Industrial Railways: An Emerging Sector

Presentation to the Industrial Railway Safety Conference

Michael BourquePresident and C.E.O. of the Railway Association of Canada

April, 28, 2015

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Canada’s rail franchise

Market reach is highly diversified

Source: CN, CP Annual Reports and Investor Fact Books, 2013.

We enable domestic and international markets

Touching exporters, manufacturers, retailers, and farmers

Source: RAC, Rail Trends 2014.

We move well over $280 B worth of goods each year in Canada

Industrial railways are critical partners to the supply chain

Typically operate under provincial jurisdiction

Operate their own assets and on their own property

Move products specific to the company they serve

Are not subject to common carrier obligations

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Nova Chemicals, Joffre, AB.

Campotex, Lanigan, SK.

We have common issues

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Class IShortline carriers

Passenger railIndustrial rail

Railway challenges are becoming more complex

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Regardless of the issue, or the type of railway, the reputation of all railways is a shared risk.

Rail safety oversight is increasing

New regulatory requirements have been introduced:

•Safety Management Systems Regulations

•Railway Operating Certificate Regulations

Other issues growing in importance

All railways face complex issues related to:

•Community engagement and public perception

•Land use planning

•Environmental issues

Working together to provide long-term solutions

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The RAC is a community of railroads

• Some 60 freight, commuter, intercity and tourist railways.

• Class 1: CN, CP and US carriers

• Short line: over 40 across Canada

• Passenger: Commuter, Intercity, Tourist

• An affiliation with more than 500 rail industry suppliers.

• Growing associate membership.

Our mission is to:

dialogue effectively with all governments and relevant

stakeholders:

on critical issues relating to the transportations system;

and

to ensure rail continues to be safe, secure, competitive and accessible.

We enable effective partnerships through meaningful dialogue

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Board of Directors

Policy & Advocacy Safety & Operations Management

Finance & Audit

Short LineTaxation

PassengerHuman Resources

Wireless CommunicationsDangerous Goods

EnvironmentMechanical

SecurityMedical

Safety Culture

NEW!

There are immediate opportunities to work together

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Managing dangerous goods safely

Developing and updating operating rules

Addressing new requirements

• Member plant and transload facility inspections

• Emergency response planning and assistance

• Dangerous goods compliance audits

• Community engagement and TransCAER®

• Modern legislation in place that allows for the efficient review and update of rules

• Input from relevant stakeholders is critical

• RAC serves as the industry conduit working with members, labour groups and regulators

• Increasing and evolving

• Safety Management Systems

• Local railway operating requirements

Industrial railways can play a critical role in rules, training programs, and best practices.

Our open invitation to industrial railways

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We all have a mutual interest in promoting, maintaining, and enhancing rail safety.

Management of the railway sector’s reputation is a responsibility shared by all railways.

Industrial railways can make a meaningful contribution to the regulatory and rule development process.

The RAC provides the platform to an extensive network of committees and working groups that develop, maintain and update best practices and guidance material.

It is in the best interest of railway carriers and industrial railways to work together and develop long-term sustainable solutions to their issues and challenges.