2012 Rail Trends - Railway Association of Canada
Transcription
2012 Rail Trends - Railway Association of Canada
2012 Rail Trends www.railcan.ca Yukon Territory Northwest Territories Nunavut Hay River C a n a d a British Columbia Churchill Al berta Prince Rupert CN CN S askatchewan RMR HBRY M anitoba Edmonton Vancouver CTRW RMR RMR CP WCE Saskatoon CN APR Calgary KPR GSR CP SRY CP KFR Regina BNML CEMR Winnipeg GWR BNSF BNSF Rapid City CP Minneapolis Minneapolis St. Paul CN www.railcan.ca ISBN: 978-1-927520-00-0 BNSF U n i t e d Kansas City S BN NSF Telephone: (613) 567-8591 Fax: (613) 567-6726 Email: [email protected] 99 Bank Street Suite 901 Ottawa, ON K1P 6B9 Canadian railway network as of Dec. 31, 2011. Please see the most recent edition of the Canadian Rail Atlas for an up-to-date version of the network. Schefferville Newfound land and Labrador TSH Labrador City WLR QNSL Sept-Îles CFG Moosonee New Brunswick RS Ontario CN ONR CN CP Québec NCR Thunder Bay CFQG SLQ Montréal Sudbury CFO OVR VIA CR HCRY CN CFC BCRY GO SSR Toronto PCHR GEXR SOR OSR VIA STER NS Detroit ETL CP CSX Chicago NS CSX NS CN NS CSX CSX Albany Moncton NBSR CN EMRY Nova Scotia Sherbrooke AMT CP t a t e s MMA Prince SCR Edward Island CBNS Halifax 2012 AMMC Quebec CFRR CFA i Member Companies December 2011 6970184 Canada Ltd NBSRNew Brunswick Southern Railway AMT Agence métropolitaine de transport APR Alberta Prairie Railway Excursions Company Limited NCR Nipissing Central Railway Company AMTK Amtrak NS Norfolk Southern Railway AMMCArcelorMittal Mines Canada ONROntario Northland Transportation CFA Arnaud Railway Company Commission BCRY Barrie-Collingwood Railway OSR Ontario Southland Railway Inc. BNSF BNSF Railway Company Orangeville Brampton Railway BNML Burlington Northern (Manitoba) Ltd. OVR Ottawa Valley Railway CP CFQG Québec Gatineau Railway Inc. Canadian Pacific CBNSCape Breton & Central Nova Scotia QNSLQuébec North Shore and Labrador Railway CT Capital Railway Railway Company Inc. RSRoberval and Saguenay Railway CTRW Carlton Trail Railway Company, The CEMR Central Manitoba Railway Inc. CFRR Romaine River Railway Company CFC Charlevoix Railway Company Inc. CFGSociété du chemin de fer de la CN CN CSX CSX Transportation Inc. Gaspésie SSR South Simcoe Railway EMRY Eastern Maine Railway Company SOR Southern Ontario Railway ETL SRYSouthern Railway of Essex Terminal Railway Company GEXRGoderich-Exeter Railway Company 2012 Limited ii British Columbia Ltd. QNSLSt. Lawrence & Atlantic Railroad RMRGreat Canadian Railtour Company GSR (Québec) Inc. Ltd. CFO Steam Train HCW Great Sandhills Railway Ltd. SCR Sydney Coal Railway GWR Great Western Railway Ltd. TTRToronto Terminals Railway HBRY Hudson Bay Railway Company Limited, The HCRY Huron Central Railway Inc. STER/ Trillium Railway Co. Ltd. KPR PCHR Kelowna Pacific Railway Ltd. KFRKettle Falls International Railway, GO TSHTshiuetin Rail Transportation Inc. LLC VIA Metrolinx WLRWabush Lake Railway Company, MMAMontréal, Maine & Atlantic Railway, Ltd. VIA Rail Canada Inc. Limited WCE West Coast Express Ltd. Associate Members December 2011 4 Refuel Canada LP Ozark Mountain Railcar Absopulse Electronics Ltd Peck & Hale L.L.C. Accuworx Inc. PNR Railworks Inc. Administration portuaire de Montréal Quantum Murray LP AECOM Rail Cantech Alexander Holburn Beaudin & Lang LLP Raildecks (2009) Inc. AllTrain – Training Solutions Railway 101 Consulting Services Amsted Rail RDG2 Technologies Inc. BMT Fleet Technology Limited Red Giant Oil Company Bombardier Inc. RTC Rail Solutions Ltd Canac Railway Services Inc. Sandy Cooke Consulting Inc. Canadian Heartland Training Railway Siemens Canada Limited Canadian Rail Collision and SNC-Lavalin O&M Refurbishing Inc. Soulanges Railway Services Inc. Consolidated Logistic Inc. Stantec Inc. Davanac Inc. Stäubli Corporation Dessau Tessco Technologies Inc. Ecopower Hybrid Systems Inc. Transportation Certification Services Entretien Ferroviaire JMSR inc. VIdal Street Industrial Park Inc. Envirotec Services Incorporated Whiting Equipment Canada Fairplast Industries GATX Rail Canada Corporation HDR Engineering Hewitt Equipment Ltd. IBI Group Itech Environmental Remediation Kenneth R. Peel, Barrister & Solicitor MD-UN Inc. Mecfor Inc. MMM Group Ltd NARSTCO Neptec Design Group Ltd. Newalta Industrial Services Inc. 2012 (9151 9405 Québec Inc) iii Message from the President T his is our organization’s 20th edition of Rail Trends. The data in this year’s milestone edition shows the industry’s continued dedication to growth, safety and sustainability, and demonstrates why the Canadian rail sector is experiencing a true renaissance. The driving force of this resurgence has been freight rail and the positive contributions and investments it has made to maximize the way goods are moved within North America and to international markets. Within a globally integrated supply chain, the country’s railways are working with customers to ship products in a timely way to new and traditional markets, thereby enabling them to add value and create more wealth for Canada. In addition to robust freight expansion, there has also been significant growth in passenger rail. Rail moves more than 73 million people each year and this number is rising. Gas prices and urban sprawl have boosted the demand for investment in passenger rail infrastructure and services and Canada’s intercity and commuter railways have responded exceptionally well. As Canada’s rail renaissance continues to gain steam, the country’s railway sector has garnered very positive impressions among the Canadian public. Public opinion research has found the overwhelming 2012 majority of Canadians view rail to be safe, environmentally friendly and iv the best mode of transportation for society. With the recession in the rearview mirror, the Railway Association of Canada and its members are thrilled to see the data in Rail Trends reflecting a growing and prosperous future for rail in Canada. I