Decision No. 231-R-2011

June 22, 2011

File No. R8045/11-00701

---

Application

[1] The Canadian Pacific Railway Company (CP) filed an application with the Canadian Transportation Agency (Agency) pursuant to subsection 98(2) of the Canada Transportation Act (CTA) for approval of the proposed construction of a new intermodal yard, to be known as the Regina Intermodal Facility. This proposed intermodal yard will extend between mileages 98.5 and 102.30 of CP's Indian Head Subdivision, north of CP's main line, at the western boundary of the city of Regina, in the province of Saskatchewan, as shown on plans 02-G-101 to 02-G105, Revision A, dated January 17, 2011.

[2] CP plans to construct Phase 1 of the proposed intermodal facility and will apply for approval for other phases as required by traffic volumes and customers of the Global Transportation Hub (GTH), a designated state-of-the-art transportation and distribution hub stretching over approximately 1,800 acres of land at the western edge of Regina.

[3] The application included a draft environmental assessment of the project prepared in accordance with the requirements of the Canadian Environmental Assessment Act, S.C., 1992, c. 37 (CEAA). Pursuant to paragraph 5(1)(d) of the CEAA, an environmental assessment of the project is required before the Agency can exercise its discretion under section 98 of the CTA. As part of its responsibility under the CEAA, the Agency, along with any other responsible authorities, must ensure that an environmental screening is conducted prior to making any irrevocable decision on the project.

[4] In Decision No. LET-R-59-2011, the Agency determined, pursuant to paragraph 20(1)(a) of the CEAA, that the proposed intermodal facility is not likely to cause significant adverse environmental effects taking into account the implementation of the mitigation measures proposed by CP and accepted by the Agency. Further, the Agency advised CP that should it approve the construction project under section 98 of the CTA, conditions pertaining to the environmental assessment determination made in Decision No. LET-R-59-2011 would be included in the Agency's approval under the CTA.

[5] For the purpose of its application under subsection 98(2) of the CTA and the environmental assessment under the CEAA, CP published a notice in the Leader-Post on February 5 and 7, 2011. Interveners were provided with 30 days to file any comments they may have in respect of CP's application. No comments were received.

Legislative Reference

[6] Subsections 98(1) and (2) of the CTA state:

(1) A railway company shall not construct a railway line without the approval of the Agency.

(2) The Agency may, on application by the railway company, grant the approval if it considers that the location of the railway line is reasonable, taking into consideration requirements for railway operations and services and the interests of the localities that will be affected by the line.

Issue

[7] Is the location of the line reasonable taking into consideration the requirements for railway operations and services and the interests of the localities that will be affected by the line?

Location of the Line

[8] The Province of Saskatchewan (Province), the City of Regina and the Government of Canada, through the Asia-Pacific Gateway and Corridor Initiative, have partnered to fund and support the GTH.

[9] The location of the proposed intermodal facility within the GTH was chosen after taking into consideration the location of CP's main line, the Loblaw Companies Limited's Distribution Centre site and the GTH configuration including the GTH road infrastructure projects.

[10] CP considered other locations, but felt, along with the other partners, that the proposed location of the GTH was the best to handle growing Asia-Pacific trade.

[11] According to CP, Phase 1 of the proposed intermodal facility entails the construction of eight tracks, including lead tracks, working tracks, storage tracks and one repair in place track. Phase 1 of the project consists of approximately 10 miles of track being built with 14 switches. Further, the construction of the intermodal facility involves modifications to the existing railway signalling system. The Centralized Traffic Control signalling system will be extended eastward from the facility. CP's facility also requires the construction of related buildings such as a Main Office, a maintenance building, an entrance canopy, staff kiosks, truck weigh scale and some temporary structures, as well as roadways, parking and storage areas for containers.

[12] The proposed intermodal facility will be constructed in an area that has been used for agricultural purposes for more than one hundred years. The GTH site had been levelled and cleared of native vegetation for agricultural purposes and is now in transition from agricultural to industrial use. Access to the proposed facility will be off Dewdney Avenue turning south to Range Road 210, which has been upgraded by the Province to a four lane road that already serves the Loblaw Companies Limited's Distribution Centre and will serve future GTH industries. The Province is undertaking additional roadwork expansion, including a new connector road to link Dewdney Avenue with the Trans-Canada Highway (Highway 1) and Highway 11.

