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