History of Transportation
Railways have always been important in Canada. They were built to open new areas to settlement, to make profits for the railway builders, and for defence and political reasons. Canadians have an enormous investment in their railways. A century ago Canadian taxpayers helped finance railway construction, and since that time they have paid taxes to support passenger trains and uneconomic branch lines. When privately owned railways faced bankruptcy and were taken over by the government, their debts were assumed by the taxpayers. Since that time citizens' groups, politicians and local communities have been concerned with the costs of the nation's railways and the services they provide.
The first railway line in Canada was built in 1836, some 10 years after England built its first steam railway line. In the 1850s railway construction began in earnest with the GRAND TRUNK RAILWAY from Sarnia through Toronto and Montréal to Portland, Maine. In 1854 the GREAT WESTERN RAILWAY built a line between the Niagara and the Detroit rivers via Hamilton. It connected with US railways in New York and Michigan. Much of this early railway construction resulted from a speculative boom in which some promoters sought to make quick profits. As a result many railways were poorly planned and constructed. Much early construction was financed by British capitalists, Canadian merchants and landowners, and by municipalities. Some construction was financed by bonds.
The INTERCOLONIAL RAILWAY was the largest system of all. Completed in the 1870s, it was built for national defence and unity, in fulfilment of the terms of CONFEDERATION, and was never expected to make a profit. Many of Canada's rail lines had financial problems. When it appeared after World War I that a number of them might collapse, they were amalgamated into the CANADIAN NATIONAL RAILWAYS system and taken over by the federal government after WWI. Many financial problems were thus inherited by that government-owned corporation.
Railways have been responsible, in part, for some of the provinces joining the Canadian confederation. It was not until the central government agreed to build a railway to the Pacific Ocean that BC agreed to join, an agreement that led eventually to construction of the western sections of the CANADIAN PACIFIC RAILWAY. Transportation also played an essential role in the history of PEI, which was at first unenthusiastic about Confederation; the severe financial problems of its railway played a large part in the decision to join Canada in 1873. Part of the confederation arrangement provided that the federal government would assume the railway's enormous debt. Newfoundland, the last of the provinces to join Canada, also received guarantees from the central government that it would be provided with various transport services.
Contemporary Transportation
Canada has an excellent system of transportation, made up of interrelated parts, with each mode serving particular needs. As a service industry, the quality of transportation depends in large measure on the calibre of its employees and management. Since about half of every revenue dollar received by a transportation company is used for employee salaries, wages and benefits, transportation is labour intensive and uses more energy resources than any other industry.
There are 5 modes of transportation: water, rail, motor carrier, air and pipeline. In Canada water transportation is generally used for the movement of bulk commodities of relatively low value per tonne, such as coal, ore, grain, gravel and salt. Rail transportation is used principally for the movement of such bulk commodities as grain, coal, ore, lumber and chemicals, for the movement of containers, and for other types of merchandise freight. Trucks are used in a variety of ways. Small trucks are used as delivery vehicles in cities and towns. In the North, trucks transport logs, petroleum, consumer goods and a great variety of industrial products. Air transportation is used to move both large and small items when speed is important or when remote areas are inaccessible by land or water. PIPELINES are used for the transportation of petroleum, petroleum products, gas and certain chemicals.
Water Transportation
Water transportation may be separated into 3 general categories: ocean transportation, inland water transportation and coastal transportation. Ocean transportation is important to Canada, because about one-third of all that Canada produces is exported. Much of this export traffic moves by ship to customers overseas, carried by large, oceangoing vessels which serve Canada's major ports. About one-third of all of the exports which go by sea move through Vancouver, the largest port (in tonnage) on the west coast of the Americas. Substantial export tonnages also move through the ports of Churchill, Montréal, Québec City, Halifax and Saint John.
The GREAT LAKES and the St Lawrence River system provide inland water transportation to the heartland of Canada. Grain, coal, iron ore and other commodities are moved by vessels called lakers (see LAKE CARRIERS). About half of these commodities are moved by US carriers, and about half by Canadian companies. Most of the Canadian operators are represented by the Canadian Shipowners Association. More tonnes have been moved by vessels operating on the Great Lakes than have been moved by either of Canada's transcontinental railways. Much of Canada's iron ore moves via the Great Lakes- ST LAWRENCE SEAWAY system to steel mills in the US. On the return journey, many of these vessels carry coal from US mines.
