ship-
ments will not move for a few
years, planning is already in
progress, and CN is playing an
increasingly important adviso-
ry role on the logistics, engi-
neering 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
flows through the most effi-
cient interchange locations in
order to improve both transit
times and asset utilization –
thereby making the most effi-
cient use of capacity.
“Customers can now reach
key markets in Canada, the
U.S. – and beyond – more effi-
ciently thanks to increased traf-
fic 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 rail-
road signal the company’s will-
ingness 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
THE GLOBE AND MAIL
MONDAY, OCTOBER 15, 2007
train’s dwell time in the receiv-
ing 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 devel-
oped processes to enhance its
customers’ operating efficien-
cies through integrated supply-
chain management systems.
Through a network of five
regional warehouses and 155
branches throughout Canada,
the Richmond Hill, Ontario-
based company provides its
customers with access to more
than 100,000 items.
Acklands-Grainger presi-
dent Court Carruthers says
some customers consider the
company’s inventory as simply
an extension of their own in-
stock 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.
expansion “will provide rail
access to new markets for the
industries that have made, or
will make, the decision to
invest in the Industrial Heart-
land. Our objective will be to
build in tandem with the oil-
sands upgraders and related
businesses to create a new net-
work of rail access and
strengthen the industry’s sup-
ply chain competitiveness in
world markets.”
CP is investing $15 million
in new infrastructure to
increase fluidity and distribu-
tion and logistics capacity, Mr.
Green said. The railway will
begin with expanded transload
capabilities for in-bound con-
struction materials, including
dimensional shipments
required by the upgraders.
into a highly efficient business.
Our focus on execution excel-
lence has now positioned us to
pursue both operating efficien-
cy and growth opportunities as
ways to create value for our
shareholders and customers,”
he says.
The Heartland Strategy
includes a proposal to con-
struct rail lines to serve
planned and existing bitumen
upgraders northeast of Edmon-
ton. 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 Canadi-
an 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 kilo-
metres 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 inter-
modal complex near Montre-
al. The Les Cèdres Inter-
modal Complex will be built
on 300 hectares of land locat-
ed 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 A special information supplement RAC5

Environment

Rail sector rolls out sustainability practices

s public priorities William Spurr, president, environmentally sustainable environmental goals in its ger service, operating up to friendly mode, and our new

A increasingly focus on
the environment,
Canada’s railway sector is
proving its mettle as a means
of helping reduce transport-
related greenhouse gas (GHG)
emissions and air pollution.
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
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
and provide a good quality of
life unless they can offer a
clean and efficient public tran-
sit system, which is what we
specialize in,” he says.
While VIA Rail Canada
has been including explicit
strategic business planning
since 2003, executives at the
Crown corporation say VIA is
492 trains weekly on 12,500
kilometres of track that con-
nect over 450 Canadian com-
locomotives will further
enhance our environmental
performance.”
constantly striving to do even munities and carrying more CN’s new units are about
better. than four million passengers 15 per cent more fuel-efficient
Established in 1977, VIA annually. than the locomotives they will
provides coast-to-coast passen- Despite VIA’s significant replace, and will comply fully
passenger load, chief operating with the latest regulatory
officer John Marginson says requirements for reduced loco-
that since 1990, VIA has cut motive emissions. The orders
its fuel consumption by 25 per will allow CN to retire 145
cent per passenger-kilometre, older locomotives.
and greenhouse gas emissions “All the locomotives we
by 13 per cent. have purchased since 2005
“Significant reductions comply with U.S. Environ-
were achieved by modernizing mental Protection Agency lim-
VIA’s transcontinental equip- its, resulting in approximately
ment in the 1990s, and 40 per cent less nitrogen oxide
through the purchase of 21 emissions compared to unreg-
new cleaner-running locomo- ulated locomotives,” says Mr.
tives in 2001,” says Mr. Mar- Hallman.
ginson. Beyond VIA’s infrastruc-
Plans for rebuilding VIA’s ture investments and
older locomotives would improved operating proce-
reduce fuel consumption by dures, the company has also
another five million litres per implemented sustainability
year – and eliminate another practices that include its
15 million tonnes of GHG “Green Procurement” hand-
emissions annually. book, which emphasizes the
“We have worked hard to use of environmentally respon-
manage our entire fleet more sible products in all business
efficiently and increase pro- activities. For example, recy-
ductivity. So while fuel con- cled paper is used for onboard
sumption is down significantly, products such as napkins and
VIA has actually increased toilet paper, and for printed
passenger miles per train – materials such as train sched-
quite literally, doing more with ules.
less,” says Mr. Marginson. The corporation has also
Mark Hallman, director, been particularly successful in
Communications, Media & reducing the environmental
Eastern Region at CN, says his impact of train maintenance
company is in the process of operations. VIA maintenance
acquiring 130 new fuel-effi- centres in Montreal, Winnipeg,
cient, high-horsepower loco- Mission (B.C.) and Vancouver
motives for delivery this year have achieved ISO14001 certi-
and in 2008. fication, a testament to their
“The new locomotives will sound environmental prac-
help us improve the efficiency tices. Over the past two years,
and reliability of our fleet, maintenance teams have
reduce fuel consumption sig- reduced the use of chemicals
nificantly and lower exhaust for processes such as water
emissions,” says Mr. Hallman. treatment and train cleaning
“Rail is the environmentally by almost 50 per cent.

