1. Trucking and Rail-freight Can we restore the balance? Natalie Litwin -President Daniel Hammond - Past President Transport Action Ontario

2. Can we restore the balance? If rail transport is so efficient and great for the environment, why did trucks come to dominant freight transport? If rail transport is so efficient and great for the environment, why did trucks come to dominant freight transport? Can we have an environmentally sustainable freight transport system without bankrupting us? Can we have an environmentally sustainable freight transport system without bankrupting us? Can this be done while stimulating economic growth? Can this be done while stimulating economic growth?

3. How we got here Railways once the dominant mode of inland freight transport Railways once the dominant mode of inland freight transport Mechanized rail superior to animal drawn road transport for all but the shortest distances Mechanized rail superior to animal drawn road transport for all but the shortest distances Most businesses that used freight services once located near rail lines or spurs to avoid use of real horse- power cartage Most businesses that used freight services once located near rail lines or spurs to avoid use of real horse- power cartage

4. How we got here Mechanization of road transport in the 20 th Century created development away from rail lines and terminals Mechanization of road transport in the 20 th Century created development away from rail lines and terminals Rail remained as the dominant carrier of freight Rail remained as the dominant carrier of freight Manufacturers, warehouses remained next to the rail lines Manufacturers, warehouses remained next to the rail lines

5. How we got here Just-in-time delivery of freight is not new Just-in-time delivery of freight is not new In 1946, the New York Central Railway introduced Pacemaker service In 1946, the New York Central Railway introduced Pacemaker service Overnight delivery thru-out most of New York state (with steam powered trains!) Overnight delivery thru-out most of New York state (with steam powered trains!) Myth debunked that rail cannot provide “just-in-time” service Myth debunked that rail cannot provide “just-in-time” service

6. How we got here By 1950, Pacemaker service was extended to St. Louis, Chicago, Detroit, Toronto, Montreal, Cleveland, Toledo By 1950, Pacemaker service was extended to St. Louis, Chicago, Detroit, Toronto, Montreal, Cleveland, Toledo With delivery times as good as the best ever offered by the trucking industry With delivery times as good as the best ever offered by the trucking industry All on infrastructure that was built and maintained with private capital All on infrastructure that was built and maintained with private capital

7. How we got here In 1956, US President Dwight D. Eisenhower signed the Federal-Aid Highway Act into law In 1956, US President Dwight D. Eisenhower signed the Federal-Aid Highway Act into law Railways now have to compete for capital and traffic with the largest public works program in history Railways now have to compete for capital and traffic with the largest public works program in history

8. How we got here In retrospect, did the railways protect the interests of their shareholders during the debate of the In retrospect, did the railways protect the interests of their shareholders during the debate of the Federal-Aid Highway Act ? Federal-Aid Highway Act ? Would today’s AT&T, Rogers, Verizon and Bell Canada stand by while a public financed cell phone or fibre optic network was constructed? Would today’s AT&T, Rogers, Verizon and Bell Canada stand by while a public financed cell phone or fibre optic network was constructed?

9. We are Here Public financed infrastructure Public financed infrastructure Advances in automotive technology Advances in automotive technology Government policies favouring highway transport (including permitting ever larger vehicles) and requiring railways to maintain an extensive network despite declining traffic Government policies favouring highway transport (including permitting ever larger vehicles) and requiring railways to maintain an extensive network despite declining traffic Caused a massive shift of freight traffic from rail to road Caused a massive shift of freight traffic from rail to road The myth that the free market chose highway transport is now busted The myth that the free market chose highway transport is now busted

10. We are Here Quality of this extensive rail network declined rapidly Quality of this extensive rail network declined rapidly Delivery times lengthened and railways lost very profitable time sensitive traffic to highways with the decline accelerating in this viscous circle Delivery times lengthened and railways lost very profitable time sensitive traffic to highways with the decline accelerating in this viscous circle Less traffic with a post-war sized network, along with less access to capital (competition with government and the road transport companies for capital)

11. We are Here Staggers Act of 1980 reduced the regulation of railway industry Staggers Act of 1980 reduced the regulation of railway industry This regulatory freedom permitted reduction of rail network Financially stronger railways improved the network that remained

12. We are Here Exportation of manufacturing Exportation of manufacturing Growth of container shipping Growth of container shipping Big box retail Big box retail Double-stack container trains Double-stack container trains Caused an explosion in rail traffic Caused an explosion in rail traffic Shatters the myth that consumer goods are not handled by railways Shatters the myth that consumer goods are not handled by railways

13. We are Here Few terminals equipped to handle double stack container trains equals truck hauls the same or longer as when goods where manufactured in USA and Canada Few terminals equipped to handle double stack container trains equals truck hauls the same or longer as when goods where manufactured in USA and Canada

14. Where We Want to Be Reduce fuel use (less CO2 and other emissions, less dependence on foreign petroleum) Reduce fuel use (less CO2 and other emissions, less dependence on foreign petroleum) Reduce costs Reduce costs Reduce land use Reduce land use

15. Where We Want to Be Rail uses 1/7 th the energy to move freight Rail uses 1/7 th the energy to move freight Rail can be electrified (less, or no, foreign oil, use of wind or solar generated) Rail can be electrified (less, or no, foreign oil, use of wind or solar generated) Rail is less effected by weather Rail is less effected by weather Rail is much higher in labour and land use productivity Rail is much higher in labour and land use productivity Secondary railways for local freight and public transit can be constructed for less than an arterial road Secondary railways for local freight and public transit can be constructed for less than an arterial road Technology exists for economic rail short-haul of freight and international intermodal containers Technology exists for economic rail short-haul of freight and international intermodal containers

16. Where We Want to Be – A Plan to Get There Reduce public spending on highways Reduce public spending on highways Spending reduced to a level that maintains existing infrastructure Spending reduced to a level that maintains existing infrastructure Halt new projects and expansion Halt new projects and expansion Avoid use of PPP (Public Private Partnership) to creatively finance uneconomic/non- sustainable projects Avoid use of PPP (Public Private Partnership) to creatively finance uneconomic/non- sustainable projects

17. Where We Want to Be – A Plan to Get There Tax and policy incentives for investments in local intermodal terminals, (reduce truck haul), electrification of rail, short-line (existing or new track) Tax and policy incentives for investments in local intermodal terminals, (reduce truck haul), electrification of rail, short-line (existing or new track) Tax credits for shippers to increase use of rail freight Tax credits for shippers to increase use of rail freight Diversion of highway funding towards HSR – High Speed Rail Diversion of highway funding towards HSR – High Speed Rail