Thank you for your question.
I would say that the Canadian rail network is currently very well maintained. Generally speaking, the existing network is one that is actively used. There was a rationalization process in the late 1990s, which means that today, most of the rail network in Canada is in use, maintained and compliant with standards set by Transport Canada.
Where we see a need is in investing to make marginal increases to rail capacity when demand justifies it in very specific locations. I always speak in terms of demand, with the understanding that it is expected to grow. That's what everyone is hoping for.
That's why we're specifically calling for the cost-of-capital allowance to be made applicable to more industries, not just manufacturing. This would be very helpful in increasing demand and production across all sectors.
In Canada, we have two major railways, but we also have short-line railways. These are smaller, highly localized railways, and I would say that they may require support more tailored to their reality. I'm referring here to a tax credit similar to the one introduced by the Province of Ontario last year. That measure should be commended, and the federal government should be encouraged to adopt it and extend it to all short-line railways across Canada.
