The federal rail freight service review panel shouldn’t wait until 2013 to decide whether to impose new rules on rail service, says the Canadian Wheat Board.
“It is our view that the legislation and regulations be ready for implementation by November 2011 at the latest,” the board said in a submission to the panel last week.
In its interim report, the panel said the railways should be given until 2013 to find commercial solutions to ongoing freight service problems.
If they don’t, then the government should step in with new regulations or legislation to ensure service improves.
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The review has been underway since May 2007 as the government’s response to years of complaint about poor rail service.
The wheat board commended the panel for most of its conclusions and recommendations:
• overall rail freight service has been inadequate
• there is a major power imbalance between railways and shippers
• most current issues relate to the behaviour of the railways
• continued inadequate service will require regulatory solutions
The board said it’s important for the railways to work closely with stakeholders concerning changes in local service, with minimum notification of 10 days.
It also favours the establishment of a fair dispute mechanism based on new regulations.
As well, it proposes the federal government set up the Rail Service Office to deal with disputes as part of the Canadian Transportation Agency.
As for the panel’s suggestion that railway performance be reviewed in 2013, the board notes that the review panel has been working on the issue for three years and has conducted a thorough assessment of freight service.
“The panel, stakeholders and the railways are acutely aware of the particular serviceissuesthat needtobeaddressed,” the board said in its submission.
“Further assessment is unlikely to provide any additional value or new information.”
What’s needed are clear benchmarks for rail service that would trigger dispute resolution.
Meanwhile, Grain Growers of Canada and the Canadian Canola Growers Association filed a joint submission to the panel also taking issue with the delay.
The groups said they are frustrated with the lack of immediate, concrete actions contained in the panel’s interim recommendations.
They want a commitment from Ottawa to regulate service levels and an immediate start to the proposed regulatory process rather than waiting until 2013.
They called for the establishment of an independent monitoring and evaluation body to measure whether actual performance matches the expectations of shippers, railways and policy makers.
The board also urged the panel to take steps to protect short-line railways and producer car loading sites.
