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					Moving Forward
A Guide on the Importance of Transportation in Canada
                    Acknowledgements
Port of Vancouver
                       Moving Forward, a Guide on the Importance of
                       Transportation in Canada, was jointly produced
                       by WESTAC and The Van Horne Institute.
                       These two organizations represent a wide
                       spectrum of interests in the industry – shippers,
                       carriers, port and terminal operators,
                       governments, and labour unions. The draft guide
                       was reviewed by the members of WESTAC and
                       the Van Horne Institute and other experts in
                       transportation in Canada. We are grateful for this
                       important assistance.

                       Every attempt has been made to present
                       information in a factual, clear, concise and neutral
                       manner. We believe that the material provided is
                       accurate and states the various positions in a fair
                       and balanced fashion. We alone are responsible
                       for any errors.

                       The guide was written by David D. Colledge,
                       principal author, and Ruth Sol. The sections on
                       Choices and Challenges, People in Transportation
                       and Educational Sources were written by The Van
                       Horne Institute.
Sponsors
Organizations sponsoring this publication include the                    Air Canada                                National Automobile, Aerospace,
governments, private-sector firms, and labour unions listed               Government of Alberta                        Transportation & General Workers
here. Without their generous financial assistance, the guide                                                           Union of Canada (CAW-Canada)
                                                                         Brotherhood of Locomotive Engineers
could not have been published.                                                                                     Neptune Bulk Terminals (Canada) Ltd.
                                                                         Calgary Transportation Authority
                                                                                                                   OmniTRAX Canada, Inc.
                                                                         Canada Steamship Lines Inc.
                                                                                                                   Pacific Western Transportation Ltd.
                                                                         Canadian Merchant Service Guild
This publication may be freely quoted, provided the source
                                                                                                                   Prince Rupert Economic Development
is acknowledged.                                                         Canadian National Railways
                                                                                                                      Commission
                                                                         Canadian Pacific Railway Company
                                                                                                                   Prince Rupert Grain Ltd.
                                                                         Canadian Wheat Board
                                                                                                                   Government of Saskatchewan
                                                                         Edmonton Regional Airports Authority
                                                                                                                   Sultran Ltd.
                                                                         Enbridge Inc.
                                                                                                                   Teamsters Canada
                                                                         Fraser River Port Authority
                                                                                                                   Thunder Bay Port Authority
                                                                         Grain Workers Union – Local 333
                                                                                                                   Transport Canada
                                                                         International Association of Machinists
                                                                                                                   Transportation-Communications Union
                                                                            & Aerospace Workers
                                                                                                                      Canadian Division
                                                                         James Richardson & Sons, Limited
                                                                                                                   Trimac Corporation
                                                                         Luscar Ltd.
                                                                                                                   Vancouver International Airport Authority
                                                                         Government of Manitoba
                                                                                                                   Vancouver Port Authority




  Moving Forward A Guide on the Importance of Transportation in Canada
Contents                                                                                                                                                                                    page

                                                                                                                                                                                             1
     Why a Transportation Guide? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

     Why We Need Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
              Transportation and you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
              The world at our door . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
              Pillar of strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

     Transportation Then & Now . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
              Building the nation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
              Today’s different systems, different needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
              Keeping the system in check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
              Powerful trends are shaping transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

     Getting There – The Modes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
              More than how we get to work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
              Delivering the goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
              Safety first . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
              Keeping a clean environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

     Moving Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
              Choices and challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

     Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
              Transportation professionals are talking
              National policy and regulation highlights since 1967
              Government transportation spending
              People in transportation
              Unions in transportation
              Educational sources
              Mode profiles



                                                                                         Moving Forward A Guide on the Importance of Transportation in Canada
page

 2
        why a                                                                                                                            What is most
                                                                                                                                         important about



       Transportation Guide?
                                                                                                                                         this guide, for you?

                                                                                                                             Transportation is the seed from which
                                                                                                                             Canada grew. It continues to support
                                                                                                                             our economy and high standard of
                                                                                                                             living, and we take it for granted at
       Transportation has done more to shape our national identity than any other single factor. Binding us from sea to
                                                                                                                             our peril.
       sea with a continuous rail line not only connected our east and west coasts, it secured a uniquely Canadian route
       north of the 49th parallel. And it laid the foundation for settling the land and developing our economy.              Transportation is facing serious
                                                                                                                             reinvestment challenges. Your future
       Much of our transportation infrastructure was put in place during the 19th and early 20th centuries, when some        economic well-being, and that of
       of the great feats of building – across the Rocky Mountains, for instance – were truly awe-inspiring. Today’s         your family, depends on us finding
       transportation system is no less impressive. Yet transportation seems to be taken for granted, even though it         the money to invest in our
                                                                                                                             transportation system.
       affects each of us every day.
                                                                                                                             The need for education, training and
       This guide seeks to raise the awareness and profile of our transportation system among Canadians. It is also
                                                                                                                             research in transportation is essential
       intended as a resource for teachers, and to encourage students to explore careers in a fascinating, high-tech and     to attract top-notch people to the
       ever-changing business.                                                                                               industry – success in this area will pay
                                                                                                                             enormous dividends!
       Transportation is a big subject. This guide is designed as a summary of the vital role that transportation plays in
       the lives of every Canadian. What we have done is select and assemble factual information that we hope will serve
       as a starting point for a greater appreciation of this important industry and how it works.

       Throughout the guide you will see highlights on “What people are talking about” – a digest of what many
       transportation professionals, and perhaps others, are concerned about today. These are issues that could
       profoundly affect our families, our jobs, and our future economic prosperity. The guide provides a context for
       viewing those issues: use it as a lens to understand how transportation affects you.




       Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                                                                                       page

                                                                                                                                                                        3
            A geographic challenge…

Canada has one-fourteenth of the world’s land and one-fifth of
the world’s wilderness. The country is sparsely populated, and
90% of us live along the 6,400-kilometre Canada/US border.
The remaining people are scattered throughout the vast land,
often in remote spots. These realities, along with some
formidable terrain and climate, pose a great challenge
to transportation.                                                   What can you do?
…is being successfully met                                           Transportation and related services may appear to be an ordinary part of the landscape, but
                                                                     roads, canals, railways and bridges cannot be built or repaired and the airports can’t operate
We earn high marks for competitiveness – in the top five             without money – lots of it. As the Canadian debate deepens over the appropriate balance of
nations globally, according to the World Economic Forum,
which ranks 53 nations. Our transportation infrastructure            social and economic programs and spending, informed choices are more important than
(i.e., roads, railroads, air transport, pipelines and ports          ever before.
systems) is a critical factor.
                                                                     People in transportation do not feel that “fixing potholes” is more important than health
Canada is a terrific place to live – in the United Nations’           care or education. But they know, better than anyone, that without an efficient and well-
human development index ranking of 130 countries, we                 maintained transportation system, the prosperity that today supports our excellent social
consistently come out on top as the world’s most desirable place     programs would simply not exist.
to live, based on life expectancy, education and economic factors.
                                                                     What we all need to know is that it doesn’t have to be one or the other. Awareness,
                                                                     cooperation and innovative thinking can help all sectors get the most out of the limited
                                                                     dollars we have to invest.

                                                                     We invite you to read this guide and weigh the information. Ask questions. Talk
                                                                     about ideas... become aware. Then determine for yourself what status transportation
                                                                     should have – and speak up as we debate Canada’s future priorities.




                                                                                                Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                                        Most Canadians travel to work in a car,
                                                                                                                         as either the driver or as a passenger




page

 4

        why we need
       Transportation
       Transportation and you
       Most of us think of transportation in personal terms – with good reason. It accounts for 16% of our household
       spending, and is second only to the cost of housing. Transportation meets our personal needs for travel to and
       from work, school, recreation activities, shopping and social events. But it is so much more than that.
                                                                                                                               Households spend 16%
       Transportation is the emergency vehicles that respond to accidents. It’s the buses we depend on to carry               of their disposable income
       passengers and packages between cities, or the planes we take to a business meeting. It’s the railways and                  on transportation
       commercial trucks that operate around the clock to move resources and manufactured goods to every part
       of North America. It’s the ships delivering our products to overseas customers and bringing theirs to us.
       It’s the pipelines carrying the petroleum products that fuel our vehicles and heat our homes and
       businesses. And it’s the web of telecommunications that energize our commerce and expand our horizons.

       Transportation is so fundamental to our lives that we often don’t realize how much we depend on it. It brings
       us every product we buy and delivers every product we sell to other Canadians and internationally.
       Transportation also brings every visitor to Canada, and carries those visitors – as well as Canadians – on
       holidays and business travel throughout the country.




                                                                                                                                 Source: Statistics Canada


       Moving Forward A Guide on the Importance of Transportation in Canada
                                                                               Our largest trading partner is the US
                                                                                      Total goods imports $278B                          Interesting and
                                                                                   Total goods exports $302B, 1997
                                                                                                                                         well-paid jobs


The world at our door                                                                                                      Transportation could not move without            page
                                                                                                                           the 700,000 people – including                    5

Canada has a small domestic market and much to export, so we rely                                                          commercial truck and bus drivers,
                                                                                                                           equipment mechanics, air traffic
heavily on international trade. Trade allows us to do what we do best –
                                                                                                                           controllers, ships’ agents and many
export the goods and services we produce better than others, and                                                           more – who serve customers and keep
import what we cannot readily produce ourselves. The result is a higher                                                    our system running safely and
standard of living for Canadians.                                                                                          efficiently.* Canada has a wealth of
                                                                                                                           “knowledge workers” in the
Our ability to trade competitively depends on two things: producing                                                        transportation field, who together have
                                                                                                                           developed some of the finest logistics
the goods and services the world wants to buy, and meeting our
                                                                                                                           systems in the world. These engineers,
customers’ standards for quality and service at the right price.                                                           high-tech workers and senior business
                                                                                        Source: Statistics Canada          leaders, who are perhaps our greatest
Transportation can be the greatest single factor affecting the delivered                                                   strategic asset, continue to develop new
price of the goods we sell. This is particularly true for lower-valued                                                     systems and services that assure
bulk commodities. For example, transportation costs can be as much as                                                      Canadian companies access to and
                                                                             Transportation's share of selling price (%)
                                                                                                                           success in world markets.
half of the delivered price of coal sold to a Japanese buyer.
Transportation also has a profound effect on whether those goods reach
                                                                                                                           Transportation jobs are not only well-
the customer on time, in the right quantity, and in good condition.                                                        paid – averaging $38,000 per year,
                                                                                                                           which is 17% more than the national
Compared to other nations, transportation is particularly important to                                                     average – they may hold the key to the
Canada, because we export more than one-third of the value of all the                                                      executive suite. Logistics managers are
goods we produce. That compares to the United States (US) figure of just                                                    increasingly important to companies
                                                                                                                           with complex, worldwide operations,
10%. Among all trading nations, Canada is the seventh-largest exporter in
                                                                                                                           for which well-run transportation is
merchandise trade, and the eight-largest importer. And many of our                                                         critical to the bottom line. Whatever
export resources – grain, coal, forest products, potash and sulphur, among                                                 your interest, transportation today offers
others – come from inland points that are far from tidewater and offshore                                                  a broad range of interesting,
markets. Consider the Canadian farmer who ships wheat 2,000                                                                challenging and rewarding jobs.
kilometres to reach a port, competing with an Australian farmer who                                                        *Source: Transport Canada, 1998 Annual Report.
ships wheat just a few hundred kilometres to port.                                                                         Transportation accounts for about 6% of all
                                                                                                                           Canadian jobs.


                                                                                 Source: WESTAC estimates, October 1999



                                                                                         Moving Forward A Guide on the Importance of Transportation in Canada
page   Canada’s dependence on trade will continue. Merchandise trade among all nations grew
 6     dramatically – an average of 7% each year – between 1990 and 1997. Today, world trade exceeds
       $7 trillion annually. And the blurring of national borders, through more liberal trade
       arrangements such as the North American Free Trade Agreement, is fostering more trade. In a
       “borderless” world, there is no place to hide from competition. Foreign suppliers are knocking at
       our customers’ doors, both at home in Canadian markets and in other countries where we sell
       our products.


       Pillar of strength
       What moves goods in Canada is an excellent freight system of trucks, railways, buses, ships,
       pipelines and airplanes. Without it, Canadian producers – shippers – would be unable to
       move their goods within Canada and to the more than 100 countries we trade with around
       the world. In 1998, transportation itself accounted for $32 billion out of a Gross Domestic
       Product (GDP) of $718 billion. That’s only 4.5% of all the goods and services produced in
       Canada. But it underpins many other sectors. Manufacturing, trade, construction, mining,
       utilities, agriculture, fishing and forestry account for 45% of our GDP, and these sectors are
       critically dependent on transportation.
                                                                                                           Every $1 billion of exports supports
                                                                                                                  11,000 Canadian jobs
       Canada also has an excellent passenger transportation system that serves business travellers
       and tourists. We are the ninth-largest tourism destination in the world, with 20 million
       international arrivals per year. Tourism generates some $47 billion each year – 30% from
       foreign visitors. Transportation accounts for approximately 45% of every tourist dollar that is
       spent in Canada, ahead of spending on food and beverages, accommodation, and recreation
       and entertainment.




       Moving Forward A Guide on the Importance of Transportation in Canada
transportation
                                                                                                                                                                                 page

                                                                                                                                                                                  7




 Then & Now                                                                      Canada's National Railway System
                                                                                 • 50,000 route-kilometres, 60% of which is in the Western provinces
                                                                                 • 73% of the track owned, operated and maintained by Canadian Pacific Railway and Canadian
Building the Nation                                                                National Railways; 26% of track owned, operated and maintained by regional and short-line
                                                                                   railways (not shown on map)
Governments around the world have played a pivotal role in                       • Passenger traffic (1997): 4.1 million passengers
                                                                                 • Freight traffic (1997): 291 million tonnes
transportation, particularly in infrastructure projects that benefit all
citizens. Canada is no exception. It was Sir John A. Macdonald’s vision
to unite our huge land and promote regional development through
strong government support of transportation. The government carried              • buying assets, such as rail hopper cars for grain, and
this out through:                                                                • operating parts of the system, including airports, ports, navigation
                                                                                   systems, an airline and a railway (i.e., Air Canada and Canadian
• land grants for roads and rail lines,                                            National).
• financing the building of ports, airports, pipelines and roads,
• ongoing payments to promote regions and sectors, such as Western               Building the nation required bold and momentous steps. Many
  grain transportation and branch – line subsidies, and Maritime                 thought that government ownership of infrastructure was the only
  freight-rate subsidies,                                                        way to ensure that our national and regional objectives were met.


    1497                1535                 1600s                1608                1670                     1679                      1769               Late-1800s

 Cabot discovers   Cartier sails up the    Early explorers    Champlain founds      Charles II of           Sailing vessels            James Watt            Ships powered by
 Newfoundland      St. Lawrence River      begin to travel        Quebec          England grants a         begin plying the         develops the first          steam engines
                                          Canada’s interior                       Royal Charter to           Great Lakes             efficient steam           rapidly replace
                                              by canoe                            the Hudson’s Bay                                       engine               sailing ships on
                                                                                      Company                                                                    the world's
                                                                                                                                                               shipping lanes




                                                                                             Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                 Canada Port Authorities
                                                                                                 • 18 Canada Port Authority ports in the National Ports System
                                                                                                 • More than 500 regional and local ports, 34 remote ports and 1,700 small harbours and ports
                                                                                                 • Terminal facilities are privately owned and maintained, situated on government-owned lands leased
page                                                                                               to the operator
                                                                                                 • Great Lakes/St. Lawrence Seaway System:
 8                                                                                                 - 15 locks connect Lake Superior with the Lower St. Lawrence River
                                                                                                   - unique 3,700-km inland waterway spanning Canada and the US
                                                                                                   - annual traffic volume: 50 million tonnes
                                                                                                 • Northern marine system:
                                                                                                   - Mackenzie River and Lake Athabasca
                                                                                                 • Passenger traffic using Canadian ports: ferry, 38 million passengers; cruise ship, 1.0 million
                                                                                                   (5 major ports)
                                                                                                 • Freight traffic through all Canadian ports (1997): 376 million tonnes (25% domestic; 75%
                                                                                                   international)



       There was debate about the scope of some of the infrastructure that was                   America and abroad, those transportation investments have made
       built, because it didn’t make economic sense at the time. But the view                    possible the prosperity we now enjoy. We must have the courage of
       prevailed that it was vital, in the beginning, to link communities                        those who came before us – the courage to develop a new vision in
       together. So road and rail networks were constructed even though we                       transportation for the next century as we take our place in the
       didn’t always travel enough, or pay enough taxes and ship enough                          world market.
       freight to maintain them. Ferry services were launched in coastal
       communities that couldn’t generate enough revenue to pay for the
       fleet and its operations. So, too, with ports and airports. Some were                     Today’s different systems, different needs
       built in communities that, at the time, had too little traffic to pay for
                                                                                                 Today, transportation in Canada is several interrelated systems serving
       the facilities.
                                                                                                 distinct needs – those of a fisherman in Atlantic Canada, a prairie
                                                                                                 grain farmer, a manufacturer in southern Ontario or Quebec, a
       Today it’s easy to see the benefits of that early vision: by uniting the
                                                                                                 logger in British Columbia, or a miner in an isolated community in
       country geographically and allowing us to access markets in North


           1880s                 1885              Late-1880s                  1910                                1920s                                  1950s                       1954

          Steamships are     Transcontinental       Prolific growth is      Montreal’s public       Commercial air services are introduced.               New airport                Canada’s first
       introduced between        railway is          experienced in        transit system has         Popularity of automobiles (275,000               construction and          subway system –
           Montreal and        completed at         regional rail lines    140 miles of rails,      registered in 1918; 1.9 million in 1929)        modern air navigation        the Yonge Street
         Quebec City; the   Craigellachie in the   and on other parts     handles 144 million      stimulates development of better roads            and air traffic control       line – is opened
         Welland, Lachine    mountains of BC          of the system       customers and costs           and more inter-regional roads               systems are developed            in Toronto
        and Rideau canals                                                    5 cents to ride
          are constructed




       Moving Forward A Guide on the Importance of Transportation in Canada
                                                                          Canada‘s National Highway System
                                                                          • 900,000 kilometres, including 25,000 kilometres of National Highway System (map)
                                                                          • 60% of roads are in the four Western provinces
                                                                          • Governments own and maintain roads: municipal governments (73% of all roads), provincial
                                                                            governments (26%), federal government (1%)                                                                          page
                                                                          • Passenger automobiles (e.g. cars, vans, light trucks): 16 million (90% of all registered vehicles)
                                                                                                                                                                                                 9
                                                                          • Freight moved by for-hire truck carriers (1997): 223 million tonnes




                                                                                   sites, and factories and warehouses, linking our towns, provinces and
the Northwest Territories. Each requires a reliable, efficient and cost-           territories and providing gateways to the world.
effective service.

Our transportation network stretches over a vast area, some 7,800                  Keeping the system in check
kilometres from the Pacific to the Atlantic. The infrastructure
includes 1,800 airports and airfields, 900,000 kilometres of roads,                Transportation is generally federally regulated. There are two types of
50,000 route-kilometres of rail lines, more than 2,000 ports and                   regulation. Economic regulation affects which companies may
harbours, and 540,000 kilometres of oil and gas pipelines.                         operate in an industry, the prices they may charge, and the services
                                                                                   they may provide. These economic controls have been much reduced
Services range from commuter trains in Toronto to northern supply                  in Canadian transportation. Safety regulation is the other type. There
lines on the Mackenzie River serving remote communities with no                    were fears in the late 1980s that economic deregulation would reduce
road access. Transportation carries goods between mines and smelters,              safety. This has not been the case: safety remains a top priority for all
oil wells and refineries, farms and bakeries, forests and construction             governments and for industry – and for ordinary Canadians.



    1958               1959               1960s                1966                       1976                        1997
                                                                                                                                            1
                                                                                                                                                A History of the Canadian Economy, by Kenneth
                                                                                                                                                Norrie and Douglas Owram, Harcourt Brace &
   TransCanada          Current          Trans-Canada     Montreal’s Métro –        The first supersonic           Confederation                 Company, Canada, 1991, p. 454.
     Pipelines      Great Lakes/St.       Highway is       with 26 stations          passenger airliner,          Bridge opens,
   completes its   Lawrence Seaway        completed       on three lines – is          the Concorde,              linking Prince
    natural gas      System opens                           inaugurated             begins transatlantic        Edward Island and
 pipeline system                                                                           service               New Brunswick
 linking Alberta
    and Quebec




                                                                                                  Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                                                 Canada‘s National Airports System
                                                                                                                                 • 1,800 facilities registered as landing and takeoff sites, includes: 26 National Airport System airports,
                                                                                                                                   70 regional/local, 31 small/satellite and 13 remote airports
                                                                                                                                 • Terminals built by governments on public lands; local airport authorities financially responsible
                                                                                                                                   for new infrastructure
page                                                                                                                             • Air navigation system operated by NAV Canada using 7 area control centres and more than
                                                                                                                                   100 airport control towers and flight service stations
 10
                                                                                                                                 • Traffic handled by National Airport System airports: 95% of total passengers, 98% of total freight
                                                                                                                                 • Domestic passenger travel (1997): 50.5 million enplaned/deplaned passengers
                                                                                                                                 • Freight traffic moved by Canadian air carriers (1997): 800,000 tonnes




                                                                                                                                 system and are vitally important, particularly to Western Canada. But
                                                                                                                                 conditions are changing.

