Decision No. 96-R-2012

APPLICATION

[1] The Canadian Pacific Railway Company (CP) filed an application with the Canadian Transportation Agency (Agency) for approval of the proposed construction of a new intermodal yard, to be known as the Edmonton Intermodal Facility. The proposed intermodal yard will extend between mileages 88.21 and 89.77 of CP’s Leduc Subdivision, in the city of Edmonton, in the province of Alberta, as shown on Plans 01-G00, 01-C-00, 01-C002 and 01-C-003 dated May 20, 2011.

Environmental assessment

[2] The application included an 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 Canada Transportation Act (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.

[3] In Decision No. LET-R-30-2012, the Agency determined, pursuant to paragraph 20(1)(a) of the CEAA, that the proposed rail yard 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 also 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-30-2012 would be included in the Agency’s approval under the CTA.

[4] 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 Edmonton Journal on June 11 and 14, 2011, the Edmonton Sun on June 13, 2011 and the Leduc-Wetaskiwin Pipestone Flyer on June 16, 2011. Interveners were provided with 30 days to file any comments they may have in respect of CP’s application. No comments were received.

Aboriginal consultation

[5] As described in its Environmental Assessment report, previously filed with the Agency, on February 21, 2011, CP met with Enoch Cree Nation elders and on February 22, 2011, CP hosted a site tour for the Elders to examine the proposed facility site. CP submits that no specific concerns have been identified and that it will continue an open dialogue with the Enoch Cree Nation through the construction phase.

[6] The Agency has considered the record and is satisfied that CP’s consultation with the aboriginal group has been adequate.

LEGISLATIVE REFERENCE

[7] Section 98 of the CTA states:

(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

[8] 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

[9] The site for the proposed intermodal facility contains approximately 103 hectares of land. CP has purchased all of the privately owned lands required for the intermodal facility. The lands are situated in a strategic location on the southern limits of the city of Edmonton, adjacent to CP’s Leduc Subdivision and the Queen Elizabeth II Highway corridor.

[10] The Leduc Subdivision is a single-track main line and is a key part of CP’s rail network as it forms part of the Edmonton-Calgary corridor. According to CP, the site location will maximize the ability to integrate major rail and highway networks in the Edmonton region.

[11] Traffic along the Edmonton-Calgary corridor has been increasing and there is a minimum of 14 train movements per day, with as many as 16 to 18 trains per day. These consist of through trains between Edmonton and Calgary, trains between Wetaskiwin and Edmonton as well as local switchers.

[12] According to CP, the proposed facility is situated along a transportation and utility corridor, a well suited location for an intermodal facility. CP adds that the proposed facility has been designed to accommodate and protect an existing pipeline corridor which runs parallel to the Leduc Subdivision and to integrate transportation features with minimal disruption.

[13] The proposed intermodal facility entails the construction of 28 separate tracks, including trains building tracks, staging tracks, lead tracks, storage tracks, working tracks, locomotive tracks, repair in place track, empty container track and auto unloading tracks.

REQUIREMENTS FOR RAILWAY OPERATIONS AND SERVICES

[14] CP submits that the federal government has recognized that Canadian infrastructure must be prepared for the tremendous growth of Asia-Pacific trade and has developed a national strategy through the “Asia-Pacific Gateway and Corridor Initiative”. CP states that rail transportation has a vital role in this strategy due to its ability to transport intermodal traffic long distances from the gateway at Port Metro Vancouver to corridors across Canada.

[15] CP states that its existing intermodal facility is operating beyond its designed capacity and faces numerous constraints that will not permit CP to meet the anticipated growth in traffic volumes. Furthermore, the existing intermodal facility is on a leased site constrained by a dense urban area with no opportunity for expansion. CP adds that Alberta Transportation, the owner of the lands, seeks to use the land for an alternative purpose at lease expiry.

[16] CP projects that the intermodal traffic to and from the city of Edmonton will increase by up to 10 to 12 percent annually. CP submits that one of the reasons for this is that Edmonton functions as the key distribution point for a large region including northern Alberta, northeast British Columbia and the Northwest Territories. CP indicates that as the energy industry continues to grow in these regions, container traffic via Edmonton will increase as towns and cities such as Fort McMurray, Peace River and Grand Prairie continue to expand.

[17] CP submits that its intermodal and automotive operations are located at three separate sites in Edmonton, with CP facing many challenges to the efficiency of its operations that will not permit CP to meet the anticipated growth in traffic volumes. CP explains that rail operations are impacted by the configuration of the existing intermodal facility tracks; as there is only one switch to access the intermodal tracks, the facility can only be accessed by intermodal trains from one direction.

[18] CP adds that trucks cannot directly access the existing intermodal facility from any of Alberta’s main highway corridors. CP states that each truck can idle at the existing intermodal facility for up to 35 minutes waiting to enter the facility which also adds to local congestion and vehicle emissions.

