Minutes of the open City Council as Shareholder of GJR meeting held June 24, 2025, be confirmed as recorded and without being read.

31:29Okay, okay, I'm gonna call to order the meeting of City Council as

31:36shareholder of the Gulf Junction Railway Limited

31:39Those joining us from home if you could make sure your cameras are on. Thank you

31:45So first I will go to disclosure of pecuniary interests anyone

31:51Seeing none

31:53We'll have the confirmation of the open minutes for the meeting from June 24th 2025

32:01Councillor Allt seconded by Councillor Caden

32:05Any discussion or questions?

32:09Anyone opposed okay that carries. Thank you. So we have one item

32:15For discussion here today, and that's the annual report and financial reporting

32:21To the shareholder of which City Council is acting as so we're first we're gonna have a presentation from Jean Matthews

32:28And then we'll have delegations and questions

32:31Thank you. Mr. Matthews. You just want to wait a minute till people sit down

32:50The meeting has started so if you could move quickly to get to your seats. Thank you. I

33:29Have a feeling that I should be saying all aboard

34:17Okay, welcome everyone. Okay, Mr. Matthews. I think you can start now

34:24Good afternoon chair downer members of council and members of the public

34:28I'm here in a new capacity from my previous times in front of you

34:31And I'm happy to be here as our chief executive officer of the gulf junction railway

34:36On behalf of the gulf junction railway board of directors

34:39I am pleased to present the

34:412025 annual report for gulf junction railway limited in

34:462025 gjr continues its commitment to safety

34:49customer service and

34:51responsible financial management all aligned with the city's strategic priorities under future gulf our

34:57Objectives remain the same to ensure the safe efficient movement of goods along nearly 40 kilometers of track

35:04Connecting wealth economy to regional and national markets

35:08We achieve this through strong partnerships

35:11Continuous reinvestment in infrastructure and a focus on supporting the businesses that rely on the railway to operate and grow

35:18I'll begin with a brief overview of gjr's financial performance

35:26Despite economic uncertainty and tariff related impacts across the rail sector

35:31Gjr closed the year with net comprehensive income of 2.4 million. This is slightly below 2024

35:38But importantly it is 412,000 ahead of budget

35:41Demonstrating disciplined cost management and stable revenues

35:45Working capital remains strong at 5.4 million which supports ongoing capital reinvestment and long-term sustainability

35:53Gjr invested 1.9 million in capital assets in 2025

35:58Increasing the net book value of property plant and equipment by 1.3 million

36:03net capital investment represented 23 percent of revenue

36:07Exceeding our long-term target of 16 percent

36:10Based on these results gjr has declared a 240,000 dollar dividend to the city of gulf

36:15Representing 10 percent of net comprehensive income the maximum under gjr's dividend policy

36:26Gjr continues to serve over over 40 customers 12 of which generated the majority of revenue

36:32These customers ship essential goods such as agricultural products

36:36Industrial inputs and recyclable materials all of which support local manufacturing and employment

36:43Early in 2025 new tariffs from the us created uncertainty across the freight sector

36:49as a result gjr saw 4% decline in car loads

36:54moving

36:555,632 cars for the year

36:58Even with this decline gjr outperformed the broader short line and class 1 industry

37:03Which saw an average 7% drop in volumes this speaks to the strength of our customer base and the reliability of our service

37:12The rail cars we moved diverted the equivalent of

37:1622,528 truck loads from local roads

37:18Producing congestion congestion lowering emissions and extending the life of life of municipal road infrastructure

37:29Gxr continues to operate the railway under contract and in 2025

37:34We extended their agreement to 2027 to maintain continuity and service reliability

37:40Gjr delivered a significant capital program this year guided by transport Canada regulated inspections and our lifecycle asset management approach

37:49key achievements included

37:522285 track ties

37:55164 switch ties and 14 headblock ties replaced

37:59350 tons of scrap ties removed equivalent to roughly 5,000 ties

38:041800 tons of ballast installed to improve drainage and tractor stability

38:09Major projects included the Corwin siding expansion a 1700 foot siding accommodating 29 cars now nearing completion

