Service issues | Producer group’s challenge denied, while Louis Dreyfus’ claim upheld
The Canadian Transportation Agency has issued decisions on a pair of rail service complaints filed earlier this year against the country’s two largest railway companies.
In a decision issued Oct. 1, Canada’s rail regulator dismissed a level of service complaint that the Canadian Canola Growers Association filed in May 2014 against Canadian National Railway and Canadian Pacific Railway.
The CCGA complaint charged that CN and CP had failed to meet their service obligations to deliver cereal, pulse and oilseed crops from elevators in Western Canada to port terminals and other North American destinations.
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In early July, the two railways filed motions to have the CCGA complaint dismissed, arguing it was broad, ill-defined and lacked sufficient detail and evidence.
The transportation agency supported the railway’s arguments, claiming CCGA’s complaint did not “disclose a reasonable cause of action” and was therefore inadmissible.
CCGA officials expressed disappointment in the CTA’s decision, calling it a blow to prairie farmers.
“The CTA’s decision not to hear our case is a big blow to tens of thousands of western Canadian farmers,” chief executive officer Rick White said in an Oct 2 news release.
The association said it would continue to press for changes that provide farmers with responsive and reliable rail service so the problems encountered in 2013 aren’t repeated.
In another complaint the CTA up-held Louis Dreyfus’ claim that CN failed to meet contractual obligations to deliver grain cars to four Louis Dreyfus grain collection facilities in Saskatchewan and Alberta.
In a 41-page ruling, the CTA determined that CN’s rail car deliveries to Louis Dreyfus facilities at Aberdeen, Sask., Glenavon, Sask., Joffre, Alta., and Lyalta, Alta., were 3,300 fewer than the number of cars that were ordered.
The shortfalls occurred mainly between November 2013 and April.
The CTA decision ordered CN to comply with the terms of its contract with Louis Dreyfus for the remainder of the contract.
It also suggests that monetary penalties may be levied against the railway in the event that CN chooses “to fulfill its service obligations to LDC by reducing the service it provides to other shippers.”