       Responsibility for economic regulation                                                                                    The volume of high-value consumer goods is growing quickly, demanding
                                                                                                                                 new hubs, handling methods, superhighways and trade routes.
                                                                                                                                 Transportation must respond to the needs of communities and business
                                Municipal                    Provincial, territorial                     Federal
                               governments                      governments                            government a              for smooth connections among roads, airports, railways and ports – all
                                                                                                                                 supported by state-of-the-art communications.
       Air                                                                                                     
       Marine                                                                                                                   Some of the most powerful trends and developments shaping our
       Roadsb                                                                                                                 transportation system today are:
       Rail                                                               c                                   
                                                                                                                                 • “The customer rules” – Transportation exists because someone or
       Pipeline                                                                                               
                                                                                                                                   something has to move. Understanding and anticipating customer
       a) Transportation of dangerous goods is under federal law and companion provincial acts and regulations.                    needs is more important than ever because today’s customers
       b) Where a mode crosses provincial, territorial or national boundaries, it falls under federal regulation. In Canada,
       most transportation is a federal responsibility; provincial and local governments are involved mainly in roads. Federal     demand more.
       responsibility for interprovincial trucking and bus has been delegated to provincial and territorial governments
       c) Railways operating entirely within a province come under provincial regulation.
                                                                                                                                 • A new focus for governments – Canada has a long history of
                                                                                                                                   commercial success and social responsibility. Under financial
                                                                                                                                   pressures, the federal government has been unable to sustain its
       Powerful trends are shaping transportation
                                                                                                                                   traditional levels of support in transportation – the focus is now on
       Canada’s transportation system was built to serve our trading needs,                                                        strategic investments that enhance efficiency and promote the safety
       recognizing the abundance of our bulk commodities. These                                                                    of people and the environment. Under today’s policy, reflected in the
       commodities – moved to ports on the east and west coasts, or directly                                                       Canada Transportation Act, 1996, Canada uses a market approach:
       south to the US – still dominate the volumes moving on our freight                                                          the system is allowed to respond freely to the changing needs of


       Moving Forward A Guide on the Importance of Transportation in Canada
Major Canadian Natural Gas Pipelines                    Major Canadian Crude-Oil Pipelines                                   • 540,000 kilometres, including 95,000 kilometres of large
                                                                                                                               transmission pipelines and more than 400,000 kilometres
                                                                                                                               of lines for gathering (from producers) and distributing
                                                                                                                               (to consumers)
                                                                                                                             • Pipelines are privately owned, operated and maintained
                                                                                                                             • Proportion of Canada’s crude-oil energy carried by
                                                                                                                               pipelines: 40%                                                  page
                                                                                                                             • Natural gas shipments (1997): 5.6 trillion cubic feet
                                                                                                                               (54% exported)                                                   11
                                                                                                                             • Oil and refined product shipments (1997): 760 million
                                                                                                                               barrels (49% exported)




  shippers and the travelling public. The result is a federal government           supply of substitute products, more production from Third World
  that has divested itself, for the most part, of operating ports, airports,       and other countries, and more recycling. As a consequence, costs
  airlines, railways and other parts of the system. This, in turn, places          must be reduced to stay competitive, particularly when
  additional responsibilities and financial pressures on provincial and             transportation is a large part of the value of commodities. In turn,
  municipal governments.                                                           transportation companies must respond by reducing prices, to allow
                                                                                   producers to make money even at the bottom of the price cycle.
• “Bigger is better” – As in other industries, transportation has been
  consolidating to raise profits and shareholder value and to develop           • The rise of value-added – Lower commodity prices have motivated
  the critical mass needed to compete on a global scale. However,                producers to add value to their products by processing them further
  consolidation creates new pressures on companies to manage their               before they are shipped. Western Canada’s export performance in
  resources more innovatively and to consistently provide the                    particular has been bolstered by value-added products in the wake of
  excellence demanded by today’s customers.                                      the Asian market downturn in the late 1990s, which particularly
                                                                                 affected the West. Saskatchewan’s value-added shipments increased
• Lower costs through “just-in-time” – Companies are doing business              by 150% between 1992 and 1997, and value-added activity in
  on a global scale in search of bigger markets and lower costs. Gaining         Alberta increased by 134%.1 Manitoba and BC have also seen
  a competitive edge depends on quick, reliable deliveries to keep               healthy increases, and there are many more opportunities yet to be
  inventories and costs low. The “scheduled economy” applies                     tapped in agriculture, forestry, food products, and machinery and
  particularly to high-value manufactured products.                              equipment. Value-added products diversify our economic base
                                                                                 beyond its historical reliance on bulk commodities.
• The price squeeze – Industrial commodity prices fluctuate widely,
  but have been trending downward over many decades. The causes
  include more efficient processes that use less raw material, a greater
                                                                               1
                                                                                   Alberta Department of Economic Development, “The Role of Value-Added Products in Provincial Economies and
                                                                                   Exports” (October 1998).



                                                                                               Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                    • Rise of intermodal shipping –    • Our neighbour never sleeps –
                                                                                                      Your camera, imported dishes,      Canada competes vigorously
                   What is value-added?                                                               and new car were likely            with the US in North
page
                                                                                                      delivered by intermodal            American and international
       Goods that receive little or no processing are called “primary goods” or “raw materials.”
                                                                                                      transportation – using two or      markets. In 1998, the US
 12    They can be sold to others, who manufacture or process them further into a useable
       product. Increasingly, Canadian producers of primary goods are looking to do the               more transportation modes in       Transportation Equity Act
       further processing themselves, thereby adding value to the goods. The result is a higher       combination. Intermodal takes      (TEA-21) authorized federal
       final selling price and profits for the initial producer, as well as more jobs in Canada.        advantage of the strengths of      transportation spending of
                                                                                                      different modes for seamless,      US$218 billion by 2003 to
                                                                                                      secure shipping. Some 15           improve the US transportation
              Value ($)               Value-Added ($$)            More Value-Added ($$$)
                                                                                                      million containers of goods        network. That figure
               wheat                          flour                          cookies
                                                                                                      move each year between North       represents more than the
              iron ore                        steel                           car                     America and overseas; Canada’s     combined economies of our
                                                                                                      share is 10%. Container            four Western provinces.
                                                                                                      volume has grown by a              Canada needs to maintain a
                                                                                                      dramatic 6% per year since the     strong, modern and diverse
                                                                                                      1980s. For ports such as           transportation system, both to
                   The container ”revolution”                                                         Montreal, Vancouver and            win new business and to hold
                                                                                                      Halifax, and for Canadian          onto traffic and jobs that a
       Before container shipping, manufactured goods were carried in wooden crates of varying         railways and trucking firms,        more efficient US system
       sizes in the holds of cargo ships. Getting a shipment to the customer was something of a       intermodal traffic represents a     might draw away. Once
       random process that depended on how the shipment was packed and what handling
                                                                                                      key growth area.                   diverted, traffic is extremely
       difficulties were encountered en route. Cargo was susceptible to damage and even theft
       during transport, so retailers were advised to anticipate supply disruptions and had to                                           difficult to win back.
       keep large inventories. In 1955, Malcolm MacLean, the owner of a US trucking firm,
       tried putting trailers onto ships to test-run a new method of shipping. This started the
       “container revolution,” one of the more significant developments in transportation in the
       20th century. In 1966, his new company, Sea-Land, introduced the first container
       service to Europe. Today, containers are shipped around the world in specialized ships,
       truck-trailers, double-stack trains, and aircraft.

       Most intermodal transportation uses containers. A container is a sealed metal box used
       to carry freight door-to-door, without the contents being handled. This protects the goods
       from the elements and allows them to be easily transferred between modes. Container
       volumes are expressed as 20-foot-equivalent units, or TEUs. One TEU is a metal box
       measuring 8’x 8’x 20’. A 40-foot container equals two TEUs.



       Moving Forward A Guide on the Importance of Transportation in Canada
                                Example of a Trade Corridor:
                                the Mid-Continent Trade Corridor


                                                                                                                                                       page

                                                                                                                                                        13


                                        Successful gateways and           shipper can submit the               So what do these trends mean?
                                        corridors feature consistent      requisite Customs                    Governments are facing public
                                        and simplified regulations,       information electronically to        demand for better service wrung
                                        common standards between          expedite the freight shipment.       from lower taxes. Industry is
                                        jurisdictions and modes, and      Global positioning technology        under pressure from globalization,
                                        appropriate infrastructure.       uses a satellite to allow a          free trade, and tough competition.
                                                                          shipping representative in           Workers face reduced job security,
• Corridor and gateway                • Computers are everywhere –        Montreal to tell a customer          downward pressure on wages, and
  thinking – Gateways are the           Computers are used in every       where a shipment is, to within       increased demands for flexibility
  points of entry into major            aspect of transportation,         a few metres, on its ocean           and productivity.
  trading regions. Corridors            giving today’s customer an        journey to Europe.
  connect gateways as directly and      unheard-of level of control                                            In the past, the formula was
  efficiently as possible. Trade and     and range of options. This is                                          straightforward: develop the
  transportation gateways and           having an enormous impact                                              transportation system and
  corridors – where the best parts      on the support systems in                                              prosperity would follow. Today,
  of the transportation system are      transportation companies and                                           things are much more complex.
  brought together seamlessly –         on the manner in which                                                 The new imperatives, for
  provide the necessary                 customer service is being                                              governments, industry and
  concentration of resources to         managed. For example, an                                               workers alike, are to find new
  safely and quickly move large         airline passenger can now use                                          efficiencies, encourage innovation
  volumes of freight and many           e-commerce to find the best                                            and embrace new technologies
  passengers. Situating business        airfare and routing, make                                              that will keep Canada’s
  along these routes offers             reservations and pay for the                                           transportation sector strong and
  significant economic                   travel, all without receiving a                                        internationally competitive.
  development opportunities.            paper ticket. An international




                                                                                Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                                Moving People                     Moving Freight
                                                                                                           –share of passenger trips         –share of freight spending




       Getting There
page

 14




                 the modes
       More than how we get to work
       There are two basic types of passenger transportation – personal, in which we operate our
       own vehicles, and commercial, in which we pay to ride on public modes, including planes,
       railways, ferries, buses and taxis.                                                                                   Source: Transport Canada


       We travel mainly in our own cars, because they are convenient and often the most practical
       way of getting around.
                                                                                                            What people are talking about
       Road Travel
                                                                                                             • air and noise pollution
       Road travel generally takes place within and between cities. Since World War II, Canada’s             • road safety
       population has become increasingly urbanized; sprawling suburban communities have grown               • the need for sustainable transportation that
       out around our city cores. And as jobs have moved to the suburbs and beyond, travel                     won’t harm our economic well-being and way
                                                                                                               of life
       between suburbs has grown too: it is now growing faster than travel to and from the city
                                                                                                             • deteriorating roads and the need to upgrade
       core, creating diffuse travel patterns. This has created difficulties for public transit, which is
                                                                                                               the National Highway System
       best suited to corridors that support high volumes of rider traffic. For cities spanning a large
                                                                                                             • traffic congestion and how to encourage people
       geographic area, the result is a continued dependence on personal vehicles.
                                                                                                               to use public transit
                                                                                                             • how local governments can afford to pay for
       It’s not surprising, therefore, that public transit ridership in Canada is low – only one in 10
                                                                                                               road upkeep
       trips – on average. Recent figures show that ridership is growing at about one-third the rate
                                                                                                             • charging tolls for road use
       of automobile use. In many densely populated European and Asian cities, typically half of
                                                                                                             • fuel prices
       travel is by public transportation.

       Moving Forward A Guide on the Importance of Transportation in Canada
                                                             Motor coaches

                                                                                                                                                                  page
                                                 Luxury buses have changed with the times. Many new
                                                 models provide a range of amenities and are equipped                                                              15
                                                                                                            Charter bus services have also increased for
                                                 with the same seats found in the business class sections
                                                 of airplanes and trains. New motor coaches may even        sports, entertainment and business events,
                                                 offer work stations with fax machines and laptop           and holiday excursions.
                                                 computer hookups.
                                                                                                            Where it is available, light rapid transit
                                                                                                            (LRT) offers an alternative to bus travel
                                                                                                            within cities, but LRT vehicles can cost five
Canadian cities hope to solve some of their      other facilities, so unclogging the roads is a
                                                                                                            times as much as an average bus. Buses have
urban transportation problems by:                priority.
                                                                                                            lower operating costs and use existing roads
• reducing the number of vehicles,               Inter-city travel is also important.                       – yet there are challenges there, too. The
  particularly single-occupant vehicles, on      Commercial buses operate scheduled inter-                  Ontario Motor Coach Association has
  our roads, through ride-sharing programs,      city services in many parts of the country,                proposed an Airport Corridor Coachway in
  express lanes for multi-occupant vehicles,     but this type of travel has declined steadily              Toronto as an alternative to LRT. Running
  improved transit services, higher parking      since the 1980s – cars are more convenient                 between downtown and the airport, the
  charges, and encouraging people to work        for shorter trips, and airplanes are faster and            Coachway would be a dedicated expressway
  from home, and                                 increasingly affordable for longer ones. To                built along an existing rail corridor, and
                                                 meet changing demands, the bus industry                    integrated into the highway system.
• making better use of the existing              has therefore created new services, including
  transportation system, through traffic                                                                    Solving urban transportation problems in
                                                 emergency services, scheduled airport-
  management systems, and encouraging                                                                       general – and addressing the critical need for
                                                 downtown links for airline passengers,
  non-rush hour travel.                                                                                     road improvements, in particular – is a
                                                 commuter and transit service, and bus tours.
                                                                                                            pressing challenge in Canada. Most public-
Solving the people-moving problems within                                                                   sector budgets are static or shrinking, and
our cities is also critical for goods                                                                       other needs often take priority. For many
distribution, which has to share the same                                                                   local and provincial governments, solutions
road network. The distribution system                                                                       may include more public-private
depends on efficient links to ports, airports,                                                              partnerships, or user fees (e.g., tolls) to
rail intermodal terminals, warehouses and                                                                   fund improvements.



                                                                                           Moving Forward A Guide on the Importance of Transportation in Canada
page                                                                             There is debate over who should be
 16                    Transportation investments                                responsible for improving the National
                       mean economic growth                                      Highway System, and with what funds. Some
                                                                                 say that the federal government should be
       Research shows that highway investments can provide
       returns to society of 10% to 40% of their costs each
                                                                                 responsible, putting more revenues from
       year. Studies have linked the upgrading of Canada’s                       federal fuel taxes back into roads. Others
       National Highway System to huge benefits in travel                         maintain that federal spending priorities
       time savings, highway safety improvements, and                            should continue to be on social programs
       reduced vehicle operating costs.                                          such as health care, pensions, employment
       Source: Council of Ministers Responsible for Transportation and Highway   insurance, and education, leaving other
       Safety, 1998.                                                             jurisdictions and the private sector to find
                                                                                 road-improvement monies elsewhere.

                                                                                 In sum, there is universal agreement that                                       Rail Travel
       The condition of our roads has deteriorated
                                                                                 Canada’s highway system is in need of major
       in many areas, particularly in the Prairies. It’s
                                                                                 improvements. What hasn’t been determined                                       Travel by passenger rail makes sense in large
       a growing concern, not just for provincial and
                                                                                 is where the money will come from. Failure                                      metropolitan areas, where the urban
       local governments, but for all road users.
                                                                                 to address this question will seriously                                         population base helps support the costs of the
       Improvement is also a compelling issue for
                                                                                 jeopardize the country’s ability to successfully                                system. Toronto and Montreal have subway
       our National Highway System. This
                                                                                 compete in international trade.                                                 systems, and Vancouver uses an elevated
       important artery carries 30% of the vehicle
                                                                                                                                                                 SkyTrain system. Montreal, Toronto and
       travel in the country, but there are serious
                                                                                                                                                                 Vancouver also have commuter rail systems
       questions about its condition and reliability,
                                                                                                                                                                 that share busy tracks with freight railways.
       and its ability to support trade. Despite
                                                                                                                                                                 Calgary and Edmonton have LRT systems
       annual average spending by the provinces and
                                                                                                                                                                 that use tracks dedicated to passenger trains.
       territories of $1.4 billion between 1992 and                              2
                                                                                     Council of Ministers Responsible for Transportation and Highway Safety,
       1997, the cost of upgrading is estimated at                                   “National Highway System Condition and Investment Needs Update
                                                                                                                                                                 Canada’s major inter-city passenger rail carrier
                                                                                     1997” (1998). Refers to the costs of correcting the identified deficiencies
       $15 billion to $17 billion.2                                                  and upgrading to a set of agreed standards.                                 is VIA Rail, which became a federal Crown




       Moving Forward A Guide on the Importance of Transportation in Canada
                                                      downtown-to-downtown service), and on two                                                                         page

 What people are talking about                        transcontinental routes that cater to tourists.                                                                    17

                                                      It also serves remote areas such as Churchill,
   Urban rail:                                        Manitoba.
   • developing affordable and practical
     alternatives to today’s cars                     With its magnificent wilderness vistas, parts
   Inter-city rail:
                                                      of Canada are suited to rail tourism – and it’s
                                                      growing. In addition to VIA, other carriers          Air Travel
   • the long-term viability of VIA Rail
   • passenger train access to the lines of freight   are providing innovative services, such as BC
                                                                                                           Air travel today is cheaper than ever. Forty
     railways                                         Rail’s Whistler Explorer and Royal Hudson
   • the feasibility and cost of high-speed rail in                                                        years ago, the cost of flying from Toronto to
                                                      Steam Train, and Rocky Mountaineer’s
     densely populated corridors                                                                           Germany was 30% of the price of a new
                                                      package tours to Jasper/Edmonton and
                                                                                                           Mercedes-Benz car – today it costs no more
                                                      Banff/Calgary from Vancouver. These are
                                                                                                           than 2%. In real terms, the average world
                                                      proving to be very popular.
                                                                                                           airfare has declined by about 1% per year
corporation in 1978 after being sold by                                                                    over the last two decades.3
                                                      High-speed passenger rail has been considered
Canadian National Railways and Canadian
                                                      as an alternative to building highways and
Pacific Railway Company.                                                                                    Travellers who live in small communities,
                                                      airports, but it requires high population
                                                                                                           however, may still face high airfares. With
It is very costly to provide inter-city rail          density, similar to that in parts of Japan or
                                                                                                           fewer passengers to cover costs such as fuel,
service in many parts of our sparsely                 France. The Quebec City-to-Windsor
                                                                                                           aircraft maintenance, crew, and landing fees,
populated country, and with the cutback in            corridor has been discussed as a high-speed
                                                                                                           airlines often charge more for serving less-
government subsidies in the early 1990s,              rail route, because it has roughly half of
                                                                                                           travelled routes. Airlines try to meet the
VIA’s services were sharply reduced. VIA              Canada’s population and is in need of an
                                                                                                           demand by offering more frequent service
continues to serve two main markets:                  environmentally friendly mode of travel. But
                                                                                                           and by scheduling different sizes of aircraft
between cities in Ontario and Quebec (where           the massive cost of high-speed rail has ruled it
                                                                                                           according to anticipated volumes of
services are designed to provide frequent             out for the present.
                                                                                                           passengers and freight.



                                                                                                           3
                                                                                                               Boeing Commercial Airplane Group, “1997 Current Market
                                                                                                               Outlook” (Seattle).




                                                                                          Moving Forward A Guide on the Importance of Transportation in Canada
page                                                          The federal government has long endorsed a
 18     What people are talking about                         competitive airline system within Canada, to
                                                              promote lower fares and better services. Air
          Airlines:                                           Canada and Canadian Airlines International,
          • how many major airlines Canada’s market is
            large enough to support                           our two principal domestic carriers, provide
          • the need for competitive ticket prices and        domestic and international flights using
            viable airlines                                   networks of regional affiliates. These affiliates
          • the high cost of air travel and the degree of     serve smaller communities and connect with
            competition on less-busy routes
                                                              the main airline at hub airports such as
          • how international routes are assigned to
                                                              Toronto, Vancouver and Halifax. Together with       Providing air service to a foreign country
            airlines and whether more than one carrier
            should be permitted to serve a route              their affiliates, the two carriers account for 72%   requires a bilateral agreement between
          • competition from US airlines, which               of revenues earned by all domestic airlines.        Canada and that country, to establish which
            could persuade Canadians to embark from                                                               carriers will operate services, what
            a US airport                                      Since the domestic industry was deregulated         destinations in each country will be served,
                                                              in 1987, carriers such as Air Transat, Canada       the frequency of flights, and other conditions.
          Airports:
          • airport improvements and whether they             3000, Royal Airlines, and WestJet have              Canada continues to negotiate and update its
            should be paid for by users, governments or       provided competition in the domestic and            bilateral air agreements, because the potential
            airlines                                          international scheduled and charter air travel      benefits are significant: a daily service to Asia
          • the ability of travellers to support the          market.                                             from Canada may create as many as 1,000
            number of airports
          • investing in improved facilities                                                                      new jobs in Canada for each new route. At
                                                              The 1995 Canada-US “Open Skies”                     the same time, these agreements commit our
          • the appropriate level of airport lease
            payments to the federal government for            agreement gave our airlines improved access         airlines to operations in a fiercely competitive
            facilities paid for by the public purse           to US markets and removed restrictions on           world market.
          • the survival of small airports that have been     some existing routes. In return, US airlines
            transferred to local operators                    were granted greater access to Canadian cities.     In order to compete globally, Canada’s major
          • the cost of the air navigation system and
                                                              Canada is now served by more than 40                airlines are participating in international
            funding of improvements
                                                              airlines on transborder (i.e., US) and              alliances with foreign carriers. This
                                                              international routes.




