Rail Trends - Railway Association of Canada
Transcription
Rail Trends - Railway Association of Canada
2010 R a il Tr e n ds The Railway Association of Canada www.railcan.ca Member Companies December 2009 6970184 Canada Ltd Agence métropolitaine de transport Alberta Prairie Railway Excursions Amtrak ArcelorMittal Mines Canada Arnaud Railway Company Barrie-Collingwood Railway BNSF Railway Company Burlington Northern (Manitoba) Ltd. Canadian Pacific Cape Breton & Central Nova Scotia Railway Capital Railway Carlton Trail Railway Central Manitoba Railway Inc. Charlevoix Railway Company Inc. CN CSX Transportation Inc. Eastern Maine Railway Company Essex Terminal Railway Company Goderich-Exeter Railway Company Limited Great Canadian Railtour Company Ltd. Great Sandhills Railway Ltd. Great Western Railway Ltd. Hudson Bay Railway Huron Central Railway Inc. Kelowna Pacific Railway Ltd. Kettle Falls International Railway, LLC Metrolinx Montréal, Maine & Atlantic Railway, Ltd. New Brunswick Southern Railway Company Limited Nipissing Central Railway Company Norfolk Southern Railway Ontario Northland Transportation Commission Ontario Southland Railway Inc. Ottawa Valley Railway Québec Gatineau Railway Inc. Québec North Shore and Labrador Railway Company Inc. Roberval and Saguenay Railway Company, The Romaine River Railway Company Société du chemin de fer de la Gaspésie South Simcoe Railway Southern Ontario Railway Southern Railway of British Columbia Ltd. St. Lawrence & Atlantic Railroad (Québec) Inc. Steam Train HCW Sydney Coal Railway Toronto Terminals Railway Company Limited, The Trillium Railway Co. Ltd. Tshiuetin Rail Transportation Inc. VIA Rail Canada Inc. Wabush Lake Railway Company, Limited West Coast Express Ltd. White Pass & Yukon Route Associate Members December 2009 Absopulse electornics Ltd Accuworx Inc. Administration portuaire de Montréal AECOM Alexander Holburn Beaudin & Lang LLP AllTrain – Training Solutions BMT Fleet Technology Limited Bombardier Transportation Canada Inc. Canac Railway Services Inc. Canadian Heartland Training Canadian Rail Collision and Refurbish Inc Consolidated Logistic Inc. Davanac Inc. Dessau Ecopower Hybrid Systems Inc. Entretien Ferroviaire JMSR inc. Envirotec Services Incorporated Fairplast Industries (8151 9405 Québec Inc.) GATX Rail Canada Corporation HDR Engineering - Ottawa Hewitt Equipment Ltée IBI Group Kenneth R. Peel, Barrister & Solicitor MD-UN Inc. MMM Group Ltd Neptec Design Group Newalta Industrial Services Inc Nord-Lock Inc. Ozark Mountain RailCar Peck & Hale L.L.C. PNR RailWorks Ltd. Quantum Environmental Group – B.C. Railway 101 Consulting Services RIVA Moling - Riva Online RTC Rail Solutions Ltd, Sandy Cooke Consulting Inc. Siemens Canada Limited SNC Lavalin Inc. Soulanges Railway Services Inc. Stantec Inc. Tessco Technologies Inc. Transportation Certification Services/ Rail Temps Inc VIdal Street Industrial Park Inc. The Railway Association of Canada www.railcan.ca 99 Bank Street, Suite 901 Ottawa, ON K1P 6B9 Telephone: (613) 567-8591 Fax: (613) 567-6726 Email: [email protected] Cover photo courtesy of CN ISBN 978-0-9809464-4-4 Table of Contents 1 11 12 Overview Highlights Public Policy and Taxation Statistical Highlights 14 Ten-year comparison 15 Freight revenue per ton-mile (tonne-kilometre) 16 Track operated, by provinces and territories Rail Operations in Canada 17 Plant – track operated and equipment in service 18 Freight transportation 22 Fuel consumed 23 Train statistics 24 Intercity passenger transportation 26 Rail commuter 27 Additions to property 28 Employment 29 Productivity Financial Highlights 30 Operating income 31 Operating expenses 32 Taxes by category 33 Taxes by jurisdiction Glossary Overview his year marks the 18th edition of the Railway Association of Canada’s Rail Trends, a ten-year composite of financial and operating statistics that provides a comprehensive review of the business of transporting goods and people by rail in Canada. This review covers virtually all interveners of rail – the Class 1s, regional freight companies, short lines, intercity passenger, commuter rail and tourist train services. When the RAC published its first edition of Rail Trends in 1993, we reported 24 member companies. Today, the RAC has more than doubled its membership to 53 with most of this growth resulting from the emergence of short lines. Historically, Canada only had a handful of short line and regional railways. But that changed considerably in 1996 with the introduction of the Canada Transportation Act which paved the way for the transfer of more than 5,200 track miles (8,500 kilometres) from CN and CP to short line operators. These short lines provide localized rail services to communities and industries across Canada and are often partnered with the Class 1 railways. The short lines have been vital in retaining rail infrastructure and rail freight service in areas where it may have otherwise disappeared. However, this restructuring process continues to evolve as the Class 1s have been reacquiring some light-density trackage in recent years. In 2007, the RAC created the Associate Members category of membership which includes rail suppliers and industrial rail operators as well as lawyers and consultants. Counting more than 50 organizations, Associate Members benefit from common services already available to the RAC core members. Ushered in by a weakening economy in the last quarter of 2008, 2009 was a challenging year for rail in Canada. Declines in volumes were widespread, whether it was goods, intercity passengers, rail commuters or tourist train travelers, no segment escaped unscathed. Despite the recession in the North American economy and the contraction of the global economy in 2009, our industry succeeded in recording a profitable year, but not as profitable as during the past decade. This was achieved by making the necessary changes to operations to adjust to reduced freight and passenger volumes. The Economy Global developments had a significant negative impact on the Canadian economy during 2009. The financial crisis intensified in late 2008 and early 2009, putting severe strains on financial markets, including those in Canada, 2010 T 1 2010 Overview 2 and the world economy experienced a sharp decline in output. By the end of the year, economic recovery had begun. The Canadian economy, as measured in Gross Domestic Product (GDP), shrank 2.6 per cent in 2009 after growing by a modest 0.4 per cent during 2008. Since 1961, the only other annual declines in GDP were recorded in 1982 (-2.9 per cent) and 1991 (-2.1 per cent). In 2009, the Canadian economy recovered from a recession, which