Railway Hot Topics. Economic Development and Intermodal Transportation Sustainability The New Transport Canada Crossing Regulations and Rail Safety

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1 Railway Hot Topics Economic Development and Intermodal Transportation Sustainability The New Transport Canada Crossing Regulations and Rail Safety Association of Municipalities of Ontario AGM and Annual Conference August 14 th to 17 th, 2016 Caesars Windsor Windsor, ON 1

2 CN: A True Backbone of Ontario s Economy Andrew Fuller Assistant Vice-President Domestic Intermodal, CN 2

3 Topics to be Covered: An Overview of CN s Intermodal Transportation CN s Intermodal Transportation Services in Ontario 3

4 CN Intermodal: An Overview What does intermodal mean? One container, three different modes of transportation, harnessing the global reach of vessels, the speed and efficiency of trains and the locality of trucking. Why intermodal? A 500-mile rail journey is more cost-effective than trucking and lower in greenhouse gas emissions. Our Intermodal Container Services help shippers expand their door-to-door market reach. What do we offer? trucking service, ports partnerships, custom brokerage, logistics parks, temperature controlled cargo, transloading, warehousing and distribution. Why CN Intermodal? geographically, CN offers the only North American railroad service that extends to three coasts, including competitive services to Mexico, South America and Asia. We offer a unique combination of rail services, 21 strategically located intermodal terminals and equipment capacity making for fast, cost-effective freight shipments. 4

5 CN Intermodal and Ontario Increasing rail capacity whether for freight or commuter traffic is an imperative to grow the Ontario economy We are working in collaboration with the province of Ontario to create a more efficient transportation system linking world-class universities, tech companies and an expanding workforce, while ensuring that freight rail, including intermodal, can continue to play its role as a sustainable backbone of our economy. Luc Jobin, President and Chief Executive Officer, CN CN is an active partner in communities across Ontario and a registered member of the Ontario Chamber of Commerce. Community Partnerships within Ontario include: Welcome Fund for Syrian Refugees, Daily Bread Food Bank, Halton Learning Foundation, Milton District Hospital Foundation, Kids Safety Village Durham and the Children s Hospital of Eastern Ontario 5

6 CN Intermodal and Ontario (Cont d) CN Intermodal currently employees approximately 650 dedicated railroaders within Ontario. Additionally, CN utilizes approximately 300 owner operators (primary and back up) to provide dray services for our customer base within the GTA and surrounding areas. Proposing to establish a new intermodal hub in Milton and currently preparing for the necessary review by the Canadian Environmental Assessment Agency. 6

7 CN Intermodal and Ontario (Cont d) CN Domestic Intermodal ships 317,000 units originating in or destined to Ontario annually, representing 56% of total domestic intermodal shipments. CN International Intermodal ships 527,000 units originating in or destined to Ontario annually, representing 35% of total international Intermodal shipments.. 7

8 CN Intermodal and Ontario (Cont d) CN s Brampton Intermodal Terminal ( BIT ) is Canada's largest rail intermodal terminal and a key component in CN's distribution network. 8

9 CN Intermodal and Ontario (Cont d) 18 intermodal trains travel to or through BIT daily. Connecting shipments from across Canada, U.S., Mexico and from Overseas. On a typical day there are about 100 containers and 2,500 chassis in Brampton. Over 1,500 unique commodities shipped from BIT within the past 12 months. Prominent commodities include: food products (meats, vegetables, canned goods), raw materials, bulk, auto parts, clothing, toys, chemicals, grains and furniture. 9

10 Sustainability and Objectives Supporting CN s Business Strategy Normand Pellerin Assistant Vice-President, Sustainability, CN 10

11 Topics to be Covered: CN s Sustainability Strategy Sustainability objectives and value: Emissions and energy efficiency Reducing waste and conserving resources Stakeholder engagement Reporting and communications 11

12 Reducing Carbon Emissions and Increasing Efficiency 12

13 Our Goal: Increase Efficiencies and Reduce Carbon Areas of Focus Opportunities Our Performance 2015 Objectives Our Programs 36% reduction since 1991 Reduce locomotive emission intensity 1.5% Target: % Set yard/facilities energy/ghg target Support energy efficiency innovation/technologies Engage and educate employees (EcoConnexions) Increase supply chain efficiency (Carbon Calculator/Modal Shift Protocol/EcoConnexions) Support energy efficiency innovation/technologies (EcoFund) Engage and educate employees (EcoConnexions) 24% reduction since