       Moving Forward A Guide on the Importance of Transportation in Canada
competitive tool permits airlines to expand their route networks, increase traffic and reduce costs                                                           page

without expanding their aircraft fleet. One example is a Toronto-Copenhagen-Stockholm flight,                                                                   19

in which Air Canada issues the complete ticket and services the first leg, and Scandinavian
Airlines the second. Customers benefit in several ways: they have more destination choices, can
book through a single airline, and don’t need to worry about coordinating flight schedules.

There are 631 airports in Canada that handle commercial aviation. Most are small, regional
airports or remote sites serving isolated communities. Smaller airports are important because
they provide essential services to regional communities, create local jobs and connect smaller
centres to larger airports. Twenty-six airports – mainly the very large ones, and those in our
provincial capitals – are classed as National Airports System airports. They handle 95% of the
passengers and 98% of the cargo carried each year.

Although the federal government has reduced its direct involvement in airports, its policies
continue to govern airports and airlines. In recent years, the government has leased its major
                                                                                                       Travel by Water
airports to local public authorities that operate them as airport businesses on a not-for-profit
basis. Airport authorities submit lease payments to the federal government for the use of airport      Inland and coastal ferry services are a small
lands and facilities. Airport improvements are financed by landing fees and by user fees levied on
                                                                                                       but vital part of passenger transportation in
the passengers and businesses that use the airports. It is not clear yet whether all of these
                                                                                                       Canada. Some were developed as an
transferred airports will be viable.
                                                                                                       extension of the highway system, to link
The federal government also previously owned and operated the air navigation system. It was            isolated communities that depend entirely
privatized in 1996 as NAV Canada, which is paid for by user fees.                                      on ferry service for their connection with the
                                                                                                       mainland. For example, the ferry link
                                                                                                       operated by Marine Atlantic Inc. between
                                                                                                       North Sydney, Nova Scotia, and Port aux
                                                                                                       Basques, Newfoundland, is a service




                                                                                      Moving Forward A Guide on the Importance of Transportation in Canada
page                                                          guaranteed under Canada’s Constitution. On the Pacific coast, British Columbia Ferry
 20     What people are talking about                         Corporation, the largest ferry system in North America, serves 24 routes and 42 ferry
                                                              terminals.
          Ferries:
          • concern that fares are too high, and yet they     Historically, governments have taken a lead role in developing and funding ferry services. Several
            don’t always cover the cost of providing the
            service                                           provinces and the territories operate cable ferries and other small vessels on interior lakes and
          • ferry service as both a major transportation      rivers, and some local governments operate commuter ferries. In parts of the country, ferry
            link and an historical right                      services also support tourism.

          Cruise:                                             Cruises, while not a distinct mode, are an increasingly popular way to vacation; cruise traffic at
          • the need for additional cruise berth facilities   Canadian ports has more than doubled since 1990. Vancouver leads the way, serving some
          • developing seamless road and air connections
                                                              900,000 revenue passengers per year, followed by Halifax, with 50,000 passengers. Domestic
                                                              cruises on canals and rivers are also seeing a resurgence along the Great Lakes/St. Lawrence
                                                              Seaway. Rail and motor coach tours are a popular add-on, providing valuable business for tour
                                                              operators. Even before they set sail, cruise ships are a destination in themselves, and they depend
                                                              on seamless air, road, and, to a lesser extent, rail connections.

                                                              Vancouver caters to the Alaska cruise market – the third most popular cruise region in the world
                                                              after the Caribbean and Europe. Every time a vessel docks in Vancouver, it generates $1 million
                                                              worth of business in things like ship supplies, port fees, and hotel and restaurant receipts.
                                                              Approximately 90% of all Vancouver cruise passengers start their journey in the US.




       Moving Forward A Guide on the Importance of Transportation in Canada
What people are talking about
                                                                                                                       The availability of consumer goods
 • the deteriorating condition of our roads and                                                                        is an important factor in our
   how improvements should be paid for                                                                                                                         page
                                                                                                                       quality of life in Canada, and most
 • traffic congestion and delays in cities and                                                                          of what is available is made possible    21
   across borders                                                                                                      by trucks.
 • road safety
 • public concerns that there are too many                                                                             “Truck driver” is the most common
   trucks on the road                                                                                                  male occupation in Canada ,
 • how to attract, train and keep professional                                                                         according to the Government
   drivers                                                                                                             of Canada Census.
 • the high level of Canadian fuel taxes
 • the need to consistently apply and monitor
   safety regulations across jurisdictions and
   among truck operators                          Delivering the goods
 • the need for uniformity of truck weights
   and dimensions among jurisdictions             Shipping by Road

                                                  Trucking is a dynamic, fast-paced business and a major segment of the Canadian economy.
                                                  Thousands of trucks and specialized equipment – such as semi-trailers, refrigerated vans, tankers
                                                  and dump trailers – carry almost everything we use. In fact, 75% of our total spending each year
                                                  on freight transportation is for shipping by truck.

                                                  Trucking is ideal for short distances (i.e., less than 500 kilometres), and when rapid, flexible
                                                  delivery is at least as important as cost. It has also become important for long-distance shipments
                                                  of manufactured and consumer goods and is key to serving trade between Canada and the US.
                                                  Door-to-door capability allows trucks to provide the local pick-up and delivery leg for freight
                                                  that is shipped by other modes.

                                                  Trucking has grown rapidly over the past several decades: Canada’s road system developed,
                                                  technology made better trucks, and new trucking services were custom-tailored to match
                                                  growing and changing customer demands. Today, commercial trucks account for some 30% of
                                                  the traffic on the Trans-Canada Highway.

                                                  In the 1990s, the trucking industry changed significantly. Many new firms entered the business,
                                                  and competition steepened. New trade agreements meant more north-south traffic. The result


                                                                                     Moving Forward A Guide on the Importance of Transportation in Canada
                                                                          Trucking has changed                                         What is logistics?

                                                              Modern trucking employs a range of technologies to           Today’s companies make and sell goods on a global scale.
                                                              improve service. This includes satellite-based systems for   Production facilities may be located near customers, or,
page   was a painful restructuring, and some major            shipment tracking, on-board computers to monitor fleet        just as likely, where land is cheap and labour costs are
 22    trucking companies disappeared entirely.               operations and keep costs in check, and paperless            low. Raw materials or markets may be thousands of
                                                              computer systems to expedite border crossings and            miles or even continents apart.
       Ultimately, it has created a stronger, leaner,
                                                              Customs clearance.
       and highly competitive industry.
                                                                                                                            “Logistics” was originally a military term used to
                                                              Today’s truck driver uses a computer, talks to customers,    describe the process of supplying troops with food and
       Commercial trucking is made up of “for-hire”           and is a safety advocate and often a one-person security     weapons. The goal of logistics in business is to get the
       companies, which carry freight for a fee, and          force. Good driving skills are a plus, too!                  right goods to the right place at the right time – and at
       private carriers, which use their own “in-                                                                          the lowest overall cost.
       house” fleet as the company’s distribution
       system. There are an estimated 10,000 for-hire         independent owner-operators who provide                      Supply-chain management is the integrated process of
                                                                                                                           controlling the total flow of goods and information from
       trucking companies in Canada. Examples of              their own vehicles. There are an estimated                   supplier to customer. The global scale of trade and
       large carriers are Canadian Freightways,               40,000 companies in all, employing 60,000                    transportation has created a new type of company: the
       Trimac, J.D. Irving, and Reimer. Couriers,             drivers, or one-quarter of all commercial                    logistics firm. Made possible by today’s communication
       which concentrate on small packages and                drivers in Canada.                                           technologies, the logistics firm handles all facets of
       envelopes, are a part of for-hire trucking.                                                                         transportation and distribution, from the point of
                                                              Trucking activity is concentrated in Ontario,                production to the final destination. Previously, the
       Private carriers are common in short-distance                                                                       producer might have used many companies: one for the
       trucking; they play a relatively minor role in         which is home to half of Canada’s 100 largest                truck pick-up of a shipment at the warehouse, a second
       long-distance trucking. Private carriers also sell     trucking firms. Nearly two-thirds of all                      to book space on a ship, a third to pack goods into a
       their services in the for-hire marketplace where       transborder truck trips cross the Ontario-US                 container, a fourth to arrange Customs documentation,
       it fits in with their own operations, to                border. Transborder traffic is growing rapidly:               and various others to load, transport, unpack,
                                                              in 1996 it accounted for 41% of all truck                    distribute, and handle insurance, financing, money
       maximize vehicle utilization. Since most                                                                            transfers, and so on. The new logistics companies, which
       private trucking occurs as part of some other          traffic in Canada, up from 30% in 1990.                       have often evolved as subsidiaries of transportation
       business (e.g., Molson and Safeway), truck                                                                          companies, are growing at double-digit rates.
       industry data exclude and therefore understate         Truck weight and length limits may vary by
       the importance of trucking.                            province or state. Trucks crossing borders must
                                                              obey the rules of the area with the most
       Compared to other modes, entering the                  restrictive limits, which may mean a smaller
       trucking business is fairly straightforward,           payload and more trucks to move the same
       so it follows that there are a number of               amount of freight. The trucking industry and




       Moving Forward A Guide on the Importance of Transportation in Canada
governments are working to coordinate truck
dimensions in different jurisdictions.                                      What people are talking about
There is ongoing concern in the trucking                                      • domestic competition among railways and
                                                                                with trucks                                                                                               page
industry that fuel tax rates in Canada weaken
                                                                              • customers wanting better, lower-priced                                                                     23
our competitive position. The federal diesel fuel                               services
tax rate (4 cents per litre), is about twice that of                          • the needs of the bulk shipper being served by
the US rate. There is similar concern about                                     only one railway
provincial diesel fuel tax rates, which average                               • how to create a business climate that will
12.8 cents per litre (weighted by fuel sales).4                                 encourage railways to improve their systems
                                                                              • opportunities to create shortline railways to
These rates have been reduced in some                                           maintain rail service in communities
provinces recently, but state fuel taxes in the                                                                                     290 million tonnes a year. Goods carried in
                                                                                instead of abandoning track
US are generally much lower.                                                  • improving Canadian rail's competitive
                                                                                                                                    containers – some 20 million tonnes per year –
                                                                                position in relation to US railways                 now earn significant revenues, and this is the
The Canadian trucking industry and other                                      • significant job losses due to downsizing             big growth area; it has grown more than 50%
road users have also been questioning the                                                                                           since 1991.
discrepancy between the amount of diesel
and gasoline fuel taxes collected by the                                                                                            Canada’s rail industry is made up of two major
federal government, and what is spent to                                   Shipping by Rail                                         companies and some 50 smaller ones.
maintain roads.                                                                                                                     Canadian Pacific Railway and Canadian
                                                                           Rail is highly efficient for carrying heavy loads         National (CN) operate freight systems across
                                                                           over long distances. One rail car can carry 110          the country. Together, they generate $8 billion
                                                                           tonnes, about four times what a truck can                a year in revenues, or 92% of the industry total.
                                                                           carry. Bulk commodities such as grain, coal,             The largest regional railway is BC Rail, which
                                                                           sulphur, potash, chemicals and forest products           operates 2,314 kilometres of mainline track
                                                                           continue to be the backbone of the rail                  within British Columbia.
                                                                           industry, with traffic volumes of some
                                                                                                                                    There is also a growing number of shortline
                                                                                                                                    railways. For example, OmniTRAX operates
                                                                                                                                    almost 2,000 kilometres of track in three
                                                                                                                                    separate railways, including the Hudson Bay
                                                                                                                                    Railway, which connects with the Port of
                                                                                                                                    Churchill. OmniTRAX also owns and
4
    Transportation Table on National Climate Change Process, “Foundation
    Paper on Climate Change” (December 1998).                                                                                       operates this port, which is one of Canada’s


                                                                                                                   Moving Forward A Guide on the Importance of Transportation in Canada
       outlets for grain exports. RailAmerica,                     connections to the US Midwest and New York,                 streamline their operations (e.g., serve fewer
       another owner of several shortlines, with                   and as far south as Kentucky. In 1999, CN                   points with more cars per train, and use
       more than 4,300 kilometres in Canada is also                acquired the Illinois Central Railroad, giving it           advanced technology to control train
page
       expanding. Shortline railways haul anything                 a continental reach from the Pacific and                     movements). The next round of productivity
       from natural resources to consumer goods,                   Atlantic coasts in Canada, south to New                     gains are coming from investments in more
 24
       depending on their location.                                Orleans on the Gulf of Mexico.                              powerful locomotives and larger rail cars
                                                                                                                               that carry more weight, and in new
       Both CN and Canadian Pacific Railway have                    Through the 1990s, Canadian railways have                   communications technology.
       networks extending into the US. Canadian                    made significant progress in doing more with
       Pacific Railway owns two US railroads – the                  less. Competition from other railways and from              Borders have disappeared, and the market for
       Soo Line and the Delaware & Hudson – and                    trucks and ships has risen steadily. Customers              rail freight transportation is now North
       has also extended its system to provide                     also demand from the railways the faster, lower-            American. Any differences in costs, such as fuel
                                                                   priced services that they need to survive in                taxes, wage rates, and regulatory compliance
                                                                   world markets. Squeezed in the middle,                      costs, affects the competitive balance between
                                                                   railways have had to make dramatic reductions               carriers in different jurisdictions.
                                                                   in their workforce, shed surplus track and
                   The end of an era

       The social fabric of many of Canada’s regions has been
       woven by their resources. In Atlantic Canada, it has        damages the roads. The community views the loss of its
       been the fishery. On the Prairies, it has been grain. In     rail line as devastating, since rail service is often                   What is a shortline railway?
       British Columbia, it has been forestry, mining and          regarded as a right – as important as its schools and
       fisheries. Today, the global competition that has brought    hospitals. When grain handling moves to larger centres,     Shortline railways gather traffic from within a small
       about changes in the way resources are harvested, priced    so too does the farm family’s many purchases and use of     geographic area and forward it to large mainline
       and shipped has disrupted those ways of life. On the        community services. Diverting those dollars threatens       railway companies. Typically, shortlines are formed
       Prairies, that change has altered the very landscape.       the existence of many small Prairie towns.                  when the mainline railway sells off part of its track to
                                                                                                                               another operator to reduce costs, but works together
       Small wooden elevators that dotted the Prairie              What can be done? A federal grain handling and              with the shortline railway to continue rail service.
       landscape along thousands of kilometres of rail             transportation review has studied the various options.
       branchlines are being replaced by fewer but more            Shortline railways are one option. Instead of               Shortlines normally operate at a lower cost, often
       efficient, high-throughput concrete terminals. Once          abandoning rail lines that have lost an important part      provide better service than their mainline cousins, and
       there were 5,500 Prairie elevators; today there are just    of their grain traffic because of elevator closures, lines   have fewer employees who do a broader range of jobs.
       1,000, and more reductions are expected.When a local        are being transferred to shortline operators that have      For example, a shortline engineer may pick up rail
       elevator closes and the rail line shuts down, farmers       lower cost operations and can continue the services. The    cars from a warehouse, do his or her own locomotive
       must truck their grain farther to reach another elevator.   federal government has made it easier to establish short-   repairs, and then discuss new business opportunities
       But the road system was not built to handle the weight      lines, and they are growing in importance.                  with a customer.
       that rail accommodates, and the added trucking


       Moving Forward A Guide on the Importance of Transportation in Canada
As US railways and ports try to increase their      Shipping by Air
traffic, there is growing concern that Canadian
cargoes could be diverted to the US system,         The fresh flowers at your local florist may have
because our system is at a cost disadvantage.       come to Canada last night by air cargo from
                                                                                                                                                               page
Some of this is related to geographic differences   Holland, or your new shoes jetted in from Italy.
                                                                                                                                                                25
and traffic densities. Also, input taxes in          Today we are consumers in a truly global
Canada (e.g., employment, property, fuel and        marketplace, and we want the best of
sales taxes) are 50% higher than they are in the    everything the world has to offer – right now. If
US. Locomotive fuel taxes, for example, which       one source can’t provide it, the customer will
are levied in most provinces, have no US            find another source that can. Business has
equivalent. Some of the tax differences are         obviously had to adjust its mindset and the way
offset by the better social and other programs      it meets expectations; from mass production to
                                                    mass customization – getting the right product
                                                                                                           What people are talking about
in Canada, such as employment insurance, but
the Canadian rail industry continues to work to     to the right place at the right time, all at the         • airport and other improvements needed to
close the gap in costs.                             right price.                                               support further growth in air freight

A concern among shippers is a lack of               There has been dramatic growth in the global             • the need for pre-clearance through Customs
                                                    air cargo business. Air cargo has doubled every            for air freight, as is done for passengers
competition in regions where only one
railway serves a farm, a mine site, or a port,      10 years since 1970 and it shows no signs of
such as Halifax. But to survive and be able to      slowing. Canada now imports and exports
support their enormous investment in track          some $60 billion worth of goods by air each
and equipment, railways must move large             year, nearly one-tenth of Canada’s goods trade.
volumes of traffic. For some freight, trucks         Fully half of that trade is with the US.
can compete with rail, but it is not always
                                                    The air cargo industry is traditionally made
practical.
                                                    up of postal, courier and freight forwarder
North American railways own and maintain            cargoes. Freight forwarders consolidate the
their own track and operate train services on       small shipments of a number of different
their lines, but there are calls for “open          shippers, and then bargain better prices from
access,” which would force railways to allow        air carriers and pass on some of the savings
others to operate trains on their tracks. There     to shippers.
is much debate about this.




                                                                                        Moving Forward A Guide on the Importance of Transportation in Canada
page   Today, the lines between air cargo segments are blurred. Companies such as UPS and FedEx,
 26    which traditionally provided courier services, now control 60% of the US domestic air cargo
       market, compared to just 5% in 1977. That success has come from giving customers what they
       want – door-to-door, overnight service, irrespective of the commodity or size of the shipment –
       all arranged with a phone call or e-mail transaction.

       In Canada, the top nine air cargo companies, including Purolator and Loomis, control 80% of
       the market and deliver 1.5 million packages each business day. Canadian companies have also
       formed strategic alliances with foreign firms to provide customers with service to international
       locations. With growth in many countries running between 20% and 45% a year, the
       opportunities are enormous.                                                                              Shipping by Water

       Providing these high-quality services puts significant pressures on the air and ground transportation     Where nature provides the right-of-way,
       networks. Good airport facilities, efficient ground transport, congestion-free roads, and fast, 24-hour   transportation by water is a highly efficient and
       Customs clearance are all essential to the around-the-clock deliveries now demanded by business.         low-cost way to ship freight, particularly for
                                                                                                                heavy cargoes over long distances. Canada’s
       One barrier to more efficient movement of air cargo destined for the US is the need to clear US           natural waterways and deep harbours have
       Customs at the US port of entry. Potential delays add to the cost and uncertainty for shippers           made our system of commercial shipping
       trying to serve American customers in a highly competitive market. If a pre-clearance system for         possible, but substantial investments are
       transborder cargo could be put in place at Canadian airports, similar to the system already in           needed in handling systems, docks, terminals,
       place for passengers destined for the US, it would improve service and create opportunities for          and sometimes locks, canals and dredging to
       cargo moving through our airports.                                                                       complete the marine system.