lasted three quarters starting in the last quarter of 2008. Production was lower in the first half of 2009, remained essentially flat during the summer, and rose sharply in the last four months. The production of goods dropped 9.2 per cent while the production of services edged down 0.1 per cent. All the goods-producing sectors registered lower output, with manufacturing, mining, oil and gas extraction and construction leading the declines. Canada’s international merchandise trade was significantly affected by the decline of the global economy in 2009. Canada exported $369.7 billion of merchandise to the world, down 24.5 per cent from 2008. During the same period, imports fell 15.5 per cent to $374.2 billion. As a result, the trade balance went from a surplus of $46.9 billion in 2008 to a deficit of $4.5 billion in 2009, the first deficit since 1975, continuing a declining trade balance trend with the world that started in 2004. Canada’s trade surplus with the United States tumbled to $34.8 billion in 2009 from $89.1 billion in 2008, the lowest level since 1997. The trade deficit with countries other than the United States narrowed to $39.3 billion in 2009 from $42.2 billion in 2008. The United States represented 63.0 per cent of Canada’s total merchandise trade (exports and imports combined) in 2009, down from 65.7 per cent in 2008 and 71.1 per cent in 2005. Exports to the United States declined 28.2 per cent to $269.5 billion, led by falling prices of energy products and lower demand for automotive products. Imports fell 17.8 per cent to $186.7 billion, reflecting the weakness of automotive product imports. For the first time, countries other than the United States accounted for one quarter of Canada’s exports, up from 16.2 per cent in 2005. Overall, the consumer price index (CPI) increased only marginally by 0.3 per cent in 2009, compared to a 2.3 per cent average increase for 2008. The low percentage increase in the CPI was the lowest since 1994 and reflects a 13.5 per cent decrease in overall energy prices during 2009. The Canadian dollar began 2009 around U.S. $0.83 but declined against the U.S. dollar to reach a low of U.S. $0.77 in March. By October, Overview Industry Workload The Canadian rail industry’s workload in 2009 was significantly impacted by the global economic slowdown. A key measurement of the industry’s workload is revenue ton-miles (tonne-kilometres). A revenue ton-mile is the movement of one revenue-producing ton of freight the distance of one mile. The industry’s workload shrank to 210.9 billion RTM (307.9 billion RTK) in 2009 from 237.3 billion RTM (346.5 billion RTK) in 2008, a decrease of 11.1 per cent year-over-year. In fact, 2009’s workload was the smallest of the past decade and was 4.4 per cent lower than the 2000 workload of 220.7 billion RTM (322.2 billion RTK). Two other industry workload measures are carloads originated and tons (tonnes) originated. Both these workload measures were down from 2008 levels, 15.5 per cent and 15.6 per cent respectively. Compared to a decade ago, carloads originated were down 19.0 per cent and tons (tonnes) originated contracted 18.0 per cent. On a percentage basis, the RTM (RTK) workload measures fell less severely than carloads originated and tons (tonnes) originated in 2009 compared to the year earlier. This is explained by the fact that average haul grew 3.1 per cent from 2008 to 2009, lessening the impact of the downturn on the RTM (RTK) workload. The “Carloads originated by commodity grouping” on page 20 provides us with the year-over-year fluctuations in the number of carloads by major commodity grouping. Note that with the exception of Agriculture and Manufactured & Miscellaneous, the remaining commodity groupings experienced declines from 2008 volumes. The most severe declines occurred in Minerals, Metals and Intermodal. Compared to a decade earlier, 2009 recorded gains in Agriculture, Food Products, Manufactured & Miscellaneous and Intermodal. With the exception of Intermodal, these gains paled when compared to the declines in 2010 it rose to a high of U.S. $0.98 before finally settling around U.S. $0.95 in December 2009. The average value of the Canadian dollar against the U.S. dollar in was $0.876. Tourism expenditures, including those on transportation, fell 4.4 per cent in 2009. The number of Americans visiting Canada fell 9.2 per cent and the number of foreign visitors other than from the United States fell 12.5 per cent. Overall, total international travel to and from Canada fell 8.8 per cent in 2009. 3 Overview the remaining commodity groupings, particularly Coal, Minerals, Forest Products and Machinery & Automotive. Counts for 2009 Intermodal carloads were 130 thousand higher than 2000, however 2009 also marked the first traffic decline of the decade, Intermodal counts actually shrank by 106 thousand carloads compared to 2008. Safety The industry achieved noteworthy improvements in its safety statistics in 2009, by both freight and passenger rail. Compared to 2004, freight rail lowered the number of federally and provincially-regulated freight rail-related accidents by a third, from 1,681 accidents in 2004 to 1,121 accidents in 2009. The accident rate, representing the number of freight train accidents per billion gross tonmiles of workload, fell to a five-year low of 2.8 in 2009 from 3.8 in 2004, an impressive 26.3 per cent improvement. Passenger rail recorded 67 train accidents in 2009, down from 80 accidents in 2004. The accident rate for passenger rail is determined by calculating the number of accidents per million intercity passengers and rail commuters. The number of accidents per million passengers/commuters tumbled to 0.95 in 2009 from 1.35 in 2004, a remarkable 29.6 per cent decline. 