Bad weather isn’t a good enough excuse for poor railway performance, the Canadian Wheat Board has told the Canadian Transportation Agency.
In their statements of defence against the board’s complaint to the agency about rail service, the railways blamed the weather for shipping difficulties this winter.
But the board wasn’t buying that in its final written submission to the agency before public hearings slated to begin Aug. 10 in Saskatoon.
“Temperatures during the past year were not exceptional and were less extreme than in the previous year,” the board said in a brief filed to the agency June 2.
Read Also
Agriculture ministers commit to enhancing competitiveness
Canadian ag ministers said they want to ensure farmers, ranchers and processors are competitive through ongoing regulatory reform and business risk management programs that work.
“While precipitation may have been higher than average, CWB does not accept that the magnitude and duration of (the railways’) service failures is attributable solely to that cause.”
The board said both railways are familiar with winter weather conditions on the Prairies and should have taken steps to minimize their effect on grain movement.
And it said it will demand from the railways full details on how weather affected specific train movements and what they did to deal with the situation.
The board also disputed the railways’ claim that grain didn’t suffer more than other commodities.
“CWB places in issue the treatment which grain traffic was accorded relative to other commodities and the manner in which (the railways) accorded priorities to the transportation of grain,” it said.
The wheat board wants the transportation agency to order the railways to improve performance.
Will seek compensation
The board also says it intends to use a favorable ruling from the CTA to seek financial compensation from the railways for an estimated $65 million in losses suffered by farmers due to lost sales and demurrage charges.
In its June 2 brief, the board disputed a number of other issues raised by the railways in their submissions to the agency:
- The railways said concerns about poor service should be resolved by the industry’s Car Allocation Policy Group, not the CTA. The board said no participant in CAPG has given up the right to take complaints to the agency.
- The railways complaints about excessive regulation in the grain industry are irrelevant. The railways are aware of the regulatory framework and must take steps to provide adequate service accordingly.
- Railway complaints that unload guidelines represent exceptional demands on the railways are unacceptable since the railways help set those targets.
