Canada’s two national railways, supported by a representative of some short-line railways, have condemned government legislation to govern rail service provided to shippers as unnecessary and intrusive.
They are calling for Bill C-52, the Fair Rail Freight Service Act approved in principle by the House of Commons and now at committee, to be shelved or at least amended to reduce some of the shipper powers outlined in bill.
In a presentation to the Commons transport committee Tuesday, representatives of Canadian National Railway, Canadian Pacific Railway and the short-line operator Cando Contracting Ltd. said the legislation is unnecessary.
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“Our advice to this committee (is) that you recommend to the House of Commons that the bill not proceed,” Railway Association of Canada president Michael Bourque told MPs.
But if the legislation does move forward, he said the rail industry wants amendments that would reduce proposed shipper powers, including a proposal that an arbitrator have the right to assess punishment for failure to meet level-of-service contract obligations.
Earlier, shippers went before the committee to argue for amendments that would make the legislation tougher on the carriers, insisting that there is a market imbalance between carriers and shippers that need a legislative rebalancing.
Bourque said the railways have improved service, and a legislative hammer is not needed.
“Railways are doing exactly what you would hope, increasing their productivity, keeping freight rates low, enabling the competitiveness of Canadian manufacturers and producers and indeed the whole supply chain, winning investor confidence, making money and reinvesting in the network.”
Transport committee members, expected to end their public hearings soon, were easy on the railways in their questioning, not challenging railway arguments that they generally are not monopolies, that most shippers have alternatives and that rail service is far more reliable than shipper critics suggest,
Railway executives said their service to commodity shippers has improved since the government-ordered service review began, capital investment is extensive and there is no need for government intervention.
“I want to reiterate that throughout the service review we have maintained there is no need for additional regulation between railways and customers,” CPR vice-president Michael Murphy told MPs.
“We’re firmly of the view that continued improvement in our supply chain will be achieved through offsetting commercial undertakings, in particular better traffic forecasting.”
A legislative backstop is not required.