Coastal water transportation is also important. Logs, wood chips, lumber, chemicals and other bulk commodities are moved by barge in BC's coastal waters. Sometimes logs are gathered together to form a log boom, then pulled by tug from northern coastal areas to Vancouver for processing into lumber, plywood, wood pulp and paper. Other logs are moved by large self-loading barges that are able to dump themselves when they reach their destination. Barge movements on Canada's East Coast are on a much smaller scale, but are nonetheless significant. Canada's barge operators have been responsible for many improvements in barge technology. Barge transportation is slow but relatively inexpensive (see PORTS AND HARBOURS; SHIPPING INDUSTRY).
Rail Transportation
Both of Canada's major mainline rail carriers have seen significant change in recent years, and more is expected. Canadian National is fully privatized and has successfully downsized and restructured. The sale of CN to private investors was the largest private offering ever in Canada. The new corporate vision is to improve the company's competitiveness and service and to expand. Canadian Pacific is undergoing similar changes in an attempt to become more competitive. It has consolidated its head office in Calgary, where 80% of its railway business and revenue is generated. CP's transport business consists mainly of bulk commodities such as grain, coal, sulphur, potash, fertilizers, petrochemicals and international and domestic container traffic. Both carriers are among the largest coal movers in North America and play an integral role in grain transportation in Canada and the US. Almost one-quarter of the traffic carried in the West is grain for domestic use or for export in world markets. Movement by rail container is growing in importance as the majority of finished goods are transported in them. Containers offer a more efficient means of transport because the entire container can be moved between trains, trucks and ships.
Each year Canada's railways move millions of tonnes of bulk commodities, such as coal, potash, grain and sulphur. Much coal is moved by "unit trains." These trains often consist of 100 cars or more, which can carry as much as 100 tonnes each. Railways are able to transport large quantities of bulk materials over long distances and at relatively low cost, thus enabling the products of Canada's mines, fields and forests to compete effectively in world markets.
For many years passenger trains represented an important part of the railway business. In major cities the railway station was a hub of activity. Today, railway passenger trains face intense competition from other forms of transport. The resultant loss of patronage, coupled with rising costs, has caused them to lose millions of dollars each year. For a time direct subsidies were given to the railways to compensate them for part of these losses. The government then decided to handle the matter in a different way and created a new CROWN CORPORATION, VIA Rail Canada, which is now responsible for most of the passenger train operations. It contracts with the 2 major railways for the operation and maintenance of trains. After suffering significant losses in the 1980s, VIA discontinued service on several lines. It continues its cross-country passenger rail service, but most of its traffic is in the Windsor-Québec corridor.
Air Transportation
Since 1985 domestic air transport has been effectively deregulated and is now dominated by AIR CANADAand CANADIAN AIRLINES, both of which operate across Canada, the US border and intercontinentally (see AVIATION). Each major carrier owns regional airlines which fly a mixture of smaller jets and turboprop aircraft on shorter routes: Air Canada owns AirBC, Air Ontario and Air Nova; Canadian Airlines owns Canadian Regional Airlines and InterCanadian. Both major carriers and their regional affiliates also contract with local carriers for small-plane feeder service on routes to remote and low-traffic-density points. The 1995 Open Skies agreement between the US and Canada resulted in an explosion of transborder services.
The National Airports Policy (NAP) was established in July 1994. Under the NAP, the federal government changes its role from airport owner and operator to owner and landlord, but maintains its function as regulator. The federal government retains ownership of the 26 major AIRPORTS, which handle 94% of air passengers, known as the National Airports System, which are leased to Canadian airport authorities under the NAP. Local operators are responsible for financial and operational management. Ownership of regional/local and other smaller airports has been transferred to regional interests. Remote airports providing exclusive, reliable year-round access to isolated communities and which were in receipt of federal assistance continue to be supported.
