Thank you, Mr. Chair and members of the committee.
At a time when U.S. tariffs and shifting trade policies are creating uncertainty, the efficiency, diversification and modernization of our port system has never been more important. As many parties have already explained to you, Canada's ports are not isolated assets. They are essential components of an integrated supply chain that supports our economic resilience and trade sovereignty. Strengthening ports, therefore, strengthens the entire supply chain that connects Canada to global markets.
Canadian railways are part of this supply chain and contribute to the collective effort. Every day, across more than 43,000 kilometres of track, rail networks connect farms, mines and production sites to export terminals. Last year, the railways transported $400 billion worth of goods, reaching a record volume of 348 million metric tons, half of which was destined for export through Canadian ports. Last year, the railways also achieved their best-ever safety record for freight transport, reducing the accident rate by 4.8%. It is important to note that this is a privately funded system. Railroads reinvested $4.5 billion in their Canadian network last year alone, and more than $35 billion over the past 10 years.
When we talk about diversifying trade, reaching new markets and strengthening our export capacity, we're glad to be part of that discussion, because railways can enable trade diversification. The good news is that our rail network is strong and resilient. Canadian railways operate with among the lowest average freight rates in the world, helping Canadian exporters stay competitive. There remains, however, a need for additional port capacity.
If we are serious about growing exports beyond the U.S., we must also accelerate the approval of projects by focusing on substance and results over process. One simple but telling example is grain-handling at the port of Vancouver. Today, grain is often not loaded onto vessels during inclement weather. In a region where rain is common, that matters. According to the port, this reduces effective capacity by about 7%. The railway industry is encouraged by the work being done by Transport Canada, in collaboration with stakeholders, in that respect. Now it's time to act and fix this long-standing capacity issue.
Like many witnesses who have appeared before you, our view is that we need to strengthen the investment environment in Canada in the interests of our entire economy. Private capital is essential to building the infrastructure we need, but it will only flow if conditions are competitive.
The U.S. has implemented permanent 100% depreciation, creating a strong incentive to invest south of the border. Canada needs to level the playing field and expand the productivity superdeduction for all sectors to access immediate depreciation. This policy would unlock investment, support productivity and ensure that capital is deployed here at home.
We must also address labour stability. Over the past three years, Canada's transportation sector has experienced more than 100 work stoppages. In 2024 alone, that resulted in more than 1.3 million lost workdays, the highest level in decades. These disruptions affect businesses and workers and how international partners see Canada. Reliability matters.
A modernized framework that supports timely dispute resolution, especially where there is a risk of broader economic harm, is essential. This includes rapid implementation of the Industrial Inquiry Commission's recommendations, including B.C.-wide certification, while avoiding fragmented bargaining and enabling binding arbitration when needed to protect the national interest.
Finally, we agree with port witnesses that effective governance requires diligent appointments to their board with strong supply chain experience. The rail industry fully supports this direction.
Canada is well positioned. We produce what global markets are looking for, and we have a strong, integrated supply chain connecting inland production to our ports. Each part of that system has a distinct role to play. Ensuring that every link in the supply chain performs reliably and competitively will be key to expanding into new markets.
Thank you.