hope you find this edition informative and useful. We welcome your feedback. Sincerely, Michael Bourque President and Chief Executive Officer Railway Association of Canada We dedicate this issue of Rail Trends to the memory of Clifford J. Mackay, President and Chief Executive Officer of the Railway Association of Canada, who passed away in January 2012. Cliff spent more than five years at the helm of the RAC, where he worked collaboratively with various government and regulatory agencies to improve safety in the industry. A staunch advocate of freight and passenger rail, Cliff spent the twilight of his career ensuring Canadian regulatory agencies, as well as elected and non-elected officials, gained a better understanding of the strategic economic role railways play in Canada. His decades of experience and contributions improved the rail sector and Canada’s believed this work is good for business, the environment and our great country’s future. 2012 transportation industry as a whole. Moreover, he v 2012 Table of Contents vi 1 Introduction 2 Economy 4 Revenue ton-miles (Revenue tonne-kilometres) 5 Employment 6 Financial highlights 8 Carloads originated by commodity grouping 9 Passenger and tourist service statistics 10 Infrastructure Investment and Productivity 11 Additions to property 12 Productivity 13 Overview of taxes provided by rail sector 14 Safety 15 Rail accidents 17 Operation Lifesaver 18 Environment 19 Carbon reporting 20 Fuel and efficiency measures 21 Locomotive fleet inventory 21 Spills performance and response data 22 Public Perception 23 Appendix A – Rail Operations in Canada 35 Appendix B – Financial Highlights 39 Glossary Conversion factors 40 List of acronyms Introduction T his is the Railway Association of Canada’s (RAC) 20th edition of Rail Trends, an annual report on the performance of Canada’s freight and passenger railway sector. The publication contains a rolling 10-year review of financial and statistical results, reflecting multiple aspects of rail performance. This year’s edition provides an overview of 2011 performance and highlights some clear trends taking place in the Canadian rail business. The most obvious indication is that there is a rail renaissance underway. Canada’s integrated global supply chain is relying on rail more than ever, and this year’s data shows freight and passenger rail activity is increasing across the country. Despite a swell in rail traffic, this year’s data indicates the industry is improving its environmental and safety records. In fact, Canadian railways shipped more than 337 millions tons in 2011, a 0.8 per cent increase from the previous year, while reducing emissions, spills and accidents. This record of improvement is a testament to the sector’s the Canadian public has expressed clear support for rail. As Canada’s vast rail network moves increasingly more goods and people while getting greener and safer, it is clear the sector is going in a positive direction and that the resurgence of rail is in full force. This year’s data is categorized into five sections: •• Economy; •• Infrastructure Investment and Productivity; •• Safety; •• Environment; and •• Public Perception. In addition to these sections, Appendix A and B provide details on rail operations and financial highlights from 2002 to 2011. 2012 commitment to sustainability and safety and is one of the reasons why 1 Economy D espite financial uncertainty in key markets around the globe, Canada stood out among leading (global) industrialized countries with a relatively healthy, export-rich economy in 2011. Railways were instrumental in solidifying this status. As Canada’s economy continues to rally towards pre-recession levels, the nation’s railways are relied upon more heavily than ever before to facilitate growth and trade. In recent years, rail has become the preferred mode of ground transportation, facilitating more than $75 billion in trade, and reinforcing its role as the backbone of an integrated supply chain that has helped move Canada’s resources to global markets. The most common barometer for measuring rail workload perfor mance is revenue ton-miles (revenue tonne-kilometres) or RTM (RTK), which is the movement of one revenue-producing ton of freight the distance of one mile (kilometre). It is calculated by multiplying the weight of paid tonnage by the total distance (in miles or kilometres) it 2012 has been transported. 2 This section highlights the statistical data of key areas that point to the current growth of rail in relation to the Canadian economy. Economy 2011 economic highlights: •• Member railways’ workload increased by 3.2 per cent to a record 255 billion revenue ton-miles (372 billion revenue tonnekilometres) or RTM (RTK), and has climbed 20.6 per cent over the past 10 years. •• The sector employed an average of 33,624 people, a 3.3 per cent increase from 2010, marking the second consecutive year-overyear rise. •• Total industry operating revenue hit a record $11.5 billon, surpassing last year’s total by 7.1 per cent, and operating expenses climbed 6.5 per cent to a record $9.8 billion. •• Canadian freight rates continue to be some of the most competitive in the world. •• Originated freight carloads increased 4.5 per cent compared to 2010. •• Total revenue from passenger transportation services, representing combined intercity, tourist train and commuter rail services, has 2012 climbed 71.4 per cent over 10 years to $667 million. 