Pipeline Transportation
Pipelines, the unseen carrier, transport enormous quantities of petroleum, gasoline, chemicals and other products - sometimes for long distances. Pipeline transportation requires little labour and is relatively trouble-free, because it provides reliable and low-cost transportation. However, it has 2 principal drawbacks: pipelines require an enormous amount of capital to establish, and they are seldom efficient unless large quantities are moved from a single point of origin to a single destination over a long period of time. Pipelines have also been used for the transportation of coal (in slurry form) in the US and elsewhere, but their potential as transporters of coal and other bulk commodities has not yet been fully exploited in Canada.
Intermodal Transportation
Except for items moved by truck, virtually all other movements use 2 or more transport modes. "Piggyback" transportation is an example. Goods may be loaded into trucks or trailers and hauled to some point on a railway where the truck or trailer is loaded on a railroad flatcar. The goods then move by rail, sometimes over a relatively long distance. At the end of their rail journey, the trailers or containers are again moved by truck to their final destination. There are other ways in which the various transport modes can co-operate to provide more efficient intermodal transportation. Trucks can be carried on ferries or ships. This is sometimes called "fishyback" transportation or Ro/Ro (roll on/roll off) transportation. Canada Steamship Lines operated the largest fleet of self-unloading bulk carriers in the world, moving 30 million tonnes annually.
Canada's "land bridge" is also based on intermodal operations. Shipments from Japan and Hong Kong destined for Europe can move by ship via the Panama Canal. Or, by using Canada as a land bridge, they can move by water to Vancouver or other western ports, then by rail to one of Canada's eastern ports, and again by water to their European destinations, saving a significant amount of time.
Types of Carriers
In legal terms there are 3 types of carriers: common carriers, contract carriers and private carriers. A common carrier transports the goods of any shipper wishing to make use of its services. Most shippers in Canada have available the services of some common carrier, and sometimes many of them.
A contract carrier makes agreements with one or more shippers to haul goods, sometimes over specific routes, and usually for a given period of time. The possible variations in such contractual arrangements are limited only by the needs of the respective parties and their ingenuity in drawing up a contract. Many large shippers in Canada use contract carriers.
A private carrier is one that transports its own goods. Farmers transporting their own grain, logging companies transporting their own logs and manufacturers transporting some of their raw materials and semifinished products are examples of private carriers.
General Carriers and Specialized Carriers
A carrier's rate schedule gives the prices charged for hauling various types of freight between various points, and its tariff describes in detail the services which the carrier undertakes to provide and the extent of its liability. For instance, the tariff may stipulate that the carrier will deliver shipments but that the consignee must unload them. It may state that the carrier is not responsible for damage to perishable commodities, for delays in shipment, or for any damage resulting from strikes, floods or so-called "acts of God." The tariff of a general freight carrier may state that it carries all types of package freight up to a given maximum size and weight, but that it does not carry liquids, explosives or live animals.
Specialized carriers provide service to particular types of shippers, or for particular types of shipments. Some specialized carriers haul only bulk petroleum, while others carry only shipments of pharmaceuticals from wholesalers or retail drugstores and others handle only refrigerated cargo.
Others, such as messenger and courier services, carry small parcels between Canada and the US and within and between communities. Such carriers as UPS-Canada, Loomis and Purolator provide next-day delivery between North American cities.
Facilitators, Consolidators and Expeditors
There are many organizations that provide services that are ancillary to transportation. Some deal with customs formalities and other paperwork. Some select carriers and monitor shipments, relieving industrial firms of much paperwork and detail. Some expedite shipments or take advantage of volume rates.
Many facilitators and expeditors are called freight forwarders. Domestic freight forwarders normally have trucks which pick up shipments from their customers and consolidate them with the shipments of other customers into full loads (either truck or rail). Once the full carloads reach their destination, the freight forwarder then "breaks bulk," ie, unloads the car and delivers the various shipments to the respective consignees. A foreign freight forwarder arranges for ocean shipping and for inland transportation at the foreign destination and may also arrange for insurance, and may handle customs formalities. Sometimes the work of a freight forwarder is performed by a shippers' co-operative. Canada has several shippers' co-operatives. Canada's leading department stores operate their own freight-forwarding organization. This enables them to pool their shipments and use the lower freight rates given to volume shippers.