2010 Rail Accidents and Accident Rate 4 1,800 4.5 1,600 3.4 1,400 2.3 3.8 3.6 3.5 3.2 2.9 2.8 1,200 1.1 2004 2005 1,000 2006 2007 2008 2009 0 Freight train accidents Freight train accidents per billion gross ton-miles Operating Revenues and Expenses Industry operating revenue totalled $9.6 billion in 2009 representing a $1.6 billion or 14.3 per cent drop compared to 2008. After experiencing gains each year since 2000, the industry experienced its first decline of the decade although still outpacing year 2000 operating revenue of $8.0 billion by $1.6 billion or 20.0 per cent. Operating revenue is comprised of three components, freight, passenger and other revenue. Freight revenue of $8.4 billion in 2009 was down $1.5 billion or 15.2 per cent from 2008 and was the lowest since 2005. Passenger revenue, representing revenue from intercity, rail commuter and tourist trains, amounted to $627 million in 2009, a drop of $34 million or 5.1 per cent from the prior year. Other revenue totalled $539 million, a decrease of $40 million or 6.9 per cent year-over-year. Freight companies earned 97 per cent of this category of revenue. Other revenue represents revenue for services provided to rail passenger and rail commuter companies, as well as switching, demurrage, miscellaneous rentals and other miscellaneous rail revenue. Compared to ten years ago, 2009 freight revenue was up $1.2 billion or 16.7 per cent, passenger revenue virtually doubled and other revenue rose $61 million or 12.8 per cent. Two factors were largely responsible for the 15.2 per cent reduction in freight revenue from 2008 to 2009. Firstly, lower freight volumes in most markets due to economic conditions in the North American and global economies resulted in an 11.1 per cent reduction in the RTM (RTK) workload. Secondly, revenue per RTM was 4.2 cents per RTM (2.87 cents per RTK) in 2008 compared to only 4.0 cents per RTM (2.74 cents per RTK) in 2009, a drop of 4.8 per cent. Revenue per RTM is a measurement of yield and is defined as revenue earned on the movement of a ton of freight over one mile. The lower revenue per RTM (RTK) was due in part to reductions in fuel surcharges caused by year-over-year fuel price decreases combined with lower fuel consumption volumes. To illustrate, the cost of diesel fuel fell 30.5 per cent in 2009 compared to 2008 and fuel consumption shrank by 14.4 per cent during the same period. Fuel surcharges are intended to enable railways to adjust rates more quickly as fuel prices change and to provide customers with surcharges that are more closely tied to current fuel prices. Fuel surcharges are recorded to freight revenue. By comparison to a decade earlier, the industry’s 2009 freight revenue grew by 16.7 per cent. This result was due to a 4.4 per cent smaller work- 2010 Overview 5 2010 Photo courtesy of Rick Robinson/CP Overview 6 load, as measured in RTM (RTK), which generated 22.0 per cent higher revenue per RTM (RTK) over the same period. The industry’s operating expenses amounted to $8.4 billion in 2009 compared to $9.2 billion in 2008, a decrease of $815 million or 8.7 per cent. In order to better understand these results we need to isolate the expenses of the freight companies. Freight expenses totalled $7.3 billion in 2009 compared to $8.2 billion in 2008, a reduction of $854 million or 10.4 per cent. The combined effects of an 11.1 per cent contraction in the RTM (RTK) workload and a 0.6 per cent increase in the cost per unit of workload – expense per RTM (RTK), contributed to the 10.4 per cent decrease in freight expenses. Expense per RTM (RTK) inched-up 0.6 per cent from 3.46 cents per RTM (2.37 cents per RTK) in 2008 to 3.48 cents per RTM (2.39 cents per RTK) in 2009. From 2000 to 2009, the industry’s operating expenses advanced from $6.5 billion at the beginning of the decade to $8.4 billion in 2009, an increase of $1.9 billion or 29.2 per cent. Looking once again at the operating expenses of the freight companies only, 2009 expenses were $7.3 billion compared to $6.1 billion in 2000, a rise $1.2 billion or 19.7 per cent. Responsible for this 19.7 per cent increase in freight expenses were a 4.4 per cent decline in the RTM (RTK) workload combined with an 18.4 per cent hike in the cost per unit of workload. Freight expense per RTM (RTK) for 2009 was 3.48 cents per RTM (2.39 cents per RTK) compared to 2.94 cents per RTM (2.01 cents per RTK) ten years earlier, representing an increase of 18.4 per cent. Overview Additions to Property The industry invests in capital programs for the renewal of its basic plant, the acquisition of rolling stock and other investments that contribute to growth opportunities as well as to improving the industry’s productivity and the fluidity of its network. In 2009, the industry invested $1.5 billion in capital additions to property, representing a $133 million or 9.6 per cent increase over the year prior. Compared to a decade earlier when the industry spent $1.1 billion on capital additions, 2009 expenditures were $464 million or 43.8 per cent greater. Expenditures of $706 million on track and roadway additions represented almost half of 2009’s total expenditures. Track and roadway additions were $18 million or 2.6 per cent higher than 2008 and almost tripled 2000 expenditures of $259 million. The second highest capital additions category in 2009 was rolling stock additions with $317 million. This category experienced a $27 million or 9.3 per cent hike in spending compared to the previous year and incurred $54 million or 20.5 per cent more expenditures than 2000. 2010 On a year-over-year basis, 2009 Transportation expenses (excluding fuel) fell $311 million or 13.1 per cent, exceeding the 11.1 per cent reduction in freight workload, the 7.4 per cent drop in intercity passengers and the 1.6 per cent fewer rail commuters in 2009. Compared to 2008, fuel expenses fell a remarkable $820 million or 40.4 per cent. Two factors were responsible for this result; the quantity of fuel consumed shrank by 14.4 per cent and the price of diesel fuel fell sharply from $4.23 per gallon ($0.93 a litre) in 2008 to $2.94 per gallon ($0.65 a litre) in 2009, a 30.5 per cent price drop. The fact that the 14.4 per cent decline in fuel consumption exceeded the reductions in freight, intercity passenger and rail commuter workloads is indicative of the success of the industry’s ongoing fuel conservation practices. Maintenance of equipment expenses fell slightly by $9 million or 0.6 per cent and maintenance–of-way and structures expenses declined a more significant $106 million or 6.2 per cent from 2008 to 2009. General and administrative expenses were the only expense category to experience an increase in 2009 growing by $431 million or 29.2 per cent over 2008. CP’s higher 2009 General and administrative expenses include statutory payments plus a voluntary prepayment of $500 million to its defined benefit pension plan. 7 2010 Overview 8 Productivity The key measurement of employee productivity is RTM (RTK) per employee. In 2009, this measurement deteriorated by 2.9 per cent year-over-year, the direct result of the RTM (RTK) workload diminishing by 11.1 per cent and the slower paced 9.3 per cent contraction of the freight companies’ workforce. By comparison, the ten-year scenario contains positive results as RTM (RTK) per employee expanded by 26.0 per cent during this period. The workforce shrank by 24.1 per cent while workload contracted by a much smaller 4.4 per cent. The industry’s long-term investments in