Higher rail capacity could boost Alberta’s GDP: report

CALGARY (660NEWS) — A new report by the School of Public Policy suggests more rail capacity could significantly boost Alberta’s GDP.

With the provincial budget being released Thursday, the report looks at the need for more than just pipelines.

“There are certainly rail lines that run in lots of locations but there doesn’t exist a corridor that spans east to west from British Columbia, for example, all the way through to Quebec,” co-author Trevor Tombe said. “So, this would be something of national scope.”

Tombe says infrastructure corridors would reduce the cost of interprovincial and international trade.

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The report suggests increasing rail exports by 10 per cent, could boost the province’s economic activity 1.5 per cent in the short run, up to 2.5 per cent long term — equalling to about $9B annually.

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“Fifty-five per cent of every single dollar and agricultural exports from Alberta is shipped by rail,” Tombe said. “Plastic, some chemicals, petrochemicals as well, about a third relies on rail, and so any increase in real capacity can facilitate our provincial trade and exports because it all lowers the cost of shipping”

 

 

 

 

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