Ferroequus Railway Company has found an important ally in its fight
with Canadian National and Canadian Pacific railways to get access to
the line running from Camrose, Alta., to Prince Rupert, B.C.
The commissioner of competition with the federal competition bureau is
intervening on Ferroequus’s behalf in the Canadian Transportation
Agency hearing into the company’s complaint against CN and CP. The
commissioner backs Ferroequus’s main argument.
“There are no competitive alternatives available …. In the absence of
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competitive alternatives CN has a rail monopoly between Camrose to
Prince Rupert.”
Ferroequus has requested the right to run trains down the CN line from
Camrose to Prince Rupert to deliver grain originally collected on the
CP network east of Camrose.
Ferroequus lawyer Forrest Hume, who began presenting his case April 29,
said he’s glad to have support against the vested interests of the
grain transportation system.
“We’re very happy that he has intervened, but we’re not surprised,”
said Hume.
“The fact that there is a lack of competition between CN and CP has
been well known for many years and has been the subject of a number of
government reviews and studies and reports.”
CN spokesperson Jim Feeny said his company doesn’t think the
competition commissioner is fully informed about the Ferroequus
situation.
“It’s one thing to support an application in principle. It’s another to
demonstrate that the applicant has a realistic basis for doing what he
says he’s going to do.”
Feeny said his company will challenge both Ferroequus’s arguments and
its credibility.
“There is considerable competition to get grain onto each railway,
whether it be CN or CP,” said Feeny.
“We are competing fairly strongly to get that grain onto elevators on
our lines.”
He said the railways do this through their rates, their efficiency
payments and the level of service they provide.
He said the big railway companies will challenge the competence of
their competitor.
“This is not a real railroad. This is a virtual railroad,” said Feeny.
“What they’re trying to do is to enter the railway business, not by
investing in their own network, by cherrypicking CN traffic through
regulatory means.
“The cost would be borne by farmers and other shippers.”
CN and CP are supported by other parts of the grain transportation
system, including the main grain elevator companies, a number of unions
and the ports of Vancouver and Prince Rupert.
Ferroequus is a small company without physical railroad assets that was
set up to take advantage of running rights.
As well, the Canadian Wheat Board said it too will intervene in support
of the Ferroequus application.
The wheat board said it supports the application to try to improve rail
competition, which should help get better service and shipping rates
for farmers.
The wheat board was scheduled to speak at the hearings May 1, too late
for Western Producer deadlines.