[19] CP states that as a result of intermodal traffic growth and the need for greater efficiency, it proposes to construct the facility to serve Edmonton and its key distribution centres. CP adds that as it was able to secure a large site, there will be sufficient space to also construct a new automotive handling facility. CP submits that it will be able to consolidate three separate sites into one highly efficient site.

[20] The Agency acknowledges the space restrictions and congestion associated with the existing facilities, the importance of the railway line to CP, and CP’s ability to expand service to meet the demands in the Edmonton area. The Agency is therefore satisfied that the location of the railway line is reasonable taking into consideration the requirements for railway operations and services.

INTERESTS OF THE LOCALITIES

Nature of the operations

[21] CP contends that the proposed intermodal facility design will ensure safe operations. Train speed in the yard will be limited to 10 miles (16 kilometres) per hour and all motor vehicle travelling on roadways within the yard will be limited to 25 kilometres per hour. CP adds that the proposed intermodal facility will be secured with perimeter fencing, gates and security cameras; access will be controlled by kiosks at the entrance; and processing of the incoming and outgoing trucks will be done at the kiosks.

[22] CP submits that up to four lanes will be designed for use by incoming truck traffic and that the improved design and integration of rail and truck operations will reduce idling/wait times to enter the proposed facility to only 12 minutes. A truck weigh scale will also be installed to ensure that trucks avoid leaving the proposed facility with overweight loads.

[23] CP submits that under the proposed operating plan, container and automotive traffic will generally be designed to terminate or originate at the proposed facility, thus eliminating the need for intermodal traffic to travel into the dense urban area of Edmonton. CP adds that the proposed facility will eliminate the need for intermodal trains to block public crossings as is currently required by the switching operation at the existing intermodal facility. Furthermore, the proposed site does not contain any existing public at-grade road crossings and, as a result, long intermodal trains required for the efficient movement of goods will be accommodated.

[24] CP states that blocks of intermodal rail cars and auto carriers will be efficiently lifted or set off from trains on the long staging tracks for movement to and from the proposed facility. The number of trains handling intermodal and automotive traffic will be subject to change as CP adjusts its balanced integrated operating plan to meet specific customer needs and handle future increases in traffic volumes.

Localities

[25] On January 20, 2011, CP held a public information session to consult with the public. According to CP, the attendees provided positive feedback regarding the proposed facility and concerns raised were largely associated with other projects in the regional vicinity.

[26] As set out above, CP published notices of its application on June 11, 13, 14 and 16, 2011. No comments were received.

[27] Further, in support of the project, CP submitted letters from Orient Overseas Container Line OOCL (USA) Inc., Hapag Lloyd Canada Inc., Rene Transport Ltd. and Overland Container Transportation Services supporting the proposed intermodal facility. Hapag Lloyd states that the potential for competition with the existing Canadian National Railway Company’s facility should result in improved services and competitive pricing for shippers.

Agency finding

[28] The Agency gives consideration to CP’s submissions with respect to the location of the line, the need for railway services and interests of localities. Moreover, the Agency has considered the submissions from OOCL (USA) Inc., Hapag Lloyd Canada Inc., Rene Transport Ltd. and Overland Container Transportation Services that the proposed construction of the intermodal facility will benefit them by giving them improved services and competitive pricing.

[29] The Agency also considers comments received through the public consultation process. In this case, while a public consultation took place, CP indicates that there was no public opposition to, or concern in respect of, the project and no comments have been filed with the Agency.

[30] Taking all of the submissions into account, the Agency finds that the proposed location of CP’s intermodal facility is reasonable taking into consideration the interests of the localities that will be affected by the line.

CONCLUSION

[31] 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 Edmonton Intermodal Facility, in the city of Edmonton, in the province of Alberta.

CONDITIONS

[32] CP shall:

1. Implement the mitigative measures, practices and procedures for the protection of the environment, as set out in the environmental assessment (Dillon report) and related filings;
2. For further clarity in relation to noise effects, implement specific noise mitigative measures during construction and operation as follows:
   •  Construction activities will be limited to daylight hours (i.e., between the hours of sunrise and sunset of any particular construction day);
   • Construction equipment fitted with standard noise-damping devices, mufflers or enclosures will be used, where possible;
   • Unnecessary idling of construction equipment will not be allowed;
   • The speed for construction vehicle traffic will be limited, as appropriate, to reduce noise impact;
   • Employees will be informed of noise control measures to be used at the site and will receive appropriate training;
   • A dedicated fixed compressor will be used to charge the distribution network of underground lines for brake pressure maintenance;
   • Regular maintenance of equipment and locomotives will be undertaken;
   • Equipment and locomotives will only be run when necessary; unnecessary idling will not be allowed; idling that is necessary will be minimized by automatic shutdown devices; and,
   • CP’s Manual Shut Down Policy will be put in effect requiring that locomotives be shut down when certain conditions (e.g., air temperature) are met.
3. Cause no variation in those mitigative measures, practices and procedures without the prior approval of the Agency.