News Release

Letter to the editor: Investing in Canada’s Critical Rail Infrastructure

A letter to the editor written by Railway Association of Canada Acting President Gérald Gauthier in response to the op-ed Underinvestment in critical rail, pipeline infrastructure could cost Canada billions appeared in the March 14, 2018 print edition of The Globe and Mail and online. Read the letter below, or click here to view the letter on the Globe’s website.

Railways invest an average of 20 per cent of their own revenues back into their networks each year.


Re PM’s Supercluster Headache: Rail Bottlenecks (Report on Business, March 12):

Canada’s private rail infrastructure is not suffering from “underinvestment.” Rail is one of Canada’s most capital-intensive industries. Railways invest an average of 20 per cent of their own revenues back into their networks each year. This year alone, Canada’s two Class 1 railways expect to spend more than $4.5 billion on capital expenditures in North America to ensure operations remain safe and efficient.

The short-term challenges facing the rail sector are not systemic. Railways are the backbone of Canada’s world-class supply chain, and our rail infrastructure is well-equipped to meet customers’ growing freight demands.

Economic regulation is not the answer. It discourages the supply chain from investing in capacity to efficiently move products across North America. Allowing market forces – not economic regulation – to lead is the best way to encourage increased investment, enhance railway productivity and ensure goods get to market.

Gérald Gauthier, acting president, Railway Association of Canada




About the Railway Association of Canada

The Railway Association of Canada (RAC) represents more than 50 freight and passenger railway companies that move more than 84 million passengers and $280 billion worth of goods in Canada each year. The RAC advocates on behalf of its members and associate members to ensure that the rail sector remains globally competitive, sustainable, and most importantly, safe. Learn more at Connect with us on Twitter, Facebook and LinkedIn.

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