Evidence of meeting #13 for Transport, Infrastructure and Communities in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rail.
A recording is available from Parliament.
11:55 a.m.
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Okay.
Finally, do you feel that CN has adequately reflected the importance of the French language in Canada in the makeup of its board and its corporate leadership in the past?
11:55 a.m.
Sébastien Labbé
Well, we're just coming out of corporate leadership being heavily French and bilingual, I guess, so I think it's always a mix of the total picture of leadership.
11:55 a.m.
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Okay.
Mr. Brazeau, I'll switch over to you with some questions. I was struggling with which person I should ask this question to. We've heard several of our witnesses today talk about extreme weather events caused by climate change and the impacts on the supply chain. You represent a number of big rail companies that work in Canada. I'm curious to hear about the conversation around extreme weather events and global climate change within your industry.
Has your industry seen increasing costs due to extreme weather events? What work is being done to understand this trend? What costs do you anticipate will be borne by your industry moving forward—let's say in the coming decade?
Noon
President and Chief Executive Officer, Railway Association of Canada
The short answer is that there has been an increased cost as a result of extreme climate change and extreme conditions. That is something that all of the railways are planning for in their contingency plans. One thing that I think the railways have been doing more and more of is reaching out to other subject matter experts in meteorological changes or extreme weather patterns. Analytics are being used. Short-term and long-term forecasting is now in place. Contingency plans are done on a regional basis as well. I think it's something that the railways are all taking seriously. It's all part of their future planning.
Yes, there has been a significant amount of investment and there has been a significant allocation of time and people's resources to make sure that we can plan as best as we can and anticipate as quickly as possible when those events occur.
Noon
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Thank you, Mr. Brazeau.
You mentioned the use of subject matter experts. Does the rail sector follow the work of the IPCC and some of the modelling and projections that are being done globally of the implications of global climate change? Can you provide any sense of the magnitude of the costs that global climate change and extreme weather could pose for the rail sector in Canada?
Noon
President and Chief Executive Officer, Railway Association of Canada
First of all, the railways are taking advantage of all of the information that's available out there. We also work closely with Canadian universities. The University of Alberta, for example, has a very good rail-focused research group. There is a lot of interaction between the University of Alberta's rail research people there and our network. We also work closely with our U.S. counterparts. There's a dedicated R and D and training facility in Boulder, Colorado, that allows all of our railways to test equipment, and to test equipment under different conditions. I am certainly very confident that no stone is being left unturned here by the railways.
In terms of the costs, I can't give you a specific number, but I can tell you that those costs are becoming increasingly significant. That's also part of ensuring that the railways are reinvesting back into those areas where we will have the best impact and the best ability to respond to those challenges.
Noon
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Thanks, Mr. Brazeau.
I also noted an article from 2020 that indicated that CN has supported the recommendations of the task force on climate-related financial disclosure.
Are you familiar with these recommendations? Are those recommendations supported by the Railway Association of Canada?
Noon
President and Chief Executive Officer, Railway Association of Canada
I can tell you, as I mentioned in my opening remarks, that rail represents only 3.5% of GHG emissions in the transportation network in Canada. However, we have specific targets in place with Transport Canada for locomotive emissions. Those targets are in place on an annual basis and all of our members are—
Noon
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
Mr. Brazeau, I don't think this deals specifically with emissions from the sector, but with two other sources of financial risk.
One is that your industry ships a huge volume of fossil fuel products at a time when Canada and the rest of the world are working to transition off of those. That represents an area of financial risk.
The second area of financial risk, in my mind, is the financial risk related to the costs that are going to be borne by continued extreme weather events along the various rail corridors in Canada.
Are those areas of risk communicated to investors in rail companies? Are you familiar...?
Noon
President and Chief Executive Officer, Railway Association of Canada
First of all, railways have a common carrier obligation. We have an obligation to carry all resources and all goods. That's in the Canada Transportation Act. We don't pick and choose what we carry. We fulfill that common carrier obligation every day.
In terms of the actual costs, again, I can't speak to—
Noon
NDP
Taylor Bachrach NDP Skeena—Bulkley Valley, BC
The question wasn't on cost. The question was on risk.
Noon
Liberal
The Chair Liberal Peter Schiefke
Thank you, Mr. Brazeau and Mr. Bachrach. Unfortunately, the time is up.
Next we have Mr. Jeneroux.
Mr. Jeneroux, the floor is yours. You have five minutes.
April 25th, 2022 / noon
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
Thank you, Mr. Chair.
Thank you, witnesses, for being with us today.
I have five minutes. I'm going to try to get through one question quickly with a few of the witnesses.
Maybe I will start with you, Mr. Brazeau. Judging from your opening comments, the biggest reason for supply chain disruption was catastrophic flooding in B.C.
Am I correct?
12:05 p.m.
President and Chief Executive Officer, Railway Association of Canada
It was extreme weather events, for sure. There was extreme heat throughout the prairies in the summer.
12:05 p.m.
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
I will come back to you, but I'm going to try to do it quickly, if we can.
Ms. Hardy, it's the same question for you. Judging by your opening comments, the biggest reason for supply chain disruption was B.C. flooding.
Is that correct?
12:05 p.m.
Vice-President, Sales and Marketing, Grain and Fertilizers, Canadian Pacific Railway
It was flooding and fires. Yes.
12:05 p.m.
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
Mr. Labbé I have the same question for you.
The biggest reason for supply chain disruption, judging by your comments, was B.C. flooding.
12:05 p.m.
Sébastien Labbé
There were fires and also extreme cold for a couple of months.
12:05 p.m.
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
Great.
Mr. Montpetit, judging by your opening comments, the biggest reason for supply chain disruption has been the war in Ukraine.
12:05 p.m.
President and Chief Executive Officer, Western Canadian Shippers' Coalition
No, I didn't say that. I said floods, fires, extreme heat, cold and also blockades. That really impacted things back in 2020.
12:05 p.m.
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
Okay. I'm sorry for putting words in your mouth. That's helpful.
Lastly, Mr. Dagenais, the biggest reason for supply chain disruption, according to your opening comments, was work stoppages.
12:05 p.m.
Vice-President, Port Performance and Sustainable Development, Montreal Port Authority
It was work stoppages and the pandemic, indeed.
12:05 p.m.
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
Okay, that's interesting.
Of all those witnesses, Mr. Dagenais was the only one who indicated the pandemic.
I only bring this up, Mr. Chair, because at the summit the minister held, he said that COVID-19 was solely the biggest disruption to the supply chain. I think it's important for this committee, particularly the analysts, to hear that as we go into the final report.
Now I want to turn some questions over to Ms. Kuzeljevich.
You indicated in your opening comments that the Port of Vancouver was backlogged by four weeks and is at 120% capacity.
Did I get those numbers correct?
12:05 p.m.
Executive Director, Canadian International Freight Forwarders Association
I think Ms. Kuzeljevich is having some technical difficulty. I will address that concern.
That was reported by one of the carriers. The carrier was Maersk. They put out a weekly report of port status in North America. They have indicated that, from their perspective, they are having a dwell of about four weeks to get into the port and the port is 120% congested.
12:05 p.m.
Conservative
Matt Jeneroux Conservative Edmonton Riverbend, AB
We heard from the Port of Vancouver, I'd guess about three weeks ago now. They indicated that in about nine weeks the port would be back to business as usual. They were confident in those numbers. I was a bit surprised when I heard that, noting the number of barges out in English Bay, for example.
I see Ms. Kuzeljevich has jointed us again. I'm curious if either of you have comments on that statement from the port.