Canadian National Railway is trying to duck the issue of poor rail service, says an Alberta grain shipper pursuing a complaint against the rail company.
Great Northern Grain of Nampa, Alta., has asked the Canadian Transportation Agency to find that the railway’s new grain programs discriminate against smaller shippers and could drive them out of business.
In its response, CN said Great Northern’s application goes far beyond the scope of a service complaint. The railway essentially told the CTA that the agency has no authority to tell the railway how to run its business.
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In documents filed last week, GNG says the rail company is trying to avoid the issue.
It said the railway’s submission to the agency ignores at least eight specific service-related issues outlined in the original complaint.
“Rather than address these matters, CN chose instead to argue that the agency is powerless to investigate and make orders with respect to CN’s programs,” said GNG.
The grain company said CN is in effect telling the agency: “We’re deregulated; we can do whatever we want.”
That’s not true, said the GNG submission.
Not only does the agency have the authority, it has a statutory mandate to investigate a railway’s car distribution policies and practices when a complaint is filed.
GNG argues that if CN is correct in its assertion that its Advance Products Programs, or APPs, should be beyond the scrutiny of the agency and the act, it has in effect deregulated itself.
“CN thus becomes government policy-maker and legislator, asserting that its APPs are above the law,” said GNG.
At the heart of the complaint is a program that offers freight discounts for shippers who make a commitment to ship 100-car trains for a minimum of 42 consecutive weeks a year.
GNG, along with a host of supporting intervenors including other small grain companies, producer car shippers, farm groups, the Canadian Wheat Board and the government of Alberta, says that unfairly favours big grain companies.
CN told the agency it should ignore the interventions by third parties and should base its decision on only the service provided at the Nampa elevator, which it says has been more than adequate.
In response, GNG said the numerous interventions indicate a broad recognition in the industry that CN’s car distribution practices “threaten the integrity” of the grain handling and transportation system.
