The grain handling market at Vancouver is as uncompetitive now as it was three years ago, says the Canadian Wheat Board.
And that means Agricore United should still be required to sell one of its grain terminals at the West Coast port, the board said in a submission to the federal competition tribunal.
“From the CWB’s point of view, there is nothing that has transpired since Oct. 17, 2002, that has improved the competitive situation at Vancouver,” CWB chief operating officer Ward Weisensel said in an affidavit filed with the tribunal Sept. 7.
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“On the contrary it has, if anything, worsened.”
The affidavit forms the basis of the board’s request for permission to intervene in a case that AU has taken to the tribunal.
The grain company says the grain handling market at Vancouver has become more competitive since the 2002 divestiture order and so it should no longer be required to sell one of its two terminals.
The AU launched its case after the federal Competition Bureau refused to grant it additional time to consummate a deal to sell the terminal to Terminal One Vancouver.
AU argues there is now chronic over-capacity at the port and small independent grain shippers have no trouble getting access to terminal space.
But in its brief, the wheat board cites a number of examples that it says indicate there is a lack of competition at the port.
Handling tariffs have increased continuously over the past three years, with no improvement in the level or quality of service provided, the board said.
Similarly, “fobbing” charges to load grain onto vessels have increased by about 15 percent during the same period.
Those costs have increased despite a drastic reduction in export volumes and what AU describes as excess grain handling capacity at the port.
Also, the four grain companies that operate terminals at the port have consistently refused to negotiate individual terminal handling agreements that would guarantee the CWB a certain amount of terminal space and rail car unloads for a negotiated rate.
The board told the tribunal that all those factors contribute directly to higher costs for the CWB and for western Canadian grain farmers.
The tribunal has scheduled a hearing on AU’s application to rescind the 2002 divestiture order for Oct. 3 in Ottawa.
