6 RAIL TRANSPORTATION
FREIGHT TRANSPORTATION
The overall output of railways operating in Canada increased between
1998 and 2001. From 2001 to 2002, however, it decreased slightly, due
to the combination of CN's 2.0 per cent increase to 171.5 billion tonne-kilometres
and CPR's 3.3 per cent decline to 120.7 billion tonne-kilometres. Class
II carriers reported a combined output of 29.7 billion tonne-kilometres
in 2002, a decrease of almost 2.5 per cent from 2001 and 10 per cent
since 2000. This decrease was largely due to a decline in iron ore traffic.
Since 1996, movements of traffic forwarded to CN and CPR from Canadian
Class II carriers have increased. From 2000 to 2001, however, such movements
decreased slightly from 18.9 to 18.5 million tonnes, mainly due to a
drop in coal traffic from BC Rail. In 2002, this traffic rebounded up
to 19.5 million tonnes. Rail movements in which Canadian Class II carriers
received traffic from CN and CPR dropped for the second year in a row,
to slightly more than eight million tonnes in 2002. Traffic originating
on a Canadian Class II carrier and then forwarded to CN or CPR and subsequently
forwarded to another Canadian Class II carrier to be terminated totalled
0.35 million tonnes in 2002. This was a 27 per cent decrease from 2001.
The latter traffic, because it involves a bridge movement over CN or
CPR, has both a forwarded and received component and would be double-counted
if it was included in either forwarded or received traffic. Addendum
Table A6-7 shows the trend of forwarded and received rail traffic since
1996, while Addendum Table A6-8 shows tonnage originating by railway
sector since 1990.
Based on data for three quarters of 2003, CN output is expected to decrease
slightly to 157 billion tonnekilometres while CPR output is expected
to increase to 126 billion tonne-kilometres.
RAIL FREIGHT TRAFFIC - COMMODITIES
Annual rail loadings for 2003 decreased slightly to 259.8 million tonnes
(not including receipts from U.S. connections). See Addendum Table A6-9
for details. Volumes in Western Canada dropped two per cent to 137.5
million tonnes, while volumes in Eastern Canada increased one per cent
to 122.3 million tonnes. Principal commodities loaded in Western Canada
included coal, fertilizer materials, forest products and grain; dominant
loadings in Eastern Canada were iron ore, other ores and mine products,
forest products and intermodal shipments.
GRAIN
Grain shipments decreased in 1998 and 1999 to as low as 26.5 million
tonnes and then rose to just over 30 million tonnes in 2000 and 2001.
In 2002, grain shipments fell again, dropping by 28 per cent to 22 million
tonnes before increasing only slightly in 2003 to 22.8 million tonnes.
Shipments dropped three per cent in the West but almost doubled in the
East.
COAL AND COKE
Coal and coke shipments increased significantly in 1999 but dropped
11 per cent in 2002 to just below 37 million tonnes and 14 per cent in
2003 to 31.7 million. This is the lowest volume ever reported for this
commodity group.
FOREST PRODUCTS
Following a decline to just above 16 million tonnes in 1998, volumes
of non-processed forest products remained steady until 2002, when shipments
increased to 19 million tonnes. In 2003, however, this commodity dropped
slightly to 17.5 million tonnes. The volume of processed forest products,
in contrast, has increased each year, reaching 25 million tonnes in both
2002 and 2003. The net result has been a relatively stable volume of
forest products, hovering around 40 million tonnes until 2002, when loadings
reached 45 million tonnes. In 2003, total forest product loadings decreased
four per cent to 42.6 million tonnes.
ORES AND MINE PRODUCTS
In 2001, shipments of iron ore dropped to just below 29 million tonnes.
Since then, this commodity has been increasing only slightly, reaching
33 million tonnes in 2003. Other ores and mine products decreased nine
per cent to 23.2 million tonnes in 2003, after four consecutive years
of growth.
FERTILIZER MATERIALS
After a drop in shipments of fertilizer materials in 2001, they rose
almost seven per cent in 2002 and then six per cent in 2003 to reach
27.6 million tonnes, close to the highest reported value in the last
12 years.
