Business Tech

Right on Track

Bruce Burrows, Vice President of Public and Corporate Affairs at the Railway Association of Canada, is excited about the future of rail transport. Once branded as a romantic but old-fashioned way to travel and move freight, rail is going through a major re-imaging. "Many of us in the rail industry are starting to talk about the second golden age of railroading now," Burrows told The Suit.

With 30 years in the industry, Burrows has seen the down days of an industry plagued by flat growth for many years. But he notes that many exciting events in the last decade have really started turning things around.

"I think we dropped the ball for a number of years," Burrows said, describing what he referred to as a 50-year rail industry hiatus following World War II. "Trucks really ate into our market share big time starting in the mid-1950s. Now, that has started to reverse itself."

Burrows attributes the change to massive growth in trade to China, which started six years ago. "That meant a lot of goods were then coming in through the ports into the market. It was the opportunity for rail to really play its strong suit, which is handling similar types of goods over long distances, and containers are perfect by rail."

In addition to the influx coming into Canadian ports, a demand for outgoing commodities has also increased. "Our potash, our grain, coal, forestry and mining products—all these things were in heavy demand suddenly," Burrows said.

"There's been a change in domestic logistics patterns and lots of consolidations with companies and manufacturers. They're developing larger regional hubs, closing local plants and distribution centers," Burrows said. These new mega-distribution centers are more conducive to cost-effective rail transport than to long-haul trucking.

Passenger transport has also enjoyed new growth. Because of heavy congestion in cities and along key highway corridors, the Canadian rail commuter business is booming. "From the public's perspective, there are now huge environmental safety and security land use issues that all lead to one conclusion—rail is growing again," Burrows explained.

Commuter trains in large metropolitan areas are becoming increasingly popular. "People are getting fed up with being caught in their cars and traveling several hours in each direction. There is way too much congestion on the highways and around our major city centers, so commuter trains are blossoming. They generate 25 percent of the greenhouse gases that autos generate, so this is a huge reduction in greenhouse gas emissions."

Burrows added that rail consumes far less energy than its air and truck competitors. "Rail is three to five times more fuel-efficient. We've got lots of capacity and a small carbon footprint. Transportation, in general, is 25 percent of North America's greenhouse gas emission problem. It's really the automobiles and large trucks that are at the core of the problem. Here in Canada, rail handles about 70 percent of all surface freight, but in terms of emissions, we only account for 3 percent of transport GHG emissions."

Burrows explained how utilizing rail transportation benefits land use. "A freight train can handle the equivalent of 280 trucks. A passenger train is the equivalent of about 1,100 automobiles. That's a huge saving. We are very efficient in that regard."

Another growing segment in the rail industry is optimizing intermodal transport, which uses a combination of services from trucks, ships, and trains. "Trucks will do local pickup and delivery, and then the long haul portion of the move would be done by rail," Burrows said. "That's the fastest growing part of our business."

Burrows' mission is to promote Canadian Rail to the government, the public, and to other shipper groups. "I deal with a tremendous breadth of different people. We have diverse group stakeholders that we are responsible for, both nationally and provincially." He routinely handles media relations, meets with elected officials, and even participates in U.S. rail lobbying efforts in Washington.

"Our goal is to raise awareness of how innovative the rail industry is," Burrows said, adding that many new technical innovations are currently being implemented and more are planned for the future. "For example, we are running really long trains now by successfully placing locomotives throughout the train. Instead of the traditional two or three at the front end, we are now distributing power throughout the train. This allows us to run long trains safely and much more cost-effectively."

Burrows explained that 60 percent of the modern locomotive is comprised of computer circuitry now, and that hybrid and electric-powered alternatives are being explored. Gamma ray scanning technology is also used to ensure track safety and security on all lines throughout North America. Without stopping, engineers can scan an upcoming track to ensure it is clear of people, animals, obstructions or explosives, making rail transport safer and more secure than ever.

This year marks the 175th anniversary of railroads in Canada, but it is also the beginning of an exciting new era. As Burrows reports, "We are a very forward-looking, technically savvy, and innovative industry."


For more information please visit: www.railcan.ca

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