people, technology and infrastructure all contributed to this achievement. Another measurement of productivity is road miles (kilometres) per employee and it is determined by dividing the total miles (kilometres) of first main track of freight companies by the number of employees they employ. The industry fared well by achieving a 4.3 per cent gain in this productivity measurement from 2008 to 2009 and a 27.3 per cent improvement during the past decade. Operating revenue per employee is another popular productivity measurement. The industry recorded a 6.7 per cent decline from 2008 to 2009, but a noteworthy 52.0 per cent improvement over the ten-year period since 2000. As well, the solid long-term gains in employee productivity were achieved by the industry at a reasonable cost. The average annual wage per employee in 2009 increased 0.8 per cent over 2008 and rose 24.0 per cent during the decade from 2000 to 2009. Another closely watched measurement of productivity is workload per gallon (litre) of fuel consumed. Freight companies reached a record high in 2009 by attaining an average of 545 RTM per gallon (175 RTK per litre) of fuel consumed. Both the year-over-year change and the ten-year change in RTM per gallon (RTK per litre) of fuel consumed improved by 4.8 per cent. It is interesting to note that on an industry basis, total fuel consumption in 2009 shrank by 5.9 per cent compared to a decade earlier. During that same period, freight workload contracted by only 4.4 per cent, the number of intercity rail passengers grew 11.6 per cent and the number of rail commuters expanded a significant 40.6 per cent. These gains are achieved through the implementation of fuel-efficiency initiatives, such as scheduling trains based on capacity to minimize congestion, better matching of horsepower to tonnage, improved train handling techniques and the use of fuel-saving devices on locomotives. The single most effective initiative has Overview Passenger Transportation Services Passenger transportation services represent intercity, rail commuter and tourist train services. Revenue from these three services totalled $627 million in 2009, down $34 million or 5.1 per cent from the year prior. Compared to a decade earlier, passenger transportation services revenue almost doubled in 2009. However, much of this increase was due to companies reporting their financial results in 2009 but not reporting in 2000. Excluding these companies from 2009 for comparability, results in a $32 million or 10.6 per cent increase in revenue over the decade. Intercity passenger services generated $268 million in 2009, a reduction of $36 million or 11.8 per cent compared to 2008. The same period recorded a 7.4 per cent decrease in the number of passengers which fell from 4.9 million in 2008, a record high for the decade, to 4.5 million in 2009. Compared to a decade earlier when ridership totalled 4.1 million passengers, 2009 was 11.6 per cent higher. Intercity passenger miles (kilometres) were down 9.3 per cent yearover-year, reflecting the combined effects of a 7.4 per cent lower ridership and a 1.5 per cent drop in the average length of journey. From 2000 to 2009, the average length of journey deteriorated 14.7 per cent from a high of 238 miles (383 kilometres) in 2000 to a decade low of 203 miles (327 kilometres) in 2009. VIA represents the majority of Canada’s intercity passenger services, it transported 93 per cent of total intercity passengers in 2009. VIA operates up to 500 trains weekly on 7,665 miles (12,336 kilometres) of track, 2010 been the industry’s ongoing renewal of its fleets as older locomotives are replaced with higher horsepower, more fuel-efficient locomotives. Productivity gains are also measured in terms of asset utilization. As previously mentioned, freight workload decreased 4.4 per cent from 2000 to 2009 and the number of intercity rail passengers and rail commuters both grew. During this same time, the industry down-sized its locomotive fleet 12.0 per cent, reduced freight car inventory 26.9 per cent and reduced miles (kilometres) of track operated 2.5 per cent. The industry is certainly doing more with less. However, improved asset utilization cannot be achieved by plant reductions alone. Ongoing plant modernization is another important component and includes upgrading infrastructure, locomotive and freight and passenger car renewal programs as well as investments in information technology. 9 Overview 2010 connecting over 450 Canadian communities. Not unlike the freight rail, VIA also had to deal with the economic recession of 2009. VIA’s passenger revenue slid 11.5 per cent in 2009 compared to the prior year while its passenger miles were down 9.8 per cent. Because the rate of revenue decline was greater than the drop in passenger miles, VIA’s yield or the revenue generated per passenger mile, declined 1.9 per cent. Passenger revenue was affected both by a declining demand for passenger services and by a highly competitive pricing environment as VIA discounted fares throughout the year in order to protect its market share. During 2009, VIA negotiated improved agreements with the freight railways, thus providing VIA with better access to the national rail infrastructure. These agreements and a revised schedule that better reflects current operating realities resulted in significantly improved on-time performance. Overall on-time performance climbed eight percentage points to 83 per cent in 2009. In the busy Quebec City – Windsor corridor, on-time performance reached 84 per cent, a 13.0 per cent betterment over 2008. The Government of Canada provided an additional $407 million investment in passenger rail through the 2009 Economic Action Plan, bringing the total for VIA’s Capital Investment Program to $923 million over the 2007-2011 period. In 2009, capital spending totalled $117 million (by comparison, the previous two years amounted to $55 million). VIA 10 Photo courtesy of Matthew G. Wheeler/VIA Rail Overview Highlights • A severe, global economic downturn that began in late 2008 impacted the transportation industry as a whole and caused a sharp drop in demand for its services in 2009. Freight workload, as measured in revenue ton-miles (tonne-kilometres) fell 11.1 per cent year-over-year. The number of passengers travelling on intercity trains experienced a 7.4 per cent reduction in 2009 compared to the prior year. The number of rail commuters fell less sharply during the same period, recording a 1.6 per cent drop in ridership. • The ten-year statistics fared somewhat better. Freight workload was down only 4.4 per cent compared to 2000 but was the smallest workload of the decade. The number of intercity passengers grew by 11.6 per cent and rail commuter ridership surged 40.7 per cent. • Total industry revenue of $9.6 billion slid $1.6 billion or 14.3 per cent year-over-year. Freight revenue, the largest component of industry revenue, fell $1.5 billion or 15.2 per cent and was at its lowest level since 2004. The decline in passenger revenue was less severe, down $34 million or 5.1 per cent from 2008. Other revenue for 2009, almost totally generated by freight rail, experienced a $40 million or 6.9 per cent reduction from the year prior. • Total operating income of $1.2 billion fell $0.8 billion or 38.6 per cent in 2009 compared to 2008 as the $1.6 billion revenue decline was only partially offset by the $0.8 billion reduction in operating expenses. The industry recorded its lowest operating income of the past decade. 