       Canada’s airlines and airports have traditionally focused on the passenger market, so we have not        Canada’s port system handles 375 million
       developed the cargo airlines that might be expected in a large, trade-oriented nation. But there is      tonnes each year, three-quarters of which is
       interest in establishing carriers to capture this growing business. The federal government opened        moved to or from foreign ports. Vancouver
       the doors in 1998, with rule changes that make it easier for all-cargo air services to operate in        leads the way with 72 million tonnes (1998),
       Canada. The development of that part of the sector is being monitored, however, to ensure that           three times the volume of the next-largest
       all-cargo services don’t undermine the scheduled services of Canadian passenger airlines, which          port. Most Vancouver traffic is coal, grain,
       use cargo to supplement their revenues.                                                                  sulphur, potash and forest products exported



       Moving Forward A Guide on the Importance of Transportation in Canada
                                                                    The Great Lakes/St. Lawrence Seaway System

              Leading container ports:
              1998 traffic – millions of TEUs

World leader / US leader                                                                                                                                                      page
    Singapore . . . . . . . . . . . . . . . . . . . . . . .15.1                                                                                                                27
    Long Beach, CA . . . . . . . . . . . . . . . . . . .4.1

Canadian ports handling containers
    Montreal . . . . . . . . . . . . . . . . . . . . . . . .0.93
    Vancouver . . . . . . . . . . . . . . . . . . . . . . .0.84
    Halifax . . . . . . . . . . . . . . . . . . . . . . . . .0.44



to more than 100 countries. Montreal is the
largest container port. Its container traffic is
largely to or from the US, as it is the leading
Atlantic coast gateway for the European
container trade. Vancouver is also a major
container port, and volumes are growing
steadily.
                                                                    retained ownership of all the infrastructure,       and carries sand and gravel, limestone,
The St. Lawrence Seaway, which connects the                                                                             cement and petroleum products. Tugs are also
Great Lakes with the Atlantic Ocean through                         while the not-for-profit St. Lawrence Seaway
                                                                    Management Corporation assumed the                  used at all Canadian ports to dock ships, and
a series of locks and canals, permits ocean-                                                                            on the Mackenzie River and in the Arctic to
going vessels to access the interior of the                         management role.
                                                                                                                        supply remote communities.
continent. Today, more than 50 million
                                                                    On the Pacific coast, the tugboat industry is
tonnes of grain, iron ore, coal and steel are                                                                           Canadian flag vessels (i.e., ships registered in
                                                                    an important part of domestic and Canada-
moved on this important bi-national system,                                                                             Canada and using domestic crews), serve
                                                                    US water transportation. A fleet of tugboats
providing more than 60,000 jobs in Canada                                                                               domestic and transborder trade on the Great
                                                                    and barges serves the coastal forest industry
and the US. After 40 years of government
operation, the Canadian portion of the St.
Lawrence Seaway was commercialized in
1998 under the responsibility of a new
public/private organization. The Crown


                                                                                                       Moving Forward A Guide on the Importance of Transportation in Canada
       Lakes, the Pacific and Atlantic coasts, and             legislation, effective May 1999, permits US shippers to make confidential contracts with individual
       northern areas such as the port of Churchill.          shipping lines, something typically not previously allowed. The review must determine whether the
       This fleet, some 175 vessels (over 1,000 gross          SCEA is still relevant – some in the industry believe that the US changes signal the end of
page
       tonnes), carries 98% of the trade moving               conferences – and whether the US system will put Canadian shippers and our transportation
       between Canadian ports, and 55% of                     system at a disadvantage.
 28
       waterborne trade with the US.
                                                              Another major development is the Canada Marine Act, 1998. Under the Act, ports previously
       Despite our significant overseas trade, less            administered by Transport Canada operate in one of three categories: Canada Port Authorities
       than 1% of it is transported by Canadian flag           (i.e., those considered vital to domestic and international trade); regional/local ports; and remote
       vessels. Our overseas waterborne trade is              ports (i.e., those in isolated northern regions). Canada Port Authorities operate as agents of the
       moved by foreign fleets of bulkers (e.g., grain         Crown for port business activities and are managed by boards of directors that include local
       ships and oil tankers) and liners, which are           representation. Regional and local ports come under private or local government control. Remote
       specialized ships for containers and non-              ports will continue under federal responsibility.
       containerized “break-bulk” or packaged cargo.
                                                              The new arrangement for ports is considered by many to be a major step forward, as it allows ports
       International liner shipping has long been             to be more innovative and respond more directly to market opportunities. Some in the industry
       dominated by shipping cartels, called                  believe that it isn’t a big enough step – that more is needed to strengthen the position of our ports
       “conferences”, which operate on specific trade
       routes. Canada is served by several shipping
       conferences on both coasts. Conferences offer
       services based on published schedules at                 What people are talking about
       collectively agreed rates and conditions of                                                                               Ocean shipping and hub ports
       service. Such anti-competitive practices would             • concern among shippers that locally run ports
                                                                    will lead to higher costs                        Vessels can carry enormous loads on each voyage – the
       normally not be permitted under the
                                                                  • public concern about conflicting land use in      largest grain ship can carry 120,000 tonnes, which is
       Canadian Competition Act. However, since                     port cities                                      the equivalent of 1,200 railway cars. Modern
       conferences have played an important role in               • the competitive position of our ports versus     container vessels can take as many as 6,000 TEUs.
       foreign trade and have provided stability in                 US ports
       shipping services, they are exempted from                  • the role of marine pilots                        To keep these expensive vessels fully utilized, shipping
                                                                  • cost recovery from services such as navigation   companies call at fewer ports, where they establish
       certain competition rules by the Shipping
                                                                    aids and other Coast Guard services              high-volume hubs. Ports require top-calibre facilities
       Conferences Exemption Act (SCEA, 1987).                    • the cost and environmental impacts of            and equipment, deep channels, and highly productive
                                                                    dredging deeper channels                         labour. Excellent truck and rail connections are also
       The SCEA is being reviewed, however, in light                                                                 needed, to handle the inland distribution.
       of recent US ocean shipping reform. New US



       Moving Forward A Guide on the Importance of Transportation in Canada
against competing US ports, which have a
greater range of financing options. In many                                                                                                    What people are talking about
cases, US ports even have the right to                                                      The pluses of pipelines
collect taxes.                                                                                                                                  • possible overbuilding of pipelines,
                                                                                                                                                  exceeding the demand for oil and gas            page
                                                                                Pipelines are challenging to construct, because they
                                                                                often have to pass through remote areas with harsh              • public concern about pipelines and safety        29
The Canada Marine Act also provided for a
                                                                                climates, and cross rivers and steep terrain. But they            and the environment
review of the pilotage system. By law, pilots                                   are proven as a safe way to transport Canada’s large            • relations between pipeline operators and
are required aboard commercial vessels to                                       daily production of oil and gas: there have been no               landowners granting pipeline rights-of-way
provide safe navigation when entering                                           fatalities on operating pipelines in the 1990s.
designated coastal waters and port areas. But
there is concern in the industry that pilotage                                  Today, pipeline companies do more than transport oil
                                                                                and gas. Because of new competition, companies are
costs are too high and the rules too restrictive.
                                                                                entering new areas and developing innovative services       compressors or pump stations. Natural gas is
Changes to the Act could, for example, allow                                    – a pipeline company may even one day be your
ship’s officers who have knowledge of local                                                                                                  moved at 20 kilometres an hour, and various
                                                                                electricity provider.
waters to navigate without a pilot. It is also                                                                                              liquid petroleum products are shipped in
argued by some that with today’s                                                                                                            batches that travel at about 5 kilometres an
sophisticated navigation systems (e.g., Global                                  Shipping by Pipeline                                        hour. Pipeline infrastructure (i.e., steel pipe,
Positioning Systems technology), pilots may                                                                                                 terminals and pumping stations, storage
not be needed in certain situations. Others                                     Pipelines are an important part of our                      facilities and acquisition of rights-of-way)
are concerned that relaxing current rules                                       transportation system, linking remote oil and               requires enormous investments and can be
could compromise safety. Any changes                                            gas producing areas to refineries and to                     challenging to build. But once they are built,
resulting from the review will have safety as a                                 domestic and export markets. There are more                 pipelines are the most cost-effective way to
key consideration.                                                              than 540,000 kilometres of underground                      transport oil and natural gas. To move oil from
                                                                                pipelines in Canada – 10 times the length of                Alberta to refineries in Ontario by pipeline is
                                                                                our rail system and more than half the length               typically 10% of the cost of the oil. By
                                                                                of all of our roads.                                        contrast, the cost of shipping natural gas is two
                                                                                                                                            to three times the cost of the gas because of
                                                                                Transmission pipelines carry natural gas and                higher compression and transport costs.
                                                                                liquid petroleum products to local distribution
                                                                                companies or large industrial plants.5 Products             Just as Canadian grain farmers depend on
                                                                                travel through pipelines, some wider than                   roads and railways, our petroleum industry
5
    There is also a 40-kilometre commercial pipeline in Alberta which carries   1 metre in diameter, under pressure created by              could not exist as it is today without pipelines.
    sulphur.




                                                                                                                           Moving Forward A Guide on the Importance of Transportation in Canada
page   They carry 95% of all crude oil and natural gas
 30    production, and supply two-thirds of Canada’s
       energy, including the natural gas to heat more
       than half of all homes. Nearly all of our oil and
       gas exports, some $15 billion in 1997, are
       carried by pipeline to the US.                         Safety first
       There was unprecedented activity in the                Safety has always been a cornerstone of Canadian transportation policy, and it remains a key
       pipeline industry in the late 1990s that was           government priority. The federal government is responsible for air, marine and interprovincial
       forecast to double capacity within just a few          rail and pipeline safety, as well as for the safety of dangerous goods transportation in all modes.
       years. The 3,100-kilometre, $4.5 billion               It has worked with the provinces to develop a National Safety Code for trucking, a set of 15
       Alliance Pipeline project will link production in      standards covering licensing, training, hours of service, and vehicle maintenance. The provinces
       Fort St. John, BC and northern Alberta with            are responsible for road safety within their own boundaries, and the federal government has
       the large US Midwest market. The project’s             delegated responsibility for interprovincial road safety to the provinces.
       main partners are Enbridge Inc. in Alberta,
       Westcoast Energy Inc. in BC, and Fort Chicago          Through Transport Canada, the federal focus is on developing practical safety programs and
       Energy Partners. Other oil and gas expansion           effective regulations. This broad safety involvement includes safety inspection, monitoring and
       projects are planned by TransCanada PipeLines          compliance with regulations, research and development, developing motor vehicle standards, and
       Ltd., Suncor Energy, Enbridge, Foothills Pipe          public safety awareness education.
       Lines, and Maritimes & Northeast Pipeline,
                                                              Similar activities are carried out by many other stakeholders with responsibility for transportation
       among others.
                                                              safety, including provincial/territorial and local governments. But it’s not only governments that
                                                              place a high priority on safety. Private transportation companies, labour organizations, and others,
                                                              such as insurance companies, make safety a key element in their operations. As a result, Canada has
                                                              one of the best transportation safety records in the world.

                                                              Accident investigation is separated from safety regulation and enforcement to avoid conflict of
                                                              interest. The Transportation Safety Board, an independent federal body, enhances safety nationwide
                                                              by investigating air, marine and rail accidents to determine causes and recommend safety
                                                              improvements. Road accident investigation is a provincial/territorial responsibility. In all modes,
                                                              safety has been improving over time, despite increased traffic.


       Moving Forward A Guide on the Importance of Transportation in Canada
                                                               Keeping a clean environment                                                                               page
             Greenhouse gases                                                                                                                                             31
             and climate change                                Like other developed nations, Canada is taking a hard look at how our lifestyle impacts on the
                                                               environment. Transportation is a big part of this, because it is the largest consumer of non-
Certain naturally occurring gases, mainly carbon
                                                               renewable fossil fuels – a leading cause of pollution. “Sustainable transportation” means factoring
dioxide, rise into the atmosphere and trap the heat of
the sun, preventing radiation from escaping into space.        environmental and social costs into the economics of our transportation decisions.
Without the effect of these gases, the earth would be
too cold for life as we know it.                               Sustainability is affected by the personal and professional decisions we make every day. Should I
                                                               take the bus, drive my car, or bicycle to work? Should we charge more for downtown parking
However, the Intergovernmental Panel on Climate                and subsidize bus and rail commuters? These sorts of decisions also apply when we move
Change, representing 2,500 of the world’s leading              commercial goods. What mode is best suited to ship our product to the customer? Can we
scientists, has stated that, “the balance of evidence
suggests a discernible human influence on global
                                                               deliver our goods ahead of schedule? Practical economic considerations, such as travel time,
climate.” In other words, we are changing the climate          convenience, cost, speed of delivery, rather than environmental ones still usually dictate our
by producing too high a volume of “greenhouse” gases.          choices.
We have caused the “greenhouse effect” by burning
fossil fuels such as oil, gasoline and coal in our vehicles,   But that is slowly beginning to change. Today, constant reminders about the environment – the
homes and factories.                                           air quality index we hear on the radio, or local recycling programs – influence our personal
                                                               decisions. Municipal and provincial/territorial governments have guidelines and regulations
The results of the climate change may be droughts,
floods and poor air quality. These changes could reduce
                                                               governing environmental protection and waste management, and the federal government is
the earth’s ability to grow crops and could create             active internationally in discussions on climate change. In December 1997, Canada was one of
widespread health problems.                                    150 nations to adopt the Kyoto Protocol to reduce greenhouse gas emissions, agreeing to reduce
                                                               its emissions by 6% from 1990 levels within the next decade. If the Kyoto Protocol is ratified,
                                                               the transportation industry will be among the hardest hit.

                                                               Transportation, both personal and commercial, is Canada’s single largest source of greenhouse
                                                               gas emissions. So what can be done in transportation to reduce greenhouse gases? Three
                                                               possibilities that can be used in various combinations include:

                                                               • technology – developing more fuel-efficient vehicles, cleaner-burning fuels, and infrastructure
                                                                 technology, such as traffic management systems, to improve the flow of vehicles,



                                                                                                  Moving Forward A Guide on the Importance of Transportation in Canada
page   • changing the way we use transportation –                                                                Sources of Canadian greenhouse gas emissions, 1995

 32      encouraging people to take the bus or train                            The best of
         instead of the car, and, where feasible, moving                        rail and truck

         freight intermodally to make the best use of truck
                                                                    An excellent example of the
         and rail systems, and                                      “marriage” of the flexibility of trucks
                                                                    with rail’s low cost over long distances
       • using less transportation – working from                   is a concept called the Expressway.
         home rather than travelling to work or school.             This system is operated by Canadian
                                                                    Pacific Railway and trucking firms
       Canadian companies have been proactive in the                on the busy Montreal-Toronto-                              Source: Natural Resources Canada
       areas of clean fuel technology, alternative fuels            Windsor-Detroit corridor.
       (e.g., natural gas and ethanol), the design of more
                                                                    A continuous rail “platform” is used        Transport's greenhouse gas emission shares by mode
       fuel-efficient engines, and hydrogen engine
                                                                    to carry trailers, which are driven
       technology, such as the Ballard fuel cell, which             directly onto the rail cars. Trailers are      Road transportation, most in personal vehicles,
       could lead to affordable battery-powered cars.               accommodated on a reservation                produces 89% of transportation greenhouse gases

                                                                    system not unlike a passenger buying
       Creative ideas are needed to reduce greenhouse               an airline or a train ticket. This
       gases in Canada without compromising the                     eliminates delays and offers
                                                                    guaranteed arrival times.
       transportation system on which we have built our
       standard of living and success as a trading nation.          CN has developed a similar
       Achieving sustainable transportation is a shared             arrangement, RoadRailer, with
       responsibility among government, business and                interchangeable rail “bogies” and                         Source: Transport Canada
       individual Canadians – and it will take all of us to         rubber tires used for trailers.
       make it happen.




       Moving Forward A Guide on the Importance of Transportation in Canada
                                                                                                                                           page

                                                                                                                                            33




Moving
      Forward
Canada has developed an excellent transportation           Our principle challenges in transportation are:

system. So excellent, in fact, that it has all but         • Competition – Balancing the transportation interests of users with
disappeared from the minds of most Canadians: we             those of providers, in setting our competition rules and regulations.

take it for granted. But as we move into the 21st          • Investing for the future – Reinvesting in systems that maximize the
century, some powerful trends are changing the rules of      best features of all modes and correct deficiencies in the existing
                                                             infrastructure; and creating a business climate to stimulate investments.
the game. Transportation is essential to support our
shippers and travellers. If we remain complacent – if we   • Government involvement – Determining the roles of each level of
                                                             government: financial backer for infrastructure improvements –
fail to respond – we will be acutely disadvantaged in
                                                             operator of transportation services – steward of the economy –
the fiercely competitive global marketplace.                 guardian of safety and the environment – trade facilitator.




                                                                    Moving Forward A Guide on the Importance of Transportation in Canada
page   • Urban transportation – Providing top-calibre passenger
 34      transportation networks, while respecting the vital need to move
         goods.

       • Technology – Making best use of the latest transportation and
         communication technologies.

       • Environment – Balancing environmental concerns and economic
         priorities.
                                                                              Choices and challenges
       • Education and training – Attracting the best people and giving
         them, as well as those already in transportation, the appropriate    How will people move around?
         training for the modern world.
                                                                              Within cities
       As users of the Canadian transportation system, we all face these      Getting around our cities is already a daily battle for millions of
       challenges. As taxpayers and voters, we will be asked to make tough    Canadians, and urban populations are rising: some cities project traffic
       choices about how the system should be changed, and what our           increases of between 25% and 50%. The results are increasing traffic
       spending priorities should be – how we will drive the future.          congestion, driver frustration, and air pollution. The impact is even
                                                                              more serious for vital commercial trucking activities that stock our
                                                                              stores, supply businesses and link our ports, airports and intermodal
                                                                              rail terminals.

                                                                              We have options – we can install more capacity and we can curb
                                                                              demands on existing infrastructure. Building more capacity for
                                                                              personal vehicle use is not always the answer, because that can actually
                                                                              encourage more traffic. So before we build new infrastructure, we must
                                                                              ensure that we are making the best possible use of our existing system.




       Moving Forward A Guide on the Importance of Transportation in Canada
Reducing the strain on clogged road networks could be                    What will our needs be for moving freight?
accomplished by maximizing the movement of people, not
vehicles (e.g., improving public transit and discouraging                One in three Canadian jobs depends on trade. Transportation has
automobile use, through measures such as higher downtown                 played a lead role in our export-driven economy, with natural resource-
                                                                                                                                                         page
parking charges).                                                        based activities accounting for 44% of Canada’s total exports. That
                                                                                                                                                          35
                                                                         role is expected to continue.
Technology holds great promise for helping solve urban
transportation problems, and Canada is developing some                   Today, however, goods are increasingly produced and sold
excellent technologies. In future, we may be driving cars powered        internationally. Raw materials and components are supplied to distant
by alternative energy sources, such as electricity or the hydrogen       factories, making regions and nations more interdependent. And the
fuel cell. “Intelligent transportation systems,” which use various       growth in both processed goods and the service sector is outpacing that
technologies to improve transportation conditions and                    of traditional commodities. All of this depends on transportation.
communications, are also revolutionizing how drivers, vehicles
                                                                         Transportation has also taken on a more immediate dimension in today’s
and infrastructure interact. There are traffic management systems
                                                                         “scheduled” economy. Just-in-time deliveries are critical to businesses that
in operation today that advise drivers about congested routes to
                                                                         have adopted the practice of more frequent, smaller shipments that
avoid. These technologies may require government funds to
                                                                         minimize the expense of holding inventory. Consumers too, expect
make them commercially affordable.
                                                                         suppliers to have what they want, when they want it, so “seamless” air
Between cities                                                           express, rapid trucking, and intermodal rail systems are crucial.
For inter-city travel, a big question is how to regulate and promote
                                                                         The question is how to ensure that transportation will meet the needs of
competition. Canada’s airline industry is a prime example. The
                                                                         natural resource producers as well as the value-added manufactured goods
federal government has long endorsed competition, yet the ability
                                                                         sector.
of our domestic market to support two major airlines is in
question. Do our airlines have to go head-to-head against each
                                                                         We also need to consider transportation systems in remote areas of
other on all flights in all markets? If consumers fare better in a
                                                                         Canada to enable resource extraction. There is a vast untapped
competitive system, should we allow foreign companies to provide
                                                                         economic potential in the far north, and transportation would play an
the competition? Or should government regulate rates and services?
                                                                         important role in exploiting that potential. This will be possible when
Future developments in the air industry hinge on questions about
                                                                         resource prices warrant it.
the impact on jobs in Canada, ticket prices, and the level of services
to Canadian communities.                                                 A modern, integrated transportation system is essential to maintaining
                                                                         a strong Canada and our quality of life.
For travel by surface modes, we need to decide how to make
better use of bus and rail, as well as encourage the development
of fuel-efficient and environmentally friendly cars.