Requirements for Railway Operations and Services

[13] In its submission, CP referenced, in support of the GTH, a statement from the Government of Saskatchewan that states:

More than any other province, Saskatchewan relies on exports to create jobs and generate economic prosperity... what the Saskatchewan economy produces is in demand across Canada, throughout North America and around the world. The reliance on exports means we need state-of-the-art links to the broader national and international transportation systems and global supply chains. The GTH will enhance these links.

[14] CP adds that it will provide capacity for incoming Asia-Pacific products and will also provide access to export bound containers and shipping capacity to Asian markets. A feature of the GTH is to present businesses with the opportunity to co-locate facilities adjacent to CP's proposed intermodal facility. CP states that the Indian Head Subdivision is part of its transcontinental line that stretches from Montréal to Vancouver.

[15] CP will carry out intermodal operations at the proposed facility and will not conduct marshalling operations for freight or tank cars, as those operations will remain at the existing Regina Rail Yard. No hazardous material processing or locomotive fuelling activities will be performed at the proposed facility.

[16] Co-location increases efficiencies and decreases container transportation distance by truck from the proposed intermodal facility to the customers' facilities. As such, Loblaw Companies Limited has chosen the GTH, adjacent to CP's proposed intermodal facility, as the location for its new western Canada distribution facility.

[17] CP intends to move all of its intermodal activities from the existing intermodal facility in downtown Regina to the GTH. According to CP, the existing intermodal facility is adjacent to its downtown Regina Rail Yard and operates on a small and inefficient footprint. The location is in a constrained urban area where there is insufficient space for trucks to load and the Top Lifters to work. Further, the limited space at the existing facility causes the waiting trucks to queue and idle in the surrounding public streets. Road access to the existing intermodal facility causes congestion on the city streets, thereby reducing the efficiency of the current location.

[18] The process of switching inbound and outbound intermodal cars from the Regina Rail Yard to the existing intermodal facility is also very inefficient as the lenGTH of the track is short and not compatible with modern trains.

[19] The Agency acknowledges that the GTH objective is to provide infrastructure to process increasing volumes of container traffic and to integrate transportation modes into a seamless network, and that CP's proposed intermodal facility is a significant cornerstone of the project. The Agency is of the opinion that CP cannot meet the needs of the GTH with the existing intermodal facility in downtown Regina. The Agency is therefore satisfied that the location of the proposed railway line is reasonable taking into consideration the requirements for railway operations and services.

Interests of the Localities

Nature of the operations

[20] According to CP, the current operations at the existing intermodal facility consist of seven intermodal/mixed freight trains per day. CP expects that, once in operation, the proposed intermodal facility will process intermodal unit trains originating and terminating at the intermodal facility from both eastbound and westbound directions. CP estimates one or more additional inbound trains and one or more additional outbound trains per day at the proposed intermodal facility.

[21] CP contends that the proposed intermodal facility design will ensure safe operations. Train speed in the yard will be limited to 10 miles per hour, and all motor vehicles travelling on the property will be limited to 25 miles per hour.

[22] The proposed intermodal facility will be secured with perimeter fencing, gates and cameras. Access will be controlled by kiosks at the entrance. Processing of the incoming and outgoing traffic will be done at the kiosks. Up to four lanes will be designated for incoming traffic and a separated lane will be designated for outgoing traffic. A truck weigh scale will also be installed.

[23] According to CP, the truck traffic will be concentrated within the GTH, mostly between the adjacent Loblaw Companies Limited facility and the proposed intermodal facility.

Road access and crossings

[24] Road access to the proposed intermodal facility will be off Dewdney Avenue turning south along Range Road 210.

[25] CP submits that all road allowances will be closed by the Province within the limits of the proposed intermodal facility to eliminate at-grade road crossings.