3 Economy Revenue ton-miles (Revenue tonne-kilometres) In 2011, member railways’ workload totalled a record 255 billion RTM (372 RTK), an increase of 3.2 per cent from last year and 20.6 per cent over the past 10 years. The graph below indicates the RTM of current member companies throughout the last decade. REVENUE TON-MILES (millions) 275,000 250,000 2012 225,000 4 200,000 250000 2002 2002 2003 2004 2005 2006 2007 2008 2009 2011 Economy Employment Rail delivers services that provide shippers access to domestic and international markets and connects passengers to destinations near and far. The increasing demand for services has prompted a boost in employment across the industry. In 2011, Canada’s rail business continued to serve as an economic driver by way of employment, both in terms of number of employees and average annual wage. In 2011, the sector employed an average of 33,624 people, a 3.3 per cent increase from 2010 and the second consecutive yearover-year rise. The average salary in the sector also rose by 4.8 per cent from a year ago, outpacing the 2.6 per cent average annual increase since 2002. The figure below points to the sector’s year-by-year employment trends throughout the last decade. EMPLOYMENT 2012 90,000 70,000 5 50,000 30,000 2002 2002 2003 2004 Average annual wage 2005 2006 2007 2008 Employees 2009 2011 Economy Financial highlights In 2011, year-over-year total industry operating revenue climbed 7.1 per cent to a record $11.5 billon. There are three components to operating revenue: freight, passenger and other revenue. Other revenue is largely composed of revenue for services provided to passenger and commuter rail companies, as well as switching, demurrage and miscellaneous rentals. The sector also hit a record $9.8 billion in total operating expenses, which includes costs of fuel, equipment maintenance and administrative expenditures. The new high was a 6.5 per cent jump from the previous year. Operating REVENUE & expenses (millions) 12,000 10,000 2012 8,000 6 6,000 2002 2002 2003 2004 Operating income 12000 2005 2006 2007 2008 2009 Operating Expenses 2011 Economy It’s worth noting that while railways increased their overall operating revenue in 2011, they did so offering some of the lowest freight rates in the world. The graph below shows Canada’s freight rates throughout the last five years compared to most of the world’s largest economies. CANADA IS A LEADER WITH LOW RAIL RATES 9¢ 8¢ 7¢ 6¢ 5¢ 4¢ 3¢ 2¢ 1¢ 2006 Canada China France 2007 2008 Germany India Japan 2009 2010 Russia U.S. Revenue per ton-mile in U.S. dollars, Purchasing Power Parity adjusted Source: RAC, 2012 2012 0¢ 7 Economy Carloads originated by commodity grouping Another measurement of industry workload that demonstrates rail’s renaissance in 2011 is originated freight carloads by the sector, which increased 4.5 per cent compared to 2010. To get a better sense of the freight being carried, the industry tracks its carloads originated by commodity grouping. This set of data is indicative of the products Canada’s trains are shipping across the country and to international markets. The chart below illustrates carloads originated by commodity grouping as a percent of all commodity carloads originated among member railways. Some categories have been grouped together. Carloads originated by commodity grouping 14% Agricultural Goods & Food 10% Pulp & 2012 Wood Products 25% Metals & Minerals 8 23% Intermodal 7% Machinery & Manufactured 21% Hydrocarburants & Chemicals Economy Passenger and tourist service statistics The 2011 data shows more and more people are choosing rail transportation as a means to commute and travel. In the same year, total revenue from passenger transportation services, representing combined intercity, tourist train and rail commuter services decreased 1.0 per cent to $667 million, but climbed 71.4 per cent over 10 years. The number of rail commuters in British Columbia, Ontario and Quebec also jumped 36.5 per cent over the decade. The rise across passenger and tourist service statistics reflects Canadians’ mounting attraction to intercity and commuter rail. Rail is safe, convenient and green and this year’s findings indicate rail is a preferred method of travel among Canadians. The RAC’s member railways understand the demand for increased passenger rail service and are effectively adapting in order to meet the needs of Canadians by 2012 providing more passenger services more often. 9 Infrastructure Investment and Productivity T o improve service and increase the value and performance of the supply chain, RAC member railways continued their substantial investment in the maintenance and development of infrastructure in 2011. These companies are in the distinctive position of financing the near entirety of the network that forms the backbone of the Canadian supply chain. Their investment is measured by the industry term “additions to property,” which includes purchasing rolling stock, improving bridges and replacing rail and other track materials. In order to keep pace with shipper demands and maintain exceptional service at the lowest possible rates, member railways ensure the existing network is well-maintained and includes modernized facilities and information technology systems. This concerted effort to uphold and improve the efficiency of the rail network allows the railways to enhance their productivity and attract new business. Not only did Canadian railways keep up with growth in all areas of rail in 2011, but they did so while improving operating efficiencies and offering better service to customers. The RAC represents effectively all rail companies operating in 2012 Canada – the large Class 1s, the regional and short lines railways, inter- 10 city passenger, commuter rail and tourist train operators. 