                                                                                  Moving Forward A Guide on the Importance of Transportation in Canada
page   How can governments help?                                                  boards of local authorities. For ports, there are concerns about how our
 36                                                                               larger ports can compete with US ports, and questions about the
       Governments have historically been seen as regulators of safety and        viability of many smaller regional ports. Will regional and national
       economics, and as financial backers for new infrastructure and services.    needs continue to be met most effectively, and at least cost to the
       Federal and other levels of government retain a significant involvement     consumer? For roads, the responsibility falls largely to municipal and
       in transportation safety, and the federal government continues to fund     provincial/territorial governments. There are calls for a national
       such ongoing services as ferries, VIA Rail, and the Coast Guard.           transportation infrastructure strategy that would focus on improving
                                                                                  the National Highway System – many think that the federal
       The future role of government depends, in part, on an assessment of
                                                                                  government should have a key role, because the cost of correcting
       how well the existing model is working. Are Canadian shippers or
                                                                                  deficiencies in the system will be very high.
       carriers disadvantaged by the total of our regulations compared to
       those of our competitors? Does one mode have any unfair advantage          There are other calls on the public purse. Governments are being
       over any other? Are current policies helping or harming the nation’s       pressured to reduce taxes and spending, yet the public expects them to
       competitiveness?                                                           continue to fund a wide range of programs – everything from national
                                                                                  defence to top-class health care – as well as maintain transfer payments.
       Issues such as a higher total tax burden than that of competing
       countries, self-imposed trade barriers, and non-competitive regulations    Transportation faces stiff competition for federal funds, and some
       need to be identified to assess whether we have the right business          argue that the first priority should be to pay down the national debt.
       climate to stimulate innovation, investment and improvements in            No one in transportation disputes the need for important social and
       productivity. Some of these questions will be addressed in the review of   economic programs. But many feel that transportation is not given the
       the Canada Transportation Act that is scheduled for 2000 – a “report       fiscal priority and funding it requires to support Canada’s position in
       card” of the Act after four years of operation.                            the highly competitive global marketplace. A good transportation
                                                                                  system helps generate the economic prosperity to pay for our social
       Another important question is who will plan and provide infrastructure
                                                                                  programs, so some innovative thinking will be needed to help all
       in future – and how they will do that – given the federal withdrawal
                                                                                  sectors find ways to do more with less.
       from running our busiest airports and ports. For airports, there is a
       significant number of new infrastructure programs on the drawing




       Moving Forward A Guide on the Importance of Transportation in Canada
How will we pay for the transportation system?                               How can we have an environmentally friendly                                     page

                                                                             transportation system?                                                           37
The key issue to be resolved will not be who will pay for transportation
infrastructure, because the consumer pays, through taxes or directly         Today we are much more aware of our environment, and we recognize
through user charges. The question is whether it is more effective and       the importance of preserving it for future generations. We are also
efficient for governments or for the private sector – or a combination        aware that Canada is the second-highest per capita energy-consuming
of the two – to invest. For the private sector to have any interest, there   nation in the world. There is a strongly held view that transportation,
has to be a competitive return.                                              which is responsible for the largest share of greenhouse gas emissions
                                                                             from human activity in Canada, is on an unsustainable path. However,
Some in transportation want fuel tax revenues collected from the             the role of transportation in reducing emissions, or how it might be
industry to be earmarked for spending on transportation projects, as is      accomplished, is still unclear. As big energy users and a nation
done in the US. There is growing consensus that transportation               dependent on transportation, we would be particularly vulnerable to
investments could proceed if federal, provincial and territorial             the potential economic repercussions of having to drastically reduce
governments were to share costs. Private-sector financing and even            emissions. That is why the question of reducing emissions should not
user-pay options, such as highway tolls, are being considered. Toronto’s     be developed without a substantial understanding of the implications
Highway 407, which was built and is operated by the private sector           for the economy and the transportation industry.
and backed by the provincial government, is and example of such a
public-private project.                                                      It is generally felt in the transportation industry that policies to reduce
                                                                             emission levels should consider a range of measures, such as voluntary
                                                                             agreements, regulation, technology (e.g., more fuel-efficient and cleaner
                                                                             vehicles), and public awareness and education. Governments will play a
                                                                             key role because they can affect the economics of transportation activities
                                                                             through, for example, subsidies and tax incentives for fuel-efficient
                                                                             vehicles. In setting new policies, it will be critical for decision-makers to
                                                                             appreciate the impacts that their decisions will have on the movements of
                                                                             people and goods.




                                                                                      Moving Forward A Guide on the Importance of Transportation in Canada
page   How can we attract, educate and keep excellent people in
 38    transportation?

       Canada has overcome some unique physical challenges to develop excellence in
       handling bulk shipments, intermodal goods, and logistics information systems, all of
       which make it a world leader. This expertise could be taught and marketed to
       Canadians and others around the globe.

       Investing in education would pay substantial dividends. Transportation education in
       Canada has been a low priority. We’ve been busy doing it, not teaching it. Pockets of
       transportation education were developed, with the support of the federal government,
       at universities between 1966 and 1984. More recently, these programs have been
       significantly downsized as a result of budget cutbacks.

       The pressing challenge will be for governments, business and educators to work in
       partnership to develop and fund programs that will fulfill the long-term requirements
       of the transportation workforce. New ways of offering educational programs, such as
       through Internet-based distance learning, could be used to extend our transportation
       and logistics expertise to more people. Investing in human capital will help develop a
       competitive advantage for the benefit of the transportation sector and all Canadians.




       Moving Forward A Guide on the Importance of Transportation in Canada
Appendices Contents
                                                                                                                                                             page

                                                                                                                                                              39




     Appendix 1 – Transportation professionals are talking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

     Appendix 2 – National policy and regulation highlights since 1967 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

     Appendix 3 – Government transportation spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

     Appendix 4 – People in transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

     Appendix 5 – Unions in transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

     Appendix 6 – Educational sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

     Appendix 7 – Mode profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53




                                                              Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
page

 40




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
appendix 1
                                                                                                                         page

                                                                                                                          41
             Transportation professionals are talking


             The members of WESTAC in Vancouver                  The top areas of concern were:
             and The Van Horne Institute in Calgary
             represent the pulse of transportation in            • Infrastructure – its condition, who will
             Canada, particularly in the west. They                provide it, how it will be paid for, what
             include shippers, carriers from all modes,            is needed
             airports, ports and terminals, labour groups,       • Competition – in Canada, with the US,
             and the three levels of government. Many are          globally, within and between modes, how
             the decision-makers who shape the policies            it should be promoted, and how it should
                                                                   be regulated
             of our transportation system.
                                                                 • Customer expectations – cost, speed of
             The members of both organizations were                service, and instant tracking of shipments
             surveyed in May 1999 for their views on the         • Regulation – whether there is too much,
                                                                   too little, or the wrong focus
             major issues facing transportation today. More
                                                                 • Environment – the reasonableness of
             than 60 organizations responded to the
                                                                   Canada’s Kyoto Protocol targets, and how
             survey, ranking 52 items according to
                                                                   to meet them
             importance. There was a substantial degree of
                                                                 • High levels of taxation – fuel, property,
             consensus across sectors and in general on
                                                                   corporate and payroll
             what challenges lie ahead for transportation
             and the industries that depend on it.




                                     Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
page
       appendix 2                                          National policy and regulation highlights since 1967

 42


       The objectives of current Canadian                      Regulatory milestone                         Significance
                                                               National Transportation Act, 1967            • competition among modes recognized as critical to economic
       transportation policy are to:
                                                                                                              well-being and growth
                                                               Western Grain Transportation Act, 1983       • “Crow” rail-freight rates for grain which began in 1897 ended
       • ensure safety and protect the environment,                                                         • rail movement of Western grain became profitable for railways
       • promote efficiency and a free market                                                                • shippers began paying a larger part of the cost of rail transport
                                                                                                            • federal payments of about $650 million per year made
         approach,                                                                                            to railways
       • reduce administrative red tape for all                National Transportation Act, 1987            • competition and market forces recognized as prime forces
         modes,                                                                                               governing transportation (all modes)
                                                                                                            • confidential contracts introduced
       • reduce government spending, and
                                                                                                            • service and rate protection measures for shippers introduced
       • transfer operations to the private sector.            Motor Vehicle Transport Act, 1987            • provincial control continued for truck/bus carriers
                                                                                                              operating in more than one province, but entering the
       Some of the regulatory milestones that have                                                            business made easier
                                                                                                            • trucking rate regulation by provinces ended
       affected transportation in the past 30 years are        Shipping Conferences Exemption Act, 1987     • shipping lines remained exempt from Competition Act in
       listed here.                                                                                           setting rates, but prohibited from predatory pricing
                                                               National Airports Policy, 1994               • federal government role changed from airport owner-operator
                                                                                                              to owner-landlord
                                                                                                            • most airports divested to private or local government interests
                                                               Elimination of the Feed Freight Assistance   • ended long-standing transportation subsidies (e.g., feed
                                                               program, the Maritime Freight Rates Act        grains from the Prairies to other regions of Canada, and
                                                               and the Atlantic Region Freight Assistance     road, rail and marine freight services within Atlantic
                                                               Act in 1995                                    Canada and to Central Canada)

                                                               Elimination of the Western Grain             • grain farmers responsible for paying 100% of rail freight costs
                                                               Transportation Act in 1995                   • farmers received a one-time buy-out from federal
                                                                                                              government in return for end to rail-rate subsidy
                                                               Canada Transportation Act, 1996              • deregulation continued for all modes
                                                                                                            • safety enhanced
                                                                                                            • sale, transfer (shortline railway operator) and abandonment of
                                                                                                              rail lines streamlined
                                                               Canada Marine Act, 1998                      • ports granted more freedom to manage their own business
                                                                                                              to respond to local needs
                                                                                                            • marine transport regulations simplified



       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
appendix 3                                                Government transportation spending
                                                                                                                                                                          page

                                                                                                                                                                           43


Government                                                  On average, the federal, provincial and               spending has declined by more than 50% since
Spending on      40%                                        territorial governments spent a combined              1991. Transportation’s share of all federal
Transportation
                                                            $16.9 billion per year on transportation over         spending was 1.4% in 1998/99, down from
is Shifting
to Local         30%
                                                            the last five years.1 Provinces and territories        2.9% in 1991/92. For years, rail (e.g., Western
Governments                                                 spend 44% of this – mostly on roads and               grain, branchline subsidies, and VIA Rail)
                                                            highways – local governments 37%, and the             received most of the federal monies. However,
                 20%                                        federal government, 19%.                              cutbacks to VIA in the early 1990s and the
                                                                                                                  elimination of grain subsidies in 1995 have
                 10%
                                                            Federal transportation spending in the last           sharply reduced spending on rail. Federal rail
                                                            decade has been mainly direct subsidies and           subsidies now apply only to passenger services.
                                                            grants, some tied to constitutional obligations       The federal government also supports marine
                 0%                                         such as ferry services. Federal transportation        safety programs and Coast Guard services.
                       Federal




                                                  Local
                                     Provincial




                                 1997/98 = $16.9B

                                 1991/92 = $17.2B




                                                                                                                   1
                                                                                                                       Transport Canada, 1998 Annual Report.




                                                                                      Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Annual spending is only a snapshot of a single                            Frequent comparisons are drawn with the US,
       year. Over the years, in addition to direct                               which is spending huge sums on its
       subsidies, the federal government has invested                            transportation system. In the mid-1990s,
page   billions of dollars in airports, harbours and                             Canada actually spent a similar amount to the
 44    ports, and many other assets. For example, in                             US on a per-person basis. However, we have
       the marine sector alone, federal government                               just one-tenth the population. The concern is
       spending was in the order of $12 billion                                  that we should be spending far more on
       between 1982 and 1993.2 This included                                     transportation, to connect our small
       investments in St. Lawrence Seaway lock and                               population over a similar-sized area. How a
       bridge restoration, port expansion and debt                               small population could pay for such spending
       forgiveness, Atlantic and British Columbia                                on transportation is not a trivial problem.
       ferry systems, and the Coast Guard.
                                                                                 Government Sources and Uses of Funds in 1997/98 ($billions)
       Transportation-related revenues come mainly
       from fuel taxes and user charges. Fuel taxes,                                 Provincial/Territorial                                                Federal

       easily the larger of the two, raised $4.2 billion                            8.711
                                                                                                                                            Revenues: Federal fuel tax revenues from
       for the federal coffers and $5.8 billion for the                                       Licence                                       domestic marine carriers are unavailable.
                                                                                              Fees                                          Revenues from sources other than fuel taxes,
       provinces and territories in 1997/98.                                                                                                such as user fees for Coast Guard services,
                                                                                                         7.619     Rail                     are excluded.
                                                                                                                   Air
                                                                                                                   Water                    Spending: In addition to the $1.781 billion,
                                                                                                                   Multi-modal              $547 million was spent in 1997/98 on transport
                                                                                                                   Transit                  facilities and services (e.g., airport operations,
                                                                                              Fuel                                          marine safety, and Coast Guard).
                                                                                                                    Roads
                                                                                              Taxes
                                                                                                                                             4.185
                                                                                                                                                      Rail
                                                                                                                                                      Air
                                                                                                                                                      Road diesel
                                                                                                                                                      Road gasoline

                                                                                                                                                                    1.781
                                                                                                                                                                              Other
                                                                                                                                                                              Rail
                                                                                                                                                                              Highways
                                                                                                                                                                              Ferries/Marine
                                                                                                                                                                              Air


                                                                                 Revenues             Spending *                           Estimated           Spending on
                                                                                                                                         Revenues from        Direct Subsidies
                                                                                                                                         Transportation          and Grants
                                                                                 * Excludes $0.6 billion in federal transfer payments.      Activities
       2
           Transport Canada, “Marine Policy Review, An Overview Paper” (1995).
                                                                                   Sources: Transport Canada; Statistics Canada




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
appendix 4                                        People in transportation
                                                                                                         What people are talking about
                                                                                                           • job security and turnover
                                                                                                           • finding and training workers                      page

                                                                                                           • attracting transportation professionals to the    45
                                                                                                             public sector
Transportation could not take place without       Employees (CUPE), representing the workers               • the earnings gap between top managers and
the thousands of people who serve customers,      who are employed by municipalities, ports,                 workers
                                                                                                           • gaps in transportation education programs
operate services and maintain equipment and       provincial governments, and airlines. The
                                                                                                           • free trade and implications for jobs in
facilities. Other workers – including travel      other main public-sector union is the Public               Canada
agents, marine pilots, air traffic controllers,    Service Alliance of Canada (PSAC),                       • losing well-qualified people to other
and the engineering companies, consultants        representing workers in various federal                    countries that offer more attractive working
                                                                                                             and living conditions
and contractors who plan and build our            government departments. The main
facilities – provide services to transportation   transportation unions and typical employers
companies and to the public. Still others work    are shown in appendix 5.
with governments, providing various services.                                                         model that is tighter and more effective.
                                                  The work environment                                As a result, there is a great deal more
In 1997, transportation employed more than        and job skills are changing                         communication between top management
700,000 people in Canada, representing                                                                and workers, so being able to communicate
approximately 6% of all Canadian jobs.3           Organizations and the workers in them are           and handle responsibility are just as important
Of those:                                         being transformed. Intense global                   today as up-to-date technical skills.
                                                  competition, speed and cost pressures,
• 515,000 were directly involved in               customization of products and services, and         Expectations have also changed. Few workers
  transport services,                                                                                 expect to fill a single position with a single
                                                  rapidly changing technology are “business as
• 92,000 worked in associated services                                                                company for their entire working lives.
                                                  usual” today. Mergers and alliances are
  (e.g., as travel and shipping agents), and                                                          Management is looking for new ways to help
                                                  creating whole new companies, bringing
• 84,000 were involved in developing and                                                              workers be more productive and take control
  maintaining transportation infrastructure.      workers of all ages and cultures together
                                                                                                      of their own work. There has also been a shift
                                                  under often challenging circumstances.
                                                                                                      to more contracting-out: some 70% of
According to Statistics Canada, almost half of
                                                  Under those pressures, many companies are           Fortune 500 manufacturers outsource some
all transportation workers are members of a                                                                                        4

                                                  doing away with entire layers of middle             of their logistics functions.
labour union. In the public sector, the largest
union is the Canadian Union of Public             management – moving to a more horizontal


3
    Transport Canada, 1998 Annual Report.
                                                                          Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
4
    Journal of Commerce (January 4, 1999).
       What does “a career in                                  particular, are having difficulty finding enough      related degree and several years of industry
       transportation” mean?                                   skilled workers to fill their needs. Other           experience is an asset for this type of position.
                                                               industries also require transportation knowledge
page
       The answer is no longer as simple as “a                 (e.g., consulting, financial analysis, project       Municipal Transit/Transportation Planner
 46
       trucker,” “an airline pilot,” “a ship’s captain” or     management, business development marketing,
       “a locomotive engineer.” Today’s successful             and insurance brokering) to service the             Nowhere is the need for careful planning more
       workers have a greater range of job skills. They        transportation sector. A background in              critical than in urban transportation – ask
       are better educated, more productive, more              transportation can be a valuable asset in           anyone who has been gridlocked in rush-hour
       customer-focused, and often willing to relocate.        virtually any industry.                             traffic. Urban transportation planning demands
       And most have the information technology                                                                    excellent communication skills (e.g., verbal,
       skills that are in such high demand, as all             Samples of aptitudes and skills required in some    written, presentation and listening) and the
       businesses become increasingly reliant on               careers in transportation are highlighted below.    ability to work effectively as part of a team. A
       information systems.                                    Education, flexibility and communication             transportation planner must also enjoy and be
                                                               abilities are basic requirements for all.           able to do research, and formulate and test
       Jobs of today and tomorrow are multi-                                                                       realistic solutions. A large part of this job is
       dimensional and will require constant skills            If you like to analyze information and              project management. Also important is the
       upgrading. This is especially true in                   develop solutions:                                  ability to use information about organizational
       transportation, where change at every level is                                                              and political environments. A degree in
       driven by shifts in global markets, international       Policy and Research                                 Transportation Planning, or Civil Engineering
       regulations, and advances in technology. For            Analyst/Transportation Analyst                      with a transportation focus, is necessary.
       example, today’s trucker needs computer,
       communications and administrative skills, in            Analysts do much more than just collect and         If you like to work in a fast-paced,
       addition to mechanical and driving                      organize data. Analysts need to be flexible,         high-pressure environment:
       proficiencies. Nor can workers rely solely on            creative and innovative, and possess excellent
       getting trained on-the-job these days; if               interpersonal, organizational and                   Truck Dispatcher
       employers still provide training, chances are           communication skills. Verbal, written –
       it has been reduced or outsourced during                particularly report preparation – skills are        A dispatcher must be able to work under
       downsizing.                                             essential, as are attention to detail, and a high   pressure, so he or she must be very organized,
                                                               level of computer competency. Analysts are also     able to do basic arithmetic, and possess good
       Today, companies are hiring people with more            expected to have a good knowledge of the            oral and written communication skills. Since
       specific educational qualifications and work              industry and be able to network effectively with    trucking is not a 9-to-5 job, neither is
       experience. Transportation companies, in                the transportation community. A business-           dispatching; rotating and compressed work



       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
schedules are common. Dispatchers spend           awareness of current world events, because            ships in confined waterways. This position can
much of their time at computer monitors           sudden changes can impact the movement of             be highly stressful, because navigation decisions
observing traffic patterns. They must be able      goods and require re-routing solutions.               can impact ships, crews and cargoes, and the
to handle rapid-fire change (e.g., a sudden        Transportation-related certification is also           environment. The extreme irregularity of hours          page
influx of shipments or disruptions of shipping     useful. Two-thirds of all freight forwarding          and the unpredictability of marine and weather           47
schedules) and be adept with computers,           firms are located in Ontario and Quebec.               conditions are also key considerations in this
telephones, and two-way radios. A high-                                                                 job. A marine pilot is often a former deck
school degree and three to six months of          Train Scheduler                                       officer who has received training in a Marine
related experience are valued in this position.                                                         Studies program.
                                                  Trains are expensive, and idle locomotives and
If you are highly organized and like              cars are of no value to owners or customers, so       Training begins with
to solve problems:                                the train scheduler has a key position. He or she     the right direction
                                                  must be highly organized, and possess strong
Freight Forwarding                                communication and advanced computer skills.           Emerging trends in education today combine
Clerk/Logistics Coordinator                       Usually working under considerable pressure,          technical training and higher education,
                                                  the train scheduler must have a keen aptitude         involving several institutions, such as
A freight forwarder’s role goes beyond routing    for detail. Project management and problem-           universities and community colleges, to provide
something between point A and point B. This       solving skills are also essential to the job, and     the more practical educations demanded by
position is about problem solving. Forwarders     the ability to identify new opportunities for         industry today. However, getting an education
are the central link among several different      improvement is highly valued. The working             in transportation is still not as straightforward
chains, and must be able to deal professionally   environment is a combination of indoor and            as it is other fields. The options in Canada
with many different service providers and         outdoor (e.g., work in rail yards).                   today include courses and programs offered by
customers. A freight forwarding clerk must be                                                           universities, industry associations, community
very organized, flexible, and able to work long    If you like to work on the water, and don’t           colleges, and private-sector companies.
hours under the pressure of deadlines.            mind irregular hours:
Computer, mathematical, and financial                                                                    For those who are motivated to learn,
management skills are all required, as is         Marine Pilot                                          communicate and work hard, transportation
attention to detail. Communication skills and a                                                         offers interesting, forward-looking careers that
good knowledge of the transportation services     Marine pilots work aboard arriving and                pay well and can lead to an extraordinary range
offered by all modes are also very important.     departing ships to provide detailed knowledge         of opportunities.
Not least, freight forwarding clerks must have    of local navigating conditions, which
strong knowledge of geography, and an             contributes to the safe and efficient operation of



                                                                            Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
page
         appendix 5                                                          Unions in transportation

 48


                    Unionization Rate (%),                                   Major Labour Unions in Transportation
                   Selected Industries, 1998
                                                                             Union                                Typical employers               Job functions in transportation
              70                                                             B.C. Ferry & Marine Workers’ Union   • British Columbia Ferry        • Ship officers, licensed deck and engineering
                                                                                                                    Corporation                     staff, deckhands, catering/galley staff,
              60                                                                                                                                    terminal/ticketing staff, trades, labourers
                                                                                                                                                    (4,400)
              50                                                             Brotherhood of Locomotive            • Railways                      • Locomotive engineers, train dispatchers,
                                                                             Engineers (BLE)                                                        rail traffic controllers
              40                                                                                                                                  • BLE bargains jointly with UTU under the
                                                                                                                                                    umbrella organization Canadian Council
              30                                                                                                                                    of Railway Operating Unions (CCROU)
                                                                             Brotherhood of Maintenance           • Railway                       • Employees who build and maintain tracks,
              20                                                             of Way Employees                                                       bridges and other railway structures
                                                                             Canadian Air Line Pilots             • Airlines                      • Pilots and co-pilots
              10                                                             Association (CALPA)
                                                                             Canadian Auto Workers (CAW)          • Airlines, railways, bus       • Diverse positions (35,000)
               0                                                             (National Automobile, Aerospace,       companies, marine carriers    • CAW also represents 180,000 others in
                                                                             Transportation & General Workers                                       11 sectors, including shipbuilding and
                    Transportation, warehousing
                   Finance, real estate, insurance
                          Wholesale/retail trade
                       Forestry, mining, oil & gas




