Back On Track: Rail revenues spike with freight demand

OTTAWA — Railway operating revenues increased at their fastest pace in five years as carriers profited from the favourable economic climate, and from gains in exports and imports, reports Stats Canada.

In total, freight and passenger carriers recorded operating revenues of nearly $8.9 billion, up 6.9 percent from 2003. This was more than five times the rate of growth in revenues the year before. Freight transportation accounted for the lion’s share — around 89 percent — hitting nearly $7.9 billion, a 7.3 percent gain, says Stats can. That was nearly six times the pace of growth in 2003.

The rail industry’s operating expenses rose 4.3 percent to almost $7 billion, primarily the result of higher costs for rail operations.

Off the Rails: CN and CP seem to be finding
more freight dollars lately

The market share of the various railways, based on operating revenues, remained practically unchanged from 2003. CN had the largest share, about 48 percent, followed by CP with nearly 37 percent. VIA Rail accounted for nearly 5 percent of revenues, while regional and short-line railways shared the remaining 10 percent.

The report states that the top 10 commodities account for just over half of total rail freight.

On an origin and destination basis, railways carried 269.8 million tonnes of freight in 2004, up 8.0 percent from the previous year.

Coal was still the main commodity, thanks to high international demand, with railways carrying more than 30.7 million tonnes, up 7.5 percent from 2003.

The biggest increase occurred in wheat shipments, which rose 23.4 percent in 2004 to nearly 19.8 million tonnes. The absence of a major drought in 2004 surely influenced this result, states Stats Can. Potash shipments rose 12.7 percent to 16.6 million tonnes, while lumber shipments were up 19.3 percent to 13.7 million tones.

The only commodity in the top 10 to record a decline in shipments was iron ore and concentrates, which plunged 19.0 percent to about 15.8 million tonnes.

Traffic from Quebec to the United States and Mexico accounted for 45 percent of all traffic originating from La Belle Province. Lumber and newsprint were among the main commodities transported from Quebec to these destinations.

The US and Mexico accounted for 42 percent of all of Ontario’s markets. The main commodity transported from Ontario to these destinations was wood pulp, which rose 11.1 percent.

The main commodity transported from Alberta to British Columbia remained sulphur at 5.3 million tonnes. On the West Coast, coal accounted for nearly 69 percent of all commodities with both their origin and destination inside B.C. Wood chips and wood pulp were far behind, representing only 10 and 8 percent of all commodities leaving or entering the province.