Good morning.
I'm going to stick to my script to make it easier on the translator.
My name is Brad Bodner. I'm director of business development for CN. We appreciate the opportunity to appear before the Standing Committee on Transport, Infrastructure and Communities on the important topic of trade corridors.
CN employs about 24,000 people across North America, transporting more than 250 billion dollars' worth of goods across a North American rail network covering roughly 20,000 route miles. This is Rail Safety Week across Canada and our team of railroaders have been on the ground in many of our neighbouring communities sharing a message of awareness and tips about our shared responsibility for safety around rails. CN is a proud partner of Operation Lifesaver, whose 2018 rail safety campaign #STOPTrackTragedies is continuing to reach millions of Canadians all over the country.
British Columbia, and particularly the Lower Mainland, are an extremely important part of our network. As trade with Asia has grown in importance, the focus on the movement of goods through the west coast ports has grown with it. About 25% of CN's business either enters or departs Canada through the British Columbia ports.
Intermodal traffic—that is, goods moving in containers—is the fastest growing segment of CN's business, with the coming expansion of intermodal terminals in Vancouver and the recently completed expansion of Fairview terminal in Prince Rupert demonstrating the significant increase in this traffic. However, it isn't just intermodal. The majority of bulk products we carry also move through terminals at the ports of Vancouver and Prince Rupert. Grain and coal move through Prince Rupert, while grain, coal, potash and sulphur are among the bulk commodities that move through Vancouver. Vancouver is clearly the preferred gateway for western Canadian grain and speciality crops. Even some grain destined to Europe now moves through Vancouver as the most cost-effective way to reach its destination.
Needless to say, CN and our customers are extremely dependent on efficient operation and timely development of the B.C. ports. CN has been investing on an ongoing basis to ensure we have sufficient capacity to address the growth in business, particularly in western Canada. In 2018, CN is investing approximately $340 million to expand and strengthen its B.C. rail network. The B.C. investments are part of CN's record $3.4-billion capital program for 2018 and include key track expansion projects that will boost capacity, allowing CN to better serve our customers.
In June the Government of Canada announced funding through the national trade corridors fund for two infrastructure projects of great significance to CN and the transportation supply chain in Vancouver. These investments will have a positive impact on CN's capacity in this very busy trade corridor.
These projects, jointly funded by the Government of Canada, CN, and the port of Vancouver, will boost capacity along the rail corridor across the Second Narrows Rail Bridge, linking transportation networks to growing grain, potash, coal and forest products export terminals on Vancouver's north shore. Many of the existing terminals have recently expanded capacity and G3 is currently constructing a new grain terminal on the north shore. This is a significant project as it's the first new grain terminal in Vancouver in many decades and includes a very efficient loop track design, the first on the Canadian west coast. The government also announced funding to expand capacity on the rail line that serves as CN's primary access to DP World's Centerm Terminal and Global Container Terminals' Vanterm Terminal, both of which have expansion plans in the works.
We are very pleased with the government's decision to create an infrastructure fund aimed specifically at trade corridors. The value of this fund is unlike traditional infrastructure funds in that it does not require the participation of a second level of government. This recognizes the reality that much of the value of investing in a corridor, like the corridor to Vancouver's north shore, does not accrue to B.C. or the municipalities, but rather to Saskatchewan and Alberta, whose grain, coal and potash make up the majority of the traffic that depends on the corridor to reach its market.
Going forward there are still many bottlenecks that need to be addressed in order to grow capacity in the Lower Mainland. One key project that needs to move forward is the replacement of the Fraser River bridge. This bridge, which is owned by Public Services and Procurement Canada and operated by CN, is over 100 years old. It is regularly used by six railways, three freight and three passenger, totalling some 40 trains per day. It is an old-style swing bridge, open eight hours a day for marine traffic and with very little capacity for the new volumes associated with the terminal expansions planned or under way. This bridge needs to be replaced and it will be both expensive and complex to do so. We encourage the government to move forward on this project in a timely manner.
Canadian exporters and importers depend on a reliable and efficient supply chain in order to remain competitive on the global stage. The Vancouver gateway is a key part of that supply chain. Continued investment and the ability to grow and adapt to meet the changing needs of customers are essential in order to enable Vancouver, as well as Prince Rupert and other Canadian ports, to meet the growing needs of Canadian businesses.