                            Public administration
                                   Manufacturing



                                                      Educational services
                                      Agriculture




                                     Construction
                                     All industries




                                                                             Union of Canada)                                                       aerospace
                                                                             Canadian Marine Officers’ Union       • Marine carriers (passenger    • Licensed marine engineers
                                                                                                                    and freight vessels, towboats)
                                                                             Canadian Merchant Service            • Marine carriers (passenger •    Licensed ships’ masters, mates, engineers,
                                                                             Guild (CMSG)                           and freight vessels, towboats)  marine pilots
                                                                             Canadian Union of Public             • Municipalities, harbour        •Diverse range of positions, most within
                                                                             Employees (CUPE)                       commissions, provincial         the public sector
                                                                                                                    governments, airlines          •CUPE represents 460,000 workers in the
                                                                                                                                                    public sector (includes non-transportation)
                                                                             Grain Services Union (affiliated      • Grain companies               • Workers unloading, processing and
                     Source: Statistics Canada                               with the ILWU)                                                         loading grains at Prairie elevators
                                                                             Grain Workers Union – Local 333      • Port grain terminals          • Workers unloading, processing and
                                                                                                                                                    loading grains at six west coast terminals




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
International Association of           • Airlines                          • Canada’s largest air transportation union,
Machinists and Aerospace                                                     with a diverse range of positions (16,000)
Workers (IAM)                                                              • IAM also represents many workers in
                                                                             other industries, including aerospace and
                                                                             transportation equipment manufacturing        page
International Longshore and            •   Port terminals                  • Workers handling the storage, loading
                                                                                                                            49
Warehouse Union – Canada (ILWU)                                              and unloading of cargo from vessels,
                                                                             docks and warehouses
International Longshoremen’s           •   Port of Thunder Bay             • Workers handling the storage, loading
Association (ILA)                                                            and unloading of cargo from vessels,
                                                                             docks and warehouses
Public Service Alliance of             •   Various federal government • Workers performing diverse
Canada (PSAC)                              departments                       transportation functions
Seafarers International                •   Marine carriers                 • Unlicensed crew such as deckhands,
Union of Canada (SIU)                                                        oilers, cooks
Teamsters Canada                       •   Trucking, bus, taxi, moving • Workers in a diverse range of transport
                                           and courier companies, airlines   and warehousing positions (40,000)
                                                                           • Teamsters also represents 60,000 workers
                                                                             in other sectors, including food service,
                                                                             construction, automotive
Union of Canadian Transport            •   Transport Canada, Fisheries • Public-sector employees in transportation,
Employees (UCTE) (part of PSAC)            and Oceans Canada, Canadian including: airport workers who maintain
                                           Transportation Agency, and        runways, buildings and equipment; air
                                           other federal departments;        traffic controllers; firefighters at airports;
                                           port, pilotage and airport        workers who maintain buoys, buildings
                                           authorities; NAV Canada           and equipment in marine yards;
                                                                             lightkeepers; workers operating the
                                                                             canals in public parks; crews on Coast
                                                                             Guard vessels
United Steelworkers (USWA)             •   Railways, airlines, trucking, • Workers in various transport positions
(Transportation Communications             courier, marine and grain         (6,000 from TCU)
Union Canadian Division TCU                companies                       • USWA in Canada represents 190,000
recently voted to join USWA)                                                 workers, 65,000 in steel and mining, and
                                                                             the rest in a wide range of sectors
United Transportation Union (UTU)      •   Railways, transit operators • Rail trainmen, brakemen, yard service
                                                                             employees, transit drivers, mechanics
                                                                           • UTU bargains jointly with BLE under the
                                                                             umbrella organization Canadian Council
                                                                             of Railway Operating Unions (CCROU)




                               Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
page
       appendix 6                                           Educational sources

 50


       The following listing describes some of the             British Columbia Institute of Technology,      Canadian Institute for Traffic
       institutions that provide transportation                Burnaby, British Columbia                      and Transportation (CITT),
       training in Canada. The list is by no means             www.bcit.bc.ca – BCIT offers a two-year        Toronto, Ontario
       exhaustive, and does not include many private           diploma program in International Trade and     www.citt.ca – Through distance learning or
       training institutions, such as driver training          Transportation, as well as technology          college participation, a diploma in
       schools for truck drivers, flight schools for            diplomas in marine engineering and nautical    Transportation and Distribution can be
       pilots, or other colleges offering                      science. Deckhand, Deck Officer, Marine         earned from the CITT, as well as the CITT
       administrative training for the transportation          Engineering, and Nautical Sciences programs    certification, which is well recognized in the
       industry. In addition, many companies and               are offered at BCIT’s Pacific Marine Training   industry. The training involved provides
       industry associations provide training                  Campus. BCIT also offers a part-time           distribution skills, general business skills, and
       programs for their own employees and others.            diploma program in Maritime Logistics and      professional development.
                                                               Port Operations.
       Some examples are: the Institute of Railway                                                            Canadian Trucking Human Resources
       Technology, established by the Railway                  Canadian Association of Logistics              Council (CTHRC), Ottawa, Ontario
       Association of Canada to work with                      Management (CALM), Markham, Ontario            www.earningyourwheels.com – The CTHRC
       universities and colleges to develop programs           www.calm.org – The Canadian Association of     offers driver training programs and
       related to railway employment; in-house                 Logistics Management and York University's     symposiums, driver certification workshops,
       comprehensive driver training programs such             Schulich School of Business (located in        and modules for upgrading skills. The CTHRC
       as those provided by Reimer Express; and the            Toronto, Ontario) present an executive         also develops occupational standards, training
       Seafarers’ Training Institute established by the        program in logistics management.               materials, and research on human resources
       Canadian Shipowners and Seafarers’                                                                     issues in the trucking industry.
       International Union to develop programs                 Canadian Coast Guard College, Sydney,
       in marine safety.                                       Nova Scotia                                    Chartered Institute of Transport of North
                                                               www.cgc.ns.ca – CGC’s four-year Officer         America (CIT / CITNA), Ottawa, Ontario
                                                               Training Plan prepares students for            www.cit.ca – The CIT offers Certificates of
                                                               certification as an Officer in Marine            Achievement, I and II. Completion of
                                                               Engineering or Navigation.                     Certificate I allows an individual to become


       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
an associate member; Certificate II, a             qualifications. Humber College’s Centre for           addition, the TTC provides courses for
Chartered member. Both certificates require        Transportation Training also offers many             airports trades personnel in such subjects as
courses in transportation subjects (modes) as     training programs for the trucking industry.         Basic Industrial Electronics (for licensed
well business/logistics subjects. The CIT                                                              electricians), Airport Lighting Regulators, Fire        page
recognizes specific universities and colleges      The Logistics Institute, Toronto, Ontario            Alarm and Fire Protection (sprinkler) Systems,           51
where courses required for CIT Certificates        www.loginstitute.ca – This institute offers the      Introduction to Refrigeration, HVAC systems,
are offered. These courses can be part of a BA    P.Log designation. This is a professional            Programmable Logic Controllers, and Motor
degree, supplemental to a degree, or taken        accreditation that denotes a high level of           Vehicle Electrical Systems.
solely for CIT certification.                      professional competence and commitment to
                                                  excellence in the logistics field. It requires        North Island College, British Columbia
Concordia University, Montreal, Quebec            prior training and work experience.                  (various campuses on the Coast)
www.concordia.ca – Concordia University                                                                www.nic.bc.ca – North Island’s Marine
offers an IAMBA (International Aviation           McGill University, Montreal, Quebec                  Training programs are designed to help
MBA) degree sponsored by the International        www.mcgill.ca – Certificate in Transportation         prepare for Transport Canada’s Marine Safety
Air Transport Association (IATA). The focus       (continuing education) (one year). The               examinations. These programs and courses are
of this program is on the airline and air         objective of the Certificate in Transportation        aimed primarily at commercial mariners.
transport industries.                             is to provide an academic basis for                  Courses of study in preparation for Ocean
                                                  management positions in the transportation           Navigator and Coastal Navigator are normally
Georgian College, Barrie, Ontario                 industry. The courses that are part of the           carried out under a tutorial basis; courses
www.georgianc.on.ca – Georgian College            program are recognized by the Canadian               leading to Watchkeeping Mate, Fishing
offers the following three-year transportation-   Institute for Traffic and Transportation.             Master, and Master Limited are generally
related programs: Aviation Management,                                                                 carried out under full-time study.
Marine Technology programs in Navigation,         NAV Canada Training Institute,
Recreation, and Engineering, Automotive           Cornwall, Ontario                                    Northwest Community College,
Studies, and Automotive Marketing Business        www.navcanada.ca – The Technical Training            British Columbia (various campuses
Administration.                                   Centre (TTC) provides specialized training to        in the northwest)
                                                  electronics technicians and engineers for the        www.nwcc.bc.ca – The Marine Department
Humber College, Toronto, Ontario                  installation, maintenance and repair of              of Northwest Community College at the
www.humberc.on.ca – The three-year Flight         advanced electronics systems used in air traffic      Prince Rupert centre offers a wide variety of
and Aviation Management Program is the first       control (ATC) and similar systems used by            courses for professional mariners and for those
college program in Canada that combines           the Canadian Coast Guard, as well as Air             who wish to upgrade their theoretical
business management with professional pilot       Traffic Services training including ATC. In           knowledge in the area of nautical studies.



                                                                           Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Mariners may enroll for the following full-             University of British Columbia –                  University of New Brunswick –
       time programs, which are delivered as                   Transportation and Logistics Program,             Transportation Group, Fredericton,
       preparation for Department of Transport                 Vancouver, British Columbia                       New Brunswick
page   certification: Command Endorsement,                      www.ubc.ca – This program provides either a       www.unb.ca/web/transpo/index.htm –
 52    Watchkeeping Mate, and Fishing Master II,               Bachelor of Commerce or an MBA with a             A multi-disciplinary, multi-modal
       III and IV.                                             specialization in Transportation.                 transportation program is offered through
                                                                                                                 either a Master of Engineering, Master of
       Seneca College, Toronto, Ontario                        University of Calgary – Transportation            Science in Engineering, or a diploma.
       www.senecac.on.ca – Seneca College offers an            Theme School, Calgary, Alberta
       Aviation and Flight Technology diploma                  www.ucalgary.ca – A Transportation minor,         The Van Horne Institute – University of
       program. It also offers a two- and three-year           consisting of four courses, can be obtained       Calgary, Calgary, Alberta
       International Transportation and Customs                through the undergraduate programs of either      www.ucalgary.ca/UofC/departments/vanhorne –
       diplomas, as well as a one-year post-diploma            the Faculty of Social Sciences or the Faculty     The Institute’s mandate is education and
       certificate in International Transportation and          of Engineering.                                   research. In order to meet the need for
       Customs Management.                                                                                       comprehensive educational opportunities in
                                                               University of Manitoba – Transport                transportation and related regulatory affairs,
       Southern Alberta Institute of Technology,               Institute (UMTI), Winnipeg, Manitoba              the Institute has developed, in partnership
       Calgary, Alberta                                        www.umanitoba.ca/transport_institute – The        with industry, a Centre for Transportation, a
       www.sait.ab.ca – SAIT offers two-year                   Transport Institute offers a C.Log certification   Centre for Regulatory Affairs, and a Centre
       diploma programs in Aircraft Maintenance                (Certificate in Logistics), as well as             for Information and Communication. These
       Engineering Technology, Avionics Technology,            transportation conferences and research. The      Centres create a climate in which courses and
       Mechanical Engineering Technology,                      certificate program has six courses, which are     research can be developed to assist Canada in
       Operations Management Technology, and                   all recognized by CITT. A diploma in              meeting its educational needs in these distinct
       Automotive Service Technology, as well as a             Transportation and Distribution is offered by     areas. The Institute has also responded to t
       three-year program in Aeronautical                      Red River Community College. By taking the        he life-long learning needs of transportation
       Engineering Technology. SAIT will also be               two programs together, the professional CITT      companies, through continuing education,
       offering certification programs for the rail             designation can be obtained.                      by offering conferences, seminars and
       transportation industry in conjunction with                                                               short courses.
       the Institute of Railway Technology, which
       was established by the Railway Association
       of Canada.




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
appendix 7                                       Mode profiles
                                                                                                                                                                                       page

                                                                                                                                                                                        53


Road – The Physical System                        Canada’s 902,000 kms of roads are located:             Roads in Canada                 (000 kilometres)                      %

                                                                                                         Saskatchewan                          201.9                        22.4
Roads                                             • 61% in the Western provinces and
                                                                                                         Alberta                               181.4                        20.1
                                                    territories (Saskatchewan alone has 22%),            Ontario                               167.9                        18.6
The term “road” refers to everything from         • 32% in Ontario and Quebec, and                       Quebec                                119.9                        13.3
freeways and other paved highways and streets     • 7% in Atlantic Canada.                               Manitoba                               87.9                         9.7
                                                                                                         British Columbia                       65.7                         7.3
to dirt roads. Only one-third of all roads in                                                            Nova Scotia                            26.0                         2.9
Canada are paved; the rest are gravel, oil-       National Highway System                                New Brunswick                          21.9                         2.4
treated, or earth surfaces.                       The 7,306-km TransCanada Highway is a                  Newfoundland                           13.1                         1.5
                                                  part of the 25,000-km National Highway                 PEI                                     5.7                         0.6
                                                                                                         NWT                                     5.5                         0.6
A common – and expensive – challenge in           System that connects Canada from coast to
                                                                                                         Yukon                                   5.1                         0.6
large countries with small populations is         coast. This vital network provides                      Total                                901.9                       100.0
building and maintaining enough roads to          interprovincial and international links, and           Source: Transport Canada, 1995 data; two-lane equivalents (see below).
link people and communities scattered over        almost 40% of it is four or more lanes wide.
huge land areas. Canada has 32.4 kilometres       Although it accounts for less than 3% of the           Ownership of Roads (000 kilometres)
(kms) of roads for every 1,000 people; the US     total road network, more than one-quarter of                                                                 Municipal
                                                  all highway travel takes place on the National         Year Municipal Provincial               Federal Total % of total
has 24.5; France 14.0; and Japan only 8.9.
                                                  Highway System.                                        1985         566            261            14        840           67%
Jurisdiction                                                                                             1989         588            277            15        880           67%
Most of Canada’s roads are the responsibility     Maintaining Our Roads                                  1991         599            275            15        889           67%
                                                  More than $12 billion is spent each year to            1995         656            231            15        902           73%
of municipal governments to build and
maintain. Provincial governments have             build and maintain roads in Canada. Most               Source: Transport Canada                        .
                                                                                                         Roads are measured in two-lane equivalent kilometres (kms). A two-lane
recently been transferring some of their roads    of this is funded by provincial and municipal          equivalent is a length of road measured as if it had only two lanes. For
                                                                                                         example, a 1-km stretch of road with two regular lanes and one passing lane
to municipal governments.                         governments. The federal government, through           down the middle counts as 1.5 km of road.
                                                  Transport Canada, provides some funding
                                                  support to the provinces and territories through
                                                  various programs.


                                                                            Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Spending on Roads vs. Traffic Growth                                      Vehicles                                               17.5                                                                                       Vehicles on Our Roads
                                                                                                                                                                                                                                  (millions of vehicles)
                                                                                                                                                                                                                                  Source: Statistics Canada
       200                                                                      There are 17.5 million vehicles of all types
page
                                                                                registered to drive on our public roads. More                                                                                                     Registered Vehicle Distribution:
       180                                                                                                                                                                                                                        Ontario and Quebec – 59%
                                                                                than three-quarters are passenger automobiles,                                                                                                    Western provinces and territories – 33%
 54
       160                                                                      including taxis and other for-hire automobiles.                                                                                                   Atlantic Canada – 8%


       140
                                                                                Trucks                                                                       3.5

       120                                                                      Vehicles classified as “trucks” number                                                     1.1 .82
                                                                                approximately 3.5 million, including many
       100
                                                                                small pickups and vans. Some 1.1 million




                                                                                                                                                             All trucks
                                                                                                                                         All road vehicles


                                                                                                                                                                          All commercial trucks
                                                                                                                                                                                                  All commercial freight trucks
       80                                                                       operate in the trucking industry. Commercial
            1965   1969     1973     1977     1981     1985     1989     1993
                                                                                trucking industry vehicles have a registered
                                                                                weight of 4,500 kilograms (kgs) or more, and at
       Source: Transport Canada.                                                least six tires. These trucks haul goods or
       Road expenditures/vehicle-km by the three levels of government,
       index 1980=100                                                           conduct other commercial services, such as
                                                                                garbage collection, fire fighting, and towing.

       Road Revenues                                                            Cost of Trucks
       To pay for the roads, governments collect                                Tractor-semi-trailer units cost between
       revenues from road users, including fuel taxes,                          $100,000 and $150,000; specialized trailer          Road – Work Done
       tolls, permit and licence fees, and parking fines.                        equipment, including dry vans, flat decks,
                                                                                                                                    Moving Freight
       It is estimated that the three levels of                                 tankers, auto carriers, dump trailers, and
       government collect more than $12 billion each                            livestock carriers, can cost as much as $200,000.   Roads are key to commercial transportation.
       year from users. Most of the revenue is from                                                                                 Trucks carry virtually everything consumed in
       provincial and federal fuel taxes.                                       Buses
                                                                                                                                    Canada today, and move 75% of the value of
                                                                                Almost 65,000 buses carry passengers on
                                                                                                                                    all Canadian freight shipments to domestic and
                                                                                Canada’s roads. Most are transit or school buses
                                                                                                                                    international destinations. The old saying is
                                                                                operating within urban and suburban areas.
                                                                                                                                    still true: “If you got it, a truck brought it.”
                                                                                Some 4,500 buses provide inter-city scheduled
                                                                                and charter services. Various motor coaches,        Private trucking accounts for most freight
                                                                                most seating 20 to 50 passengers, cost as much      moved in urban centres. For-hire trucking
                                                                                as $400,000.