2010 proceeded to rebuild and renew its locomotives and passenger cars and began major infrastructure projects throughout the Quebec City – Windsor corridor, as well as station improvements in all parts of its network. Capital spending will continue to accelerate over the next two years, with over $300 million per year in capital spending planned for 2010 and 2011. Rail commuter services generated $299 million in 2009 compared to $270 million a year earlier, representing a $29 million or 10.7 per cent improvement. Commuter trains in British Columbia, Ontario and Quebec carried 66.0 million riders in 2009, down 1.1 million or 1.6 per cent from 2008. It was the first year that ridership recorded a decline since 1997 when the RAC began tracking this statistic. Compared to a decade ago when rail commuters totalled 46.9 million, 2009 experienced an impressive 19.1 million or 40.7 per cent growth in rail commuters. Rail commuter services are contributing to less highway congestion, reduced pollution and better fuel conservation. 11 Public Policy and Taxation 2010 C 12 anada’s railways are an important enabler of economic activity in Canada, moving approximately 70 per cent of freight on a tonne-km basis and over 70 million passengers last year. The country’s strength as an exportoriented trading nation depends on a stable regulatory environment and a competitive taxation system in order to attract investment necessary for future economic growth. Rail is also a green transportation solution and is well positioned to assist efforts in achieving Canada’s environmental performance goals. Rail is the most efficient form of freight surface transportation as it can move one tonne of freight more than 180 kilometres on just one litre of fuel. Canadian railways continue to face a significantly higher tax burden than their U.S. competitors. The federal government took a step towards improving the taxation environment for rail in the 2008 Federal Budget by increasing the capital cost allowance (CCA) for locomotives from 15 to 30 per cent. However, more needs to be done with respect to fuel, excise, property, capital and income taxes in order to have a true levelling playing field with U.S. rail. A competitive taxation system will allow Canadian rail to renew their locomotive fleet and rolling stock at a more effective pace and to increase capital investments, thereby improving productivity and environmental performance. The 2009 Federal Budget Plan announced a $4 billion Infrastructure Stimulus Fund which is to be allocated by March 31, 2011. To date, $18 million was announced, in partnership with the Government of New Brunswick, to improve New Brunswick Southern Railway infrastructure. Further, in October 2010, the Federal Government and the Government of Ontario announced a $30 million infrastructure investment in the Huron Central line. Additional short line infrastructure proposals, totalling $9 million, in Ontario have been presented to the federal and Ontario governments. On the public policy front, the federal government continues efforts in developing the Ontario-Quebec Continental Gateway and Trade Corridor and the Atlantic Gateway. This focus on improving trade flows and the competitiveness of Canada’s multi-modal transportation are welcomed by Canada’s rail community. In addition, the federal government continues to invest in the Asia-Pacific Gateway and Trade Corridor. The rail community is anticipating the completion of the Federal Rail Freight Service Review. Over the last two years, freight rail have continued to work with their customers in developing commercial based services offers that meet the requirements of both parties. Clearly a commercial based approach, as opposed to regulatory measure, to optimize service will benefit rail customers and all participants in the rail freight supply chain. Public Policy and Taxation Highlights •The industry’s taxes totalled $853 million in 2009 compared to $930 million a year earlier, a $77 million or 8.3 per cent reduction. All categories of taxes fell or remained flat year-over-year. Compared to a decade earlier, 2009 taxes climbed $213 million or 33.3 per cent. •Most of the year-over-year decline in the industry’s taxes was due to lower income taxes which fell $58 million or 18.0 per cent, a reflection of the 38.6 per cent drop in operating income. The ten-year snapshot is significantly different as 2009 income taxes were seven-fold greater than 2000’s income taxes of $38 million. •Locomotive fuel and excise tax was $10 million or 5.3 per cent less than 2008. This reduction falls short of the year-over-year 14.3 per cent reduction in fuel consumption due in part to the timing of the introduction of the carbon tax in British Columbia. The carbon tax took effect in the second half of 2008 whereas 2009 includes the full year impact of this tax. Compared to a decade earlier, 2009 locomotive fuel and excise tax was $1 million or 0.6 per cent less. •In 2009, payroll taxes were $7 million or 4.5 per cent lower than the previous year as the smaller workforce resulted in a 7.4 per cent reduction in total compensation. Canada and Quebec Pension Plan payments and unemployment insurance premiums both fell $3 million and Health taxes were down $1 million. Payroll taxes dropped $2 million or 1.3 per cent from 2000 to 2009. I hope that you find “Rail Trends” interesting and useful. Your feedback is always welcome. Sincerely, J.C. (Cliff ) Mackay President and Chief Executive Officer The Railway Association of Canada 2010 The continued success of Memorandums of Understanding to achieve common goals involving safety, security, community relations and the environment demonstrate the rail community’s commitment to public policy management in the best interests of Canadian industry and society. The guiding principles of non-regulation and flexibility have shown positive results and should continue. 