38:18full reconstruction of the Victoria Road grade crossing to transport Canada standards

38:24Grading at PDI Victoria to support future yard expansion

38:28Rail upgrades from 100 pound to 115 pound rail at key locations to improve durability and performance

38:35These investments will ensure g our remains safe reliable and well positioned to support customer growth

38:45Gjr continues to play an active role in city building and community connectivity in

38:502025 construction was completed on the Woodlawn to Wilwich multi-use trail

38:55Creating a needed multi-use path corridor and preparing for future g2g connectivity opportunities

39:03We also saw advancement with the g2g end of track connection

39:06This community led project was supported by a rail safety audit early design work and ongoing engagement with property owners and trail groups

39:15Within the gulf innovation district ggr collaborated with city staff and trail organizations to address informal trail crossings

39:23update mapping on public apps and

39:25Signage to reduce unsafe access points while looking ahead to the future for more permanent safe options

39:33At the Heffernan Street Bridge ggr partnered with the city to deliver accessibility upgrades supported by TransCanada Trail grant funding

39:41We also expanded our community rail safety education programs including school presentations summer camp sessions and new look listen live

39:50decals at multi-use path crossings

39:53These initiatives reflect our commitment to safe integrated transportation corridors

39:58That support both goods movement and active transportation in

40:062025 ggr prioritized continued alignment with the city's strategic priorities and transparency of responsibilities a

40:13deliverable of this commitment was of this commitment was the development of a mandate of the board of directors

40:20Which formalized the objectives that ggr be an economic development tool for the city?

40:25Operate as a for-profit business providing value to the city in the form of dividends and other benefits and

40:31Restrict ggr business activities to railway related operations

40:36other benefits include trail and protective and pedestrian connectivity throughout the city

40:42Public-facing safety awareness efforts and cross department of departmental training opportunities supporting workers safety

40:50The mandate outlines over-icturing principles for the relationship between the city and ggr that the board is the primary decision-making body

40:59Ggr business operations and that ggr be guided by the principles of transparency and accountability

41:04And that the measure of shareholder return be measured by both dividends and long-term strategic gains

41:12Strengthening relationships with city of Gulf colleagues to improve operational functionality and

41:17Infrastructure investment alignment for the benefit of residents and ggr customers remains an important government focus

41:28Looking ahead to 2026 ggr will continue to focus on strategic reinvestment and community partnership

41:34Our priorities include

41:37completing the core of inciting expansion

41:40advancing trail connectivity projects including g to g and g i g and g i d initiatives

41:46monitoring tariffs impacts and adjusting capital plans as needed

41:51supporting customer expansion and new business development

41:55Continuing to invest in infrastructure to maintain safety and reliability

41:59ggr remains committed to supporting economic development

42:03sustainability and community building across Guelph and the surrounding municipalities

42:12Ggr success is built on strong collaboration with city departments

42:16As such it is important to recognize the work of other city teams that contribute to the good news story of Guelph Junction Railway

42:23Under the city of Guelph and ggr shared services agreement the legal and finance departments both contribute considerable time and expertise to the railway success

42:33economic development and transfer and tourism

42:35Parks engineering and transportation services also share in the day-to-day

42:40Collaboration that ensure that ggr's work aligns with broader city building and economic development goals

42:47On behalf of the board of directors. I appreciate everybody's efforts

42:51Okay, thank you. Mr. Matthew in conclusion

42:59Ggr remains a dependable and well-managed asset that supports local local industry

43:04Strengthens our transportation network and contributes directly to the city's long-term financial sustainability

43:10We look forward to strengthening relationships with ggr's customers and Guelph residents to achieve the city of Guelph strategic vision of providing an inclusive

43:20connected

43:21Prosperous city where we look after each other and our environment. Thank you

43:26Thank you, mr. Matthews and congratulations on your new role