The First and Last Miles of Canada’s supply chain function with maximum efficiency, safety, and opportunity when the transportation infrastructure meets the needs of Canadian businesses.

The short line railway industry offers many advantages to customers seeking rail transportation that is service-oriented, flexible, and cost effective. However, Canada’s short line railway infrastructure is decades old and was built for customers of the past. Companies moving onto rail today expect competitive track speeds, the capacity to haul modern 286K rail cars, track space to handle 110+ car trains with corresponding unit train discounts, efficient interchanges, and seamless fluidity between short line railways and their Class 1 partners (CN and CPKC). Many segments of the short line network have been improved to modern standards but work remains to further optimize all of the tracks ‘already in the ground’. We can optimize the full network with strategic investment, effective programs, and visionary thinking.

With our knowledge of customer needs and the specific requirements of short line infrastructure, we make the following requests:

Infrastructure Modernization
For Short Lines

New track construction is extremely expensive and so it is in Canada’s best interest to optimize and modernize the infrastructure that is already in the ground.

The key to modernizing track speeds and efficiency, reducing derailments, and improving infrastructure longevity is the consistent maintenance and replacement of fundamental railway components: ballast, ties, rail, and bridges. Railway tie programs that replace a large quantity of aged ties enable short line trains to travel at faster speeds and carry heavier cargo, such as fully loaded 286,000 lb modern rail cars. Historically, government funding programs that had a narrow mandate have struggled to support these fundamental needs.The key to improving the Canadian short line network is per mile funding dedicated to core infrastructure modernization.

Federal and state funding programs in the United States that focused on the same core infrastructure needs have generated significant performance and safety improvements and enabled US railways to meet the requirements of their modern customers with hundreds of success stories.

Industry
Tax Credits

In the United States, the 45G Tax Credit Program offers a 50% federal tax credit per mile of infrastructure investment, driving private investment in the short line network. This program has also been extremely successful at improving railway infrastructure, increasing consumer confidence in the longevity of the railway network, and meeting modern demand.

In Canada, a $8500/mile 50% refundable tax credit would enable railways to plan ahead, make larger investments in their infrastructure than otherwise possible, and accelerate rural business development.

Project-Based
Funding

In addition to network-wide modernization, there are also locations in Canada where strategic investment in specific projects will reduce bottlenecks, drastically improve efficiency, create strategic potential, or improve resilience. These projects may include interchange expansion, industrial park creation, transload and yard expansions, and connecting key industries to the rail network. We support Government investment in projects that will benefit Canada and in programs that improve rail safety and resilience.

Optimize
Port Performance

Many Canadian products are exported through Port facilities on the West and East coasts and North through the Port of Churchill. As we open our economy to new markets, Port performance and reliability impacts the supply chain throughout the country as well as Canada’s reputation as a trade partner. Investments in icebreaker ships and port facilities will allow for an expanded shipping season through Hudson Bay and the Port of Churchill, providing more options for Canadian businesses.

In 2023, Canada’s Port Authorities handled approximately 351 million tonnes of cargo — the Port of Churchill’s share was essentially zero (just ~10,000 tonnes in 2024), or less than 0.003% of national port throughput.

Sources: Transport Canada, Halifax CityNews

The First and Last Miles of Canada’s supply chain function with maximum efficiency, safety, and opportunity when the transportation infrastructure meets the needs of Canadian businesses.

Infrastructure Modernization For Short Lines

Industry Tax Credits

Project-Based Funding

Optimize Port Performance

In 2023, Canada’s Port Authorities handled approximately 351 million tonnes of cargo — the Port of Churchill’s share was essentially zero (just ~10,000 tonnes in 2024), or less than 0.003% of national port throughput.

Infrastructure Modernization
For Short Lines

Industry
Tax Credits

Project-Based
Funding

Optimize
Port Performance

In 2023, Canada’s Port Authorities handled approximately 351 million tonnes of cargo — the Port of Churchill’s share was essentially zero (just ~10,000 tonnes in 2024), or less than 0.003% of national port throughput.