3 November 2004 Rob Ritchie, President and CEO of Canadian Pacific Railway, Addresses Rob Ritchie President and CEO, Canadian Pacific Railway Chairman of the Board, Railway Association of Canada   On Track for the Future Reception 17:30, 3 Nov 2004 Room 200, West Block Ottawa, ON   Welcome, ladies and gentlemen.   When this initiative started, some Members of Parliament believed they knew all they needed to know about Canada's railways - that trains run over tracks.   I think they now know this nation's 60 freight and passenger railways serve customers, in their constituencies, across Canada, throughout North America and overseas. And, yes, we run trains over our tracks, too.   There have been a lot of other changes over the years. We may not look much different than a decade ago, but railways are among the biggest users of information technology in the world. Our locomotives today can pull heavier loads and employ "smart" technology to operate efficiently. Freight cars are bigger and better. Our track can support bigger loads. We're the safest form of land transportation.   A special initiative involving government, the railways and communities is on track to further reduce highway/railway crossing collisions and trespassing incidents by 50 percent by the end of 2006.   In fact, the initiative's ability to bring all interested parties together on a common objective is being used as an example by the federal government to demonstrate how others should work.   The railways and municipal governments, big and small, are also working together to address and prevent proximity issues in communities and throughout the rail network that connects them.   More than ever before, healthy railways are of fundamental importance to jobs and economic growth in Canada. Freight and passenger traffic is moving in record volumes.   Traffic across virtually all commodities is up, which is reflected in our workloads.   Contrary to the opinion of some, we can't control everything - such as fuel prices. But even there, with changes in operating practices and the use of modern technology, we are able to move 510 revenue ton-miles of freight for each gallon of fuel our locomotives consume.   Put another way, Canada's railways are handling significantly more business, more efficiently, with the same fuel consumption as a decade ago. We are Kyoto-friendly.   But our taxes are higher than U.S. railroads, and our depreciation rates lower. These have a direct impact on our ability to reinvest in our business and modernize equipment at the same pace as American operators.   That should be as much a concern for those of you here tonight who are interested in Canada's continued economic growth and its competitive position in global markets as it is for railway management.   Nevertheless, we have been working hard as an industry, and in cooperation with our customers, to maximize our existing assets.   The recent announcement of commercial haulage agreements by CPR and CN to streamline the flow of traffic through the Port of Vancouver is a classic example of how fierce competitors can still cooperate without government intervention for the benefit of customers, communities and the economy.   There have been similar announcements in the past, involving traffic flows through the Fraser Canyon, the St. Clair tunnel and northeastern U.S.   We believe there's room, a lot of room, for the same principles to be applied throughout North America to serve the public interest. For example, railways can reduce road and airport congestion, conserve fuel, limit pollution, and save money for society overall.   Many of us, at all levels, will be either retired, or eligible for retirement, within the next decade when these opportunities are fully realized.   To ensure this long-term success, the industry has launched programs to help attract, and train, employees for the next generation of Canada's railway workforce. The Association of American Railroads and the U.S. Department of Labor are starting to follow suit.   This year, there are seven classes in five community colleges - in Vancouver, Calgary, Sault Ste. Marie, Toronto and Montreal - hard at work, studying to become train conductors, engineers, signal maintainers and train dispatchers.   Today, all of us are part of a highly dynamic industry. An industry that is growing. An industry that is key to the future prosperity of Canadians.   We are On Track for the Future!   Thank you very much, and enjoy!