Government to Negotiate Car Sale to Farmers

WINNIPEG - Mar 10/05 - SNS -- The Canadian government's decision to negotiate with the Farmer's Rail Car Coalition (FRCC) about transferring ownership of the federal railway hopper car fleet was welcomed by the Canadian Wheat Board (CWB).

Currently, there are approximately 12,400 railway hopper cars in the government-owned fleet. These cars are provided at no cost to the railways for the transportation of grain from the Prairies for export through the ports of Vancouver, Prince Rupert, Thunder Bay, and Churchill.

The FRCC plan would see ownership of these cars transferred to farmers through the FRCC, who would manage and maintain the railcar fleet.

CWB chairman Ken Ritter noted that the FRCC plan calls for better car maintenance at a lower cost and increasing the carrying capacity of the cars. This plan could save farmers between $50 and $75 million annually. Transferring the cars at a nominal fee, as the FRCC plan recommends, would allow that group to build a reserve fund sufficient to replace the cars as they wear out.