       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
Commercial                                           North-South vs. East-West                                    Top Commodities Moved by Truck
Transportation                     Rail 16%
                                                     On a tonne-km basis (e.g., the movement of                                          1996 Revenues
Revenue, 1995/96
                                   Marine 6%         one tonne of freight a distance of one                       Commodity Group           (millions)                      % of total

Half of all transportation         Pipeline 10%      kilometre), north-south trucking across the                  General freight*           $4,310                               42.7   page
                                                                                                                  Food & food products        1,574                               15.6
industry revenues depend on the                      US border increased significantly in the 1990s                                                                                        55
public road system.                Air 19%
                                                                                                                  Forest products             1,471                               14.6
                                                     (% of all for-hire traffic):                                  Manufactured end products 718                                    7.1
                                                                                                                  Chemical products              579                               5.7
                                   Bus/transit 11%                                  1990               1996       Petroleum products             371                               3.7
                                   Taxi 4%           Traffic across US border        30%                41%        Motor veh., engines & parts 684                                  6.8
                                   Courier 4%        Traffic within Canada           70%                59%        Non-metallic minerals          248                               2.5
                                                                                                                  Grains                         106                               1.1
                                   Truck 30%                                                                      Metallic ores                   24                               0.2
                                                     This reflects changing trade patterns. In 1981,               Total                     $10,086                             100.0

                                                     trade between the provinces accounted for                    *Mainly manufactured products and fabricated materials.
                                                                                                                  Sources: Statistics Canada; Transport Canada
                                                     27% of Canadian Gross Domestic Product
                                                     (GDP), on a par with international trade. By
dominates in longer-distance movements,              1997, interprovincial trade had dropped to                  Moving People
carrying freight between cities and across the       20%, while international exports had risen.
                                                                                                                 Buses carry passengers by road within and
US border. Since most private truck fleets are
                                                                                                                 between cities. The bus industry includes:
part of some other economic activity (e.g.,              Growth of North-South Traffic, 1990 - 1996*
                                                                                                                 urban transit, school buses, charter buses, and
forestry or the food industry), private                 100
                                                                           Southbound
                                                                                                                 inter-city scheduled services.
trucking statistics are limited. Therefore, data
shown here refer to for-hire trucking. It is             80                                                      Urban transit is the largest part of the
                                                                           Northbound
estimated, however, that the value of private                                                                    industry, employing 84,000 people and
trucking approaches or even exceeds the value            60                                                      carrying 1.36 billion revenue passengers each
of for-hire trucking.                                                                                            year. In 1996, urban transit fares covered just
                                                                         Inter-provincial
                                                         40                                                      50% of the cost of providing the services.
For-Hire Trucking Revenues
The industry earned $10 billion in revenues                                                                      Of the 77 urban transit companies in Canada
                                                         20
in 1996. Some 62% of that came from                                      Intra-provincial
                                                                                                                 earning at least $200,000 in operating
domestic activities, and 38% from                                                                                revenues each year:
                                                          0
international activities.
                                                              1990 1991 1992 1993 1994 1995 1996
                                                                         * Tonne-km basis.
                                                                      Source: Statistics Canada



                                                                                     Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       • 56 are in Ontario and Quebec,                         Bus Industry Revenues, 1996*                                            that found in western Europe. However,
                                                                                                                          (millions)
       • six are in Atlantic Canada, and                                                                                               Canada’s huge land area, harsh terrain and
                                                               Urban transit buses                                          $3,676
       • there are 15 in the West.                             School buses                                                   1,032    climate, and small population make it difficult
page                                                           Scheduled inter-city bus services                                 342   and expensive to build and maintain enough
       Transit ridership for all Canadian urban                Charter buses                                                     270
                                                                                                                                       rail lines to link all of the people and
 56
       centres grew in the 1980s but declined more             Total                                                        $5,320
                                                                                                                                       communities scattered over a large area. This is
       than 11% between 1990 and 1995. An                      * Includes $2.1 billion in subsidies.
                                                                                                                                       reflected in a relatively low measure of rail lines
                                                               Source: Transportation in Canada, 1997, Transport Canada
       estimated 10% of the population travelling to                                                                                   compared to the land area.
       and from work in cities uses public transit for
       all or part of the trip.                                The number of inter-city bus passengers                                 Rail Systems, 1996
                                                               between 1980 and 1996 declined 68%, while
                                                                                                                                                        Kms of rail per           Kms of rail per 1,000
       School buses represent a large share of                 vehicle-kms travelled declined just 35% in the                                           1,000 persons            square km of land area
       industry operators and earn a large share of            same period. This meant that, on average, fewer                         Canada                2.58                          8.4
       bus industry revenues, although school bus              seats were filled on each trip.                                          US                    1.20                         23.9
                                                                                                                                       EU-15                 0.42                         48.4
       operations are not strictly commercial services
                                                                                                                                       Sources: Eurostat EU Transport in Figures, 1999; Pocket Guide to
       competing for riders.                                                                                                           Transportation, US Bureau of Transportation, 1998; Transport Canada
                                                               Rail – The Physical System
       Charter buses serve groups of travellers all
                                                               Rail infrastructure in Canada was originally
       embarking and disembarking at the same point.                                                                                   Growth and Rationalization
                                                               developed and supported by governments
       Services range from a half-day school trip to a                                                                                 Railways were built-up from the late 1800s: by
                                                               through direct ownership, as well as through
       three-week excursion, and they can be one way                                                                                   1900 there was 29,000 kms of track in Canada,
                                                               various grants and subsidies over more than a
       or return and include local sightseeing tours.                                                                                  and by 1930, there was more than 90,000 kms.
                                                               century. Today it is privately owned and
                                                                                                                                       This changed little right up until 1985, at
       Inter-city services carry passengers on                 maintained.
                                                                                                                                       which point there was 95,670 kms. However,
       scheduled trips between cities. The number of                                                                                   rationalization after 1985 reduced that by 22%,
                                                               Canadian National Railways (CN) and
       passengers opting to take the bus between                                                                                       to 74,950 kms, by 1997.
                                                               Canadian Pacific Railway Company (CPR)
       urban centres has declined as air travel and
                                                               together operated 84% of all track in Canada in
       the use of private cars has grown:                                                                                              Route-kilometres
                                                               1997, including industrial tracks, sidings and
                                                                                                                                       The commonly used measure of rail-track
       1996 – 10.3 million bus passengers                      tracks in rail yards, and double-tracked lines.
                                                                                                                                       infrastructure is the route-km, which is the
       1980 – 32.5 million bus passengers                                                                                              length of the route over which a railway
                                                               Canada has more than twice the rail lines per
       1949 – 129.7 million bus passengers (peak yr.)                                                                                  operates its service. Industrial tracks, and
                                                               person than the US, and more than six times



       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
sidings and tracks in rail yards are excluded,   More Line Transfers Expected                                                   67%, and shortline and regional railways are
and the length is counted only once where        During 1998, rationalization by CN and                                         expected to grow from 26% to almost one-
there is more than one parallel rail line.       CPR reduced their combined share of route-                                     third of the track over the next few years.
                                                 kms of track from 78% of the network to                                                                                                            page
Canadian railways operated trains over 50,000    73%. This is expected to further decline to                                    Rolling Stock                                                        57
route-kms of rail lines in 1998. Approximately                                                                                  Railway vehicles – the locomotives and
36,300 route-kms, or 73%, are owned or           Growth of Canada’s Rail Network (000 kms)                                      freight cars – are called “rolling stock.” Diesel
leased by CN and CPR, with most of the           100                                                                            locomotives cost more than $3 million each,
remaining lines owned or leased by regional                                                                                     and freight cars more than $80,000. The
                                                  80
and shortline carriers.                                                                                                         amount of rolling stock in use has declined
                                                                                                           1997 = 74.9
                                                                                                                                12% over the last decade, as more-efficient
                                                  60
Regional Split                                                                                                                  freight cars and locomotives replaced older
Of the total 50,000 route-kms:                                                                                                  ones, and as passenger service was cut back.
                                                  40


• the Western provinces have 60%,                                                                                               Equipment in Service
                                                  20
• Ontario and Quebec have 35%, and
                                                                                                                                                          1987             1997        % change
• Atlantic Canada has 5%.                                                                                                       Freight cars            121,679          107,976           (11.3)
                                                   0
                                                       1875 1885 1895 1905 1915 1925 1935 1945 1955 1965 1975 1985 1995         Passenger cars              926              426           (54.0)
Shortline Railway Growth                                                                                                        Locomotives               3,855            3,143           (18.5)
Closing a railway line or line segment once      Source: Statistics Canada                                                      Source: Rail in Canada 1997, 1987, Statistics Canada
meant a loss of service to shippers and
communities. Although abandonments still         Distribution of Rail in Canada

occur, track and operations are increasingly
                                                 (route-kms, Dec. 31, 1997)                                                     Rail – Work Done
                                                 15,000
being sold or leased to shortline railway
                                                 12,000                                                                         Moving Freight
companies. New rules under the Canada
Transportation Act effective in mid-1996          9,000
                                                                                                                                Commodities carried by railways tend to be
simplified the process for railways to transfer    6,000                                                                         bulk products, and goods packed in
lines to other carriers. Eight new shortline      3,000                                                                         containers. Railways are the most economical
railways were formed in 1997, and another               0                                                                       form of land transport to carry these products
nine in 1998. Together, they account for 26%                                                                                    over long distances. On average, rail transport is
                                                              BC    Alta* Sask Man       Ont      Que   NB     NS        Nfld
of the rail network, on a route-km basis.                                                                                       about 30% of the cost of truck transport.
                                                 * Includes the Northwest Territories
                                                 Source: Rail in Canada 1997, Statistics Canada




                                                                                         Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       In 1997, railway freight traffic in Canada                                  Activity                                           VIA Rail

       totalled 291 million tonnes. The top 10                                    There are various ways to measure the work
                                                                                                                                     VIA Rail moved 3.8 million passengers in 1997,
       commodities accounted for 70% of that                                      done by freight railways. The most common          on its four main routes:
page   volume. Most of these commodities are                                      measure is the tonne-km, which is the              • between Quebec City and Windsor, Ontario,
                                                                                                                                     • on the Western transcontinental (Toronto to
 58    transported to ports for export by water. Large                            movement of one tonne of freight over a
                                                                                                                                       Vancouver),
       volumes are also delivered directly to the US –                            distance of one kilometre. Revenue freight         • on the Eastern transcontinental (Montreal to
       mainly lumber, potash, newsprint, wood pulp,                               tonnes are also used.                                Halifax and Montreal to Gaspé), and
       and containers on flat cars (COFC).                                                                                            • on the northern routes (in Quebec, Ontario,
                                                                                                                                       Saskatchewan and British Columbia).
                                                                                  Class II Share
                                                                                  Shortline and regional carriers handled 29% of     Rail Passenger Distribution
       Top 10 Commodities Carried by Rail in 1997
                                                                                  the revenue freight tonnage carried by
       Commodity                                           Tonnes (millions)      Canadian railways in 1997, although they
       Bituminous coal                                                  40.2                                                                                         Class II
                                                                                  handled just 9% of the tonne-kms. This is
       Iron ore, concentrates                                           38.8                                                                                         Other VIA
                                                                                  because the average length of haul for these
       Wheat                                                            26.3                                                                                         Quebec-Windsor Corridor
       Containers on flat cars (COFC)*                                   17.8      smaller carriers is just 302 kms, compared with
       Potash                                                           14.2      a haul length of more than 1,200 kms for the
       Woodchips                                                        13.4
                                                                                  Class I railways.                                  Intercity Rail Passengers, 1997 = 4.1 million
       Lumber                                                            9.5
       Wood pulp                                                         9.3
       Sulphur                                                           5.7      Rail vs. Truck
       Gypsum                                                            5.4
                                                                                                                                     Moving People
                                                                                  Railways carry more tonnage than trucks;
       * All freight moved in containers is reported as COFC, not by commodity,   railways carry 59% of the tonnage moved by         Inter-city passenger rail services are
        even if the contents are known.
        Source: Rail in Canada 1997, Statistics Canada                            surface transport. Rail dominates even more on     dominated by VIA Rail, which accounts for
                                                                                  a tonne-km basis – 70% – since railways are        92% of all inter-city passengers. About 85%
                                                                                  relatively more cost-effective in carrying bulky   of VIA’s passengers and 70% of the trains are
       Railway Classes                                                            freight over longer distances.                     in the Quebec City-to-Windsor corridor.
       CN and CPR (and VIA Rail for passengers) are
       called the Class I railways. The Class II railways                         Freight Revenues                                   In the past, VIA Rail has received a large share
       are the 50 shortline and regional railways                                 The combined revenues of CN and CPR were           of its revenues from federal government
       operating in Canada. Class III railways are                                $6.8 billion in 1997, representing 91% of the      subsidies, but this has declined dramatically.
       bridge and terminal companies.                                             freight revenues of all Canadian railways.
                                                                                  The balance is earned by the regional and
                                                                                  shortline railways.



       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
In 1993/94, 15% of VIA’s revenues were from        Airport Policy                                                                                                                                                                  National Airports System (NAS)
subsidies; in 1997/98, that figure was less         In 1994, the federal government announced a                                                                                                                                     Airports located in national, provincial and
than 4%. Despite increases in operating            new policy designed to commercialize most                                                                                                                                       territorial capitals, and those which handle at
revenues and reductions in total costs, VIA Rail   federally owned airports. The transfer process,                                                                                                                                 least 200,000 passengers a year, are designated                                                                                           page
recovered just 39% of its total costs in 1997.     once completed, will affect 136 of 149                                                                                                                                          as NAS airports. Together, all NAS airports                                                                                                59
                                                   Transport Canada airports.                                                                                                                                                      handle 95% of passenger and 98% of cargo
Several smaller passenger railways (e.g., BC                                                                                                                                                                                       traffic in Canada.
Rail, Rocky Mountaineer, Algoma Central,
Ontario Northland, and Quebec, North Shore
                                                   Airline Revenues, by Carrier
& Labrador Railways) carried 339,000                Source: Transport Canada
passengers, most on tourist services, in 1997.
                                                                                 Others (mostly Level 111 & 1V )                                                                                                     10%

Commuter rail, serving large urban centres such                                            Large independent carriers                                                                                                                   18%

                                                         Air Canada, Canadian Airlines & affiliates                                                                                                                                                                                                                                   72%
as Montreal, Toronto and Vancouver, carries an
estimated 30 million riders annually.
                                                   Airport Traffic in Canada, 1996 (millions of enplaned + deplaned passengers, 1996)
                                                    Source: Statistics Canada
AIR – The Physical System
                                                    20

Airports
                                                    15
There are 631 Transport Canada-certified
airports that handle Canada’s commercial
                                                    10
aviation. These include basic sites with a
single runway and one multi-purpose
                                                     5
building, to large complexes with multiple
runways, hangars, terminals and warehouses,
and Customs, immigration and agricultural            0

inspection facilities. Most airports are owned
                                                                    Whitehorse


                                                                                           Charlottetown


                                                                                                                        Fredericton


                                                                                                                                                    Moncton



                                                                                                                                                                              London


                                                                                                                                                                                                     Kelowna



                                                                                                                                                                                                                            Saskatoon


                                                                                                                                                                                                                                                  Quebec


                                                                                                                                                                                                                                                                      Montreal-Mir



                                                                                                                                                                                                                                                                                               Ottawa



                                                                                                                                                                                                                                                                                                                   Edmonton


                                                                                                                                                                                                                                                                                                                                             Calgary


                                                                                                                                                                                                                                                                                                                                                                   Toronto
                                                           Gander


                                                                                 Sudbury


                                                                                                           Saint John


                                                                                                                                      Yellowknife



                                                                                                                                                              Prince George


                                                                                                                                                                                       Thunder Bay



                                                                                                                                                                                                               St. John's


                                                                                                                                                                                                                                         Regina


                                                                                                                                                                                                                                                           Victoria



                                                                                                                                                                                                                                                                                     Halifax



                                                                                                                                                                                                                                                                                                        Winnipeg


                                                                                                                                                                                                                                                                                                                              Montreal-Dor


                                                                                                                                                                                                                                                                                                                                                       Vancouver
by municipalities, provincial or territorial
governments, or the federal government.




                                                                                                                                      Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Canadian Airports as of December 31, 1998                                                                                               individual countries, specifying the routes and
                                                                                                                                               other rules by which airlines are to operate
       Type                  Status                                                                                            Number
       National Airports     • federal government continues to own, but has divested airport                                     26            between Canada and each country. There are
page   System (NAS) airports   operations to not-for-profit authorities under long-term leases*                                                 different rules for scheduled and charter
                             • 16 airports transferred; 10 to follow by early 2000
 60                                                                                                                                            services, and for passenger and cargo services.
       Regional and local    • 50 airports transferred; 20 to follow by early 2000                                                70
       Small and satellite   • no scheduled passenger services                                                                    31           Once a bilateral agreement is made, the
                             • 22 airports transferred to local interests; nine to follow by early 2000                                        Minister of Transport designates the Canadian
       Arctic                • based in Yukon and NWT                                                                              9           carrier(s) permitted to serve the routes that
                             • have been transferred to territorial governments
       Remote                • provide year-round access to isolated communities                                                  13
                                                                                                                                               have been negotiated.
                               (one in each of BC, Alberta and Ontario; two in Manitoba;
                               eight in Quebec)                                                                                                Major Airlines
                             • continue to receive federal assistance; not slated for transfer                                                 Canada has two major air carriers: Air Canada
       * Except Whitehorse and Yellowknife, which have been transferred to territorial governments, and are included as                        and Canadian Airlines International Ltd.
         NAS airports even though they are Arctic airports.
         Source: Transport Canada                                                                                                              These airlines:

       Civil Air Navigation                                                               collected, and NAV Canada is now funded              • have comprehensive domestic and
       Civil air navigation services in Canada are                                        through user fees. Safety is the joint                 international route networks,
                                                                                                                                               • operate a number of regional or local
       provided by NAV Canada, a private, not-for-                                        responsibility of NAV Canada and the
                                                                                                                                                 carriers as subsidiaries,
       profit corporation. The system consists of                                          Minister of Transport, whose mandate
                                                                                                                                               • compete with each other and with other
       seven area-control centres, more than 100                                          includes safety oversight of all operations.
                                                                                                                                                 domestic and foreign carriers, and
       airport control towers and flight service
       stations, and a network of navigation and                                          Air Service Policies
       landing aids. The country’s almost 2,000 air                                       Rules for domestic and international services
       traffic controllers are employees of NAV                                            differ under economic regulations, but all air
                                                                                          service providers must meet safety regulations.            Passenger Revenues, by Type of Travel
       Canada. In 1998, the system supported 7.6
       million aircraft arrivals and departures at
       Canadian airports.                                                                 For domestic passenger and cargo service,
                                                                                                                                                                                 Overseas 34%
                                                                                          such factors as routes, aircraft capacity, service
                                                                                                                                                                                 Domestic 48%
       NAV Canada was formed in 1996. The                                                 frequency and fares are not regulated. For
                                                                                                                                                                                 Transborder 18%
       services were previously supplied by Transport                                     international service, the Canadian
       Canada, funded mainly through the Air                                              government has made a series of agreements,
                                                                                                                                                            Source: Transport Canada, 1998
       Transportation Tax. This tax is no longer                                          called bilateral agreements, with more than 60



       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
• have alliances and other agreements with        Air – Work Done                                      Revenues
  international carriers to widen their                                                                In 1997, 90% of the combined revenues of
  networks (Air Canada is a member of the         Moving People                                        the two major carriers, their affiliates, and the
  STAR Alliance; Canadian Airlines is a                                                                large independent carriers came from                    page
  member of the OneWorld Alliance).               Air services may be grouped in a variety of          passengers; the rest was from freight and other          61
                                                  ways, including:                                     flying services. Passenger revenues were:
Other Airlines
A number of independent carriers (e.g., Air       • scheduled or charter services on domestic,         • 48% from domestic services, down from
Transat, Canada 3000, Royal Airlines,               transborder (US), or international (non-US)          56% in the mid-1980s,
SkyService, WestJet and First Air) offer            routes,                                            • 89% from scheduled services, and
various services on a smaller scale. Some         • Level I (largest) through Level VI carriers,       • 11% from charter services – most from
regional carriers not affiliated with the two       depending on the number of revenue                   overseas markets.
major carriers provide domestic services,           passengers or tonnes of goods carried, or
mostly in remote areas. Cargo service is          • first class, business class, economy fares,         Measuring Airport Activity
usually an important part of these services.        discounted, and other fare classes.                Airlines measure business activity by counting
There are a number of smaller carriers that                                                            the number of revenue-generating passengers
                                                  Transborder Traffic Growth
operate in all regions of the country,                                                                 or tonnes of cargo they carry. Airports,
                                                  Canada’s transborder market is growing the
offering passenger and cargo services, as                                                              however, count each passenger twice – as
                                                  fastest. Air Canada, Canadian Airlines, and
well as dedicated carrier and on-demand                                                                “enplaned plus deplaned” passengers – since
                                                  the large charter airlines increased their
charter services.                                                                                      each passenger is served both departing and
                                                  number of transborder flights from 60,000 in
                                                                                                       arriving. Similarly, cargo is counted by the
                                                  1994 to 115,000 in 1997. This growth
Airplanes                                                                                              originating airport and the destination airport.
                                                  follows a liberalized Canada-US bilateral
A new 747-400 jet costs approximately $150
                                                  agreement on air services which came into            Private-Sector Aviation
million (US), and a McDonnell Douglas
                                                  effect in 1995.                                      This sector includes business aviation – for
MD-11, some $100 million (US). Factors
such as the type of aircraft, seating capacity,                                                        which privately owned aircraft provide an
and flight range all affect the price.                                                                  alternative to commercial air services – and
                                                                                                       recreational aviation. Recreational flying
                                                                                                       accounts for more than two-thirds of
                                                                                                       Canada’s pilots and three-quarters of the
                                                                                                       country’s aircraft.




                                                                           Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Cargoes Handled by NAS Airports                                                                                                                                          Moving Freight                                     Marine –The Physical System
        300      National Airports System Cargo
                 (000 of enplaned + deplaned                                                                                                                                    Cargo                                              Ports
page
                 tonnes, 1996)                                                                                                                                                  Cargo is carried on all-cargo aircraft, as
                 Source: Statistics Canada
        250                                                                                                                                                                     well as in the cargo section of passenger          “Ports” is the collective term for the marine
 62
                                                                                                                                                                                aircraft. Canadian air carriers earn more than     terminals, docks and facilities that permit the
        200                                                                                                                                                                     $1 billion each year carrying goods. Two-          loading and unloading of vessels along
                                                                                                                                                                                thirds of that is for moving domestic cargoes.     Canada’s three coastlines and the Great
        150
                                                                                                                                                                                The business generated by couriers is an           Lakes/St. Lawrence Seaway System.
                                                                                                                                                                                important part of this sector.
                                                                                                                                                                                                                                   Until recently, more than 2,000 ports and
        100
                                                                                                                                                                                Goods Trade                                        small harbours were operated under several
                                                                                                                                                                                The air industry carries a negligible share of     different pieces of federal transport legislation,
         50
                                                                                                                                                                                Canada’s trade volume, but 9% of its trade         each with its own rules. The Canada Marine
                                                                                                                                                                                value. The reason is that the industry carries     Act, which became law in June 1998, brings
         0                                                                                                                                                                      high-value products such as telecom-               ports under one set of rules and is reshaping
                                                                                                                                                                                munications, computer, transportation,             marine transport so that we have fewer ports
                                                                                                                                                                      Toronto
              13 Other
                         St. John's
                                      Regina
                                               Yellowknife
                                                             Saskatoon




                                                                                                                  Montreal-Dor


                                                                                                                                           Montreal-Mir
                                                                         Ottawa
                                                                                  Winnipeg
                                                                                             Edmonton
                                                                                                        Halifax


                                                                                                                                 Calgary


                                                                                                                                                          Vancouver




                                                                                                                                                                                aircraft, and office machinery equipment.           and a more commercial system.
                                                                                                                                                                                Imports exceed exports, accounting for about
                                                                                                                                                                                two-thirds of the value of goods carried by air.   St. Lawrence Seaway
                                                                                                                                                                                                                                   This major waterway is connected by a series
                                                                                                                                                                                                                                   of locks that allow ships to travel between
                                                                                                                                                                                                                                   ports along the Great Lakes and those on the
                                                                                                                                                                                                                                   lower St. Lawrence River. It enables the
                                                                                                                                                                                                                                   marine industry to move various
                                                                                                                                                                                                                                   commodities from Western Canada to
                                                                                                                                                                                                                                   Central and Eastern Canada and overseas
                                                                                                                                                                                                                                   markets, and iron ore westward from Quebec
                                                                                                                                                                                                                                   to steel plants in Ontario.




