Don’t drive jobs and investments to the U.S. with extended interswitching.
The federal government resurrected this failed policy in Budget 2023 without:
- Any evidence of a problem requiring intervention
- Regard for impacts to supply chains, Canadian jobs, and investment
This policy risks driving unionized jobs and investment to the U.S. and driving up costs for all Canadians. Some large shippers are bending the rules to save themselves a dollar at the expense of Canadian jobs and investment. It’s time to put Canada’s public interest over self-interest and repeal extended interswitching.
The Facts About Extended Interswitching:
Puts Canadian
railways at a competitive disadvantage vis-à-vis Amercian ones.
Risks adding, on average, 1-2 days of transit time.
Risks making shipping less efficient.
Risks raising transportation costs.
Won’t help farmers, consumers, or workers as it risks slowing down supply chains.
Risks increasing GHG emissions.
Setting the Record Straight
The more traffic that is diverted to U.S. railways under extended interswitching, the fewer train starts are needed on Canadian rail networks operated by unionized Canadian employees.
When we consider that, between the two Canadian Class 1 railways (CPKC and CN), there are periods of the year when dozens of grain trains move daily from the prairies to western ports, we can begin to understand the preoccupying risks presented by this policy.
The Benefits of Rail
Canadian railways are the safest in North America.
Canadian railways offer the lowest rail freight rates on
average among major market
economies.
Rail is the greenest mode of ground transportation. One
train can take 300 trucks off the road, dramatically lowering GHG emissions.
Canadian railways reliably move $380B worth of
goods per year and half of
Canada’s exports.
Rail dwell times remain consistently low while delays
in other modes have increased.