Saskatchewan’s short-line railways have been asked to share their views on how the loss of single desk grain marketing is likely to affect their business.
Roger Gadd, president of the Saskatchewan Shortline Railways Association, said members were asked recently to submit a list of recommendations to the federal government.
He said the association will likely compile its recommendations this summer and submit a list to Conservative MP David Anderson in September.
Ten of the province’s 11 short lines attended a recent meeting in Saskatoon to discuss transportation issues and meet with representatives of the federal government and the Canadian Wheat Board.
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Short-line groups from Manitoba and Alberta also attended.
“As an association … we’re going to come up with a list of recommendations and if there are some things there that are going to be detrimental to our short lines, we’ll look for ways to overcome them and be proactive about it,” said Gadd, who is general manager of Great Western Railway Ltd. in southwestern Saskatchewan.
“We’ll forward something that covers our concerns … and looks at what the ramifications will be to short lines when the single desk is gone.”
Eleven short lines operate in Saskatchewan on 1,900 kilometres of provincially regulated track.
Grain movement accounts for a significant portion of short-line business, so any changes to the wheat board’s single desk marketing system could affect their financial viability.
Much of the grain moved on short lines is shipped in producer cars, but Gadd said the availability of producer cars should not be a significant problem.
Issues such as administration, grading and unloading at terminals could be more problematic.
“Producer cars are guaranteed by the federal government. That’s something that’s been enacted in legislation for years and years and really has nothing to do with the Canadian Wheat Board,” Gadd said.
“But there will be a number of other concerns where we’re just going to have to wait and see how things play out.”
Gadd said one of the most critical questions facing short lines is how the loss of single desk marketing is likely to affect their revenues.
Compensation is expected to be one of the main topics on the association’s agenda.
Gadd said the future of single desk marketing is a highly politicized issue, especially among short lines that count prairie grain farmers among their owners.
He said the association has taken an arm’s length approach and is instead focusing on identifying and mitigating potential loss of business.
Short lines provide shippers with an alternative to truck transportation, reducing road wear and fossil fuel emissions.
The Saskatchewan government will provide $700,000 in grants to eligible short lines this year on a 50-50 cost shared basis.