Transport Infrastructure
Every mode of transportation has 2 essential parts: the transport vehicle itself and the road, track or way on which it operates. When 2 modes of transportation are co-ordinated, there may be a junction or terminal at which the transfer is made. Some of the transport infrastructure is natural, but much of it is constructed. A canoe, for instance, may operate quite well on a natural lake or stream, but a large, oceangoing vessel needs some constructed facilities if it is to operate well, as does a train, a plane or a truck.
Virtually all of the infrastructure for aviation has been financed by the federal government. The federal Dept of Transport (now called TRANSPORT CANADA) has built most of Canada's airports, as well as the airways and the radio and navigation systems. Most of these facilities are maintained and operated by Transport Canada.
Roads, highways and streets are the infrastructure for motor carrier transportation. Most of Canada's roads and highways have been built by provincial governments - the major exceptions being highways in national parks and INDIAN RESERVES, the ALASKA HIGHWAY and the TRANS-CANADA HIGHWAY. Most streets have been built by cities and have been financed in a variety of ways.
In recent years the federal government has announced a "user pay" philosophy (those using the transport infrastructure should bear the cost of such facilities). Users of airports, seaway locks and port facilities, for instance, pay landing fees, lockage fees and port duties to compensate in part for the taxpayers' investment.
Passenger Transportation
Passenger transportation includes many modes of travel, including planes, trains, boats and BUSES. Millions travel by AUTOMOBILE, taxi or limousine, others by bicycle, horse or dogsled. The automobile accounts for the greatest percentage of passenger travel in Canada today.
Urban Transportation
Most Canadian cities have taxi service. In some cities a licence is required to operate a taxi, and a limited number of licences are issued. Some taxi companies enjoy a monopoly. One or more companies may be given the exclusive right to pick up passengers at airports, RAILWAY STATIONS or other areas where passengers originate.
Technological Change
New inventions, technological change and human ingenuity have resulted in many changes in Canada's transport. Most changes have meant greater speed, lower cost or increased productivity. Some have made possible the development of entirely new industries.
Recent advances in water transportation have resulted in greatly increased productivity. Some improvements have come through the development of larger ships that carry far more cargo than earlier ships. As large ships seldom require more crew members than smaller ships, crew productivity has increased, and shipping costs have been reduced. There have been advances in navigation, ship design and ship propulsion. Research has been done on the use in ships of powdered coal and other petroleum extenders and substitutes for fuelling ships. Still other increases in productivity have resulted from the use of containers.
Today, enormous cranes at a modern port may load a large oceangoing liner with containerized freight in half a day. It would have taken 3 or 4 days to load that freight before the shift from manual loading of freight to the mechanical loading of containers. Much of the savings stems from ships spending less time in port. This makes it possible for them to move more cargo each year, since they can spend a greater portion of their time at sea.
Railway productivity has also increased in recent years through the use of more efficient railway cars, some of which were specially designed to carry a particular product (such as grain or coal). Other increases in productivity have come from the use of longer trains, robot locomotives and better train scheduling. Robot locomotives, placed near the middle of trains, make it possible to use longer trains. The train engineer can effectively handle 5 or 6 diesel locomotives and control a train more than a kilometre long, even in mountainous areas.
Better communications and electronic signals systems make it possible to operate far more trains over a track than was possible with more primitive manual signals. Less space is required between trains, and especially between trains going in opposite directions on a single railway track. With a modern control system the railway dispatcher can determine the location and speed of every train quickly and electronically. The dispatcher is able to plan train movements carefully and to shunt approaching trains onto railway sidings so that other trains may pass. This makes it possible for more trains to use the track and thus increases railway productivity.
Other improvements have come from more efficient use of railway cars, locomotives and other expensive equipment. Much research has focused on the linear induction motor which is highly efficient and enables trains to accelerate and decelerate more rapidly. It was used in the demonstration train in Vancouver at Expo 86. These motors are used in LRT (light, rapid transit) trains. In some cities the cost of urban transit has been reduced by the introduction of articulated buses (2 passenger units pulled by a single engine). Such buses have been used in European cities for some time.
