Canada’s Railways Could Be Back on Track

(Materials Management & Distribution)

After hitting bottom in 2009, all signs point to a freight rail traffic upswing in 2010: RAC

Freight rail traffic may have hit rock bottom in 2009, but the Railway Association of Canada (RAC) says that 2010 looks promising. In a release sent out late last month, the RAC reports that freight carriers saw traffic drop by 25% during the first half of 2009. The RAC attributes the drop to the recession, which cut into the overseas demand for coal, sulphur and other export commodities, as well as the movement of containerized goods in and out of Canada.

But the RAC also notes signs of improvement. For one thing, toward the end of 2009 the number of locomotives and freight cars brought out of storage rose to handle an uptick in business. Also, strong demand for Canadian grain and specialty crops kept carriers busy during 2009. And there is plenty of promising new business for the railways, including ethanol and wood pellets used in electricity-generating plants. Read more here.