13 Statistical Highlights Ten-year comparison 2000 Revenue ton-miles (billions) Revenue tonne-kilometres (billions) Miles of road operated Kilometres of road operated Locomotives Freight cars (000) Gallons of fuel (millions) Litres of fuel (millions) Employees Annual wage per employee ($) (1) (1) 220.7 322.2 28,889 46,491 3,115 104 437 1,989 41,118 60,795 2008 237.3 346.5 29,366 47,258 3,046 84 481 2,185 35,208 74,790 (2) (2) 2009 210.9 307.9 28,162 45,322 2,742 76 412 1,871 32,337 75,415 Percentage change 2009 versus: 2000 2008 -4.4 -4.4 -2.5 -2.5 -12.0 -26.9 -5.8 -5.8 -21.4 24.0 -11.1 -11.1 -4.1 -4.1 -10.0 -9.5 -14.3 -14.3 -8.2 0.8 1. Miles (kilometres) of road operated include road over which a railway has operating rights. 2. 2008 “Miles of road operated” (kilometres) were restated. Freight revenue ($) per ton (tonne) Freight revenue per ton (tonne) is calculated by dividing freight revenue by total tons (tonnes) originated. 2010 14 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 ton 22.03 22.43 22.89 22.53 23.47 25.60 27.78 28.16 31.24 31.34 Revenue per tonne 24.29 24.73 25.23 24.83 25.87 28.22 30.63 31.04 34.44 34.55 Index 2000=100 100.0 101.8 103.9 102.3 106.5 116.2 126.1 127.8 141.8 142.3 Consumer Price Index 100.0 102.5 104.8 107.8 109.7 112.2 114.4 116.9 119.6 120.0 Statistical Highlights Freight revenue (cents) per ton-mile (tonne-kilometre) Revenue per ton-mile tonne-kilometre 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 3.28 3.27 3.44 3.32 3.37 3.64 3.87 3.84 4.20 4.00 2.24 2.23 2.35 2.28 2.31 2.49 2.65 2.63 2.87 2.74 Index 2000=100 100.0 99.7 104.9 101.2 102.7 111.0 118.0 117.1 128.0 122.0 Freight revenue (cents) per ton-mile 2010 4.50 4.00 15 3.50 3.00 2.50 2.00 1.50 1.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Statistical Highlights Track operated, by provinces and territories (3) 2008 Kilometres 2009 Kilometres Miles Alberta British Columbia Manitoba Newfoundland & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories 4,277 4,252 2,994 286 721 411 7,069 3,844 5,437 75 6,883 6,843 4,818 459 1,160 661 11,376 6,186 8,750 121 4,234 4,158 2,764 286 721 406 6,851 3,844 4,823 75 6,814 6,692 4,448 459 1,160 654 11,026 6,186 7,762 121 Total Intercity passenger trains Commuter and tourist trains Segments terminating in the U.S. 29,366 7,751 2,186 154 47,258 12,474 3,518 248 28,162 7,824 2,116 154 45,322 12,592 3,405 248 Grand total 39,456 63,498 38,256 61,567 (4) (4) Miles 3. First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. 2010 4. 2008 “Segments terminating in the U.S.” (kilometres) and “Grand total” (kilometres) were restated. 16 Freight Transportation Intermodal traffic originated 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (5) Trailers (000) Containers (000) 206 192 214 217 149 112 106 102 101 83 1,595 1,636 1,820 1,937 2,010 2,134 2,251 2,334 2,396 2,033 Total (000) 1,801 1,828 2,034 2,154 2,159 2,246 2,357 2,436 2,497 2,116 5. Reflects both Canadian and U.S. operations of Canadian Class 1 railways. Intermodal units are actual counts of trailers and containers, regardless of size, and are not “twenty-foot equivalent units (TEUs)”. Rail Operations in Canada Plant – track operated 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Equipment in service (6) Miles Kilometres Index 2000=100 28,889 28,951 29,087 29,138 30,551 30,380 29,978 29,713 29,366 28,162 46,491 46,591 46,811 46,893 49,167 48,893 48,243 47,816 47,258 45,322 100.0 100.2 100.7 100.9 105.8 105.2 103.8 102.9 101.7 97.5 Freight cars Locomotives in service in service 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 103,976 102,790 98,001 97,039 99,141 101,606 99,946 92,373 83,984 75,836 3,115 3,142 3,129 3,170 3,234 3,253 3,271 3,165 3,046 2,742 6. First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. Excludes intercity passenger trains, commuter & tourist trains and segments terminating in the U.S. 32,000 2010 Miles of track operated 31,200 17 30,400 29,600 28,800 28,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Rail Operations in Canada Freight Transportation Carload traffic 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Carloads originated (000) Tons originated (000) Tonnes originated (000) Tons per carload 4,157 4,017 3,992 4,092 4,212 4,290 4,260 4,196 3,984 3,367 328,172 321,127 317,432 327,126 337,923 343,464 339,394 337,989 318,688 269,028 297,718 291,326 287,974 296,768 306,563 311,590 307,897 306,623 289,114 244,062 79 80 80 80 80 80 80 81 80 80 7. Tons (tonnes) per carload: Tons (tonnes) originated divided by carloads originated. 2010 Carloads Originated (000) 4,500 18 4,000 3,500 3,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (7) Tonnes per carload (7) 72 73 73 73 73 73 73 73 73 73 Rail Operations in Canada Freight transportation 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Freight train miles (000) Freight train kilometres (000) Revenue ton-miles (millions) Revenue tonne-kilometres (millions) 72,453 70,704 72,194 72,873 74,284 76,400 76,451 74,100 71,712 59,576 116,598 113,784 116,185 117,278 119,548 122,953 123,035 119,253 115,409 95,877 220,678 220,374 211,500 221,653 235,114 241,745 243,744 247,709 237,323 210,898 322,157 321,714 308,759 323,581 343,232 352,912 355,831 361,619 346,457 307,880 (8) 8. 2008 “Freight train miles” were restated. Revenue ton-miles (millions) 2010 250,000 19 225,000 200,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Rail Operations in Canada (9) Agriculture Coal Minerals Forest Products Metals 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 457,089 452,423 364,754 345,025 412,099 416,473 453,151 454,034 430,292 474,980 370,467 349,992 342,432 327,182 337,592 353,197 321,266 349,983 324,931 277,048 479,240 495,078 601,004 627,288 639,764 657,410 600,823 609,422 574,645 368,631 398,466 398,430 403,908 430,662 442,689 433,138 388,035 317,158 253,279 182,395 Fuels & Chemicals Paper Products Food Products 2010 Freight Transportation Carloads originated by commodity grouping Machinery & Automotive 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 445,575 425,976 469,514 474,342 485,197 469,655 470,833 470,876 443,125 401,141 240,624 237,380 274,219 302,994 333,061 333,830 274,092 252,150 228,072 175,693 33,894 38,322 30,391 32,652 40,587 44,169 41,454 41,822 42,365 42,232 20 9. Not all member companies record carloads originated by commodity grouping. The Intermodal counts represent an average load factor that determined the number of carloads reported. 