Winnipeg, Nov. 3 (CNS Canada) – Western Canadian farm groups are welcoming legislation to bring about “a more transparent, balanced, and efficient rail system,” in Canada.
The government plans to introduce the legislation in early 2017.
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The planned measures are part of the Transportation 2030 strategy outlined by Canadian Transport minister Marc Garneau in a speech, and come following a series of roundtable discussions held over the summer.
“A more efficient rail freight system to reliably move our goods to global markets will help farmers, shippers and railways to generate growth for the Canadian economy, strengthening the middle class,” said federal agriculture minister Lawrence MacAulain a news release.
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The new legislation will allow reciprocal penalties in service level agreements between railway companies and their customers, according to the government release.
A better definition of ‘adequate and suitable’ service in the Canada Transportation Act is also promised, along with improved access to, and timelines for, Canadian Transportation Agency decisions.
The Grain Growers of Canada (GGC) particularly welcomed inclusion of reciprocal penalties, a clear definition for “adequate and suitable service”, and extended interswitching in the Transportation 2030 plan.
“Canada’s grain farmers rely on efficient and competitive rail service to deliver products to markets all around the world”, said GGC vice president Jeff Nielsen in a news release. “I urge the minister to ensure that the required legislation is passed and in place for the 2017/2018 crop year.”
The Canadian Canola Growers Association (CCGA) expressed a similar sentiment.
“Grain shippers have long been bound to performance standards with financial penalty, however, no mechanism has existed for shippers to hold railways commercially accountable for their level of service,” said Rick White, the CCGA’s chief executive. “Incorporating reciprocal penalties into service level agreements has the potential to elevate the accountability in the supply chain to include the railways.”
Chris Vervaet, executive director of the Canadian Oilseed Processors Association (COPA), said this is a big win for Canadian value-added processors and farmers.
“The Government of Canada is proving that it stands behind its promise to support and create the kind of environment where value-added processing can thrive,” he said in a news release.
Kevin Auch, Alberta Wheat Commission chair said in a release: “Shippers need the ability to negotiate penalties and contract terms equal to those being charged by the railways in order to create a more competitive marketplace.”