14 Reducing Waste & Conserving Resources 14

15 Our Goal: Conserve Resources and Reduce Waste REDUCE INCREASE IMPROVE IMPROVE Reduce waste generation at source by partnering with suppliers Increase recycling and divert waste from landfill Engage employees and improve vendor service Improve internal and external reporting capabilities and data quality 15

16 Reducing Operational Waste to Landfill Our Performance and Costs Our Programs Enhance equipment /storage (EcoFund ) Provide recycling bins/ shop equipment (OPEX/Vendors) Engage/educate employees (EcoConnexions) Leverage vendor contract (Heritage savings model) Leverage supplier programs Leverage vendor contract Optimize service and milk run scheduling Conduct field audits for rightsizing of bins and equipment Reduce Reuse Recycle 16

17 Engaging Employees and Other Stakeholders 17

18 Our Goal: Embed Sustainability into the Corporate Culture Conserving Energy Reducing Waste Improving Housekeeping ECOCONNEXIONS LOCATIONS

19 Our Performance and Objectives Our performance 15% Our objective 15% Our performance Baseline Our objective 15% Our performance 740+ Our objective 1,000 Celebrating our 5-year partnership with Earth Day Canada! 19

20 Engage Employees and Foster Innovation 20

21 Engage Stakeholders and Improve Biodiversity and Land Management 120 communities engaged/tree planting projects since 2012 through EcoConnexions From the Ground Up 18 mass reforestation projects since million+ trees planted in Canada and the U.S.

22 Create Value by Improving Biodiversity and Building Stronger Community Relationships EcoConnexions From the Ground Up tree planting event in Brampton, ON 22

23 Create Value by Providing Efficient Transportation Solutions and Building Stronger Customer Relationships Eco-Connexions Customer Partnership Program Launched in 2014 Recognition of sustainable business practices and in particular carbon efficiencies Pilot with 47 intermodal customers Recognized 11 customers in 2015 mass reforestation projects planned for the spring and fall (110,000 trees) Recognized 22 customers in 2016 (100,000 trees) 23

24 Increasing Transparency, Reporting and Communications 24

25 Our Goal: To Increase Transparency and Disclosure Enhance CN s brand and reputation Provide a higher level of confidence in publically disclosed data Maintain CN s leadership position and inclusion on various indices and public evaluation schemes 25

26 Rail Safety New Measures Applicable to Federal Railways And Municipalities Larry Karn Senior Manager, Regulatory Affairs, CN 26

27 Topics to be Covered: Investment in Safety Safety at our Crossings Grade Crossing Regulations Rules Respecting Key Trains and Key Routes PD-36 AskRail App Proximity Guidelines 27

28 Investment in Safety $2.75 billion in Canada $19 billion over 10 years Safety, integrity and future of our tracks Construction helps boost local economies Opportunity of employment contractors, etc. 28

29 Safety at our Crossings CN is committed to working with road authorities and doing our part to prevent grade crossing accidents: Engagement, education, and enforcement efforts are wide spread across our system Rail Safety Week Take the Rail Safety Pledge Transport Canada s Grade Crossing Improvement initiative Reviewing crossings system-wide to identify required upgrades or closure of specific crossings Engaging municipal, regional, provincial and federal officials in identifying and eliminating crossing hazards 29

30 Transport Canada Grade Crossing Regulations Stems from a concern over the number of accidents at public and private grade crossings Came into effect on November 28, Objectives: Establish enforceable safety standards for grade crossings Bring a consistent level of safety to all railway crossings in Canada Clarify the roles and responsibilities of railway companies and road authorities Promote collaboration between those parties. 30

31 1 - Information Sharing Information sharing between railways and road authorities Timing: 2 years from the coming into effect, or by November 27, 2016 Immediately when constructing a new crossing or making a change to an existing crossing CN is in the process of communicating its information to Road Authorities Will be compliant in advance of the November 2016 deadline 31

32 Railway Information Section 4 Location of the grade crossing Number of tracks that cross the grade crossing The average annual daily railway movements The railway design speed (maximum train speed) Type of warning system in place at the crossing Whether a stop sign is installed on the same post as the railway crossing sign Whether or not whistling is required when trains approach the crossing 32