• Range Road 210: Close the unopened road allowance within the limits of the proposed intermodal facility, including the existing road crossing over Indian Head Subdivision;
• Range Road 211: Close Range Road 211 within the limits of the proposed intermodal facility, including the existing road crossing over Indian Head Subdivision; and
• Condie Road (Range Road 209): Close this crossing over Indian Head Subdivision as part of the GTH road improvements.

[26] The Province will also upgrade the Grand Coulee Access Road crossing (mileage 102.22) with an automatic protection system to enhance public and railway operations safety.

[27] According to CP, there will be no road crossing within the footprint of the proposed intermodal facility. In addition, the elimination of at-grade crossings unprotected by warning systems facilitates public safety, as the number of interactions between trains and vehicles at such locations will be reduced.

[28] In addition, the closure of these crossings allows for sufficient distance to accommodate long intermodal unit trains. The site also has sufficient space to provide for efficient intermodal trucking related activities.

[29] As part of the environmental assessment process, a resident raised the issues of reduced access to his land as well as concerns related to the drainage in proximity to the project site. CP agreed to provide the resident with access to his land. To facilitate drainage, CP also agreed to replace three existing culverts which are blocked and separated.

Support for the project

[30] On June 29, 2010, CP held a public information session to consult with the public and stakeholders. Additional consultations have been offered through the CP Community Connect Call Centre and follow-up meetings with CP representatives. The residents raised the issues of impact on agricultural lands, loss of road access for farmers, increased truck traffic, and potential noise. CP committed to address, in its environmental assessment report, the issues related to noise, safety, truck traffic, road access for farmers, and impact to agricultural lands. With regards to noise and vibration, CP conducted a noise impact assessment study which concluded that there will be no noticeable impact to the noise levels in the area.

[31] Road improvement issues are outside the scope of this process and are being addressed by other authorities.

[32] No comments were received through the public consultation process.

[33] In support of the project, CP submitted letters from Loblaw Companies Limited, Regina Regional Opportunities Commission and the Global Transportation Hub Authority supporting the proposed intermodal facility for its impact on the local economy, enhancement to urban development, and general benefits to the City of Regina.

[34] According to CP, the need to have integrated intermodal facilities at the GTH location is recognized by federal, provincial and municipal governments, and this is acknowledged by all levels of government through the Pacific Gateway funding.

[35] CP conducted consultation with the Sakimay First Nation with respect to the proposed intermodal facility. During the course of the consultation, issues discussed included: potential noise, emergency preparedness, projected volumes of train traffic, requirements for at-grade crossings and business and commercial opportunities. In response to the issues raised, CP provided confirmation that an environmental assessment of the project would be conducted. CP provided assurance that commitment to emergency preparedness would be made in the environmental assessment and Operations Safety Plans. CP also confirmed that noise would be addressed in the environmental assessment, including specific mitigation measures. CP further confirmed that no new at-grade crossings will be required and that all existing crossings in the vicinity of the project will be closed or upgraded by the Province prior to the construction of the proposed intermodal facility.

[36] The Sakimay First Nation owns a parcel of land approximately 2.5 kilometers east of the project site for economic development purposes. The Sakimay First Nation presently operates a small business on the land and is expected to be interested in future economic development opportunities for its property as the area transitions to industrial use. CP has confirmed that potential business and commercial opportunities will continue to be explored with the Sakimay First Nation.

[37] In light of the above, the Agency finds that the proposed location of CP's intermodal facility is reasonable and consistent with the interests of the localities.

Conclusion

[38] The Agency concludes that the location of the proposed intermodal facility is reasonable taking into consideration the requirements for railway operations and services and the interests of the localities that will be affected by the line.

[39] Accordingly, the Agency, pursuant to subsection 98(2) of the CTA, and subject to the following conditions, approves the construction of a railway line to be known as the Regina Intermodal Facility, on the western boundary of the city of Regina, in the province of Saskatchewan.

Conditions

[40] CP shall:

1. implement the mitigation measures, best practices and procedures for the protection of the environment as set out in its environmental assessment report and supplementary information provided and as included in Decision No. LET-R-59-2011; and
2. cause no variation in those mitigation measures, best practices, and procedures without the prior approval of the Agency.

Members

• J. Mark MacKeigan
• Jean-Denis Pelletier, P. Eng.