2011 investment and productivity highlights: •• Canada’s rail sector invested $1.8 billion in additions to property in 2011, a year-over-year rise of 7.6 per cent. •• Employee productivity increased by 2.5 per cent to a record 8.5 million RTM (12.4 million RTK) per employee. •• Canada’s railways contributed a record $158 million in tax revenue, 7.5 per cent more than the previous year. Infrastructure Investment and Productivity Additions to property The figure below shows the industry invested $1.8 billion in additions to property in 2011, a year-over-year increase of 6.5 per cent. Compared to 10 years ago, Canadian railways committed 80.7 per cent more to capital spending, reflecting the desire among rail companies to expand and maintain their network to improve service, facilitate the movement of trade and support the growth of the Canadian economy. The graph below shows the sector’s additions to property over the last 10 years. ADDITIONS TO PROPERTY (MILLIONS CAD) 2,000 2012 1,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Today, rail is experiencing a renaissance. Cities are implementing LRT systems. Metropolitan areas are expanding the reach of commuter rail service. And at VIA Rail, we are working at improving inter-city rail transportation. We strive to have a positive and meaningful impact on the lives of millions of Canadians.” Marc Laliberté President and Chief Executive Officer, VIA Rail Canada 11 Infrastructure Investment and Productivity Productivity The output of the rail business only goes as far as the efficiency of its employees. Employee productivity is measured in terms of RTM (RTK) per employee, which gives a sense of how well the sector is allocating its resources. From a year ago, employee productivity increased 2.5 per cent to a record 8.5 million RTM (12.4 million RTK) per employee in 2011. While this figure suggests only a slight step forward in productivity, it is a robust long-term improvement from the 6.3 million RTM (9.2 RTK) per employee recorded in 2002. The graph below illustrates the sector’s efficiency in terms of RTM per employee over the past 10 years. REVENUE TON-MILES PER EMPLOYEE (000) 9,000 2012 8,000 7,000 12 6,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Infrastructure Investment and Productivity Overview of taxes provided by rail sector While Canada’s railways drive the economy by transferring goods across a vast integrated global supply chain, the taxes the sector pays each year are often overlooked as a form of substantial economic contribution to Canadians. The table below provides a snapshot of the taxes by category that member railways contributed in 2011. TAXES BY CATEGORY 21% Locomotive fuel & Excise tax 16% Property tax 7% Other Sales tax 17% Payroll tax 2012 39% Income tax 13 Safety C anada’s railways run an average of 1,100 passenger and freight trains every day, often over some of the world’s most rugged terrain and in some of the most inclement weather conditions. Yet, the performance of Canadian freight railways in terms of safety has steadily improved over the last decade and Canada’s passenger railways remain among the safest in the world. While rail traffic is increasing to meet customer demand, the sector continues to be committed to safety and furthering its reputation as the safest means of ground transportation in Canada. 2011 safety highlights: •• While the sector moved a record 473.3 billion gross ton-miles (BGTM), it maintained a rate of 2.41 total accidents per BGTM, the lowest rate in the last 10 years. •• Accidents at railway crossings were down 6.6 per cent yearover-year, while serious injuries fell 25 per cent over the same period. •• Trespasser accidents and fatalities dropped 17.3 and 18.2 per 2012 cent year-over-year, respectively. 14 Safety Rail accidents Canadian railways celebrated a banner year of reportable railway accident1 reduction in 2011. While the sector moved a record 473.3 billion gross ton-miles (BGTM) in 2011, it maintained a rate of 2.41 total accidents per BGTM, the lowest rate in the last 10 years. In addition, the industry recorded 1,143 total freight and passenger train accidents in 2011, the lowest total over the same period. Canada’s railways take measures to reduce technical accidents and continually enhance the safety of rail operations. Work is also being done in collaboration with Transport Canada to improve safety where the public interacts with rail activities by closing rail crossings and improving public awareness by promoting accident prevention. The data collected in order to analyze the safety performance of rail comes from the Canadian Transportation Safety Board (TSB) and the RAC. The TSB maintains a database of safety performance statistics on federally-regulated railways2 and the RAC collects similar statistics on provincially-regulated operations. •(a) (i) a person sustains a serious injury or is killed as a result of being on board or getting on or off the rolling stock, or (ii) coming into contact with any part of the rolling stock or its contents, or •(b) the rolling stock (i) is involved in a grade-crossing collision, (ii) is involved in a collision or derailment and is carrying passengers, (iii) is involved in a collision or derailment and is carrying dangerous goods, or is known to have last contained dangerous goods the residue of which has not been purged from the rolling stock, (iv) sustains damage that affects its safe operation, or (v) causes or sustains a fire or explosion, or causes damage to the railway, that poses a threat to the safety of any person, property or the environment. 2 The database is available at http://www.tsb.gc.ca/eng/rail/index.asp. 2012 1“Reportable railway accident” means an accident resulting directly from the operation of rolling stock, where: 15 Safety The graph below shows the number of rail-related accidents over the previous 10 years, along with the rate of freight train accidents per billion gross ton-miles, which points to the number of accidents as they relate to rail activity. Rail Accidents and Accident Rate 1,800 4.5 1,600 3.4 1,400 2.3 1,200 1.1 1,000 2005 2006 2012 Freight train accidents 16 2007 2008 2009 2010 Freight train accidents per billion gross ton-miles 0 Safety Operation Lifesaver One of the programs committed to preventing collisions between trains and motor vehicles, as well as trespassing incidents that lead to serious injury or death, is Operation Lifesaver,3 a joint initiative of the RAC and Transport Canada. The program aims to save lives by educating Canadians about the hazards surrounding public activity