7 ROAD TRANSPORTATION
PRICE, PRODUCTIVITY, FINANCIAL PERFORMANCE
TRUCKING INDUSTRY14
In 2003, the revenues of trucking firms rose by 6.7 per cent to reach $21 billion, just below the annual average of 6.9 per cent from 1998 to 2003. Trucking rates increased on average by 2.9 per cent and output grew by an estimated 3.1 per cent, compared with a 4.3 per cent annual increase over the 1998 – 2003 period. Both domestic and transborder traffic rebounded from their 2002 decreases, jumping 0.8 and 4.5 per cent, respectively.
Total factor productivity in the trucking industry fell by 0.9 per cent in 2003. This second consecutive decrease in productivity has reduced annual productivity gains to less than one per cent over the 1998 – 2003 period. Unit costs rose by four per cent in 2003, higher than the 2.4 per cent average annual increase since 1998.
In 2003, the average industry operating ratio reached 94.9 per cent, slightly higher than the average ratio of 94.4 for the 1998 – 2002 period.
URBAN TRANSIT SYSTEMS
Autonomous revenues (excluding subsidies) of urban transit carriers rose by 6.2 per cent in 2004. Quebec carriers registered the strongest growth, at 8.5 per cent, despite a 1.2 per cent decline in passengers carried. The increase was achieved through a 10 per cent increase in average fares and a 1.7 per cent rise in non-passenger output. Overall, total transit output in Canada increased by 2.7 per cent while prices rose by 3.4 per cent.
Transit systems continue to be among the most labour-and capital-intensive of all transport industries, with these two factors of production representing 51 and 25 per cent, respectively, of total costs.
In 2004, total factor productivity of transit systems decreased by 0.9 per cent. Capital productivity rose by 0.2 per cent while labour productivity declined by 0.1 per cent. Energy efficiency declined by 4.3 per cent while the productivity of other variable factors of production fell by 3.9 per cent.
Transit costs per unit of output rose by 2.2 per cent in 2004. Since 1998, total unit cost has increased by 19.4 per cent, an annual average of 3.0 per cent.
The total cost of transit systems was estimated at $5.3 billion in 2004. Cost recovery was measured at 46.4 per cent, slightly above the level of the previous three years. Annual operating subsidies rose to $1.9 billion, five per cent above the 2003 figures and 16 per cent above the 2001/02 average. Capital subsidies reached $874 million, $20 million less than the previous year.
Cost recovery ratios for 2004 were 49.7 per cent in Ontario, 44.6 per cent in Quebec, 42.9 per cent in British Columbia and 36.5 per cent in Alberta. Urban transit operations in the rest of Canada, which account for only five per cent of overall transit revenues, consistently show a higher cost recovery ratio. This ratio has been hovering around 50 per cent since 1996 and was at 50.6 per cent in 2004. Table 7-18 provides details on the performance of transit systems for selected regions in 2004.
TABLE 7-18: SELECTED PROVINCIAL SYSTEMS INDICATORS FOR URBAN TRANSIT, 2004
|
Quebec |
Ontario |
Alberta |
British Columbia |
Canada |
| Price levels (Canada = 100) |
78.1 |
118.3 |
80.5 |
107.1 |
100.0 |
| Total unit cost (Canada = 100) |
81.2 |
110.4 |
102.4 |
115.9 |
100.0 |
| Cost recovery (in %) |
44.6 |
49.7 |
36.5 |
42.9 |
46.4 |
| Revenue shortfall per passenger ($) |
1.46 |
1.86 |
2.16 |
2.11 |
1.77 |
Source: Transport Canada, based on Statistics Canada and CUTA information
14 This section is the same as the one found in the report of last year. More recent data to update the section was not available. Return
Major Events
Infrastructure
Industry Structure
Passenger Transportation
Freight Transportation
Trucking Freight Transportation
Price, Productivity, Financial Performance
