A regional railway based in Edmonton has made another bid to gain running rights on Canadian National Railway lines.
Ferroequus Railway Co. Ltd. wants to haul Canadian Wheat Board grain from two prairie locations – Camrose, Alta., and Lloydminster, Sask. – to Prince Rupert, B.C.
Last week it formally asked the Canadian Transportation Agency to approve its application.
Ferroequus president Tom Payne said the railway’s plan will benefit farmers, shippers, marketers and port operators by providing a new competitive option for getting grain to the west coast port.
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“The whole point is to produce a lower cost and a better level of service,” he said.
The CTA will gather comments from CN and other interested parties as it considers the case. The agency must process the application within 120 days.
CN spokesperson Jim Feeny said the railway will oppose the Ferroequus application.
“We believe that access should be negotiated on the basis of commercial agreements between willing parties,” he said. “This is certainly not the case here.”
He said that while the Canada Transportation Act does allow access to be imposed if there has been a failure to provide service, that doesn’t apply to CN’s service to Prince Rupert.
Last week’s application marks the second time this year Ferroequus has attempted to gain running rights on the CN line to the northern British Columbia port.
In May, the agency threw out applications by Ferroequus and Omnitrax Canada.
In those cases, the railways wanted the right to pick up grain and other freight from customers along certain CN lines and haul it to export positions, what are known as “solicitation” rights.
The agency dismissed the case on a legal technicality, saying running rights only allow a railway to traverse the track of another railway from one point to another, without stopping to pick up freight.
In the latest application, Ferroequus makes clear that it just wants “transit rights” to haul grain from interchange points at Camrose and Lloydminster to Prince Rupert.
In its application, Ferroequus said its request is consistent with the recommendations of the Estey report, with national transportation policy, with the memorandum of understanding signed last year between the Canadian Wheat Board and the federal government, and with the public interest.
“The public interest is benefited by flexible, timely and efficient service,” the application said.
Ferroequus said its plan will reduce rail and shipper costs, deliver grain to port and return equipment to the Prairies more quickly, reduce rail and marine demurrage charges, make better use of Prince Rupert and ease congestion at Vancouver.
Wheat board chair Ken Ritter said the board hasn’t had a chance to review the Ferroequus application in detail.
The board supported the previous running rights applications by Ferroequus and Omnitrax.
Ritter said the bottom line for the agency is whether the proposal would put more money into farmers’ pockets.
