--- canonical_url: "https://csls.ca/research/firm-level-total-factor-productivity-growth-canadian-freight-railways-1986-to-2009/" title: "Firm-level Total Factor Productivity Growth: Canadian Freight Railways, 1986 to 2009" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T12:49:07+00:00" date_modified: "2026-07-02T12:49:07+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "Canadian National" - "Canadian Pacific" - "freight railways" - "labour productivity" - "privatization" - "total factor productivity" - "transportation" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Sector/Industry Analysis" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # Firm-level Total Factor Productivity Growth: Canadian Freight Railways, 1986 to 2009 Canonical URL: https://csls.ca/research/firm-level-total-factor-productivity-growth-canadian-freight-railways-1986-to-2009/ # Firm-level Total Factor Productivity Growth: Canadian Freight Railways, 1986 to 2009 [Download full PDF report](https://csls.ca/pdf/csls2016-08-1.pdf) Cite this report × Cite this report as: Uguccioni, James. 2016. “Firm-level Total Factor Productivity Growth: Canadian Freight Railways, 1986 to 2009.” CSLS Research Report 2016-08. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/firm-level-total-factor-productivity-growth-canadian-freight-railways-1986-to-2009/ ## Author: - James Uguccioni Centre for the Study of Living Standards (CSLS) ## Report 2016-08 June 2016 47 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [Apprenticeship in Canada: A Training System Under Siege? Andrew Sharpe December 1999 | Report 1999-03 | 59 pages](https://csls.ca/research/apprenticeship-in-canadaa-training-system-under-siege/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Creating a More Efficient Labour Market Centre for the Study of Living Standards (CSLS) June 2001 | Report 2001-02 | 147 pages](https://csls.ca/research/creating-a-more-efficient-labour-market/) [Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress Centre for the Study of Living Standards (CSLS) November 2001 | Report 2001-03 | 177 pages](https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/) [The Impact of the National Child Benefit Supplement on the Low Income Status of Canadian Families with Children: The SPSD/M Results Centre for the Study of Living Standards (CSLS) June 2002 | Report 2002-01 | 59 pages](https://csls.ca/research/the-impact-of-the-national-child-benefit-supplement-on-the-low-income-status-of-canadian-families-with-children-the-spsd-m-results/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Canadian railways are a vital part of the country’s transportation sector, moving goods and people across the country. We perform firm-level productivity analysis of Canadian freight railways for 1986 to 2009, focusing on the two railways which dominate the market: Canadian National (CN) and Canadian Pacific (CP). We obtain total factor productivity (TFP) estimates both by constructing productivity indices and by econometrically estimating cost functions. Driven in part by operational improvements, the strong TFP growth at both firms considerably outpaced aggregate TFP growth in Canada over the period of interest. This robust TFP growth, together with significant capital deepening, led to impressive labour productivity gains. We pay special attention to the productivity effects of the 1995 privatization of CN. While CN enjoyed much stronger productivity growth over the 1986-2009 period than CP, its performance was equally superior before and after the 1995 privatization. Les chemins de fer canadiens constituent un élément essentiel du secteur des transports du pays, assurant le déplacement des marchandises et des personnes à travers le territoire. Nous effectuons une analyse de la productivité au niveau de l’entreprise pour les chemins de fer de marchandises canadiens de 1986 à 2009, en mettant l’accent sur les deux compagnies qui dominent le marché : le Canadien National (CN) et le Canadien Pacifique (CP). Nous obtenons des estimations de la productivité multifactorielle (PMF) à la fois en construisant des indices de productivité et en estimant économétriquement des fonctions de coût. Attribuable en partie à des améliorations opérationnelles, la forte croissance de la PMF des deux entreprises a largement dépassé la croissance globale de la PMF au Canada durant la période étudiée. Cette robuste croissance de la PMF, combinée à une intensification capitalistique importante, a entraîné d’impressionnants gains de productivité du travail. Nous accordons une attention particulière aux effets sur la productivité de la privatisation du CN en 1995. Bien que le CN ait connu une croissance de la productivité nettement plus forte que le CP entre 1986 et 2009, sa performance a été tout aussi supérieure avant et après la privatisation de 1995. [Download full PDF report](https://csls.ca/pdf/csls2016-08-1.pdf)