Aviation technology has changed radically in recent decades and operates more efficiently. Today's airplanes are much larger than the planes they replaced. Modern jets are quieter and more fuel efficient than earlier models. Aviation technology is changing in other areas too. Modern conveyor belts handle passengers' baggage faster and more efficiently. Photoelectric cells and other devices "read" baggage labels, and robots direct baggage and freight to specific bins and carts so that they can be quickly loaded on aircraft. Better radar and other electronic devices have been developed to enable planes to operate more reliably in bad weather. Aviation technology is also changing on the ground. Airlines have developed better systems for reservations and ticketing. Canadians can now order and pay for their tickets electronically and within minutes.
There have been significant increases in productivity in the motor carrier industry. Some increases have resulted from the use of trucks and trailers which are longer, wider and higher. Other productivity increases have come from utilizing more of the available space and in scheduling vehicles more efficiently. Some provinces permit a truck (or tractor) to pull more than one trailer. As a truck requires little more fuel to pull 2 trailers than one (and only one driver is required), trucks which pull 2 trailers can be more efficient. Motor carrier productivity has also increased because of the development of more fuel-efficient engines and because of experimentation with the use of lower grade fuel.
In pipeline transportation, productivity has increased due to the use of larger pipes and faster speeds. This has been made possible by technological improvements in valves, compressors and friction-reducing agents.
Interrelationship with Communications
The transportation and communications industries have always been related. When good COMMUNICATIONS are established with another country, trade will often follow. Certainly, there cannot be much trade without good communications. Some system has to be available for the transmission of orders and the movement of shipping documents and other shipping details. In these areas transportation and communication are complementary. In other areas they may compete. Personal transactions have been replaced in many instances by electronic communications.
As transport costs increase and better communications systems are developed, transportation and communications will compete increasingly in certain areas (see COMPUTER COMMUNICATIONS; TELECOMMUNICATIONS). As COMMUNICATIONS TECHNOLOGY has progressed, much that the postal service once handled is transmitted electronically. The handwritten letter has become virtually obsolete.
Transportation and Travel
About 80% of all air travel is for business reasons, although each year more Canadians travel for pleasure. The availability of comfortable, convenient and relatively low-cost transportation (by air, train and bus or automobile) has encouraged the development of the travel industry - one of the fastest-growing segments of the Canadian economy (see TOURISM). Much of this development results from co-operative arrangements between transportation companies, travel agents and the operators of hotels, car rental agencies and other such facilities. Tour packages that include hotels, meals, guides and other items are frequently arranged by a tour operator (sometimes called a wholesaler) and marketed by travel agents. A number of these operators are subsidiaries of airlines.
Government Role in Transportation
Since the first Europeans set foot in North America, governments have played some role in transportation. That role has taken several forms: promotion, regulation, subsidization and operation. The government began the promotion of transportation more than a century ago when it encouraged the construction of railways. It promoted railway development through loans, grants and guarantees. After the railways were built, they had enormous power over users of their services. Governments then began to regulate the rates charged by the railways to ensure the fair treatment of all shippers and a fair return to the transportation companies (see TRANSPORTATION REGULATION).
Governments have subsidized every form of transportation in Canada at one time or another. Transportation subsidies may be divided into 2 general categories: direct subsidies and indirect subsidies. As mentioned, enormous construction subsidies were given to the railways. Substantial operating subsidies have been given to VIA Rail Canada and to other carriers. Most urban transportation systems are subsidized. Governments have also given indirect subsidies of many kinds. Sometimes a government has permitted the use of government-constructed facilities at less than the cost of providing these facilities, thus providing an indirect subsidy to the users of the facilities. For many years the railways have carried export grain at far less than it cost them to haul it. Additional indirect subsidies result when a government agency provides transport infrastructures (such as an airport, a highway or port facilities) and does not charge sufficient user fees (see TRANSPORTATION AGENCIES).
