The following is excerpted from a 13 June 2013 commentary by Peter G. Hall of EDC.
Railroads and modern Canadian history are inextricably linked. They were an essential economic development tool, getting people in and products out. We are still highly dependent on these same rail networks to get Canadian products to international destinations. Global hunger for Canadian resources has increased the demands on our infrastructure, and in recent years, its limits have been tested. If the world is on the verge of a US-led recovery, can our rail systems handle the growth?
It sounds like a good problem to have, but it wasn’t back in 2004. At that time, North American demand was picking up, and West Coast ports couldn’t handle the inbound traffic. Although port space was constrained, there was also a real problem moving goods inland by truck and train. The logjam created panic up and down the coast, and every port was involved. The problem was resolved, but constraints again appeared in 2008. The global financial and economic crisis fixed that, but only temporarily – if we are getting back to growth, our rail systems may again be put to the test.
This commentary is available in its entirety at:
http://www.edc.ca/EN/Knowledge-Centre/Subscriptions/Weekly-Commentary/Pages/global-recovery.aspx
Topic(s)
International Trade and Border Management
Information source
Canadian News Channel
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