New technology showcase

General Electric has devel-
oped a 4,400-horsepower
hybrid locomotive that meets
PROUD SUPPORTERS OF THE
strict air emission reduction
guidelines and is capable of
CANADIAN RAILWAY INDUSTRY
recycling thermal energy gen-
erated during the braking of
the locomotive. This system
will reduce fuel consumption
and greenhouse gas emissions
by 10 per cent. The energy dis-
sipated 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 opera-
tions and away from freight
yards. Railpower’s products,
built from recycled locomo-
tives, exceed U.S. Environ-
mental Protection Agency air-
quality regulations. The inno-
vative 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 batter-
ies. The system saves 30 per
Railpower Technologies’ hybrid-powered switcher units exem-
plify innovation seen across the rail sector. PHOTO: SUPPLIED
cent of the energy that would
be used to power a conven-
tional transit train and reduces
power demand by 50 per cent.
Relying on fewer power sub-
stations, the new train can trav-
el over a kilometre on its bat-
tery 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 lubri-
cant reduces friction and
reduces noise, wear and energy
consumption.
Kelsan Technologies of Van-
couver, a world leader in
wheel/rail friction control, has
Acklands Grainger
developed unique friction
modifiers. The product is
applied by trackside and on-
board units and hi-rail trucks to
reduce greenhouse gas emis-
sions, improve fuel efficiency
and minimize rail squeal.