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
The Seaway is a joint responsibility of Canada   Canadian Ports

and the US. In October 1998, the authority
                                                 Type                            Characteristics                          Status
that had been responsible for Canada’s part of   Canada Port Authorities (CPAs) There are 18 ports considered           • CPAs: Fraser River, Halifax, Hamilton,
the Seaway since it opened in 1959 was                                          self-sufficient and critical to domestic   Montreal, Nanaimo, North Fraser, Port                     page
                                                                                and international trade.                  Alberni, Prince Rupert, Trois-Rivières,
dissolved. A new organization, the St.                                                                                                                                               63
                                                                                                                          Quebec City, Saguenay, Saint John,
Lawrence Seaway Management Corporation,                                                                                   Sept-Îles, St. John’s, Thunder Bay,
now operates the facilities. The federal                                                                                  Toronto, Vancouver, Windsor
government continues to own the                  Remote ports                   Ports in remote areas which serve the • Transport Canada continues to
                                                                                basic transportation needs of isolated administer these 34 remote ports in
infrastructure. The corporation is responsible                                  communities.                              Quebec, Ontario, Manitoba and BC.
for the Canadian locks between Lake Erie and     Regional and local ports       Public ports other than remote          • Transport Canada is transferring these
the Port of Montreal.                                                           facilities or CPAs.                       ports to other federal departments,
                                                                                                                          provincial governments, municipal
                                                                                                                          authorities, or community or private
Northern Marine System                                                                                                    interests, or is closing them.
The Mackenzie River in the western Arctic                                                                               • In 1995, there were 515 regional and
and Lake Athabasca in northern Alberta and                                                                                local ports; by the end of 1998, 193 had
                                                                                                                          still to be transferred or closed.
Saskatchewan are two waterways that are          Harbours                       Smaller facilities used for commercial • Federal Department of Fisheries and
critical to remote communities. The small                                       and recreational boating and fishing.      Oceans administers about 1,680 harbours.
population is spread over a vast area with few   Other ports                    At the end of 1998, there were          • This category will grow as the regional
                                                                                87 ports: 34 provincial, 18 municipal     and local ports are transferred by
roads, and marine and air services are their
                                                                                and 35 private.                           Transport Canada.
access to one another and to the rest of the
world. Tugs and barges supply fuels,             Source: Transportation in Canada 1998, Transport Canada.

equipment and general supplies.
                                                 Canadian Coast Guard Services
Coast Guard
Under the federal Department of Fisheries        Service                                   Infrastructure
                                                 Marine navigation service                 • Aids to navigation (e.g., light stations, communications stations, transmitter
and Oceans, the Canadian Coast Guard
                                                                                             sites, land-based fixed marine aids, and floating aids)
provides five main services to the marine         Marine communications and                 • Staffed communications centres, and remote transmitter and receiver sites
industry and the public.                         traffic services
                                                 Ice-breaking services                     • Ice-breaking vessels (part of fleet management infrastructure)
                                                 Rescue, safety and                        • Search-and-rescue stations, rescue boats, and spill response equipment
                                                 environmental response
                                                 Fleet management                          • Vessels, aircraft and facilities (e.g., 132 major ships, some 500 small craft/rescue
                                                                                             boats/air cushion vessels, 32 aircraft, and bases and hangars)




                                                                                      Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Marine Pilotage                                         Canada’s Top 10 Ports, 1997 (millions of tonnes)

       Marine pilotage ensures that ships move safely
                                                                    Prince Rupert
       and efficiently in coastal waters and port                      Thunder Bay
page   areas. The marine pilot’s familiarity with local                      Halifax

       waters enables mariners from elsewhere to                      Quebec City
 64
                                                                 Port Hawksbury
       travel in unfamiliar territory.
                                                                          Montreal
                                                                        Saint John                                         Domestic
       There are four pilotage authorities, operating:                 Port Cartier                                        International
                                                                           Sept-Iles
       •   on the Pacific coast,                                         Vancouver

       •   on the Atlantic coast,                                                          0   10   20       30   40       50         60   70
       •   on the Great Lakes, and
                                                               Source: Statistics Canada
       •   in the Laurentian (i.e., St. Lawrence) region.

       These authorities report to the Minister of             Marine – Work Done                                      products, and coal, with smaller amounts of
       Transport. They establish pilotage areas,                                                                       petroleum products, salt, potash, and
       prescribe which ships are subject to pilotage,          Moving Freight                                          construction materials.
       set out classes of pilot licences and
       qualifications, and set tariffs.                         Port Traffic                                             East-West Split
                                                               Canadian ports handled 376 million tonnes               Ports located along the Great Lakes, St.
       Vessel Types                                            of goods in 1997. One-quarter of that volume            Lawrence River and the Atlantic coast handle
       Marine traffic includes general cargo ships,             (i.e., 93 million tonnes) was domestic                  two-thirds of the volumes moving through
       bulk carriers, tankers, container ships,                shipments moving between two Canadian                   Canadian ports; Pacific ports handle one-third.
       tugboats, roll-on/roll-off automobile ferries,          ports. International shipments totalled
       cruise ships, and barges. Container ships can           283 million tonnes, of which two-thirds was             Fraser River Port Authority
       cost more than $100 million to build, and               exports and one-third imports.                          Significant volumes moved by the towboat
       cruise vessels, more than $400 million.                                                                         industry on the Pacific coast are not captured in
                                                               Seaway Traffic                                           the above port data. The traffic through Fraser
                                                               Approximately 49 million tonnes of                      Port totalled 22.2 million tonnes in 1997.
                                                               commodities were moved through the St.
                                                               Lawrence Seaway in 1997. The main
                                                               commodities are grain, iron ore, steel




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
Cargo Traffic in Canada, 1997
                                                                                                                                                       Canadian Share of Waterborne Trade, 1997
                                                                                                                                            Total      (330 million tonnes)
                                                                  Domestic                International          International            (Millions                                            Foreign flag
Cargo class        Main commodities                               handled*                   loaded                unloaded              of tonnes)                                            US flag
Bulk liquid        Crude petroleum, fuel oil,                       12.7                       18.8                   36.6                  68.1                                               Canadian flag        page
                   gasoline
                                                                                                                                                        Deep-Sea                                                     65
Dry bulk           Minerals and base metals, grains                   41.6                     119.6                   37.0                 198.2
General            Minerals and base metals, forest                   39.1                     49.6                    21.3                **110.0     Canada-US
                   and agriculture products, semi-                                                                                                      Domestic
                   and manufactured goods,
                   refrigerated cargo                                 39.1                      49.6                   21.3                **110.0                 0      50       100         150          200
Total                                                                 93.4                     188.1                   94.9                 376.4
                                                                                                                                                                                         Source: Transport Canada
* Domestic volumes of 46.7 million tonnes of goods are counted twice, measuring the activity of one port when they are loaded, and another port when
  they are unloaded.
** Includes containerized goods.
  Source: Shipping in Canada 1997, Statistics Canada                                                                                                   Container Traffic
                                                                                                                                                       Canadian ports handled 20 million tonnes of
                                                                                                                                                       containerized goods in 1997, most through
Canadian Ferry Services, 1997
                                                                                                                                                       Montreal, Vancouver and Halifax. Almost all
                                                                                                               Passengers                Vehicles      containerized goods were general cargo –
Ferry Operator               Service                                                                            (millions)              (millions)     mainly machinery, equipment, and
British Columbia             • largest ferry operator in North America                                            22.3                     8.2
                                                                                                                                                       miscellaneous cargo.
Ferry Corporation            • 40 vessels and 24 routes serving 42 ports on the BC coast
Government of                • inland service                                                                        5.2                    2.2
British Columbia                                                                                                                                       Traffic by Port
La Société des               • five year-round services across the St. Lawrence River                                 5.1                    1.8        Cargo was handled at 176 Canadian ports in
traversiers du Québec          within Quebec
Marine Atlantic              • constitutionally guaranteed ferry service between                                     1.0                    0.5
                                                                                                                                                       1997, with the top 10 ports accounting for
                               Nova Scotia and Newfoundland                                                                                            61% of the total 376 million tonnes.
Other providers              • 10 other providers or government-supported private                                    4.6                    1.7
                               operators in the Atlantic region, Ontario, Manitoba                                                                     Water Transport
                               and Quebec, many of which are seasonal
                                                                                                                                                       Water transport is vital to Canada as a major
Source: Transportation in Canada 1998, Transport Canada
                                                                                                                                                       trading nation, particularly for trade with
                                                                                                                                                       countries other than the US, where road and
                                                                                                                                                       rail are not options.

                                                                                                                                                       In the east, 17 companies operate a Canadian
                                                                                                                                                       merchant fleet of 105 Canadian-registered
                                                                                                                                                       vessels which have a maximum gross registered


                                                                                                                       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       tonnage of over 1,000 tonnes. Most are dry-             Moving People                                       Cruise Ship Services
       bulk and liquid-bulk vessels. They handle                                                                   Cruise ship services are provided by large,
       domestic and Canada-US traffic on the                   Ferry Services                                      foreign-based ships offering luxury cruises
page   Great Lakes, along the St. Lawrence River,              Ferry services are provided on both coasts,         from Vancouver to Alaska, along the Atlantic
       and on the Atlantic coast.                              along the St. Lawrence River, and on various        seaboard, and up the St. Lawrence to
 66
                                                               lakes and rivers. Operating companies range         Montreal. There are also domestic “pocket”
       On the west coast, there is a fleet of                  from small, private operators under contract        cruises (e.g., lock, harbour and river cruises
       250 tugs, 750 barges, and various offshore              or subsidized by federal or provincial              and excursions, such as whale watching)
       supply ships operating in domestic trade.               governments, to federal and provincial Crown        provided on vessels carrying fewer than
       Towing commodities and log booms is the                 corporations. The largest operator, the British     150 passengers.
       dominant activity.                                      Columbia Ferry Corporation, is a provincial
                                                               Crown corporation. It receives a federal grant
       Liner Services                                          to provide services in coastal waters. In 1997,     Cruise Ship Traffic at Major Canadian Ports, 1998
                                                                                                                   (000 revenue passengers)
       Containerized and other non-bulk cargoes use            ferries carried 38 million passengers and
       liner services, which are provided by carriers          14 million vehicles.                                 Saint John

       according to published schedules, on specified                                                                  Montreal

       trade routes with fixed itineraries. Ocean               Federal Role                                        Quebec City

       carriers operating on a common trade route              The federal government is commercializing                Halifax

       may elect to form a “conference” and                    various ferry services by transferring them to       Vancouver

       collectively agree on rates and/or conditions of        provincial or private operators. It will continue                     0        200   400    600        800
       service. Those serving Canadian ports must file          to regulate safety and security and to subsidize    Source: Transport Canada
       their tariffs with the Canadian Transportation          constitutionally guaranteed ferry services, as
       Agency. Shipping lines not operating within a           well as those provided to remote communities.
       conference are termed “independents” or “non-
       conference” operators, and are not required to
       file their tariffs.




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
Pipeline –                                         There are three types of pipelines. In the           How Pipelines Work
The Physical System                                upstream sector, oil and gas producers operate       Gases and liquid hydrocarbons are moved
                                                   the more than 200,000 kms of flow lines or            through pipelines by pressure created by
More than 540,000 kms of pipeline lie beneath      gathering systems that move the raw products         compressors and pumping stations. In                    page
the Canadian landscape. Almost all of our oil      from wells to processing facilities, or directly     natural gas pipelines, the gas can be                    67
and gas production – nearly two-thirds of our      to transmission pipelines.                           compressed by up to 100 times normal
total energy supply – moves through pipelines                                                           atmospheric pressure, and it moves through
for all or part of its journey from producers to   Transmission pipelines, which can be more than       the lines at more than 20 kms per hour – the
consumers. Pipelines are comparable to a           a metre in diameter, carry oil and gas from          speed of a world-class marathon runner. By
network of roads, ports, railways, air services,   producers to local distribution companies, or        contrast, liquid hydrocarbons, which move
and electrical transmission lines, and they        directly to large industries. One company,           in separate “batches,” travel at a walking
form a vital part of our transportation system.    Enbridge Inc., operates the world’s longest oil      pace of 5 kms per hour.
In 1997, more than 8,000 people were               transmission system and transports some 75%
directly employed by the pipeline industry.        of Canada’s oil production. The major natural
Another 24,000 were employed indirectly            gas transmission systems in the country – which
because of the industry.                           are operated by companies such as TransCanada
                                                   PipeLines Ltd., Foothills Pipe Lines, and
Types of Pipelines                                 Westcoast Energy Inc. – are among the largest
There are two main parts to the oil and gas        in the world. These systems also connect with
industry: the upstream sector produces oil and     US gas transmission systems.
natural gas from underground reservoirs, and
the downstream sector refines, markets and          Distribution pipelines are owned by
distributes the products.                          distribution companies, which deliver natural
                                                   gas to homes and businesses over an 80,000-
                                                   km network.




                                                                            Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       Regulation                                              Pipelines – Work Done                              Since 1990, demand for Canadian oil and
       Due to the high cost of building and                                                                       natural gas has been increasing significantly,
       operating pipelines, the industry has been              What and How Much?                                 and Natural Resources Canada predicts
page   strictly controlled by government regulation,           In 1997, natural gas pipelines in Canada           continued growth in North America for
 68    which is designed to balance the interests of           carried 5.6 trillion cubic feet. Of that,          both commodities.
       producers, consumers, and operators. Rates or           46% was for domestic use, and 54% was
       tolls are strictly monitored by federal or              for export.
                                                                                                                  Sources of Canada's Energy Supply
       provincial agencies to ensure fair pricing, as
       well as a fair return to service providers.             Liquid hydrocarbon pipelines carry various
       Increasingly, tolls are being negotiated                grades of crude oil and refined products.
       between shippers and pipelines, reducing the            Other liquid hydrocarbon lines carry natural
       need for regulated settlements.                         gas liquids and petrochemicals. Some
                                                               2.1 million barrels of liquid hydrocarbons
       The National Energy Board (NEB) regulates               were shipped daily in 1997, equivalent to
       natural gas and liquid hydrocarbon                      more than 40,000 truckloads. This amounted
       transportation across interprovincial and               to 760 million barrels for the year, split about
                                                                                                                                   Crude Oil 40%
       international borders. The NEB approves                 equally between domestic use and export.
                                                                                                                                   Natural Gas 27%
       exports, transportation charges, and design
                                                                                                                                   Other Sources 33%
       and operation of facilities. It also regulates          Importance in Trade
       safety standards.                                       Only a fraction of Canada’s oil and gas is         Source: Natural Resources Canada
                                                               consumed where it is produced. Crude oil
       A pipeline that is entirely within a province is        carried by pipeline meets approximately 40% of     Canada-US Energy Trade
       regulated by a provincial authority, such as the        Canada’s energy needs. Imported supplies are       • Canada supplies 15% of the US's natural
                                                                                                                    gas requirements, up from 4% in 1980.
       Alberta Energy and Utilities Board. Together,           shipped, primarily by pipeline, to Quebec from     • Our balance of trade with the US is a positive
       many federal, provincial and municipal                  the Atlantic provinces. Canadian pipelines also      $14.5 billion for crude oil, refined products,
                                                                                                                    and natural gas.
       authorities regulate various aspects of energy          deliver crude oil and natural gas to US
       transportation, ranging from safety, taxation           pipelines. The percentage of Canadian natural
       and labour practices, to environmental                  gas used to supply the US market has more
       impacts.                                                than tripled since 1980.




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
                                                                                    page

                                                                                     69




Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
       WESTAC Member                                           Government of Saskatchewan
                                                               Saskatchewan Wheat Pool
                                                                                                                Fraser Milner
                                                                                                                Gazoduc Trans Quebec & Maritimes Inc.
       Organizations                                           Seaspan International Ltd.                       Greyhound Canada Transportation Corp.
                                                               Sultran Ltd.                                     IBM Canada Ltd.
       Agricore Cooperative Ltd.                               Teamsters Canada                                 Inland Cement Limited
page
       Air Canada                                              The St. Lawrence Seaway Management Corporation   James Richardsons & Sons, Limited
 70    Government of Alberta                                   Thunder Bay Port Authority                       KPMG Consulting
       BCR Group of Companies                                  Transport Canada                                 Luscar Ltd.
       Government of British Columbia                          Transportation-Communications Union              MacLeod Dixon
       Brotherhood of Locomotive Engineers                         Canadian Division                            McCarthy Tetrault
       Brotherhood of Maintenance of Way Employees             United Grain Growers Limited                     Microsoft Canada Company
       Canada Steamship Lines Inc.                             United Transportation Union                      NAV Canada
       Canadian Airlines International Ltd.                    Vancouver International Airport Authority        Pacific Western Transportation Ltd.
       Canadian Merchant Service Guild                         Vancouver Port Authority                         PricewaterhouseCoopers
       Canadian National Railways                              Winnipeg Airports Authority Inc.                 Ryder Integrated Logistics
       Canadian Pacific Railway Company                                                                          Schenker Canada
       Canadian Wheat Board                                                                                     Shaw FiberLink Ltd.
       Canpotex Shipping Services Limited
       Cargill Limited
                                                               The Van Horne Institute                          Siemens Canada Limited

       Council of Forest Industries
                                                               Member List                                      SMED International
                                                                                                                Sultran Ltd.
       CRSA Logistics Ltd.                                                                                      TELUS Corporation
                                                               Air Canada
       Mr. Kevin Doyle, Honorary WESTAC Director                                                                TransAlta Utilities Corporation
                                                               Government of Alberta
       Edmonton Regional Airports Authority                                                                     TransCanada PipeLines Limited
                                                               Alberta Energy and Utilities Board
       Fraser River Port Authority                                                                              Transport Canada
                                                               Alliance Pipelines Ltd.
       Grain Services Union                                                                                     Trimac Corporation
                                                               Bell Nexxia
       Grain Workers Union – Local 333                                                                          United Airlines
                                                               Bennett Jones
       Greater Vancouver Regional District                                                                      University of Alberta
                                                               Blake, Cassels & Graydon
       IBM Canada Ltd.                                                                                          University of Calgary
                                                               Bombardier Aerospace
       International Association of Machinists                                                                  Vancouver International Airport Authority
                                                               Calgary Airport Authority
           & Aerospace Workers                                                                                  Vancouver Port Authority
                                                               Calgary Transportation Authority
       International Longshore & Warehouse Union – Canada
                                                               Canadian Airlines International Ltd.
       Government of Manitoba
                                                               Canadian Freightways Limited
       Methanex Corporation
                                                               Canadian National Railways
       National Automobile, Aerospace, Transportation
                                                               Canadian Pacific Limited
           & General Workers Union of Canada
                                                               Canadian Transport Lawyers’ Association
           (CAW-Canada)
                                                               Cargill Limited
       Neptune Bulk Terminals (Canada) Ltd.
                                                               Danoil Energy Ltd.
       OmniTRAX Canada, Inc.
                                                               Economy Carriers Limited
       Hon. Fred Peacock, Honorary WESTAC Director
                                                               Edmonton Regional Airports Authority
       City of Prince Rupert
                                                               Enbridge Inc.
       Prince Rupert Grain Ltd.
                                                               Foothills Pipe Lines Ltd.
       Prince Rupert Port Authority




       Moving Forward A Guide on the Importance of Transportation in Canada – Appendices
1999


       Graphic design by Laura Burrows Creative Inc
            Victoria, British Columbia, Canada

         Editing by Watchword Editorial Services
            Victoria, British Columbia, Canada
                             About WESTAC and The Van Horne Institute

                     WESTAC (the Western Transportation Advisory Council) is a
                     non-profit association of major organizations in the Western
                     Canadian transportation system. Since 1973, WESTAC has been
                     a unique and powerful forum dedicated to the advancement of
                     the Western Canadian economy through the continued
                     improvement of the region‘s transportation system. With an
                     active and diverse membership of business, labour and
                     government leaders, the Council seeks to resolve issues through
                     a non-adversarial approach.


                     The Van Horne Institute was established to address important
                     transportation and related regulatory issues confronting
                     industry and government – in North America and
                     internationally – through research and education. The institute
                     was incorporated federally in 1991 as a not-for-profit
                     organization. It was granted affiliation with the University of
                     Calgary in 1992 and with the University of Alberta in 1998.




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