INDUSTRIAL PRODUCTS
Chemicals, the largest commodity of this group, decreased four per cent
to 14.4 million tonnes in 2003. After a 10 per cent increase in 2002,
metals remained steady near 10.6 million tonnes. Loadings of automobiles
and parts reached a high of 5.3 million tonnes in 2003 (a two per cent
increase), as did petroleum products, at 14.4 million tonnes (a five
per cent increase).
INTERMODAL
Addendum Figure A6-1 shows trends in intermodal traffic over the last
several years. Between 1996 and 2002, CN and CPR intermodal tonnage grew
by 9.2 million tonnes, an average annual growth rate of 7.1 per cent.
North American intermodal traffic was very robust, as growth exceeded
eight per cent per year over the same period (except for 1998). As Addendum
Figure A6-2 shows, volumes of Canadian origin-destination increased at
an even higher average annual growth rate of almost 10 per cent over
this period. There was a significant difference in growth between rail
intermodal exports and imports to/from offshore regions: exports increased
by an annual average of 2.3 per cent, while imports grew by 9.3 per cent
per year.
Growth in total rail intermodal volumes was significant between 2001
and 2002 (10 per cent) after only a small growth the year before. Volumes
of North American traffic remained strong, increasing by nine per cent
and accounting for 44 per cent of total rail intermodal volumes (see
Addendum Figure A6-3). Volumes of Canadian origin-destination increased
by 8.5 per cent during the year, making up 37 per cent of total market
share.
As Addendum Figure A6-4 shows, containers on flat cars (COFC) continued
to increase their market share, accounting for more than 92 per cent
of total intermodal volumes in 2002. This is up considerably from 1996,
when COFC only accounted for 77 per cent of total intermodal traffic.
This increase came at the expense of trailer on flat car (TOFC) volumes,
which decreased proportionately.
RAIL FREIGHT TRAFFIC BETWEEN CANADA AND THE UNITED STATES
Addendum Table A6-10 shows rail export and import volumes by commodity
since 1996. In 2003, export rail tonnage increased 6.2 per cent to 70.8
million tonnes. Forest products remained the largest contributor to export
tonnage, increasing slightly to 25.9 million tonnes. Other major export
commodities included chemicals and fertilizer materials, which accounted
for 18.8 million tonnes, or 27 per cent of total export tonnage in 2003.
Although exports of iron ore decreased in 2003 from 0.4 to 0.3 million
tonnes, movements of this commodity by rail remained well above the norm.
Grain and coal each experienced a decline (21 and 24 per cent, respectively),
while mine products (other than iron ore) increased almost 32 per cent.
Addendum Table A6-11 shows rail export and import values by commodity
since 1996. Automotive has consistently been the largest contributor
to the value of exports, accounting for 53 per cent in 2003, followed
by forest products at 20 per cent. Automotive exports decreased 6.7 per
cent, while forest products increased 4.7 per cent, resulting in an overall
decrease in the value of exports to $72.6 billion.
Ontario remained the largest contributor to the volume and value of
rail exports in 2003, originating 19.7 million tonnes (28 per cent of
total volume) and $48.8 billion (67 per cent of total value).
British Columbia and Saskatchewan were other major contributors of export
volume, originating a combined 24 million tonnes, or 34 per cent of total
exports. Quebec and British Columbia followed Ontario with a combined
$13.4 billion, 18.5 per cent of total export value. See Addendum tables
A6-12 and A6-13 for export volumes and values by province of origin.
Although import rail tonnage increased at a higher rate than exports
since 1996, it dropped in 2002 to 19.1 million tonnes before increasing
again in 2003 to 20.5 million tonnes. Major commodities included chemicals,
agricultural and food, grains and metals. In combination, these commodities
accounted for 59 per cent of total import volume.
Automotive imports dropped 16 per cent, declining for the first time
in eight years to just over one million tonnes. This correlated to a
13 per cent drop by import value to $12.6 billion. Automotive, however,
still remained the top commodity, accounting for 51 per cent of import
value.