33 Road Authority Information Section 12 Location of the grade crossing Number of traffic lanes the cross the crossing surface Average annual daily traffic Road design speed at the crossing Design specifications for road approaches Width of each traffic lane and shoulder on the road approach Design vehicle Stopping sight distance Average gradient of the road approach Crossing angle Applicable departure time Advanced activation time of the Prepare to Stop Sign Interconnection of traffic signals with Railway Warning Systems Whether the crossing includes a sidewalk, path or trail, and if so, whether the sidewalk, path or trail has been designated for persons using assistive devices 33

34 2 - Grade Crossing Standards Provide the technical requirements for both new and existing crossings for: Crossing surface and signage Sightlines Warning system specifications Interconnected devices (such as Prepare to Stop signs and traffic signals) 34

35 Grade Crossing Standards (Cont d) Apply immediately to all new crossings or any crossings that undergo a significant change such as road widening, change in road classification, change in track class, or change in design vehicle. Existing crossings must be brought into compliance with the Standards within 7 years of the entering into force of the Regulations (by November 27, 2021) For CN, the new Regulations will impact approximately 19,885 crossings. Of these, 9,868 are public, 9,848 are private and 139 are pedestrian crossings. 35

36 Blocked Crossings The Regulations prohibit the occupation of a crossing for more than 5 minutes: 97 (1) It is prohibited for railway equipment to be left standing in a manner that causes the activation of the warning system at a public grade crossing other than for the purpose of crossing that grade crossing. 97(2) It is prohibited for railway equipment to be left standing on a crossing surface, or for switching operations to be conducted, in a manner that obstructs a public grade crossing including by the activation of the gate of a warning system for more than five minutes when vehicular or pedestrian traffic is waiting to cross it. In all cases, if an emergency vehicle requires passage across a grade crossing, the railway company must take all necessary measures to immediately clear the grade crossing. 36

37 Also of note. Whistling: Regulations prescribe the safety requirements for a crossing in order for whistle cessation to be implemented. Example a crossing must have a warning system in order to be granted whistle cessation. No new level crossings are permitted where track speed is over 100 mph or where a road has a freeway designation 37

38 Key Route Risk Assessments Rules Respecting Key Trains and Key Routes Adopted by Transport Canada on February 12, 2016 and took effect February 19, Key Route means any track on which, over a period of one year, is carried 10,000 or more loaded tank cars or loaded intermodal portable tanks containing dangerous goods, as defined in the Transportation of Dangerous Goods Act, 1992, or any combination thereof that includes 10,000 or more loaded tank cars and loaded intermodal portable tanks. 38

39 Key Route Risk Assessments (Cont d) Rules require Railway companies to conduct risk assessments and periodic updates based on significant change to determine the level of risk associated with each Key Route over which Key Trains are operated by the company. must be conducted for all Key Routes must be conducted, at a minimum, every three (3) years The Rules establish a process for municipalities to provide input on Key Route risk assessments. The Rules require railway companies to establish a publiclyaccessible website where representatives from municipalities located on a key route can submit safety and security concerns for the railway to consider in conducting its Key Routes risk assessments. 39

40 Key Route Risk Assessments (Cont d) CN s website: iveringresponsibly/safety/keyroute-risk-assessments provides a link to contact Keyroutes@cn.ca where municipalities can submit their input for consideration in the key route risk assessments. 40

41 Key Route Risk Assessments (Cont d) CN s website has been in place since June 3, 2016 and municipalities have started providing input. CN encourages communities to submit information which the Railway will consider in performing its key route risk assessments. Even when municipalities are not located on a key route, CN handles all requests from municipalities. 41

42 Transport Canada Protective Direction 36 About 10% of loaded shipments are regulated dangerous goods The remaining 90% are non-regulated products 42

43 AskRail Real Time Car Information We give first responders real time information See whether a railcar is carrying dangerous goods View the contents of an entire train View Emergency Contact Information and Emergency Response Guidebook App is available to responders who may be first on the scene of a railway incident and for training purposes Improvements being made to the app - adding new features and enhancements Available in French CN has registered nearly 1,400 responders in Canada from over 290 locations 43

44 Rail Safety: Proximity Our Shared Responsibility 44

45 Good Examples Mitigation measures implemented by a developer for a residential development Noise & vibration study to determine the appropriate design measures in the dwelling design Occupants advised of the presence of an active railway line (warning clause) Acoustic barrier Safety berm Fencing Setback Safe at-grade crossing Crossing safety assessment to review traffic impacts for larger developments near crossings Fencing near crossing Warning system (lights, bell, gates, etc.) Compliance with Transport Canada requirements 45

46 Bad Examples Residential developments in extreme proximity to CN operations 46

47 Questions?