A coalition of farm groups based in Saskatchewan has issued a 39-page document suggesting far-reaching changes to the Canadian Transportation Act, the federal legislation that regulates railway operations in the country.
The document, released in Regina, is endorsed by a coalition of farm groups including Saskatchewan Pulse Growers, the Saskatchewan Barley Development Commission, the Saskatchewan Wheat Development Commission and the Agricultural Producers Association of Saskatchewan.
It contains nine recommendations, which according to the coalition are designed to foster rail competition, increase market transparency and ensure that producers have a stronger voice in Western Canada’s railway transportation system.
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The document was submitted to the Canada Transportation Act review panel, which has been put in charge of reviewing the CTA and reporting back to Ottawa before the end of the year.
“The grain handling and transportation system has undergone substantial change, said APAS president Norm Hall, spokesperson for the coalition.
“Railways are centralizing their services and placing significant investments made by producers, short lines and producer car loading sites at risk.
“From the coalition’s perspective, if we are redesigning a transportation system that is clearly not working for producers, who is actively looking after producers’ interests?”
In a news release, coalition members claim that failure in the grain transportation and handling systems cost western Canadian grain producers more than $3 billion in the 2013-14 crop year.
Those same producers stand to lose another $2 billion in the 2014-15 crop year unless significant changes are made to the CTA and the relationship between farmers, grain shippers and railway companies.
There are several key recommendations in the coalition’s report:
- The creation of a rail oversight group, which includes agricultural producer representation, to assess ongoing operations of the railways.
- Completion of a formal costing review and possible adjustments to the maximum revenue entitlement.
- Retention of the railway revenue entitlement, commonly known as revenue caps.
- New rules that ensure enhanced mandatory information reporting for the grain handling and transportation system.
- Improved mechanisms to resolve disputes over rail service.
- Enhanced provisions that encourage the use of running rights on Class 1 railway networks.
- Legislative changes that support small shipper innovation, diversification and investment in the railway network.
- Measures that ensure the unique needs of producer car shippers and short-line railways are being met.
- Changes that give the Canadian Transportation Agency more power to investigate and rule on railway decisions — including railway abandonment and producer car site delisting — that affect underserviced and unused rail lines in areas where other parties have expressed an interest.
Earlier this year, a federally ap-pointed panel was put in charge of reviewing the Canadian Transportation Act. The panel is expected to complete its preliminary round of consultations with grain producers, exporters and agricultural shippers soon.
