Home / Resources / Outsized Impacts: Canada’s Shortline Railways

Outsized Impacts: Canada’s Shortline Railways

Shortline railways are vital to Canada’s economy, delivering essential first-mile and last-mile services that connect businesses and rural communities to Class 1 railways and global markets. One in five freight carloads in Canada originates on a shortline – $49 billion worth of goods.

Canada’s Shortline Network

Shortline railways play a critical role in Canadian supply chains, linking local economies to broader markets. They provide an efficient and sustainable way to move goods across the country and beyond.

Facts

Support Canada’s Future.
Create a Federal Shortline Tax Credit

Increase Investment

Tax credits reduce cost barriers and encourage capital investment.

Strengthen Supply Chains

Improve first-mile and last-mile freight connectivity.

Support Economic Growth

For every dollar invested, there is a $10 return.

A Canadian federal shortline rail tax credit would cost $50 million, and generate an estimated $500 million economic return.

$50M

COST

ESTIMATED RETURN

Recommendations

Shortline Railways in Canada need a predictable government support mechanism to support local businesses, jobs, communities, and remain a viable alternative to trucking. Strengthened shortline infrastructure would contribute to regional economic development, improve supply chain fluidity, lower costs for businesses, and enhance safety while lowering emissions and reducing the strain on public infrastructure.

Download Presentations

Wabtec Sustainability
GWCI