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6/12/2003
Rail News: Rail Industry Trends
Canada should consider funneling federal program funds to short-line infrastructure projects, Canadian railway association says
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Last month, Railway Association of Canada (RAC) submitted a proposal to the Canadian government suggesting that federal Infrastructure Program funds be used to help pay for short-line rail infrastructure projects.
Entitled "Strategic Infrastructure Investment Opportunities: Short Lines in Canada," the proposal follows similar RAC submissions to the government on June 14, 2002, and Sept. 19, 2002.
Federal funds would help Canada's 40 short lines upgrade track, beds and bridges to meet North American 286,000-pound car standards, RAC officials believe. Siding and reload center projects, and pressing track upgrades could be completed quickly.
The proposal estimates that short lines will spend between $230 million to $300 million during the next five years to upgrade infrastructure, and recommends that the government consider covering half the cost.
"If there is a hesitancy by government to initially commit to a program
of this magnitude, then the investment could be staged," said RAC officials in the proposal. "We could work with short-line operators to designate
15 to 20 projects totaling $30 million to $50 million (government share, $15 million to $25 million), which could be implemented immediately in small communities across Canada."
Improved short-line infrastructure would lead to lower greenhouse-gas emissions; reduced road congestion and construction, maintenance and repair costs; increased competition for remote and rural shippers; improved land use; and enhanced transportation safety because of fewer highway accidents, injuries and fatalities, RAC officials said.
Entitled "Strategic Infrastructure Investment Opportunities: Short Lines in Canada," the proposal follows similar RAC submissions to the government on June 14, 2002, and Sept. 19, 2002.
Federal funds would help Canada's 40 short lines upgrade track, beds and bridges to meet North American 286,000-pound car standards, RAC officials believe. Siding and reload center projects, and pressing track upgrades could be completed quickly.
The proposal estimates that short lines will spend between $230 million to $300 million during the next five years to upgrade infrastructure, and recommends that the government consider covering half the cost.
"If there is a hesitancy by government to initially commit to a program
of this magnitude, then the investment could be staged," said RAC officials in the proposal. "We could work with short-line operators to designate
15 to 20 projects totaling $30 million to $50 million (government share, $15 million to $25 million), which could be implemented immediately in small communities across Canada."
Improved short-line infrastructure would lead to lower greenhouse-gas emissions; reduced road congestion and construction, maintenance and repair costs; increased competition for remote and rural shippers; improved land use; and enhanced transportation safety because of fewer highway accidents, injuries and fatalities, RAC officials said.
