Railway Game 9780773583078

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THE RAILWAY GAME

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THE RAILWAY

GAME A STUDY IN SOCIOTECHNOLOGICAL OBSOLESCENCE J. LUKASIEWICZ

MCCLELLAND AND STEWART

Copyright © 1976 by J. Lukasiewicz All Rights Reserved ISBN :0-7710-9905-3 Cover art courtesy Canadian National The Canadian Publishers McCelland and Stewart Limited 25 Hollinger Road Toronto, Ontario Printed and bound in Canada

Carleton Contemporaries

A series of books designed to stimulate informed discussion of current and controversial issues in Canada, and to improve the two-way flow of ideas between people and government.

ISSUED UNDER THE EDITORIAL SUPERVISION OF THE INSTITUTE OF CANADIAN STUDIES, CARLETON UNIVERSITY, OTTAWA. DIRECTOR OF THE INSTITUTE A.D. DUNTON

CONTENTS Foreword

xi

Acknowledgements

xviii

Introduction 1 PART ONE: THE ORIGINS OF THE MALAISE 5 1. The Basic Network of Railways 6 2. Railways Fulfill Political Goals 8 3. The Railway - Government Complex: Politicians in the Sendee of Railways 14 4. The Railway - Government Complex: Financing Railways 20 5. Fragmentation Versus Integration 35 6. The 1915 Heritage: Duplication and Overcapacity 41 7. The Pertinent Past: A Summary 50

PART TWO: THE STATE OF THE ART 52 8. 9. 10. 11. 12.

Railway Operations in International Perspective 54 Advances in Technology 62 Service Quality: The Widening Gap 81 The Manning Problem 103 Regulation and Subsidization of Rail Operations in Canada 106 13. The Role of the Railway Companies 142 14. Research and Development Activities 150 15. Railway Development Policies Abroad 157

PART THREE: FUTURE DIRECTIONS

171

16. The Reasons for Concern 171 17. The One—Dimensionality of the Railway Mode and its Consequences 177 18. Financing Railways 180

19. 20. 21. 22. 23.

The Imperatives of Integration and Public Ownership Rationalizing Railways 194 Technical Modernization 201 Railways and Energy 218 The Policy Void 226

POSTSCRIPT: OBSTACLES TO MODERNIZATION

190

240

24. The Institutionalization of Obsolescence 240 25. The Inadequacy of Traditional Politics and Journalism 246 Appendix One: Maps: Railways in Canada 253 Appendix Two: Travelling by Railway 264 Glossary of Railway Terms and Abbreviations 280 References 283 Index 295

vn

LIST OF FIGURES 6.1

Growth of railway lines in Canada

9.1

Progress of railway dieselization in the United States and Canada

9.2

Power/weight ratio and speed locomotives (1920 to 1973)

9.3

A comparison between the continuous rated output of SNCF diesel and electric locomotives of similar weight

9.4

Comparison of tractive efforts of six-axle, 195-ton diesel-electric and electric locomotives, geared for the same speed range

of electric and

diesel

10.1 Average scheduled speed of CN fast passenger trains, 1920 to 1973 10.2 Average scheduled speed of CPR transcontinental trains, 18861972 10.3 Average scheduled speed of fast passenger trains in France, 1950-1970 10.4 Average scheduled speed of slow passenger trains in France 1950-1970 10.5 Decade of progress on SNCF (France): Mean speed and distance travelled by passenger trains 10.6 On-time performance of CN trains between Toronto and Montreal in 1972 10.7 Weather conditions and on-time performance on CN Rapido trains in 1972 10.8 Correlation of on-time performance (%) of CN Rapido Trains in 1972 with snowfall and temperature. 10.9 On-time performance of CN Super Continental \n 1972

15.1 Map of Europe's proposed high-speed intercity rail network that is included in a plan formulated by the International Union of Railways 15.2

Electrification of railways and new lines in Soviet Russia

15.3 AMTRAK's progress 16.1 Growth of intercity transportation in Canada (all modes) 16.2 Distribution of intercity freight traffic among modes in Canada 16.3

Distribution of intercity passenger traffic among modes in Canada

16.4 Decay of passenger rail travel in Canada

LIST OF TABLES 4.1

Investment (cash, credit and proceeds of land sales) in Canadian railways as of June 30, 1916