near rail property and trains. Operation Lifesaver works in tandem with the rail sector, government, police, labour unions, the media and the public to spread education and prevent tragedies. In 2011, accidents at railway crossings were down 6.6 per cent yearover-year, while serious injuries fell 25 per cent over the same period. Moreover, 2011 trespasser accidents and fatalities were also down 17.3 and 18.2 per cent, respectively, year-over-year. “Year-over-year we continue to see a decline in both crossing and trespassing incidents thanks in part to the dedication of our partners, staff and volunteers. That’s definitely a trend worth repeating.” Daniel (Dan) Di Tota, Source: Transportation Safety Board, Railway Association of Canada, 2012 2012 National Director, Operation Lifesaver 17 3 http://www.operationlifesaver.ca. Environment C anada’s legacy of profound scenic beauty is recognized around the world, and rail is part of maintaining the country’s natural splendour. In addition to moving people, goods and the economy, Canada’s railways boast a first-rate environmental record and commitment to sustainability. While the country’s rail sector often moves more than 70 per cent of all surface goods each year, it only accounts for 3.4 per cent of the transportation sector’s Greenhouse Gas Emissions (GHG) and less than 1 per cent of Canada’s overall GHGs.4 Since 1995, Canada’s freight and passenger rail sectors have participated in a Memorandum of Understanding (MOU) with the Government of Canada to voluntarily reduce GHGs and Criteria Air Contaminants (CAC). Under this initiative, the sector has committed to GHG and CAC reduction targets for freight, short line, intercity and commuter railways, and it will continue to work with governments, communities and other private sector partners to increase the sustainability of the Canadian supply chain. 2011 environmental highlights: 2012 •• The sector reduced fuel consumption by 3.1 per cent compared 18 to 2010. •• The industry’s number of freight car inventory was basically unchanged from a year before and its locomotive fleet increased by 23 locomotives. However, Canadian railways managed to lower the miles (kilometres) of road operated (road over which a railway has operating rights) by 1.8 per cent from 2010. •• Dangerous goods (DG) leaker incidents accounted for 25 per cent of all reportable incidents, the lowest share to date. 4 Source: United Nations Framework Convention on Climate Change (UNFCCC), 2010. Environment Carbon reporting The Locomotive Monitoring Emissions (LEM) data is compiled in accordance with the terms of the MOU between the RAC, Environment Canada and Transport Canada. It concerns the emissions of GHGs and CACs from locomotives operating in Canada.5 An updated MOU covering the period 2011-2015 is being developed by the RAC and TC, and will ensure Canadian railways continue to monitor their emissions and strive to become more efficient. In addition to this initiative, both Canadian National Railway and Canadian Pacific Railway participate in the Carbon independent not-for-profit organization that works with the world’s largest investors, businesses and governments to reduce GHGs and promote sustainable water use through the measurement, disclosure, management and sharing of environmental information. To date, the CDP holds the largest collection of self-reported climate change data in the world.6 5To see the RAC’s Locomotive Emissions Monitoring program, visit http://www.railcan.ca/publications/emissions. 6 Additional information is available at: www.cdproject.net. 2012 Disclosure Project (CDP) – an 19 Environment Fuel and efficiency measures The rail sector has been faced with the challenge of dealing with rising diesel fuel prices. In 2011, diesel fuel prices hit $4.25 per gallon, a record high and a 30.8 per cent jump from the previous year. To cope, Canadian railways have faced pressure to optimize fuel consumption productivity, and have answered the call. The sector reduced fuel consumption by 3.1 per cent in 2011 compared to 2010, and the graph below illustrates RTM (RTK) per gallon (litre) of fuel consumed grew 10.5 per cent during the same period and improved 25.5 per cent since 2002. This result speaks to the industry-wide efforts being made to improve efficiency while keeping pace with demand. Because of high diesel fuel prices, member railways have strived to adopt new sustainability measures and implement initiatives that will cut costs by improving fuel efficiency. These improvements include scheduling trains based on capacity to minimize congestion, better matching of horsepower to tonnage, enhancing train handling techniques and standardizing fuel-saving devices on locomotives. The most effective fuel efficiency initiative continues to be locomotive fleet renewal, the process in which older, less fuel-efficient locomotives are replaced by new and improved higher-horsepower locomotives. RTM PER GALLON OF FUEL CONSUMED (000) 2012 650 20 550 450 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Environment Locomotive fleet inventory While freight, passenger and rail commuter workloads have been increasing steadily over the last decade, the sector has made a conscious effort to improve efficiency via asset utilization. In 2011, the industry’s freight car inventory was basically unchanged from a year before and its locomotive fleet increased by 23 locomotives. However, Canadian railways managed to lower the miles (kilometres) of road operated (road over which a railway has operating rights) by 1.8 per cent from 2010. By replacing older locomotives, adding more fuel-efficient versions and reallocating resources, railways saved fuel by doing more with less. Spills performance and response data incidents – occurrences involving the unintentional release of a hazardous material while in transit. This type of incident does not involve an accident and often concern small quantities of products. In 2011, DG leaker incidents accounted for 25 per cent of all reportable incidents, the lowest share to date. Over the last five years, on average, DG leakers accounted for 33.8 per cent of incidents. Furthermore, reported DG leaker incidents totalled 51 in 2011, a 28 per cent decrease from the five-year average of 70. One of the primary functions of the RAC is to promote and continually improve the safe handling of dangerous goods. This means ensuring rail cars carrying dangerous goods meet strict standards, the consignments are properly packaged, labeled, placarded and documented, and that carriers handle the rail cars safely. 