However, it has become apparent that government bodies are not necessarily the best agencies to operate transportation companies. Today, TRANSPORT CANADA's mandate is to ensure that Canada's transportation system is safe and environmentally sustainable. The government agency monitors all aspects of the system and recommends improvements as required to protect life, property and the environment. Transport Canada is responsible for aviation system safety, commercial aviation, air regulation enforcement, aerodrome safety and the regulation of air navigation systems and airspace; shipping activities in Canadian waters; monitoring the operation and maintenance of the railways system; monitoring road and motor vehicle safety; and ensuring emergency preparedness.
Transportation Research
The Transportation Development Centre is Transport Canada's research facility. Its work ranges from improved air bags to rules for de-icing aircraft, and includes developing and evaluating technical data, laboratory hardware, computer software and prototype transport systems. Many of the major transport companies have research departments. Some of these work with vehicle and equipment manufacturers in the development and adaptation of new technology; some engage in market research; and some make contributions to more basic research. But since much of this research is of a proprietary nature, there are no good statistics concerning its extent.
Employment Opportunities
Since transportation is vital to so many sectors of the economy, it provides many good job opportunities. These vary from entry-level jobs such as a clerk, a truck driver or a maintenance apprentice to high-level jobs as the manager of an airport, a steamship company or a transportation conglomerate. Some transportation jobs require personnel who are interested in accounting, finance or marketing; others require personnel skilled in labour relations, production management or computer systems. As transportation technology changes and as greater demands are made on Canada's transport systems, job opportunities will increase, particularly for trained, hardworking and innovative personnel.
Author KARL M. RUPPENTHAL
Suggested Reading
N.C. Bonsor, Transportation Economics; Theory and Canadian Policy (1984); H.L. Purdy, Transport Competition and Public Policy in Canada (1975); Karl M. Ruppenthal, Canada's Ports and Waterborne Trade (1983).
Links to Other Sites
Transport Canada
The website for Transport Canada provides information about national programs and regulations concerning Canada's multifaceted transportation system.
Air Canada
The official website of Air Canada.
Canadian National Railway
The CN website provides a detailed guide to its extensive rail operations in Canada and the US. Also offers recent financial data and a historical overview of the company.
Canadian Pacific Railway
The CP Rail website features information about the company's extensive services and operations. Click on "General Public" to access the multimedia "Our History" section.
The Colonial Despatches
View digitized copies of correspondence (dated 1846 - 1859) between the British Colonial Office and the "colonies" of Vancouver Island and British Columbia. Search or browse this site for references to specific individuals, communities, companies, or industries in the province. Also includes digitized images of maps of various locations. From the website for the University of Victoria.
All Time List of Canadian Transit Systems
This very extensive website provides detailed information about past and present transit systems in Canada.
Chambly Canal National Historic Site of Canada
Go through the lock of history and travel Quebec's Historic Canals to find out how our country was built! From Parks Canada.
Frontier to Freeway
An illustrated history of the development of trails, roads, and highways in British Columbia. From the website for the Government of British Columbia.
Settlers' Effects
This extensive online photograph collection documents the history of the northern British Columbia communities of McBride, Valemount, Prince George, and Mackenzie.
Features images of pack trains, river freighters, railways and highways, historic buildings, local residents at work and play, and much more. From the Fraser Fort-George Regional Museum.
BC Ferries
The official website for BC Ferries. Ferry schedules, information about the ferry fleet, travel guides, promotional videos, and more.
Atlas of Alberta Railways
Climb aboard the "Atlas of Alberta Railways" website for a fascinating multimedia tour of Alberta history. This site will take you to a great collection of fascinating maps, old newspaper articles, scenic photographs, charts, graphs, and much more. From the University of Alberta Press.
Canadian Air Transport Security Authority
This website offers press releases and speeches from CATSA and Transport Canada on air security related matters.
Botwood
The official website for the Town of Botwood, a historic community in Exploits Valley. This site offers a guide to the many local tourist attractions and a review of major events in its long history, including the fate of the local Beothuk community, the early European settlements, the flying boat era, the wartime role of the Botwood airbase, and much more.
Glossary: Ports and Shipping
A glossary of technical terms related to ports and shipping. From the website for the Saint John Port Authority.
Glossary: Aviation
Terms and definitions of interest to pilots and air traffic services personnel. From Transport Canada. A PDF.


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