4.2

Public outlays for railways in Canada as of 31 December, 1931

6.1

Construction and abandonment of railway tracks in Canada

11.1 CN and CP share of railway transportation in Canada in 1970 8.1

Comparison of railway utilization and investment in 1968-1970

8.2

Distribution of intercity traffic in Canada in 1970

8.3

Comparison of rail freight operations in 1970

8.4

Comparison of railway revenues in 1970

8.5

Passenger traffic

8.6

Daily frequency of trains in 1970

8.7

Manning of railways in 1970

8.8

Electrification of railways: status in 1972

10.1

Rail accidents in Canada and France

12.1 Relative significance of traffic under statutory grain rates in 1972

IX

12.2 Subsidy payments ($) under the 1967 National Transportation Act 12.3 Summary of government of Canada assistance to the railways 1959-1972 13.1 Diversification of Canadian Pacific Ltd. 15.1 Operating charges and revenues, 1971 18.1 Costs and revenues (millions of 1968 dollars) of railways in Canada in 1968 18.2 Infrastructure costs and revenues (millions of 1968 dollars), all modes, Canada, 1968 18.3 Industrial R & D expenditures ($ million) on transportation in the U.S. in 1971 and 1966 18.4 Industrial R & D expenditures ($ million) on transportation in Canada in 1973-74 21.1 Electrification of railways in 1968 21.2 Distribution of rail traffic density in Canada in 1970 (for CN and CP systems taken together) 21.3 Rough cost estimates of railway electrification in Canada 21.4 Highest speeds on rails 22.1 Oil and energy use in transportation in the late 1960's in Canada and U.S. 22.2 Energy efficiency of transportation 22.3 Relative transportation output and energy consumption in the U.S. in 1970 22.4 Savings of energy and oil in intercity transportation in Canada resulting from shift of traffic to rail and rail electrification

X

FOREWORD . . . . blockaded and imprisoned by Ice and Apathy, we have at least ample time for reflection - and if there be comfort in Philosophy may we not profitably consider the PHILOSOPHY OF RAILROADS (Keefer, 1972, p. 3).* The time has indeed been more than ample: over 125 years have elapsed since Thomas Coltrin Keefer (1821-1914) introduced his popular and influential 1849 essay in which he explained the significance of railway technology and advocated its development in Canada (Keefer, 1972). In the succeeding years a vast network of railways has been constructed, with more track per capita in Canada than in any other country (two miles per thousand people in 1970, twice as much as in the U.S. and over four times more than in West Germany). But understanding railway transportation and technology has not made such strides. Although between 1917 and 1961 four major investigations by Royal Commissions were completed,** railway transportation in Canada continues to be plagued with problems whose origins reach to the early years of railroading. There has been, therefore, a strong incentive to look into the railway problem in Canada (and, more generally, in North America), to analyse it in specific terms and thus promote its appreciation. In broader perspective, such study has offered the opportunity to examine an interesting and significant case of society-technology interaction typical of industrialized societies, a phenomenon whose impact is difficult to predict and control. Coincidentally, the study of railways in North America has appeared timely for a number of reasons (as discussed more extensively in Chapter 16). * Sources and references are listed alphabetically and chronologically by senior author and year under References, p. 283. **The schedule of investigating transportation in Canada every 15 years (on the average, since 1917) has been maintained with the initiation, in 1974, by the Minister of Transport of a broad review of transportation policy (Transport Canada, 1975, 1975a, b, c).

THE RAILWAY GAME

First, over the next decade, it has been predicted that the volume of freight traffic will increase considerably, to the extent that - in Canada at least - the capacity of the existing railway network will become grossly inadequate. According to CN President Bandeen (1974), "The point has now been reached where we have just about extended capacity to the limit of the present plant, and what is needed now is a major building program almost as large in scope as the original building of the transcontinental railway." Railways will have to expand and modernize, and will need large amounts of capital; to provide it, new methods of railway financing will have to be developed. Secondly, because of the diminishing availability of cheap oil, and general difficulties in meeting the energy demand, transportation in North America - now totally dependent on oil - will have to become more energy-efficient, and will have to switch to other energy sources such as electricity, which can be generated from any kind of fuel. On both counts, the shift of most of the intercity traffic to modern, electric railway provides the desirable alternative. Another aspect of interest concerns the transfer of technology. Since World War II, the United States has been in the forefront of "high technology" innovation. And yet, surprisingly, modernization of some of the older technologies is being accomplished in Western Europe and Japan, with no U.S. participation, and imported to North America. This is true of both the small automobile and of the railways. On the North American continent, there is little awareness of the vigorous renaissance the railways of Western Europe and Japan have been undergoing for the past ten or more years. In fact, Canada and the U.S. maintain today the most extensive, but also - in some respects - most highly obsolete and inefficient railway systems, which are not able to compete effectively with the newer transportation modes. The task that Keefer set for himself - "to disseminate popular information upon a too unpopular subject, and turn a portion of that earnest and eager covetousness of foreign prosperity back upon our own neglected resources" (Keefer, 1972, p. 4-5) - has yet to be accomplished. The attitude of the North American public, the governments, the regulatory agencies, the railway companies, the politicians, the transportation specialists and the information media toxn

