Higher CCA would help speed purchase of low-emission rail rolling stock, says RAC
HALIFAX, NS-A report by the House of Commons Standing Committee on Industry, Science and Technology has recommended an increase in the capital cost allowance (CCA) rate for rolling stock, locomotives and intermodal equipment to 30%, Cliff Mackay, president and CEO of the Railway Association of Canada (RAC), said. This would double the current CCA rate for railway rolling stock and more closely match the current rates of depreciation with other modes. In addition to helping make Canadian railway supply manufacturers more competitive in domestic and world markets, Mackay said such an increase would make it possible to acquire environmentally-friendly locomotives and other rolling stock faster to meet rapidly-changing market conditions and shipper needs. He noted that Canada's 60-some railways generate only 3% of transportation-related greenhouse gas emissions and move a tonne of freight 168 kilometres on just one litre of fuel. That means it takes 13 times more energy to transport a tonne of freight one kilometre by truck than by train, said Mackay. More information is available from Roger Cameron at the RAC, 613/564-8097, E-mail email@example.com.