Another short-line railway company in Saskatchewan has added its name to the list of unhappy railway shippers that are desperate for more grain cars.
Great Western Railway based at Shaunavon, Sask., says additional steps must be taken to ensure that short-line railway companies have access to a reasonable number of the hopper cars.
GWR, which bills itself as Canada’s largest short-line shipper of producer-filled grain cars, is calling on federal and provincial governments to ensure that an adequate number of cars are delivered by Canada’s main railways, known as Class 1 companies, Canadian National and Canadian Pacific.
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In early March, Ottawa imposed minimum weekly targets, requiring CN and CP to move a combined total of one million tonnes of prairie grain per week.
But in a news release dated April 16, Great Western officials said the million tonne targets have had a negative impact on their business.
“Since the government has implemented the higher haulage targets on Class 1s, short-lines have been impacted as the two major railways seem to be concentrating on shorter hauls and starving the shortlines for cars,” the GWR news release said.
“We are now 2,101 cars behind. With at least 145 new producer car orders coming in every week, we can’t even keep up, let alone touch the backlog of … (unfilled) orders.
“At the present pace, we will have an extraordinarily large amount of grain still in farmers’ bins heading into this year’s harvest.”
In early March, Ottawa approved an order requiring CN and CP to move a million tonnes of prairie grain per week or face fines as high as $100,000 per day.
The railways were given four weeks to ramp up grain traffic to meet those targets.
In early April, members of the Ottawa’s standing committee on agriculture heard that the railways were in compliance with the order.
But critics said attempts by CN and CP to meet those targets and avoid financial penalties would result in continued poor service for some shippers, most notably shortline railway companies and elevators in more remote areas.
The news release issued by GWR appears to confirm those fears.
“GWR has worked hard to develop relationships with new grain companies in the new marketing environment,” the shortline said.
“These relationships have been strained to the breaking point s there is no certainty in grain movement.”
Transport Canada has indicated that Class 1 railways will be required report grain movements on a weekly basis.
Information provided will be used to determine whether the railways are in compliance with the order.
Critics have suggested that a system that allows CN and CP to self report the amount of grain hauled lacks objectivity and provides little assurance or accuracy or transparency.
The Western Producer contacted Transport Canada on April 16 requesting additional details on railway reporting requirements.
Transport Canada officials said a response will be issued shortly.