FOREWORD

wards railways tends to be either sentimental and naively optimistic, or conservative and negative;* it is divorced from the technological and economic realities of modern railway transportation. There are the diminishing ranks of train buffs and romantic admirers of railways, for whom a curious mystique still surrounds the locomotives, the trains and stations, and the traditional operations. The sights and sounds of a steam railroad, the memories of relaxed or even luxurious travel, are all part of this nostalgic image. There are also those for whom the railways continue to symbolize national pride and achievement. Such feelings and attitudes are very much evident in Berton's history of the CPR (Berton, 1970, 197la, 1974) and in his article "What We Once Did We Can Do Again" (Berton, 1971b), written on the occasion of publication of The Last Spike (the second volume of CPR's history by Berton). Another recent history of Canadian railways by Legget (1973) ends on an equally proud note: "[Railways'] great traditions and century-old record of fine service provide a firm basis for their further development as a vital part of the transportation network of this second largest country in the world." But for a large number of people the railways have been a source of continuing disappointment. To these people, the railways - chronically bankrupt and neglected, decrepit enterprises - represent monuments to corporate arrogance and bureaucratic ineptness, a technology with no development potential, best to be forgotten. Occasionally, an overly optimistic note is sounded, as in an editorial in The Ottawa Journal of June 7, 1973, which has thus evaluated the performance of the "people's railway" in 1972: The CNR has come a long way since it used to be the butt of snide jokes about the inability of publicly-owned corporations to be anything but a drain on taxpayers' dollars. . . . In addition to contributing to rather than detracting from the national wealth, CN is to be congratulated for its imaginative efforts to keep rail passenger service alive and competitive with airlines and buses. Actually, in 1972, CN received $40.7 million in government * As discussed by Nelles (Keefer, 1972, p. ix et seq.) Xlll

THE RAILWAY GAME

subsidies (under the 1967 National Transportation Act), an increase of $9.7 million or 24% over the 1971 figure. The number of revenue passengers decreased by 10%, and the revenue passenger miles by 6%. On the prime Toronto-Montreal passenger run, only 72% of CN's trains arrived with less than 6 minutes delay (only 50% during the four winter months). Twothirds of CN's transcontinental trains were late; in the worst two week period, the average delay was 12 hours. In 1972, the number of derailments in Canada was three times that in 1959, and nearly double that in 1969. More surprisingly, there are even professionals who view Canadian railways, indeed transportation in general, in rosy colours. In the definitive study Canadian Transportation Economics (1967), A. W. Currie, while noting that "throughout our transportation history we have not been able to resolve the conflict between preserving private enterprise and using public funds to carry out national objectives" nevertheless states that "we have always been supplied with safe, efficient, and low cost service." One finds little support for this assertion in Currie's extensive text. A 1973 assessment by the faculty of engineering of a prominent Ontario university provides another example of unwarranted - in the light of the information presented in this study - optimism. The rail industry . . . is viewed by many as ancient and archaic, but Canadian railways are rapidly introducing new equipment and new attitudes. The Canadian rail industry is rapidly gaining recognition throughout North America. They are making money! The effort devoted to research and development places them at the forefront of their technology. The tonnages moved are increasing rapidly. The industry is growing again after overcoming severe problems. On the whole, the professional and bureaucratic view of the railway situation in Canada is characterized by deep conservatism, as demonstrated in the course of recent panel discussions on surface transportation (Khan, 1975). It was only the foreign speakers who discussed specific data and progress. The representatives of Canadian railways, government and regulatory agencies, all seemed to say that "the situation is not as bad as it xiv