2012 The TSB collects data on spills, or “dangerous good (DG) leaker” 21 Public Perception A s Canada’s rail industry experiences a renaissance, the sector continues to garner very positive impressions among the Canadian public. Polling conducted by the RAC in 2011 found the vast majority of Canadians view freight, commuter and intercity rail options to be the safest, greenest and the best for society overall. Canadians also have a positive view of the railway sector as a source of employment in the near future. Canadians have expressed the want and need for more rail. From an economical, environmental and social standpoint, the widespread sentiment is that there needs to be more money and resources put toward the sector as a whole. Between limiting pollution and dramatically reducing congestion, Canadians agree that allocating resources to rail as a mode of transportation makes the most sense going forward. 2011 public perception highlights: •• When asked which mode of transportation should be the 2012 highest transportation priority in Canada, 56 per cent choose 22 rail, which is more than five times any other means of transportation. Cars rank a distant second at 11 per cent, followed by buses and planes at 10 per cent each. •• Two-thirds of Canadians (67 per cent) agree with the statement that “rail transportation should be the highest transportation priority in Canada.” •• A full 85 per cent of Canadians believe the government should invest to improve tracks for commuter and inter-city train travel. •• Nearly three-quarters (72 per cent) would recommend jobs in the railway sector to their friends or family members. Appendix A Rail Operations in Canada Ten-year comparison 2002 2010 2011 Revenue ton-miles (billions) 211.5 247 Revenue tonne-kilometres (billions) 308.8 Miles of road operated (1) Kilometres of road operated (1) Title Percentage change 2011 versus: 2002 2010 255.0 20.6 3.2 361 372.3 20.6 3.2 29,087 27,652 27,167 -6.6 -1.8 46,811 44,501 43,721 -6.6 -1.8 2,955 -5.6 0.0 Locomotives 3,129 Freight cars (000) Gallons of fuel (millions) 2,954 98 72 72 -26.8 -0.1 451 451 437 -3.2 -3.2 2,051 2,049 1,984 -3.3 -3.2 Employees 37,296 32,549 33,624 -9.9 3.3 Annual wage per employee ($) 64,229 79,346 83,176 29.5 4.8 Litres of fuel (millions) 1. Miles (kilometres) of road operated include road over which a railway has operating rights. Freight revenue per ton (tonne) is calculated by dividing freight revenue by total tons (tonnes) originated. Revenue per ton tonne 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 22.89 22.53 23.47 25.60 27.78 28.16 31.24 31.34 30.59 30.57 25.23 24.83 25.87 28.22 30.63 31.04 34.44 34.55 33.71 33.70 Index 2001 = 100 Consumer Price Index 102.1 100.4 104.6 114.1 123.9 125.5 139.3 139.7 136.4 136.3 102.2 105.1 107.1 109.4 111.6 114.0 116.7 117.1 119.1 122.6 2012 Freight revenue ($) per ton (tonne) 23 Appendix A Freight revenue (cents) per ton-mile (tonne-kilometre) Revenue per ton-mile tonne-kilometre 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3.44 3.32 3.37 3.64 3.87 3.84 4.20 4.00 3.99 4.04 Index 2001 = 100 2.35 2.28 2.31 2.49 2.65 2.63 2.87 2.74 2.74 2.77 105.2 101.5 103.1 111.3 118.3 117.4 128.4 122.3 122.0 123.5 Trailers (000) Containers (000) Total (000) 214 217 149 112 106 102 101 83 81 80 1,820 1,937 2,010 2,134 2,251 2,334 2,396 2,033 2,361 2,424 2,034 2,154 2,159 2,246 2,357 2,436 2,497 2,116 2,442 2,504 Freight transportation Intermodal traffic originated (2) 2012 24 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2.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)”. Appendix A Freight transportation Carload traffic 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Carloads originated (000) 3,992 4,092 4,212 4,290 4,260 4,196 3,984 3,367 3,872 4,044 Tons originated (000) Tonnes originated (000) 317,432 327,126 337,923 343,464 339,394 337,989 318,688 269,028 334,264 337,074 287,974 296,768 306,563 311,590 307,897 306,623 289,114 244,062 303,258 305,793 Tons per carload 80 80 80 80 80 81 80 80 86 83 (3) Tonnes per carload (3) 73 73 73 73 73 73 73 73 78 76 3. Tons (tonnes) per carload: Tons (tonnes) originated divided by carloads originated. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 72,194 72,873 74,284 76,400 76,451 74,100 71,712 59,576 65,157 66,082 Freight train kilometres (000) 116,185 117,278 119,548 122,953 123,035 119,253 115,409 95,877 104,859 106,348 Revenue ton-miles (millions) 211,500 221,653 235,114 241,745 243,744 247,709 237,323 210,898 247,154 255,001 Revenue tonne-kilometres (millions) 308,759 323,581 343,232 352,912 355,831 361,619 346,457 307,880 360,809 372,264 2012 Freight transportation Freight train miles (000) 25 Appendix A 2012 Freight Transportation Carloads originated by commodity grouping (4) 26 Agriculture Coal Minerals Forest Products Metals 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 364,754 345,025 412,099 416,473 453,151 454,034 430,292 474,980 462,445 466,305 342,432 327,182 337,592 353,197 321,266 349,983 324,931 277,048 327,419 348,556 601,004 627,288 639,764 657,410 600,823 609,422 574,645 368,631 703,270 790,520 403,908 430,662 442,689 433,138 388,035 317,158 253,279 182,395 205,120 228,448 Fuels & Chemicals Paper Products Food Products 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 469,514 474,342 485,197 469,655 470,833 470,876 443,125 401,141 419,905 432,657 274,219 302,994 333,061 333,830 274,092 252,150 228,072 175,693 170,823 157,780 30,391 32,652 40,587 44,169 41,454 41,822 42,365 42,232 52,240 54,948 289,619 284,718 326,020 295,022 362,000 359,982 369,475 273,800 160,895 160,827 Manufactured & Miscellaneous Intermodal 55,624 51,652 63,890 65,629 66,333 65,923 75,160 79,445 92,949 94,935 691,417 712,377 722,412 769,936 819,552 832,663 847,647 741,807 847,832 890,168 Machinery & Automotive 277,288 270,411 253,003 235,480 244,395 234,830 195,308 148,123 185,962 186,522 Total 3,800,170 3,859,303 4,056,314 4,073,939 4,041,934 3,988,843 3,784,299 3,165,295 3,628,860 3,811,666 4.