Canada’s Shortline Network
Shortline railways play a critical role in Canadian supply chains, linking local economies to broader markets. They provide an efficient and sustainable way to move goods across the country and beyond.
Facts
One in five freight carloads originate on a shortline in Canada. That represents over 1 million carloads.
$49.2 billion worth of goods transported every year by shortlines on behalf of their customers.
8,771 km of track owned or operated by shortlines.
Shortline locomotives can move 1 tonne of freight approximately 200km with just a single litre of fuel.
Shortlines Bring Canada’s Critical Resources to Market
Ontario Shortline Railway Tax Credit: Delivering for the Future Economy
Shortline railways are vital links in Ontario’s transportation network and key to the province’s future growth. Ontario’s 13 shortline railroads provide crucial ‘first mile, last mile’ connections, linking local producers to global markets, supplying Ontario industries with critical inputs, and transporting $7 billion (CAD) worth of goods annually.
Investment in Ontario’s existing shortline network is crucial so that the full potential of the Province’s Ring of Fire and other ancillary development opportunities can be realized.
~2,000 track miles
Directly employing 1,100 people
More than 85,000 carloads originating in Ontario
Recommendations
Create a permanent Railway Track Maintenance Tax Credit (comparable to U.S. Section 45G).
Shortline Railways in Canada need a predictable government support mechanism to support local businesses, jobs, communities, and remain a viable alternative to trucking. Strengthened shortline infrastructure would contribute to regional economic development, improve supply chain fluidity, lower costs for businesses, and enhance safety while lowering emissions and reducing the strain on public infrastructure.
* The U.S. tax credit became effective on January 1, 2005. Since then, it has spurred over $5 billion USD in shortline infrastructure investment.
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