FOREWORD

seems, but in any event, it couldn't have been any different and cannot be changed significantly." Regrettably, such emotional or unsubstantiated perceptions are irrelevant to the understanding of railways today. The existing literature on Canadian railways is of not much help either: it is neither very extensive, nor is it concerned, for the most part, with a critical appraisal. Most of the works, whether dealing with the history of railway development (e.g. Berton, 1970, 1971a, 1974; Currie, 1957; Glazebrook, 1938; Legget, 1973; Skelton, 1916; Stevens, 1960, 1962, 1973) or with the economic aspects (e.g. Currie, 1967; Innis, 1971) can be characterized as chronological narratives, sometimes rich in circumstantial detail but lacking in critical judgement, comparative evaluation, discussion of alternatives and specific data.* Typically, although much of the text is often/devoted to the description of the growth of railway network, in no book (with one exception: Skelton, 1916) will one fi0d accurate maps which would show at a glance - how railway lines and traffic have been developing in Canada; in several books, (Innis, 1971; McDougall, 1968; Thompson and Edgar, 1973) not a single map is included. What appears to be missing-but what is required to gain a realistic appreciation of railways in Canada today-is a rational analysis based on specific information and evaluation of railway technology and operations here and abroad-a task that this study attempts to broach. Inevitably, such evaluation will appear critical of the numerous institutions and organizations involved. But the reader should keep in mind that the purpose of the analysis is not to lay the blame but to demonstrate the various deficiencies of the railway transportation system and thus enhance the reforms which are long overdue. I trust that, when so viewed The. Railway Game will emerge as a constructive study in the eyes of the readers, and especially of the actors of today's railway scene in Canada. Those actors the regulatory and other agencies of the government, the rail*The work of an American, L. T. Fournier (1935), Professor of Economics at Princeton University, Railway nationalization in Canada, is an exception. It contains much critical evaluation and suggests remedies. To a lesser extent, this is also true of Transport Competition and Public Policy in Canada by H. L. Purdy (1972). Extensive information which does not go beyond the 1950s is to be found in the reports of several official investigations (Canada, 1917; 1932; 1951; 1961).

xv

THE RAILWAY GAME

way companies, the labour unions, the industry - should not be held responsible for faithfully following the regulations and laws which have become grossly inadequate and obsolete. Although this investigation should be of interest to the general public, I have not refrained from reinforcing the text with the "hard" data presented as graphs and tables. As noted in Chapter 25, we can no longer afford to rely on rhetoric to achieve understanding of contemporary socio-technological complexities, and we should get used to interpreting - everyone for himself - the information which in the past was exclusively the domain of experts, "learned" books and specialized journals. What I am advocating here is not new: many paperbacks published in recent years have included much "hard" data, have been widely read by the general public as well as by the specialists, and have increased our awareness and understanding of complex phenomena* - a function I hope this paperback fulfills in the field of railway transportation in North America, and particularly in Canada.

J.L. Ottawa, December, 1975. As this book, with minor corrections included, goes into a second printing seven months after publication, my hopes that it will reach a wide public appear to have been justified. The book is as relevant now as it was when written in 1975. This may please the new readers but it indicates a disappointing lack of progress in transportation in Canada. The minister of transport has continued to advocate the "user pay" policy but has refrained from noting that in 1973 the air, water and road transport received $1.9 billion in indirect subsidies, while the railways had to bear the cost of tracks and other facilities to the tune of $660 million. In January, 1976 the government became concerned with increasing passenger rail losses which could reach $400 million in 1980, up from $167 million in 1974. The Canadian Transport Commission has held public hearings on transcontinental services but *The controversial and internationally popular 1972 study Limits to Growth by M.I.T.'s Meadow's group (Meadows et al., 1972) is a foremost example of this type of publication. XVI

