INDUSTRY ISSUES >> INFRASTRUCTURE IMPROVEMENTS
Infrastructure Improvements
What's needed to keep the trains moving on short line and regional railways?
All railways are capital intensive and must be able to generate enough capital to renew and upgrade their fixed plant or infrastructure.
The challenges faced by short lines and regional railways (SL/RRs) are:
- accumulating sufficient capital to invest in plant;
- accommodating increased axle loads for four-axle freight cars weighing up to 286,000 lbs. (the old limit is 263,000 lbs.);
- no access by provincially-regulated railways to the federal Grade Crossing Fund for the installation of warning systems at road crossings;
- imposition of property tax on railway rights-of-way when competing truckers and buses operate on tax-consuming roadways; and,
- a general lack of access by railways to infrastructure funding programs of various levels of government.
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All levels of government need to recognize that railway infrastructure is as important to the Canadian transportation network as the road system. Current infrastructure funding programs should be broadened in scope to include SL/RRs.
Under Transport Canada's Grade Crossing Program, 80% of the cost of installing electronic warning systems at level crossings is available to federally-regulated railways. Many of the new SL/RRs that were once part of the federally-regulated system are now operating under provincial jurisdiction and have lost access to this funding. The legislation and regulation needs to be changed to ensure that the safety of all Canadians is not compromised at level crossings on provincially-regulated railways.
SL/RRs pay tax on all property, including rights-of-way. SL/RRs are prepared to pay their fair share of taxes on facilities such as yards, shops and offices. Property taxes on rights-of-way, however, should be eliminated to ensure equitable treatment with commercial highway transport.
Some provinces, Nova Scotia, New Brunswick, Quebec and Manitoba, have recognized the burdens that SL/RRs assume in maintaining their infrastructure and have offered both tax relief and financial assistance. Expansion of such policies and programs by the federal government and other provinces would contribute to the continued viability of the industry.
COPYRIGHT 2002 ASSOCIATION OF REGIONAL RAILWAYS OF CANADA.
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OCTOBER 26, 2005
Additional Funding Announced for Railway Crossings
MAY 14, 2004
Winning Intelligent Transportation Systems Projects Announced
MAY 12, 2004
Transport Canada Releases 2003 Annual Report
FEBRUARY 27, 2003
Transport Canada's Vision for Transportation Supports Passenger and Commuter Rail
FEBRUARY 27, 2003
Short Lines Need Further Consideration in Transport Canada's Vision for Transportation
FEBRUARY 12, 2003
BC Premier Comments on the Future of BC Rail
MAY 13, 2002
Canada, U.S. Sign Memorandum of Cooperation on Railway Grade Crossing Research
APRIL 25, 2002
ARRC Launches New Website
FEBRUARY 3, 2002
ARRC's Submission to Transport Canada for the Blueprint Initiative
SEPTEMBER 20, 2001
The formation of ARRC announced
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