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. Appendix A Freight transportation Revenue from carloads originated by commodity grouping ($ millions) (5) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 732 761 875 948 1,125 1,157 1,161 1,259 1,221 1,297 Fuels & Chemicals 777 739 771 804 836 837 902 818 853 928 416 405 513 738 676 709 706 502 598 713 Paper Products 502 518 595 642 582 541 531 423 437 427 623 645 763 811 764 819 833 525 772 898 Forest Products Metals 619 615 798 969 928 780 646 478 500 564 364 360 404 429 489 476 531 317 381 424 Food Manufactured & Products Miscellaneous Intermodal 55 58 70 74 81 81 89 94 128 146 92 96 93 112 114 116 126 113 130 133 1,679 1,760 1,885 2,152 2,377 2,452 2,702 2,273 2,592 1,893 5. Not all member companies record revenue from carloads originated by commodity grouping. Machinery & Automotive 477 460 397 414 433 445 443 337 394 381 Total 6,336 6,417 7,164 8,093 8,405 8,413 8,672 7,139 8,006 7,805 2012 Agriculture Coal Minerals 27 Appendix A Track operated, by provinces and territories (6) 2010 2011 Miles Kilometres Miles Kilometres 4,199 4,144 2,724 244 724 409 6,549 3,695 4,889 75 6,758 6,669 4,384 393 1,166 657 10,540 5,947 7,868 121 4,094 4,148 2,730 244 724 409 6,365 3,690 4,687 75 6,589 6,675 4,394 392 1,165 658 10,244 5,938 7,543 121 Total 27,652 Intercity passenger trains 7,820 Commuter and tourist trains 1,961 Segments terminating in the U.S. 152 44,501 12,585 3,155 245 27,167 7,820 2,746 152 43,721 12,585 4,419 245 Grand total 60,486 37,884 60,969 Alberta British Columbia Manitoba Nfld. & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories 37,585 2012 6.First main track only. Excludes second and other main track, passing tracks and crossovers, industrial tracks, spurs and yard tracks. 28 Appendix A Plant - track operated (7) Equipment in service Miles Kilometres 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 29,087 29,138 30,551 30,380 29,978 29,713 29,366 28,163 27,654 27,167 46,811 46,893 49,167 48,893 48,243 47,816 47,258 45,323 44,501 43,721 Index 2001 = 100 100.5 100.6 105.5 104.9 103.5 102.6 101.4 97.3 95.5 93.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Freight cars Locomotives in service in service 98,001 97,039 99,141 101,606 99,946 92,373 83,984 75,836 71,788 71,750 3,129 3,170 3,234 3,253 3,271 3,165 3,046 2,742 2,954 2,977 7.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. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total compensation ($ millions) (8) 2,392 2,412 2,387 2,548 2,535 2,566 2,633 2,439 2,584 2,797 Average number of employees Average annual wage per employee ($) 37,296 36,599 35,736 35,389 34,558 34,938 35,208 32,337 32,565 33,624 64,229 65,901 66,804 71,994 73,356 73,440 74,790 75,415 79,346 83,175 8.Compensation includes salaries and compensation paid and excludes company paid benefits such as Canada/Quebec Pension Plan, Unemployment Insurance and health taxes. 2012 Employment Employment 29 Appendix A Train statistics Average: Length of haul/Cars per train Miles (kilometres) hauled by transcontinental railways (CN and CPR) Miles Kilometres 2002 2003 2004 2005 2006 2007 2008 (9) 2009 2010 2011 795 794 787 789 803 807 818 830 850 849 Miles (kilometres) hauled by regional/short line railways 1,279 1,278 1,267 1,270 1,292 1,299 1,316 1,336 1,368 1,366 Average cars per freight train Miles Kilometres Cars 150 151 161 149 159 151 146 159 138 170 74 74 78 79 79 81 82 87 92 81 241 243 259 240 256 243 235 256 163 274 9. 2008 “Miles (kilometres) hauled by regional/short line railways” were restated. 2012 Passenger transportation Intercity passenger transportation 30 Passenger cars in service 2002 2003 2004 2005 2006 2007 2008 (10) 2009 2010 2011 473 505 465 538 537 538 540 559 545 544 10. 2008 “Passenger kilometres” were restated. Number of Passenger passengers miles kilometres (000) (millions) (millions) 4,223 4,024 4,181 4,322 4,320 4,478 4,899 4,538 4,477 4,461 992 931 894 919 906 912 986 894 877 888 1,597 1,498 1,439 1,479 1,458 1,468 1,588 1,439 1,412 1,428 Appendix A Passenger transportation Intercity passenger transportation Passenger train Passenger car miles kilometres miles kilometres (000) (000) (000) (000) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 7,406 7,252 7,214 7,415 7,381 7,330 7,414 7,334 7,331 7,273 11,919 11,671 11,611 11,933 11,879 11,796 11,932 11,803 11,799 11,705 Average intercity passengers per train 134 128 124 124 123 124 133 122 120 122 Average passenger load factor (%) 57 53 53 55 54 55 59 57 57 55 50,035 50,087 49,707 49,966 49,400 48,708 49,140 47,290 46,275 48,239 80,523 80,607 79,995 80,412 79,501 78,388 79,083 76,106 74,472 77,633 Average length of journey miles kilometres 238 226 219 217 214 209 206 203 204 204 383 364 352 349 344 336 332 327 328 328 On-time performance (%) 84 73 70 81 84 77 75 83 82 84 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 31 Appendix A Passenger transportation Rail commuter Commuter train Commuter car miles kilometres miles kilometres (000) (000) (000) (000) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 32 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 199,957 204,198 214,089 224,833 237,781 247,066 256,123 245,942 256,134 278,244 321,801 328,626 344,544 361,834 382,672 