FOREWORD

has yet to recommend economy measures. Many other studies, such as of grain transport, have resulted in "paralysis by analysis" rather than in action. The Crowsnest Pass rates were not revised and have continued to impose heavy losses on railways. The demonstration project, announced in 1975 (see p. 237), made little progress: new trains have not been ordered. In April, 1976 CN launched a new VIA logo and blue-yellow colour scheme (reminiscent of efforts in the 1960s, see p. 142). By March, 1977 these highly publicized cosmetic measures emerged as VIA Rail Canada Inc., a CN subsidiary slated to take over all passenger services (a la U.S. AMTRAK, but six years later), but not funded to improve the lines. The government has continued to evade the basic issue: the upgrading of right-of-ways, tracks and signalling. It is doubly disappointing that no progress is being made in Canada while significant advances are evident in the United States, not to mention Europe and Japan. In 1976, $6.4 billion was allocated by Congress for rehabilitation of American railways. CONRAIL has taken over six bankrupt lines in the Northeast. AMTRAK continued to improve services with massive acquisition of over 1000 pieces of modern equipment. In March, 1977 work started on $1.75 billion dollars' worth of improvement of the Washington - New York-Boston line; by 1981, 120 mph electric trains will compete with cars and airplanes in this corridor. In Canada the situation is likely to get worse before it gets better. The re-balancing of transportation in favour of energy efficiency and rail modernization - through re-allocation of indirect subsidies traditionally enjoyed by road, air and water transport-has yet to be attempted. The development of a comprehensive transportation policy, whose absence was noted in 1974 by the transport minister (see p. 226), is a task that evidently ranks low among Ottawa's priorities. Today, Canada is the only industrialized country without a long-term policy of railway development. J. L. Ottawa, April, 1977

xvn

ACKNOWLEDGEMENTS This work grew out of my interest in various aspects of technological impact, an area of research which received support and encouragement from several directions. Carleton University has been sponsoring, since 1971, the development of interdisciplinary courses in Technology, Society and the Environment. Carleton's Norman Paterson School of International Affairs has been engaged, since 1974, in the investigation of international aspects of science and technology. Professor Davidson Dunton, Director of the Institute of Canadian Studies, and Professor Donald A. George, both of Carleton University, encouraged me to prepare a manuscript for publication. Results of research funded by the National Research Council of Canada, the Federal Departments of Energy, Mines and Resources and of the Industry, Trade and Commerce have contributed to this study. It is a pleasure to thank all of the individuals and organizations who have made the preparation and publication of this book possible. I am also grateful to the Canadian National, the Canadian Pacific, the Canadian Transport Commission, the U.S. Federal Railroad Administration and the National Railroad Passenger Corporation (AMTRAK) for their co-operation in obtaining information essential to this study, and to Messrs. F. Nouvion, Technical Director, Traction-Export, Paris (formerly Chief Traction Research Engineer, French Railways) and Mr. Y. Machefert-Tassin, Societe MET, for information on railway developments in France and many valuable comments. Mr. Alfred Leeson provided me with valuable insights into practical aspects of railway operations. My sons Mark and Peter helped with correcting the manuscripts and proofs. I am greatly indebted to them and to many others who have assisted with this study.

Plate 1. LEFT: The Colonist, Canadian Pacific's first class parlour car, 18881895 (CP Rail}. At the turn of the century, Canadian railways offered luxurious travel in sumptuous and elaborate surroundings. BELOW: Canadian National engine 6218, here shown at Victoriaville, Quebec station in July 1971, was operated in Ontario and Quebec on day excursions in the years 1964-1971 (W. R. Linley, Ottawa). Today, modern passenger rail transportation is not available in Canada, but old steam trains—relics of an earlier romantic era of railway technology-are popular with the Canadian public.

Plate 2. Trains in Western Europe and Japan offer fast (up to 130 mph in Japan), smooth travel and modern comfort. ABOVE: Trans Europ Express Le Mistral passengers en route from Paris to Nice (SNCF}. BELOW: Le Mistral bar-boutique car resembles a modern shopping plaza or hotel (SNCF).

Plate 3. Electric traction is superior to diesel. ABOVE: TEE Le Mistral is pulled from Pans to Nice by one electric locomotive (SNCF) In 1975 French intercity trains ran at average speeds up to 102 mph BELOXV Electric, 74 mph Metroliners are the only high speed trains operating since 1969) in the U.S. (AMTRAK). They are tomorrow's trams miming today on yesterday's track: their speed potential of 160 mph cannot be realized under present conditions.

Plate 4. The operation of expensive, slow and unreliable transcontinental trains in Canada reflects an earlier era of transportation technology. ABOVE: The CN Super Continental is pulled by three diesels along the Fraser river, B.C. (Canadian National). In 1972 only one-third of the trains made the 40 mph schedule. From Montreal to Vancouver the engine crews change 21 times, the train crews -9 times. BELOW: Transcontinental trains are likely to follow the fate of transatlantic liners. France, the flagship of the French line, was withdrawn from service in 1974 (Guy Reuland, Luxembourg).

Plate 5. In North America, long and heavy trains move efficientlv bulk 68 m tmr^ABOVE'fcpt^ - BUt »—"