Canada's Railways Drive Growth with Record Investment and Safety

OTTAWA, ON – January 08, 2026 – Canada's rail industry demonstrated significant strength and resilience in 2024, marked by record-breaking capital investments, its best-ever freight safety performance, and the highest employment levels in over two decades. These findings are central to the Rail Trends 2025 report released today by the Railway Association of Canada (RAC), a comprehensive ten-year review painting a picture of an industry firing on all cylinders as a critical pillar of the national economy and supply chain.

The report, which compiles data up to December 31, 2024, showcases a sector making substantial strides in efficiency, sustainability, and workforce development. “The data shown in Rail Trends 2025 demonstrate that Canada’s railways are delivering measurable progress for the economy, supply chains, and the communities they serve,” said Eric Harvey, President and CEO of the RAC. He emphasized that the results provide “clear, data-driven evidence of the sector’s essential role in keeping Canada competitive and connected.”

A Multi-Billion Dollar Economic Engine

The report highlights a landmark $4.5 billion in capital investments made by Canadian railways in 2024 alone. This injection of capital, part of a $35.5 billion investment over the last decade, was strategically allocated to enhance the safety, efficiency, and capacity of the nation's vital supply chains. A deeper look reveals these funds were directed towards critical upgrades, with approximately $2.4 billion dedicated to track and roadway infrastructure, nearly $900 million for new high-capacity hopper cars and modern locomotives meeting stringent emissions standards, and $1.2 billion for other technologies and equipment.

This level of investment underscores the industry's long-term commitment, particularly as the combined capital expenditures reported by Canada's two Class 1 railways, CN and CPKC, exceeded this aggregated figure, signaling an even broader wave of modernization across the sector. The economic ripple effects extend far beyond the tracks. The industry, which moves approximately $380 billion worth of goods annually and handles 70% of the country's intercity freight, is a cornerstone of Canadian trade. In 2024, stable freight rates supported cost-effective supply chains, bolstering key sectors like agriculture, with carloadings of canola and other grains seeing double-digit increases.

Furthermore, the rail sector's contribution to public finances was substantial, with tax payments exceeding a record $2.7 billion. This financial output, combined with the industry's vast operational footprint, generates significant indirect economic activity. Previous industry analyses suggest that for every direct job in the rail sector, nearly five additional jobs are supported elsewhere in the Canadian economy, amplifying its impact on national prosperity.

On Track for Unprecedented Safety

Alongside its economic contributions, the Canadian rail industry achieved a new benchmark in safety. The report proudly notes that the sector recorded its lowest freight accident rate in history, with a 4.8% reduction bringing the rate to 1.61 accidents per billion gross ton-miles. Passenger rail safety also saw a notable 12.4% improvement in its accident rate.

Data from the Transportation Safety Board of Canada (TSB) provides further context, showing that the total number of rail accidents in 2024 decreased by 2% from the previous year and was 12% below the ten-year average. The main-track accident rate also declined, underscoring a consistent, long-term improvement trend. This performance is particularly noteworthy in the context of handling sensitive materials; over half a million carloads of dangerous goods were transported safely, with the TSB reporting only three minor releases from 87 incidents involving such goods—well below the historical average.

While the overall safety picture is positive, TSB data also highlights a persistent challenge. Total rail-related fatalities saw a slight increase to 69 in 2024, a figure primarily driven by a rise in trespasser incidents. In contrast, crossing fatalities continued their downward trend, decreasing from the previous year and remaining significantly below the ten-year average, pointing to the effectiveness of targeted safety campaigns and infrastructure upgrades in that area.

Building a High-Value National Workforce

The industry's robust performance is mirrored in its growing workforce. Direct employment in the rail sector surged to 38,000 people, the highest number recorded since 2001. These are not just jobs, but high-quality careers, with an average compensation of $110,000—approximately 50% higher than the average full-time salary in Canada. The majority of these positions are unionized, providing stable employment with strong benefits.

This high compensation reflects the skilled, safety-critical nature of railway work. While the reported average is a sector-wide figure, salary data from major operators like CN and CPKC confirms that compensation packages are highly competitive, often ranging from $90,000 to over $125,000 depending on the role and experience. This makes the rail industry a powerful engine for creating and sustaining middle-class livelihoods across the country.

However, the industry is not without its challenges. Like many sectors reliant on skilled trades, railways face the task of attracting new talent to replace an aging workforce and fill specialized roles. In response, the industry has been actively working to expand and diversify its employee base, with a growing focus on increasing the representation of women, Indigenous peoples, and other underrepresented groups in its ranks.

Paving a Greener Path Forward

The Rail Trends 2025 report also underscores the industry's growing role in advancing Canada's sustainability goals. A significant post-pandemic recovery in passenger rail has been a key contributor, with commuter rail ridership climbing by an impressive 22.7% and intercity passenger numbers growing by 8.6%. This shift from personal vehicles to mass transit directly reduces road congestion and lowers transportation-related emissions.

Beyond passenger transport, freight railways are making concrete strides in environmental performance. The industry's multi-billion dollar investments include a strong focus on green technology. In 2024, railways consumed an estimated 176 million litres of biofuels, which now account for 8.3% of the sector's total fuel consumption. The acquisition of new, fuel-efficient locomotives and the adoption of advanced technologies like AI-powered trip optimizers are further reducing the carbon footprint of every ton of freight moved.

By investing heavily in big data, automation, and digital platforms, Canadian railways are not only enhancing safety and service but also creating a more efficient and environmentally responsible transportation network for the future.