Canadian Transportation Action Sought

SASKATOON - Feb 21/18 - SNS -- The Saskatchewan Pulse Growers (SPG) wants Canada's pending Transportation Modernization Act amended to give the Canadian Transportation Agency power to investigate service issues without waiting for complaints.

The SPG wants to the Canadian Transportation Agency given Own-motion power and to include soybeans and chickpeas as eligible crops under the maximum revenue entitlement (MRE). That would give those crops the same transportation rate protection and competitiveness available to other crops covered under the MRE.

In a press statement, the SPG said, "Own-motion power would remove the requirement of the Agency to receive a complaint from a shipper, instead enabling the Agency to investigate service issues and railways actions independently, and identify solutions within their regulatory toolbox.

"Requiring a formalized complaint from a shipping company is a costly, and risky requirement, with shippers expressing concerns of retaliation from railway companies in the form of even poorer service."

"The Ag Transport Coalition (ATC) has developed a level of real-time performance measurement for rail transportation for 90% of grain shipped from Western Canada. This reporting provides daily and weekly information on grain pipeline performance," says Carl Potts, Executive Director for SPG.

"The data that has been made available through the ATC has positioned the Canadian agriculture industry better than ever to identify when these systemic issues are occurring, and request the Agency to investigate. These reports also provide decision-makers with the information needed to make immediate decisions based on system performance."

The association notes that so far during the marketing year, CN has only supplied 66% of the hopper cars ordered by grain shippers on-time. For the last four weeks, CN has provided less than 50% of rail car orders, including 30% in the most recent week. CP performance declined in recent weeks.

The inadequate level of service by Canadian railways comes at a time when pulse crop movement is already low due to market access challenges argues Corey Loessin, Chair of Saskatchewan Pulse Growers.

"Pulse crop exports are at less than 50% of normal levels during this period due to trade barriers in India, and the railways are still not able to deliver adequate service. . . . The lack of on-time service is further compromising Canada’s competitiveness in end-use markets."