Pollution reduction measures accelerate

From page RAC1 ‘Policy’
emissions from the rail indus-
try in 2011, but while regula-
tions are being put in place,
this agreement provides a
framework for realizing reduc-
tions in both air pollutants and
greenhouse gas emissions,” he
said.
The MOU was another
step in a broader plan to
reduce air pollution from rail-
way operations consistent with
the requirements of the world-
leading standards of the U.S.
Environmental Protection
Agency (EPA). The agreement
will help Canada build
towards its goal of an absolute
150-megatonne GHG reduc-
tion 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. MAKE US YOUR SINGLE SOURCE SUPPLIER. SAVE TIME AND MONEY.
According to the MOU, these companies will:
HERE’S HOW:
• Acquire only new, EPA-certified locomotives; Canada’s largest distributor of industrial and
• Retire 130 medium-power units built between 1973 and safety supplies, serving Canadian industry
1999; since 1889
• Upgrade all high-horsepower locomotives to EPA standards, INDUSTRIAL
and 155 branches and 5 distribution centres FLEET
• Upgrade to Tier O the remaining medium-power units, coast to coast SAFETY
beginning in 2010, to the EPA standards in effect at that Canada’s largest inventory supporting the FASTENERS
time. immediate requirements of the railway industry
Knowledgeable product and technical expertise
For its part, the RAC will encourage all its members to make to help you in your product selection
every effort to reduce GHG emissions from rail operations. The
2010 emission targets for the industry are: Our own factory trained technicians to
service and repair your critical industrial
• Class 1 Freight 16.98 kg CO2 eq per 1,000 rtk and safety equipment
(revenue tonne-kilometres) A wide range of customized inventory
• Short Lines 15.38 kg CO2 eq per 1,000 rtk management and e-business solutions
• Intercity Psgr. 0.12 per CO2 eq per 1,000 passenger-km
• Commuter 1.46 kg CO2 eq per 1,000 passengers-30 ® ™ 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
Flexibility among advantages
Shortline railways fill important niche
hortline railways are
S often credited with tak-
ing 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 mak-
ing it possible for their cus-
tomers to remain open.
The president of the 745-
mile Montreal, Maine &
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
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.
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
CP
A special information supplement
New Brunswick, Quebec and
Ontario, also identifies cus-
tomer 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 prof-
itable, he says. “Thanks to
shortlines, shippers do not
depend only on highway
transport to move their prod-
uct. Shortlines also react quick-
ly to shippers’ needs and con-
cerns, because they are more
flexible than larger railways,
and their main focus is on cus-
tomer service.”
Cliff Mackay, president and
CEO of the Railway Associa-
tion of Canada, says nearly a
Human resources
Harnessing talent increasingly
important to railways
ike other business sec-
tors in Canada, railways
are putting increasing
emphasis on HR practices as
companies face the dual chal-
lenges of meeting rising
demands while replacing a
wave of long-time employees
now approaching retirement.
Cliff Mackay, president
and CEO of the Railway Asso-
ciation 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 curric-
ula. The goal is to develop
skilled workers to fill the some
500 conductor jobs expected
annually over the next five
years.
“Across Canada, the num-
ber 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 stu-
dents.”
Four schools across Cana-
da are now offering the pro-
gram: 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 consid-
ered essential to efficient opera-
tions.
For its part, VIA Rail’s HR
initiatives includes its transfor-
mation of its HR management
function to strategically align
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 kilo-
metres of track, much of it orig-
inally 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 talents of its employees
with the corporation’s goals.
The importance of a well-
trained and happy workforce at
VIA is clear. With growth in
travel and tourism markets
having slowed in recent years,
VIA has made customer serv-
ice the core of its business strat-
egy.
“To ensure passenger rail
keeps thriving, and to grow
our revenues, we have to pro-
vide the best possible experi-
ence 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, anticipat-
ing 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 employ-
ees is the one competitive
advantage that no one else can
duplicate. “And all VIA’s
major objectives for the fore-
seeable future depend on har-
nessing that talent.”
Court Carruthers, presi-
dent of Ackland Grainger,
whose business includes train-
ing programs for railway staff,
says attracting talent requires
Students at George Brown College in Toronto are among those
gaining practical, hands-on experience working on local rail-
ways as part of new industry-supported conductor programs
taught at post-secondary schools across Canada. PHOTO: SUPPLIED
THE GLOBE AND MAIL
MONDAY, OCTOBER 15, 2007
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 long-
haul economic advantage of
shipping by rail.”
David Church, director of
transportation and recycling
for the Forest Products Associ-
ation of Canada, credits short-
lines for tailored service for
paper, lumber and other prod-
ucts 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 gov-
ernments, which are investing
$55 million in projects to
restore track and structures,
add sidings to improve opera-
tions and enable them to carry
fully loaded modern freight
cars.
Mr. Mackay would like to
see a similar program in
Ontario, which has 13 short-
line and regional railways.
“The shortlines inject an esti-
mated $1.2 billion into the
province’s economy and play
a vibrant role in ensuring sus-
tainable, green growth.”
Shortlines play an impor-
tant role in reducing shipping
costs, alleviating highway con-
gestion 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.”
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 safe-
ty products is key to the devel-
opment 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 prod-
uct 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 devel-
opment service to help attract
new people and new ideas into
the corporation.