Teamsters Canada Rail Conference

The Railway Association of Canada - It should be no surprise to see Canada's railways back on the public agenda. Momentous change in the world economy over the last number of years has produced a transformation for the sector not seen since the Second World War. Increased global trade has propelled growth. Increased environmental concern has highlighted the virtues of rail as the greenest of transportation modes. And now a global economic crisis and the need for economic stimulus have many talking about major transportation infrastructure investments that include rail.

Canada's railways are a vital enabler of economic activity in Canada and play a major role in communities across Canada. Our national freight railways, commonly viewed as among the most efficient in the world, carry 75 per cent of Canada's surface bound goods while more and more businesses choose rail as their preferred mode of transportation.  Passenger rail is now experiencing unprecedented double digit growth rates, moving more than 68 million passengers annually as more and more people choose to avoid congested highways. Further, Canada is fortunate to have a well established, world class railway supply industry employing many Canadians in large and small communities throughout the country.

Much of the recent public discourse on rail investment has been focused on high speed passenger rail - a highly ambitious goal that must be pursued.  Receiving less attention is desperately needed short term investment in identified rail infrastructure projects that will provide immediate stimulus to the economy, create jobs for Canadians, support railway parts manufacturing, and ensure a platform for future economic growth.  There are many rail infrastructure projects across the country that are ready to move now which will help our economy rebound from the current crisis.

The freight railways have identified a number of infrastructure projects, including road/rail grade separations primarily located in Ontario and Québec that require funding partnerships with the federal and provincial governments.  Grade separations significantly improve the safety and fluidity of the road network, resulting in meaningful public benefits. Further, a well defined proposal is on the table to support the upgrading of infrastructure for Ontario's Short Lines, those smaller railways that service the province's industrial and manufacturing heartland including mining, agriculture and forestry.

Rail supplier investment would also help offset some declines in the automotive sector, given that skills in the two industries are readily transferable and located within the same manufacturing clusters throughout Canada. This is the time to make these crucial investments to create jobs and promote economic development. Most importantly, with the need for immediate economic stimulus, work can begin right away, benefiting domestic suppliers and employing Canadians.

The growth of passenger rail in Canada has been nothing short of spectacular; and with growth comes demand for increased capacity.  Capacity can be met in two ways: by putting more locomotives and passenger cars on the track, and increasing the track capacity itself.  Canadian-based manufacturers have the ability to supply the required rolling stock and track components for passenger rail-service providers. Unlike most other industrialized nations which give preference to domestic suppliers for their public investment, no such provision exists in Canada. This is an area that the federal government must address to ensure that public funds are used to stimulate the domestic economy and our Canadian manufacturers first.

Each and every one of us in the rail industry want to see the day when high speed rail service becomes a reality in Canada. However, high speed rail should not overshadow the immediate infrastructure needs of Canada's railways and the benefits such infrastructure work will provide to individual Canadians, domestic suppliers and manufacturers and the overall Canadian economy. The rail industry is well positioned to partner with governments, to put shovels in the ground immediately and assist in moving the economy in the right direction.