282,470 250,153 289,619 284,718 326,020 295,022 362,000 359,982 369,475 273,800 266,912 247,438 277,288 270,411 253,003 235,480 244,395 234,830 195,308 148,123 Manufactured & Miscellaneous Intermodal 68,346 56,269 55,624 51,652 63,890 65,629 66,333 65,923 75,160 79,445 611,765 646,692 691,417 712,377 722,412 769,936 819,552 832,663 847,647 741,807 Total 3,654,848 3,598,153 3,800,170 3,859,303 4,056,314 4,073,939 4,041,934 3,988,843 3,784,299 3,165,295 Rail Operations in Canada Freight Transportation Revenue from carloads originated by commodity grouping ($millions) Agriculture Coal Minerals 2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009 732 761 875 948 1,125 1,157 1,161 1,259 416 405 513 738 676 709 706 502 623 645 763 811 764 819 833 525 Fuels & Chemicals Paper Products Food Products 777 739 771 804 836 837 902 818 502 518 595 642 582 541 531 423 55 58 70 74 81 81 89 94 (10) Forest Products Metals 619 615 798 969 928 780 646 478 364 360 404 429 489 476 531 317 Manufactured & Miscellaneous Intermodal 92 96 93 112 114 116 126 113 1,679 1,760 1,885 2,152 2,377 2,452 2,702 2,273 Machinery & Automotive 477 460 397 414 433 445 443 337 Total 6,336 6,417 7,164 8,093 8,405 8,413 8,672 7,139 Carloads originated by commodity grouping 15% Agriculture 9% Coal 12% Minerals 6% Forest Products 9% Metals 5% Machinery & Automotive 12% Fuel & Chemicals 5% Paper Products 1% Food Products 3%Manufactured & Miscellaneous 23% Intermodal 2010 10. Not all member companies record revenue by commodity grouping. 21 Rail Operations in Canada Fuel Consumed Total fuel consumed gallons (000) litres (000) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 437,495 444,245 451,100 458,023 480,499 485,915 486,218 492,125 480,661 411,612 Gross ton-miles (millions) 1,988,749 2,019,436 2,050,729 2,082,207 2,184,384 2,209,007 2,210,384 2,237,237 2,185,120 1,871,221 520 522 495 510 513 523 527 529 520 545 22 401,506 399,457 398,681 415,290 441,467 457,950 459,633 463,356 449,922 397,293 586,140 583,149 582,016 606,263 644,478 668,540 670,997 676,433 656,821 579,990 1.78 1.82 1.65 1.73 1.81 2.38 2.81 3.07 4.23 2.94 Fuel consumed in gallons (000) 500,000 450,000 400,000 2000 2001 2002 2003 167 168 159 164 165 168 169 170 167 175 Gross tonne-km Cost of diesel fuel (millions) per gallon ($) per litre (cents) 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Revenue ton-miles Revenue ton-km per gallon of per litre of fuel consumed fuel consumed 2004 2005 2006 2007 2008 2009 39.1 40.1 36.2 38.0 39.8 52.5 61.8 67.6 93.0 64.8 Rail Operations in Canada Train Statistics Average: Length of haul/Cars per train Miles (kilometres) hauled by transcontinental railways (CN and CP) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Miles (kilometres) hauled by regional/short line railways Miles Kilometres Miles 787 789 795 794 787 789 803 807 818 830 1,267 1,270 1,279 1,278 1,267 1,270 1,292 1,299 1,316 1,336 187 162 150 151 161 149 159 151 146 159 Kilometres 301 261 241 243 259 240 256 243 235 256 (11) (11) Average cars per freight train Cars 73 73 74 74 78 79 79 81 82 87 11. 2008 “Miles (kilometres) hauled by regional/short line railways” were restated. Average cars per freight train 2010 90 23 80 70 60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Rail Operations in Canada Passenger Transportation Intercity passenger transportation Passenger cars in service 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Number of passengers (000) 450 421 473 505 465 538 537 538 540 559 Passenger miles kilometres (millions) (millions) 4,068 4,112 4,223 4,024 4,181 4,322 4,320 4,478 4,899 4,538 954 965 992 931 894 919 906 912 986 894 12. 2008 “Passenger kilometres” were restated. 2010 Number of passengers (000) 5,000 24 4,500 4,000 3,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1,535 1,553 1,597 1,498 1,439 1,479 1,458 1,468 1,588 1,439 (12) Rail Operations in Canada Intercity passenger transportation 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Passenger train miles (000) kilometres (000) 7,236 7,338 7,406 7,252 7,214 7,415 7,381 7,330 7,414 7,334 11,645 11,809 11,919 11,671 11,611 11,933 11,879 11,796 11,932 11,803 Average intercity passengers per train 132 132 134 128 124 124 123 124 133 122 Passenger car miles (000) kilometres (000) 46,945 47,991 50,035 50,087 49,707 49,966 49,400 48,708 49,140 47,290 75,549 77,232 80,523 80,607 79,995 80,412 79,501 78,388 79,083 76,106 Average length of journey miles kilometres 238 238 238 226 219 217 214 209 206 203 383 383 383 364 352 349 344 336 332 327 Average passenger load factor (%) On-time performance (%) 56 57 57 53 53 55 54 55 59 57 83 85 84 73 70 81 84 77 75 83 2010 25 Rail Operations in Canada Passenger Transportation Rail commuter Commuter passenger miles (000) kilometres (000) 2002 2003 2004 2005 2006 2007 2008 2009 199,957 204,198 214,089 224,833 237,781 247,066 256,123 245,942 Commuter train miles (000) kilometres (000) 321,801 328,626 344,544 361,834 382,672 397,615 412,190 395,806 2,592 2,724 2,749 2,820 2,730 2,808 2,832 2,876 Rail commuters (000) British Columbia, Ontario and Quebec Average rail commuters per train 2010 2000 2001 2002 284 2003 260 2004 287 2005 283 2006 300 2007 339 2008 340 2009 301 26 46,918 47,968 50,132 52,688 54,905 58,235 60,634 63,393 67,052 65,962 Rail commuters (000) 70,000 60,000 50,000 40,000 2000 2001 2002 2003 2004 2005 4,171 4,384 4,425 4,539 4,394 4,518 4,558 4,628 2006 2007 2008 2009 Rail Operations in Canada Additions to Property Additions to property ($millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 259 331 374 333 364 582 613 618 688 706 Buildings & related machinery & equipment Signals, communications & power Terminals & fuel stations 334 236 310 202 188 189 212 255 189 257 95 64 42 47 38 95 74 44 79 72 33 44 17 24 11 27 37 43 26 24 Work equipment Rolling Intermodal & roadway Other stock equipment machines equipment 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 263 315 208 313 337 416 352 350 290 317 32 56 16 25 30 39 48 30 29 34 21 13 34 41 36 31 44 41 68 42 23 16 14 21 39 15 28 18 22 72 Total additions 1,060 1,075 1,015 1,006 1,043 1,394 1,408 1,399 1,391 1,524 2010 Track & roadway 27 Rail Operations in Canada Employment Employment Total compensation ($millions) Average number of employees Average annual wage per employee ($) 2,498 2,474 2,392 2,412 2,387 2,548 2,535 2,566 2,633 2,439 41,118 39,511 37,296 36,599 35,736 35,389 34,558 34,938 35,208 32,337 60,795 62,675 64,229 65,901 66,804 71,994 73,356 73,440 74,790 75,415 (13) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 13. Compensation includes salaries and compensation paid and excludes company paid benefits such as Canada/Quebec Pension Plan, Unemployment Insurance and health taxes. 