The federal government has been urged to free up tens of millions of dollars in infrastructure dollars to help rehabilitate short-line railway lines across the country this year.
Cliff Mackay, president of the Railway Association of Canada, told the House of Commons agriculture committee earlier this month that short-line railways do not generate enough revenue to keep their basic track up to standard, which jeopardizes the sector.
“We believe very, very strongly that the loss of that capacity would be, frankly, catastrophic to small towns in Canada and regions,” he told MPs. “They are critically important to the local economy and development.”
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Mackay said 25 percent of rail traffic originates or ends with short lines.
“This is not at the margin,” he said. “This is very important to the overall system.”
However, he told MPs that many short-line railways lose money every year.
“They are losing money on their operation and that’s just simply not sustainable.”
In a later interview, Mackay said the required investment in short-line railways is modest in light of the tens of billions of dollars of stimulus and infrastructure money available from Ottawa as it tries to fight the recession.
“I estimate we’re talking about $350 million to $450 million across the country and that would be cost-shared among governments and the private sector,” he said.
“The federal dollars are there and the need is there but the frustration is with the pace of having expenditures approved and the money flow.”
He urged MPs to pressure the federal government to get funds moving quickly for short-line rehabilitation. Proposals for investment are already before the Ontario and Quebec governments, but federal money is also required.
“If the money was available, work could start within six weeks, which I believe is their goal.”
While appearing in front of the committee, Mackay also found himself under attack from MPs for how his association’s major members – Canadian National Railway and Canadian Pacific Railway – serve customers.
British Columbia New Democrat Alex Atamanenko first raised the issue of line abandonment and service problems on CPR lines.
Mackay said CPR chief executive officer Fred Green has indicated that anyone with a service complaint should call him directly.
He would pass on the phone number.
Later, Saskatchewan Conservative MP Randy Hoback said railway failure to deliver cars when promised is endemic. Farmers move grain to the loading point when rail cars are promised, only to find no cars, a wasted day and high costs.
“You don’t seem to appreciate that,” Hoback told Mackay.
“You don’t even seem to care. I know you mentioned that guy’s phone number. If we can put it in The Western Producer, I think he’ll get a lot of phone calls.”
Mackay said that would not be a problem.
“Quite frankly, he has told me on more than one occasion, if you have a specific complaint and it’s CP Rail, tell them to call me,” Mackay said.
Green’s telephone number in Calgary is 403-319-7555.
Hoback said later that as a farmer, he would not have called the number frivolously or in the middle of the night.
“But if there was a pattern, and there was, I would have picked up the phone and told him about it,” he said. “I hope farmers do.”
