THE TOTAL FACTOR PRODUCTIVITY OF THE CANADIAN RAILWAYS, 1956-91

The total factor productivity (TFP) for Canadian National (CN) and Can adian Pacific (CP) Rail is estimated for 1956-91, using indices of tot al output growth compared to total input growth. Several output input and productivity trends are described. CN and CP show modest productiv ity growth of just over 3 per cent per year over the full period, but their productivity growth slowed during the 1980s. Recent Canadian rai l TFP growth is below that of the US rail industry. An improvement in rail productivity requires major input reduction, especially track.