No word from feds on grain target extension

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Published: November 28, 2014

Ottawa is offering few hints about whether or not it intends to renew an order requiring Canada’s major railway companies to move a million tonnes of grain per week.

A federal order requiring Canadian National Railway and Canadian Pacific Railway to move a million tonnes of grain and oilseeds per week or face fines as high as $100,000 per violation is set to expire today.

Federal transport minister Lisa Raitt is expected to make an announcement shortly on whether the order will be extended, tweaked or removed entirely.

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For the past few weeks, the Canadian Transportation Agency has been consulting with grain shippers, farm groups and other stakeholders, seeking feedback on whether some type of order should remain in place for the winter shipping season, which is normally beset by extreme cold weather and snow.

Earlier this week, officials from Transport Canada issued a statement suggesting the “minister of transport has received advice from the Canadian Transportation Agency and will make a decision in consultation with the minister of agriculture with respect to the volumes in due course.”

In a Nov. 24 interview with The Western Producer, federal agriculture minister Gerry Ritz said Transport Canada is looking at “some new ideas” that will allow Canada’s grain handling and transportation system to move grain with more precision.

“Last year was all about volume, simply to get product to market. This year, it’s more about value,” Ritz said.

“There’s a lot more blending going to be required at port, so that means that the logistics have to have a lot more finesse than just straight up volume.”

Ritz said he sees a need for rules that place more emphasis on ensuring that grain is moved in all directions, not just east to Thunder Bay and west to Vancouver or Prince Rupert.

One of the biggest complaints about Ottawa’s million-tonne-per-week directive was that it prompted railway companies to move grain, primarily to Vancouver, from the most efficient mainline elevator facilities.

Meanwhile, grain shippers with customers in the United States had difficulty filing sales orders south of the border.

Smaller shippers including short-line railway companies, producer car shippers and more remote grain elevators, say the million-tonne-per-week order contributed to unmanageable railcar order backlogs, car allocation delays and poorer rail service in general.

Ritz said a new order, if one is announced, should have greater emphasis on corridor-by-corridor movements, ensuring that grain shippers receive better rail service through all routes.

“From my perspective, I think there has to be (more emphasis on secondary corridors),” Ritz said.

“If we’re going to … maintain our ability to ship around the world … it’s going to take some logistics, some co-ordination.”

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Brian Cross

Brian Cross

Saskatoon newsroom

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