Evidence of meeting #43 for Transport, Infrastructure and Communities in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was industry.
A recording is available from Parliament.
10:15 a.m.
Executive Vice-President, Marketing, Sales and Quality, National Steel Car Limited
For North America. As far as the portion that would be Canadian is concerned, that would probably range from about 20% to 25%.
10:15 a.m.
NDP
Olivia Chow NDP Trinity—Spadina, ON
Based on that average, it would take a long time. I see the vision you have in front of us; it would take a long time before we could get to the renewal.
10:15 a.m.
Executive Vice-President, Marketing, Sales and Quality, National Steel Car Limited
In terms of our manufacturing capability, again, we have the capacity to build on average 12,000 cars a year. We're currently shipping, on a daily basis, just under 50 cars a day from our facility, on a five-day schedule. Again, we feel it's well within our capabilities that we could look at a three-year replacement program of between 5,000 and 6,000 cars a year dedicated just to the grain replacement.
10:15 a.m.
NDP
Olivia Chow NDP Trinity—Spadina, ON
Right. What you need, though, is the company to place the order to buy it from you in order to do the replacement, right? That's the barrier at this point.
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
We're suggesting that because the government has invested in a railcar fleet now, with the current obsolete fleet, they've essentially provided that equipment for the railroads and for the Canadian farmer...we're suggesting that the government stay involved in order to get a rapid replacement and move Canada essentially up the transportation chain here to a very modern fleet in a short period of time, so that this benefit is provided to the Canadian farmer and helps with Canada's ability to export wheat worldwide.
10:15 a.m.
NDP
Olivia Chow NDP Trinity—Spadina, ON
Right now it's about 1,000 cars per year for Canada, and you're looking for some kind of support to renew the fleet. So it would be from 1,000 cars per year to how many per year so that we could get to the renewal?
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
The way this is laid out, I think it's 3,000 cars a year; we would build 3,000 cars a year and essentially lease these to the Canadian government.
10:15 a.m.
NDP
Olivia Chow NDP Trinity—Spadina, ON
So from 1,000 to 3,000 for each year, and then the fleet would be renewed?
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
That's right.
10:15 a.m.
NDP
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
The proposal is to renew the fleet as quickly as possible in order to have the benefits provided to all the stakeholders in the grain supply chain, between the farm and the port.
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
They'd be leased, but the value of the equipment is about $1.5 billion.
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
Yes, 16,000 cars.
10:15 a.m.
Liberal
Denis Coderre Liberal Bourassa, QC
Thank you, Mr. Chair.
Good morning, gentlemen.
What is the current status vis-à-vis Transport Canada right now? You're proposing this renewal. Is there any discussion right now specifically for the grain cars?
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
We've made this presentation to the transportation committee...I'm sorry, to the agriculture committee.
10:15 a.m.
Voices
Oh, oh!
10:15 a.m.
Executive Vice-President, Marketing, Sales and Quality, National Steel Car Limited
We did make a presentation to the agriculture committee as part of its Growing Forward 2 study, and there was a recommendation that came out of that committee that I'd like to read for the record:
The Committee recommends that the government investigate the current condition of the existing fleet of Canadian grain rail cars, and begin to plan for updating the current fleet with a more modern rail car that will increase the efficiency and productivity of the government's rail car fleet while decreasing the overall environmental footprint.
10:15 a.m.
Liberal
Denis Coderre Liberal Bourassa, QC
Okay, but vis-à-vis the government, have you spoken to the minister? Have you spoken to the officials?
10:15 a.m.
Chairman and Chief Executive Officer, National Steel Car Limited
We've spoken to various ministers, executive assistants and such, and to some of the junior ministers in various departments.
