6 RAIL TRANSPORTATION

MAJOR EVENTS IN 2003

Due to a grain harvest significantly below historical levels in 2002, Canadian railways saw movements of grain drop by about 24 per cent from 2001. Grain movements increased only slightly in 2003.

Overall traffic levels declined by about one per cent. Rationalization activity and changes in industry structure were again minimal.

Canadian National (CN) was successful in its bid to acquire BC Rail.

Major Events in 2003

Infrastructure

Industry Structure

Employment

Energy

Freight Transportation

Passenger Traffic

Price, Productivity and Financial Performance