No. H028/06
For release May 5, 2006
GUELPH, Ontario — An Ontario project designed to reduce greenhouse gas emissions
in the freight transportation sector has been selected to receive funding under
Transport Canada's Freight Sustainability Demonstration Program.
Michael Chong, Minister of Intergovernmental Affairs and Minister for Sport, on
behalf of Lawrence Cannon, Minister of Transport, Infrastructure and
Communities, today announced that Polymer Distribution Inc. will receive funding
totalling $250,000. This funding will be used to demonstrate the ability of
short haul railways to efficiently carry cargo usually moved by truck. This
project is one of five projects nationwide to receive funding totalling $582,000
under the eighth round of the program.
"I am especially pleased that this project will be using existing facilities and
rail cars in a much more efficient way," said Minister Chong. "If successful,
this demonstration has the potential to reduce greenhouse gases in a sector that
produces a quarter of the emissions in our atmosphere. This is great news for
Guelph and Wellington County."
"The companies awarded funding under this program have shown innovation and a
willingness to experiment," said Minister Cannon. "The results have the
potential to enhance not only our environment, but also the processes and
equipment that we use in freight transportation every day."
The Freight Sustainability Demonstration Program supports the demonstration and
evaluation of innovative tools, technologies and practices that have the
potential to reduce the growth of greenhouse gas emissions from the freight
transportation sector in Canada. The Government of Canada will contribute up to
50 per cent of eligible project expenses, to a maximum of $250,000, with
applicants and their partners contributing the remainder.
This announcement brings the total funding allocated under the program to
approximately $4.7 million for 34 projects across Canada.
More information on the Freight Sustainability Demonstration Program is
available at www.tc.gc.ca/FSDP.Backgrounders with information on the Program and selected project are attached.
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Contact: Robin Browne
Communications
Transport Canada, Ottawa
(613) 993-0055
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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BACKGROUNDER
FREIGHT SUSTAINABILITY DEMONSTRATION PROGRAM
The Freight Sustainability Demonstration Program supports the demonstration and
evaluation of innovative tools, technologies and practices that have the
potential to reduce the growth of greenhouse gas emissions in Canada's freight
transportation sector.
The program will allocate approximately $4.7 million between 2001 and 2007 for
projects that meet the program's criteria. Projects are eligible for a maximum
program contribution of $250,000 over two years. Government of Canada
contributions will cover up to 50 per cent of eligible project expenses, with
applicants and their partners contributing the remainder.
Transport Canada, together with Natural Resources Canada, selects projects to
receive funding under the program, taking into account the recommendations of an
advisory committee including representatives of other federal departments,
academic institutions, and other not-for-profit organizations.
All participants in the Freight Sustainability Demonstration Program are
required to monitor greenhouse gas emissions and report findings from their
projects to the program secretariat at Transport Canada.
Transport Canada will make information on successful technologies and best
practices available at conferences and other venues and on the Freight
Sustainability Demonstration Program website at www.tc.gc.ca/FSDP.
The Freight Sustainability Demonstration Program is part of the Freight
Efficiency and Technology Initiative, which includes a range of different
initiatives designed to reduce the growth of greenhouse gas emissions in the
freight transportation sector.
May 2006
BACKGROUNDER
PROJECT FUNDED UNDER THE EIGHTH ROUND OF THE
FREIGHT SUSTAINABILITY DEMONSTRATION PROGRAM
The following project has been selected for the eighth round of funding under
the Freight Sustainability Demonstration Program:
Polymer Distribution Incorporated / Demonstration Facility for Intermodal Rail
Shipping of Food Processing Chemicals
Project location: Guelph, Ontario
Polymer Distribution Inc. has been selected for funding of $250,000 to
demonstrate to shippers of food-grade chemicals (e.g. vegetable oils,
hydrochloric acid, food additives and food processing alcohol) the ability of
short haul railways to efficiently and effectively carry cargo that has been
traditionally moved by truck. The PDI demonstration will seek to remove 7,200
trucks from Highway 401 with a corresponding reduction of approximately 3,500
tonnes of greenhouse gas emissions. A new facility will be set up on the
recently closed, 14-acre Huntsman plant in Guelph, Ontario. If the demonstration
is successful and shippers are willing to transfer products from truck
transportation to rail cars on a long-term basis, a larger intermodal operation
could be established in Guelph.
May 2006
