Message from the President – October 2024

As a trading nation, Canada’s reputation and economic well-being rely on the efficiency of its supply chains. As we look to the future, smart investments in rail will ensure that Canada is a reliable trade partner, fostering economic prosperity for generations to come.

We saw signs this week that the Ontario government, for one, recognizes the role rail plays in that economic prosperity. Ontario’s fall economic statement included language recognizing the need to strengthen shortline rail systems in the province so critical minerals, for instance, can get out of the ground and to market across Canada, and around the world. Ontario’s natural resources are feeding the manufacturing of cell phones, computer chips, cars and much more; supporting railways with a dedicated maintenance tax credit will have a 10:1 return on investment and help ensure those resources are transported safely . We will work with the Ford government to ‘get it done’ before the next provincial budget.

Just as government can help, it can also hinder. We continue to make the case to the federal government that the current extended interswitching pilot in Western Canada, needs to sunset as planned in March 2025. This pilot puts Canada at a major disadvantage to counterparts in the U.S., where it becomes an uneven playing field. The more carloads that are diverted from Canada to the U.S., the less work there is for unionized Canadian railroaders. Extended interswitching cuts out Canada. We continue to advocate to keep Canadian jobs in Canada, and to keep Canadian railways high-performing and competitive.

The benefits of North America’s economic integration, done well, can be found in this month’s profile of Universal Rail Systems, a RAC associate member. Recently, integrated into the North American Rail Solutions (NARS) Group of Companies, the new entity promises expanded reach for its maintenance and construction services, and even greater innovation. Read on for more details.

Railways continue to play a vital and record-breaking role in moving agriculture products like grain. In fact, railways set a new record for the hauls transported in September. (Details in this month’s newsletter)

The challenges and opportunities facing our railways will be the focus of RailCAN24, in Ottawa, Nov. 26th. Minister Anand and key industry leaders will be in attendance. We hope you will be there, too. You can register to attend here.