(The Railway Association of Canada issued the following news release on May 2.)
OTTAWA — Cliff Mackay, President and CEO of the Railway Association of Canada, said today Canada’s freight and passenger railways welcome the federal government’s budget commitment to invest more in infrastructure to increase the capacity of Canada’s west coast ports, commuter rail and short line railways.
“They are all critical to the future growth of Canada’s economy, and need quick follow-through to reduce congestion and improve the environment,” said Mr. Mackay. The RAC’s 59 freight and passenger railways carry two-thirds of the freight moved in Canada and 60 million commuter and inter-city passengers annually.
The budget provides:
• $95 million for new measures to enhance the security of passenger rail and urban transit;
• $2 billion over four years for Canada’s Strategic Infrastructure Fund;
• $591 million over the next eight years for the Pacific Gateway;
• $370 million over the next two years in tax credit savings for urban transit users;
• Faster phase-out of the federal capital tax, and a reduction in the federal corporate income tax rate.
“We believe the decision to combine federal responsibilities for transportation, infrastructure and communities under Minister Lawrence Cannon was a good one. It has already streamlined decision-making and facilitated understanding of complex, inter-connected issues,” said Mr. Mackay. “Minister Cannon should be credited with significant progress in a short period of time.”
“At the same time, placing responsibility for execution of Canada’s Pacific gateway strategy under Hon. David Emerson, Minister of International Trade and for the Pacific Gateway, clearly recognizes the importance of that project to the nation’s economy. Asian trade with Canada will double within the next decade, and is already increasing each year at unprecedented rates. Canada either handles the business, or it will go to other countries that can do the job.”
Rail produces only three per cent of transportation green house gas emissions and Canadian freight railway now move 165 revenue tonne-kilometres of freight for each litre of fuel they consume. That is a 23 per cent improvement over the past decade when the railways handled 23 per cent more business. For further information on the industry, go to www.railcan.ca.