2010 Average number of employees 50,000 28 40,000 30,000 50000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Rail Operations in Canada Productivity Revenue ton-miles per employee Revenue ton-miles per employee (000) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Revenue tonne-kilometres per employee (000) Road miles per employee Road kilometres per employee 8,581 9,003 9,225 9,874 10,733 11,210 11,625 11,745 11,132 10,809 0.77 0.81 0.87 0.89 0.93 0.96 0.98 0.96 0.94 0.98 1.24 1.30 1.40 1.43 1.50 1.54 1.58 1.54 1.51 1.58 5,878 6,167 6,319 6,764 7,352 7,679 7,963 8,045 7,625 7,404 (14) (14) (14) (14) 14. 2008 Productivity statistics were restated. Revenue ton-miles per employee (000) 2010 8,500 29 7,500 6,500 5,500 4,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Financial Highlights Operating Income Operating revenue ($millions) Freight Passenger Other Total 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 7,231 7,203 7,266 7,369 7,931 8,794 9,430 9,516 9,957 8,433 323 346 389 364 386 576 622 624 661 627 478 503 487 484 506 570 561 564 579 539 8,031 8,052 8,142 8,217 8,823 9,940 10,613 10,704 11,197 9,599 (15) 15. Federal, provincial and municipal funding of $435 million in 2009 for Intercity passenger and commuter services is excluded. 2010 Operating income ($millions) 30 Income 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1,576 1,434 1,428 1,484 1,704 2,164 2,402 2,209 2,030 1,247 Financial Highlights (16) Transportation Fuel 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (17) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (17) Maintenance of equipment 1,920 1,997 2,037 2,086 2,180 2,241 2,224 2,337 2,376 2,065 777 798 734 781 862 1,159 1,367 1,513 2,032 1,212 1,416 1,476 1,300 1,280 1,290 1,382 1,575 1,634 1,564 1,555 Maintenance-of-way and structures General and administrative Total operating expense 1,254 1,227 1,374 1,421 1,421 1,493 1,408 1,549 1,718 1,612 1,088 1,120 1,269 1,165 1,366 1,501 1,637 1,462 1,477 1,908 6,455 6,618 6,714 6,733 7,119 7,776 8,211 8,495 9,167 8,352 16. Charges for restructuring, relocation and write-down of assets are excluded. 17. CN restated 2006 Maintenance of equipment and Maintenance-of-way and structures expenses. The net impact on 2006 Total operating expense was nil. 2010 Operating expenses Operating expenses ($millions) 31 Financial Highlights Taxes by category ($millions) Total 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Locomotive fuel & Property excise tax tax 640 654 654 742 698 716 1,084 989 930 853 178 164 168 173 174 180 188 188 187 177 134 139 143 139 141 155 155 154 152 152 Other sales tax Capital tax & customs duties Income tax Payroll taxes 103 104 118 101 90 98 102 97 99 97 37 58 42 64 25 31 21 15 14 14 38 36 27 110 118 101 471 381 323 265 150 153 156 155 150 151 147 154 155 148 Payroll taxes ($millions) 2010 32 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Canada/Quebec Pension Plan Unemployment Insurance Health Taxes Total 58 65 68 73 71 72 72 75 77 74 52 47 45 42 37 36 32 33 33 30 40 41 43 40 42 43 43 46 45 44 150 153 156 155 150 151 147 154 155 148 Financial Highlights Taxes by jurisdiction ($000) Alberta British Columbia Manitoba Nfld. & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories Federal Total Locomotive fuel & excise tax 2008 2009 4,458 20,565 10,553 0 1,477 0 30,613 4,735 36,011 0 78,755 4,066 26,230 9,376 0 1,138 0 24,301 4,984 38,732 0 68,569 Fuel tax per litre (cents) 2009 1.5 3.0 6.3 0.0 4.3 0.0 4.5 3.0 15.0 11.4 4.0 187,168 177,396 Other sales tax 2008 2009 Property tax 2008 2009 11,153 37,035 13,654 69 1,463 1,754 38,250 33,295 15,558 71 0 12,778 37,771 13,588 65 1,500 2,518 37,517 32,843 13,649 96 0 152,302 152,325 Capital tax & customs duties 2008 2009 Income tax 2008 2009 Alberta British Columbia Manitoba Nfld. & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories Federal 0 24,848 10,444 0 22 1,598 30,474 9,663 6,408 0 15,098 0 21,659 10,402 0 0 0 30,441 10,733 6,035 0 17,598 0 13 3,323 0 252 206 4,238 5,009 872 0 162 0 2 2,926 0 0 286 5,594 4,894 -179 0 420 19,396 15,029 24,666 353 12,200 0 0 0 4,462 1,740 1,786 413 35,466 29,059 12,296 14,093 15,966 0 226 0 196,376 204,793 Total 98,554 96,868 14,075 13,943 322,840 265,480 2010 33 Glossary Average length of haul: Calculated by dividing revenue ton-miles by revenue tons. Average cars per freight train: Calculated by dividing loaded and empty car miles by train miles. Container: A large, weatherproof box designed for shipping and/or transferring freight between rail, truck or marine modes. Specialized containers are equipped with heating and cooling capabilities for perishable products. Gross ton-miles (Gross tonnekilometres): The sum of ton-miles handled, calculated using the total weight of the trailing tonnage (both loaded and empty cars) of the trains moved. It excludes the weight of the locomotives pulling the trains. Intermodal service: The movement of trailers or containers by rail and at least one other mode of transportation. Import and export containers generally are shipped via marine and rail. Domestic intermodal service usually involves truck and rail. 2010 On-time performance: The ability to meet customer requirements as to pick-up and delivery schedules. 34 Reload centre: A transfer facility enabling the railway to expand market share through truck-to-rail service. Revenue ton-miles (Revenue tonnekilometres): The sum of ton-miles handled, calculated using the total weight of the commodities in the cars of the trains moved. It excludes the ton-miles involved in the movement of railway materials or any other non-revenue movement. Scheduled railroad: A railroad that handles individual car movements according to a specific plan where possible and manages expectations to meet agreed upon customer commitments. Track operated: First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. Trip plan: A detailed chain of train handling events describing car handling from shipper’s door to consignee’s door. Trip plans are expressed in hours and are tailored for each specific customer location. Unit train: A train with a fixed, coupled consist of cars operated continuously in shuttle service under load from origin and delivered intact at destination and returning usually for reloading at the same origin. Conversion factors miles to kilometres 1.6093 tons (short) to metric tonnes 0.9072 gallons to litres 4.5461 revenue ton-miles to revenue tonne-kilometres 1.4599 kilometres to miles 0.6214 metric tonnes to tons (short) 1.1023 litres to gallons 0.2200 revenue tonne-kilometres to revenue ton-miles 0.6850