397,615 412,190 395,806 412,209 447,791 Average rail commuters per train 284 260 287 283 300 339 340 301 310 255 2,592 2,724 2,749 2,820 2,730 2,808 2,832 2,876 3,008 3,171 4,171 4,384 4,425 4,539 4,394 4,518 4,558 4,628 4,841 5,103 Rail commuters (000) in British Columbia, Ontario and Quebec 50,132 52,688 54,905 58,235 60,634 63,393 67,052 65,962 68,562 68,427 Appendix A Track & roadway 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Buildings & related machinery & equipment. Signals, communications & power Terminals & fuel stations 310 202 188 189 212 255 189 257 231 314 42 47 38 95 74 44 79 72 109 108 17 24 11 27 37 43 26 24 16 15 374 333 364 582 613 618 688 706 804 971 Work equipment Rolling Intermodal & roadway stock equipment machines 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 208 313 337 416 352 350 290 317 427 297 16 25 30 39 48 30 29 34 15 11 34 41 36 31 44 41 68 42 49 53 Other equipment Total additions 14 21 39 15 28 18 22 72 55 64 1,015 1,006 1,043 1,394 1,408 1,399 1,391 1,524 1,706 1,834 2012 Additions to property Additions to property ($ millions) 33 Appendix A Productivity Revenue ton-miles per employee 2002 2003 2004 2005 2006 2007 2008 (11) 2009 2010 2011 Revenue Revenue ton-miles per tonne-kilometres per employee (000) employee (000) 6,319 6,764 7,352 7,679 7,963 8,045 7,625 7,404 8,287 8,496 2012 11. 2008 Productivity statistics were restated. 34 9,225 9,874 10,733 11,210 11,625 11,745 11,132 10,809 12,098 12,402 Road miles per employee Road kilometres per employee 0.87 0.89 0.93 0.96 0.98 0.96 0.94 0.98 0.96 0.90 1.40 1.43 1.50 1.54 1.58 1.54 1.51 1.58 1.54 1.46 Appendix B Financial Highlights Operating Income Operating revenue ($millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Freight Passenger 7,266 7,369 7,931 8,794 9,430 9,516 9,957 8,433 9,551 10,305 389 364 386 576 622 624 661 627 673 667 (12) Other 487 484 506 570 561 564 579 539 544 560 Total 8,142 8,217 8,823 9,940 10,613 10,704 11,197 9,599 10,768 11,532 12.Federal, provincial and municipal funding of $435 million in 2009 for Intercity passenger and commuter services is excluded. Income 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1,428 1,484 1,704 2,164 2,402 2,209 2,030 1,247 1,598 1,763 2012 Operating income ($millions) 35 Appendix B Operating expenses Operating expenses ($millions) (13) Maintenance (14) Transportation Fuel of equipment 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 36 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2,037 2,086 2,180 2,241 2,224 2,337 2,376 2,065 2,195 2,381 734 781 862 1,159 1,367 1,513 2,032 1,212 1,464 1,854 1,300 1,280 1,290 1,382 1,575 1,634 1,564 1,555 1,452 1,570 Maintenance-of-way and structures General and administrative Total operating expense 1,374 1,421 1,421 1,493 1,408 1,549 1,718 1,612 1,766 1,910 1,269 1,165 1,366 1,501 1,637 1,462 1,477 1,908 2,294 2,054 6,714 6,733 7,119 7,776 8,211 8,495 9,167 8,352 9,171 9,769 13. Charges for restructuring, relocation and write-down of assets are excluded. 14.CN restated 2006 Maintenance of equipment and Maintenance-of-way and structures expenses. The net impact on 2006 Total operating expense was nil. Appendix B Taxes by category ($millions) Total 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Locomotive fuel & Property excise tax tax 654 742 698 716 1,084 989 930 853 787 958 168 173 174 180 188 188 187 177 195 204 Other sales tax 143 139 141 155 155 154 152 152 150 153 118 101 90 98 102 97 99 97 96 70 Capital tax & customs Income duties tax 42 64 25 31 21 15 14 14 14 0 27 110 118 101 471 381 323 265 185 372 Payroll taxes 156 155 150 151 147 154 155 148 147 158 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Canada/Quebec Pension Plan Unemployment Insurance Health Taxes Total 68 73 71 72 72 75 77 74 73 77 45 42 37 36 32 33 33 30 31 34 43 40 42 43 43 46 45 44 43 47 156 155 150 151 147 154 155 148 147 158 2012 Payroll taxes ($millions) 37 Appendix B Taxes by jurisdiction ($ 000) Alberta British Columbia Manitoba Nfld. & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories Federal Total Locomotive fuel & excise tax 2010 2011 4,535 38,949 9,765 0 1,559 17 24,127 4,852 35,158 0 76,436 4,482 44,265 9,877 0 1,283 17 25,413 4,807 36,875 0 77,296 2012 1.5 10.7 6.3 16.5 4.3 15.4 4.5 17.2 15.0 11.4 4.0 Property tax 2010 2011 12,616 39,520 13,505 53 1,660 2,760 34,784 31,012 14,040 75 0 195,397 204,314 Other sales tax 2010 2011 38 Fuel tax per litre (cents) 2011 13,071 38,437 13,773 55 1,737 2,771 36,930 31,141 14,917 73 0 150,025 152,905 Capital tax & customs duties 2010 2011 Income tax 2010 2011 Alberta British Columbia Manitoba Nfld. & Labrador New Brunswick Nova Scotia Ontario Quebec Saskatchewan Northwest Territories Federal 44 11,507 11,810 0 0 0 17,084 12,892 7,672 0 35,218 43 403 12,378 0 0 0 1,550 13,080 7,598 0 35,311 0 2 2,486 0 0 200 7,747 2,900 0 0 270 124 0 169 0 0 171 -130 81 -386 0 42 11,586 22,325 229 0 0 597 0 0 1,617 1,620 290 381 44,763 38,840 6,412 13,814 36 -31 0 0 119,732 294,341 Total 96,227 70,363 13,605 71 184,665 371,887 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 tonne-kilometres): 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 On-time performance: The ability to meet customer requirements as to pick-up and delivery schedules. Reload centre: A transfer facility enabling the railway to expand market share through truck-to-rail service. Revenue ton-miles (Revenue tonne-kilometres): The sum of tonmiles 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. 2012 usually involves truck and rail. 39 Glossary 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 2012 LIST OF ACRONYMS 40 BGTM Billion gross ton-miles CAC Criteria Air Contaminants CDP Carbon Disclosure Project DG Dangerous Goods GHG Greenhouse Gas Emissions LEM Locomotive Emissions Monitoring MOU Memorandum of Understanding RAC Railway Association of Canada RTK Revenue ton-kilometres RTM Revenue ton-miles TSB Transportation Safety Board