Saskatchewan cabinet ministers who met with rail company executives last week are now calling on the federal government to oversee negotiations between the railways and the grain companies to get grain moving.
Economy minister Bill Boyd said Canadian National Railway and Canadian Pacific Railway told the delegation from Saskatchewan that they were willing to sign service level agreements with the grain companies that included reciprocal penalties.
He said Ottawa must act to make sure this now happens.
“Railway companies assured us they are ramping up to have thousands more grain cars per week taking grain to ports and this will be sustained until at least December 2014,” Boyd said. “Grain companies told us they could quickly move to provide service 24 hours a day if the grain reaches them.”
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Grain handlers earlier told the ministers it could be 2015 before the backlog is cleared.
Boyd said the province will continue to monitor basis levels to make sure they drop as movement improves.
The province supports Ottawa’s efforts to bring more transparency and accountability into the grain transportation system, including weekly reporting requirements around actual car spots.
Highways and infrastructure minister Don McMorris said Saskatchewan would also like to see the Canadian Transportation Agency be able to independently investigate grain movement without a formal complaint.
He also said grain companies could sign contracts with farmers that include reciprocal financial penalties.
