|
  
10
TRANSPORTATION INFRASTRUCTURE
Rail Transportation Infrastructure
As shown in Table 10-1, the Canadian rail network changed relatively
little in aggregate with a reduction of 0.1 per cent
in terms of route-kilometres in 2000. Despite this relatively
small amount of change in terms of the entire system, ownership
again underwent considerable change, with both CN and CPR experiencing
reductions in the size of their networks. Most of this rationalization
activity on the part of CN and CPR, however, was accomplished
by the transfer of operations and track to other rail carriers,
thus continuing recent trends in the distribution of track ownership
and the nature of rail operations.
CN and CPR now account for less than two-thirds of the Canadian
rail network,Note
1 while regional and shortline railways now account
for almost a third of the entire network.
Figure 10-1 shows the result of rail restructuring on route-kilometres
between 1990 and 2000.
Rationalization
Railway rationalization, a term that describes the ways that
a railway can deal with track that is no longer economically attractive,
encompasses both the discontinuance of operations and the transfer
of operations to other rail operators. The driving force behind
rationalization has been the need to reduce a railway's costs
and the costs of the services offered. Transfers of lines to other
carriers have several advantages: the lines remain in operation,
shippers often receive improved service, and the traffic continues
to flow to the Class I carrier, thus continuing to generate revenues.
Figure 10-2 illustrates the CN and CPR rationalization activity
that occurred in the rail network in 2000.
Lines transferred to other, smaller rail operators are known
as shortline railways. On several occasions, CN and CPR have formed
what are known as "internal shortlines," that share
many of the characteristics of lines transferred to other operators.
While the objectives are the same as with transfers to other operators,
internal shortlines usually involve special agreements with labour
to facilitate their development.
Railways must provide notice of their intentions by filing
plans for their proposed network rationalization for the forthcoming
three-year period. In addition, a process provided for under the
Act requires that lines proposed for discontinuance be offered
for sale to other potential operators or, failing any expression
of interest, to other levels of government. Only after all such
avenues have been exhausted, are lines permitted to discontinue
service.
Of the roughly 1,100 kilometres of line rationalized in 2000,
79 per cent was transferred to other operators. The balance,
approximately 225 kilometres of line, was discontinued in 2000,
representing a continuation of the declining annual trend in discontinuances
that has prevailed since 1996. In a reversal of past patterns,
CPR showed a greater amount of rationalization activity than CN
during 2000. CN, however, had about 90 per cent of the discontinuances
during the year, while CPR had about 70 per cent of
the transfers.
Table 10-3 shows rationalization activity by province, in 2000.
Regionally, about 70 per cent of discontinuances occurred in
Alberta, while about 63 per cent of line transfers to other operators
occurred in Saskatchewan. Over 85 per cent of rationalization
activity during 2000 occurred in western Canada. About 75 kilometres
(almost 50 per cent) of the discontinued lines in Alberta during
2000 had previously been transferred to RaiLink Mackenzie Northern
(RailAmerica) and Alberta RailNet Inc. in 1998 and 1999, respectively.
Unfortunately, the discontinued lines had insufficient traffic
to be economically viable. Another track segment in northern Alberta
was transferred by RaiLink Lakeland & Waterways (RailAmerica)
to Athabasca Northern Railway. This line had been transferred
from CN two years ago.Note 2
In another development, several lines in the eastern townships
of Quebec were purchased by Express Marco from CPR - six years
after they had been discontinued. Data for prior years were not
adjusted in this case and the trackage involved (425 kilometres)
was not included in Table 10-3, although it was reflected in Table
10-2 under CPR discontinuances in Quebec since the discontinuances
involved occurred during the 1990's. Figure 10-2 illustrates the
distribution of rationalization activity during 2000, as well
as the names of the new carriers to which the track was transferred.
As shown in Table 10-2, since 1990, about 18,800 kilometres
of track have been either transferred or discontinued by CN and
CPR. About 11,500 kilometres, or 55 per cent of the trackage was
transferred to other carriers and the balance discontinued. CN
accounted for about 70 per cent of the transfers during this period,
while discontinuances were more or less evenly distributed between
the two carriers. Ontario experienced the greatest amount of rail
line discontinuance (22 per cent) since 1990, followed by Saskatchewan
(20 per cent). Over 22 per cent of the track transferred since
1990 occurred in Alberta, with approximately 17 per cent each
in Manitoba, Ontario and Quebec.
Three-Year Plans
Canadian railways falling under federal government jurisdiction
must file plans of their rationalization intentions for the forthcoming
three-year period. These plans are usually updated on a frequent
basis. The most current CN and CPR plans are dated November 20,
2000, and September 26, 2000, respectively.
As shown in Table 10-4, CN and CPR propose to discontinue approximately
920 kilometres of track in the balance of their current three-year
plans. About 25 per cent of proposed discontinuances
are in Alberta and Saskatchewan, while 40 per cent are in Ontario.
Approximately 940 kilometres of track are proposed for transfer,
with about 43 per cent slated to occur in Saskatchewan and 40
per cent in Ontario.
Since provincially regulated railways are not required to file
similar rationalization plans, little is known of the intentions
of these carriers, although past practices would suggest that
very little of the system owned or operated by provincially regulated
carriers will be discontinued.
Rail Transportation Infrastructure
- Appendix 10-1 Airports Capital
Assistance Program - Projects Approved in 2000
NOTES:
1
In terms of route-kilometres.
2
Data for prior years were revised to avoid double-counting.
|
