Trucking and Rail-freightTrucking and Rail-freight

Can we restore the balanceCan we restore the balance??Natalie Litwin -PresidentNatalie Litwin -President

Daniel Hammond - Past PresidentDaniel Hammond - Past PresidentTransport Action OntarioTransport Action Ontario

Can we restore the balanceCan we restore the balance??

If rail transport is so efficient and If rail transport is so efficient and great for the environment, why did great for the environment, why did trucks come to dominant freight trucks come to dominant freight transport?transport?

Can we have an environmentally Can we have an environmentally sustainable freight transport system sustainable freight transport system without bankrupting us? without bankrupting us?

Can this be done while stimulating Can this be done while stimulating economic growth? economic growth?

How we got hereHow we got here Railways once the dominant mode of Railways once the dominant mode of

inland freight transport inland freight transport Mechanized rail superior to animal Mechanized rail superior to animal

drawn road transport for all but the drawn road transport for all but the shortest distancesshortest distances

Most businesses that used freight Most businesses that used freight services once located near rail lines services once located near rail lines or spurs to avoid use of real horse-or spurs to avoid use of real horse-power cartagepower cartage

How we got hereHow we got here Mechanization of road transport in the 20Mechanization of road transport in the 20thth

Century created development away from rail Century created development away from rail lines and terminalslines and terminals

Rail remained as the dominant carrier of freightRail remained as the dominant carrier of freight Manufacturers, warehouses remained next to Manufacturers, warehouses remained next to

the rail linesthe rail lines

How we got hereHow we got here

Just-in-time delivery of freight is not newJust-in-time delivery of freight is not new In 1946, the New York Central Railway introduced Pacemaker In 1946, the New York Central Railway introduced Pacemaker

serviceservice Overnight delivery thru-out most of New York state (with steam Overnight delivery thru-out most of New York state (with steam

powered trains!) powered trains!) Myth debunked that rail cannot provide “just-in-time” serviceMyth debunked that rail cannot provide “just-in-time” service

How we got hereHow we got here By 1950, Pacemaker service was extended to By 1950, Pacemaker service was extended to

St. Louis, Chicago, Detroit, Toronto, Montreal, St. Louis, Chicago, Detroit, Toronto, Montreal, Cleveland, ToledoCleveland, Toledo

With delivery times as good as the best ever With delivery times as good as the best ever offered by the trucking industryoffered by the trucking industry

All on infrastructure that was built and All on infrastructure that was built and maintained with private capitalmaintained with private capital

How we got hereHow we got here In 1956, US In 1956, US

President Dwight D. President Dwight D. Eisenhower signed Eisenhower signed the the Federal-Aid Federal-Aid Highway Act Highway Act  into into lawlaw

Railways now have Railways now have to compete for to compete for capital and traffic capital and traffic with the largest with the largest public works public works program in historyprogram in history

How we got hereHow we got here In retrospect, did the In retrospect, did the

railways protect the railways protect the interests of their interests of their shareholders during the shareholders during the debate of thedebate of the

Federal-Aid Highway Federal-Aid Highway Act Act ??

Would today’s AT&T, Would today’s AT&T, Rogers, Verizon and Bell Rogers, Verizon and Bell Canada stand by while a Canada stand by while a public financed cell phone public financed cell phone or fibre optic network was or fibre optic network was constructed?constructed?

  

We are HereWe are Here

Public financed infrastructurePublic financed infrastructure Advances in automotive Advances in automotive

technologytechnology Government policies favouring Government policies favouring

highway transport (including highway transport (including permitting ever larger vehicles) permitting ever larger vehicles) and requiring railways to maintain and requiring railways to maintain an extensive network despite an extensive network despite declining trafficdeclining traffic

Caused a massive shift of freight Caused a massive shift of freight traffic from rail to road traffic from rail to road

The myth that the free market The myth that the free market chose highway transport is now chose highway transport is now bustedbusted

We are HereWe are Here

Quality of this extensive rail network declined rapidlyQuality of this extensive rail network declined rapidly Delivery times lengthened and railways lost very profitable Delivery times lengthened and railways lost very profitable

time sensitive traffic to highways with the decline time sensitive traffic to highways with the decline accelerating in this viscous circleaccelerating in this viscous circle

•Less traffic with a post-war sized network, along with less access to capital (competition with government and the road transport companies for capital)

We are HereWe are Here Staggers Act of 1980 reduced the Staggers Act of 1980 reduced the

regulation of railway industryregulation of railway industry

•This regulatory freedom permitted reduction of rail network•Financially stronger railways improved the network that remained

We are HereWe are Here Exportation of manufacturingExportation of manufacturing Growth of container shippingGrowth of container shipping Big box retailBig box retail Double-stack container trainsDouble-stack container trains Caused an explosion in rail trafficCaused an explosion in rail traffic Shatters the myth that consumer goods are not Shatters the myth that consumer goods are not

handled by railwayshandled by railways

We are HereWe are Here

Few terminals equipped to handle double Few terminals equipped to handle double stack container trains equals truck hauls stack container trains equals truck hauls the same or longer as when goods where the same or longer as when goods where manufactured in USA and Canadamanufactured in USA and Canada

Where We Want to BeWhere We Want to Be

Reduce fuel use (less CO2 and other Reduce fuel use (less CO2 and other emissions, less dependence on emissions, less dependence on foreign petroleum)foreign petroleum)

Reduce costsReduce costs Reduce land useReduce land use

Where We Want to BeWhere We Want to Be

Rail uses 1/7Rail uses 1/7thth the energy to move freight the energy to move freight Rail can be electrified (less, or no, foreign oil, use of wind or Rail can be electrified (less, or no, foreign oil, use of wind or

solar generated)solar generated) Rail is less effected by weatherRail is less effected by weather Rail is much higher in labour and land use productivityRail is much higher in labour and land use productivity Secondary railways for local freight and public transit can Secondary railways for local freight and public transit can

be constructed for less than an arterial roadbe constructed for less than an arterial road Technology exists for economic rail short-haul of freight and Technology exists for economic rail short-haul of freight and

international intermodal containersinternational intermodal containers

Where We Want to Be – A Plan to Where We Want to Be – A Plan to Get ThereGet There

Reduce public spending Reduce public spending on highwayson highways

Spending reduced to a Spending reduced to a level that maintains level that maintains existing infrastructureexisting infrastructure

Halt new projects and Halt new projects and expansionexpansion

Avoid use of PPP (Public Avoid use of PPP (Public Private Partnership) to Private Partnership) to creatively finance creatively finance uneconomic/non-uneconomic/non-sustainable projectssustainable projects

Where We Want to Be – A Plan to Where We Want to Be – A Plan to Get ThereGet There

Tax and policy incentives for investments in local Tax and policy incentives for investments in local intermodal terminals, (reduce truck haul), electrification of intermodal terminals, (reduce truck haul), electrification of rail, short-line (existing or new track)rail, short-line (existing or new track)

Tax credits for shippers to increase use of rail freightTax credits for shippers to increase use of rail freight Diversion of highway funding towards HSR – High Speed Diversion of highway funding towards HSR – High Speed

RailRail