A federal court has upheld a 2013 ruling by the Canadian Transportation Agency that forced Canadian National Railway to honour railway interswitching provisions in southern Manitoba.
In a decision handed down last month, the Federal Court of Appeal ruled the CTA acted properly when it supported an application by Richardson International asking CN to move rail cars between Let-ellier, Man., and nearby Emerson, Man.
The cars were then to be switched to the Burlington Northern Santa Fe railway network for delivery into the United States.
Richardson requested the service in 2013, but CN declined. Interswitching rules force one railway to pick up cars from a shipper and deliver them to another carrier for the line haul.
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The CTA ruled in December 2013 that CN was obligated to honour Richardson’s request and comply with provisions contained in the Canada Transportation Act.
The decision would force CN to pick up empty rail cars delivered to Emerson by BNSF and move them to Richardson’s elevator at Letellier, 20 kilometres from Emerson on the U.S. border. CN would also be obliged to pull loaded rail cars from Letellier back to Emerson.
CN appealed the CTA ruling last year, suggesting the agency erred in its assessment of the circumstances and the railway company’s obligations.
The Federal Court of Appeal ruling was heard in Toronto March 4 and the decision was released Aug. 17. It dismissed the CN appeal with costs.
CN officials said the railway company is reviewing the decision and is considering its options.
Richardson’s Red River South elevator is located on CN’s Letellier subdivision, 95 kilometres south of Winnipeg.
BNSF’s track runs as far as Emerson, where the two companies’ rail networks are connected.
Interswitching provisions in the Canada Transportation Act are a sore spot for major railways.
Last year, Ottawa attempted to provide more options to grain shippers by extended interswitching provisions to a 120 km radius of recognized interchange locations, up from 30 km previously.
CN and Canadian Pacific Railway say interswitching reduces railway efficiency.