As Addendum Table A6-14 shows, Ontario received 10.9 million tonnes
in 2003, 53 per cent of imports by volume. An overall increase of import
volume cleared in Alberta since 1996 places it ahead of British Columbia.
Combined, Alberta and Quebec cleared 6.5 million tonnes of imports in
2003. In terms of value, Ontario was also the dominant province of clearance,
with $17.2 billion, a 9.2 per cent decrease from 2002 (see Addendum Table
A6-15).
Addendum tables A6-16 to A6-19 provide more details on exports and imports.
These tables show major commodities originating from and cleared in the
provinces mentioned above.
BORDER CROSSING POINTS
As Addendum Table A6-20 shows, Fort Frances and Sarnia, both in Ontario,
were the dominant border crossing points for rail exports by volume in
2003, accounting for 19.4 per cent (13.8 million tonnes) and 16.6 per
cent (11.7 million tonnes) of exports, respectively. Forest products,
fertilizer materials and chemicals were the major commodities exported
at these border points.
As Addendum Table A6-21 shows, Sarnia and Windsor were the dominant
border crossing points for exports by value in 2003, accounting for 36.7
per cent ($26.8 billion) and 22.1 per cent ($16.0 billion), respectively.
Automotive products were the top commodity exported at these locations,
followed by metals and forest products.
Sarnia was also the leading border crossing point for import tonnage,
handling 4.2 million tonnes, or 20 per cent of total rail import volume
in 2003 (see Addendum Table A6-22). The major commodities imported at
Sarnia were agricultural and food products (other than grains) and chemicals.
Other major locations as ports of clearance included Toronto, Sault Ste.
Marie, Edmonton and Montreal. A decline in rail traffic through Huntingdon,
B.C., resulted in a drop of import tonnage cleared by this port in 2002
and 2003.
The value of imports cleared in Windsor declined for the second year
in a row (by 30 per cent from 2002 to 2003), making Toronto the top port
of clearance by value, at $4.6 billion. Valuable commodities cleared
in Toronto included automotive and chemicals. Addendum Table A6-23 shows
rail imports by value and port of clearance.
OVERSEAS TRADE
Class I railways carried 82 million tonnes of goods to and from Canadian
ports in 2002, an 11 per cent decrease from 2001. Traffic in transit
to and from the United States increased by 13 per cent in 2002 to 4.3
million tonnes. Addendum Table A6-24 shows the fluctuation of rail-marine
exports and imports since 1996.
Although rail-marine exports originating from British Columbia, Alberta
and Saskatchewan declined in 2002, these provinces continued to be the
major contributors, with a combined 59.5 million tonnes. Addendum Table
A6-25 shows rail-marine exports since 1996 for all provinces of origin
and the United States.
Coal traffic fell to 28 million tonnes in 2002, an 11 per cent decrease,
and rail-marine exports of grain fell to 15.4 million tonnes, an almost
34 per cent decrease. Fertilizer materials, however, another major rail-marine
export, rose to 9.6 million tonnes in 2002, a 14 per cent increase. Addendum
Table A6-26 shows rail-marine exports by commodity since 1996.
Rail-marine imports of Class I carriers increased slightly in 2002 to
8.8 million tonnes, of which 89 per cent consisted of intermodal traffic.
Ontario and Quebec remained the top two destination provinces for rail-marine
imports in 2002, totalling 5.2 million tonnes (59 per cent of the total).
This was a slight increase from 2001. Rail-marine imports destined for
the United States also increased, to 2.7 million tonnes. The volume of
goods destined for Alberta continued to drop, down 5.7 per cent to 0.45
million tonnes in 2002. Addendum Table A6-27 shows rail-marine imports
since 1996 for all destination provinces and the United States.
At 0.4 million tonnes in 2002 (a 35 per cent decrease), ores and mine
products were the second largest commodity for rail-marine imports. This
was still, however, well below intermodal traffic levels. Table A6-28
shows rail-marine imports by commodity since 1996.
Major Events in 2003
Infrastructure
Industry Structure
Employment
Energy
Freight Transportation
Passenger Traffic
Price, Productivity and Financial Performance
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