Representatives from more than 30 farm groups, grain industry organizations and government agencies are expected to meet in Winnipeg Nov. 1 to talk about the fate of the federal hopper car fleet.
The closed-door meeting, organized by Transport Canada, is designed to give those with a stake in the issue a chance to grill potential buyers about their proposals.
The government also hopes to use the session to refine its plans for selling the 12,400 cars.
The Farmer Rail Car Coalition, Canadian National Railway and Canadian Pacific Railway are expected to make presentations to the meeting and answer questions.
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The coalition has been campaigning to buy the cars ever since the government announced its intention to sell them more than eight years ago.
CN recently revealed it submitted a proposal in January to buy roughly half the cars, representing its share of the government fleet.
CPR has said it is not interested in buying cars. It has proposed that Ottawa keep the cars and sign a new operating agreement to lease them to the railways for up to two years.
Coalition president Sinclair Harrison said he welcomes the chance to explain the group’s proposal, deal with concerns raised by some farm and industry groups and find out more about where the railways stand.
This week the coalition is sending to all meeting participants a 96 page version of its business plan to aid in the discussion.
“We know there’s some danger in displaying your business plan when there are other bidders around, but on the other hand we want people to understand our proposal,” Harrison said.
CN spokesperson Jim Feeny said the railway will present its views on the various options, but is also interested in hearing what Ottawa has to say about its plans.
“We’re hoping for further clarity from the government on what the process is that will be followed,” he said.
Most of the discussion has centred on the bid by the coalition, which wants to obtain the cars for a nominal fee and then set up a non-profit, farmer-controlled leasing company.
Judie Dyck, executive director of the Saskatchewan Canola Growers Association, said her association can’t support the coalition’s bid because there are too many unanswered questions about issues like maintenance and replacement of the cars, freight rates, effects on system efficiency, trade implications and potential liability for farmers.
Harrison said he’s confident the coalition can answer those concerns, adding that critics should also look at the alternatives.
“It’s one thing to ask questions and have concerns about our plan, but the question is, ‘is there a better proposal out there?’ ” he said.
Bill Huber, chair of the Inland Terminal Association of Canada, said his group wants the government to proceed with caution.
“There’s no big rush,” he said. “Let’s have the industry and the players study the issue in depth and have a clear understanding of what the outcome will be.”
One organization supporting the coalition’s bid is the Canadian Wheat Board.It says that as long as the coalition can present a sound business, operating and financial plan, it’s the best option for farmers.
“If the railways buy them, farmers will end up paying for the cars through the revenue cap,” said board chair Ken Ritter. “They’re bidding with farmers’ money.”
