6 RAIL TRANSPORTATION

ENERGY

From 1990 to 2004, Class I carriers, including VIA Rail, significantly increased their fuel efficiency. This is explained by comparing fuel consumption and output. As Addendum Table A6-5 shows, fuel consumption by Class I railways, while still accounting for 92 per cent of total sector fuel consumption in 2004, is comparable to that of 1990. However, as Addendum Table A6-6 shows, output in terms of revenue tonne-kilometres (RTKms) increased by almost 40 per cent over the same period, from about 225 billion to 314 billion RTKms.

These efficiency gains are largely because CN and CPR made important investments in new locomotive replacement programs in the latter half of the 1990s. They also changed operating practices and reduced operations over low-density lines, which for the most part were transferred to other operators. Table 6-5 compares output in the railway sector in 2003 and 2004.

TABLE 6-5: RAILWAY OUTPUT IN MILLIONS OF REVENUE TONNE-KILOMETRES, 2003 AND 2004
	2003	2004
Class 1	293,870.6	313,654.4
Regional ¹	16,670.7	15,890.0
Shortline ¹	7,338.4	7,889.4
Total	317,879.7	337,433.8

Estimated for several carriers.

Source: Transport Canada, Statistics Canada

Table 6-6 compares fuel consumption in the railway sector in 2003 and 2004.

TABLE 6-6: RAILWAY FUEL CONSUMPTION, 2003 AND 2004
(Millions of litres)
	2003	2004
Class 1	1,801.5	1,895.1
Regional ¹	117.8	103.7
Shortline ¹	91.1	100.5
Total	2,010.5	2,099.3

Estimated for several carriers.

Source: Transport Canada, Statistics Canada

Until recent years, both fuel consumption and output of regional railways was relatively stable. Regional railways have surpassed Class I railways in fuel efficiency until recently, but this has been due largely to the extraordinary fuel efficiency of Quebec North Shore& Labrador Railway. Due to the nature of its operations, specifically the ability to run longer trains over a declining slope, the QNS&L has enjoyed fuel efficiencies almost double the industry norm.

Freight Transportation

Passenger Traffic

Price, Productivity and Financial Performance