Louis Dreyfus lodged complaint with CTA | CN is ordered to uphold terms of service agreement while process continues
The Canadian Transportation Agency has issued an interim order requiring Canadian National Railway to uphold the terms of its service agreement with Louis Dreyfus Commodities Canada Ltd.
CTA officials issued the interim order in early May, less than a month after Louis Dreyfus filed a level of service complaint against the railway, claiming CN was failing to deliver rail cars and was not upholding the terms of its service contract.
An edited version of the CTA’s interim order was distributed to the media June 12.
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It stated that the CTA had ordered CN “to provide train service for placement of empty cars for loading and pick-up of loaded cars” at Louis Dreyfus’s facilities in Glenavon, Sask., Aberdeen, Sask., Joffre, Alta., and Lyalta, Alta.
The interim order will remain in effect until the CTA hears arguments from CN and Louis Dreyfus and issues a final decision on a level of service complaint that Louis Dreyfus filed against CN on April 14.
CTA spokesperson Chantal Laflamme said there is no deadline by which a final ruling in the case must be issued.
“This is an interim decision … on this case, and the agency will continue to assess the complaint,” Laflamme said. “Once they are ready … the agency will issue (a final ruling).”
CN officials declined to comment on the interim ruling, but company spokesperson Mark Hallman said in an email that CN is appealing.
“While it is not at liberty to discuss the specifics of the Dreyfus complaint, CN notes that it is fully meeting its obligations under the federal government’s order in council regarding the transportation of grain,” the email said.
“The issue before the CTA in the Dreyfus case ultimately concerns the allocation of rail capacity. The record crop has created a demand for rail services that exceeds the capacity of the supply chain. In that context, CN has had to allocate capacity among market participants. Throughout this crop year, CN has followed a car allocation policy that ensured shippers were treated fairly and consistently.”
Hallman said affording one shipper preferential treatment will come at the expense of the rest of the industry.
Historically, the number of level of service complaints filed against the railways to the CTA has been low.
However, two groups — Louis Dreyfus Commodities and the Canadian Canola Growers Association — have filed formal complaints this year, arguing that CN and/or Canadian Pacific Railway failed to fulfill their contractual obligations.
Laflamme said both sides in the Louis Dreyfus complaint will have an opportunity to submit arguments and responses.
The CTA normally issues a final decision within 90 days once the “pleading process” is complete.
