Canadian National Railway can continue to use its new rail car distribution system, after the Canadian Transportation Agency ruled shippers did not suffer irreparable harm from the program.
But the six complainants hope the program will still be stopped.
Earlier this year, CN implemented a system that requires shippers to order cars one week to 24 days in advance.
The Canadian Wheat Board, Paterson Grain, North East Terminals, Parrish and Heimbecker, Providence Grain Group and North West Terminal complained the changes made it difficult to plan sales programs.
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They asked for emergency relief for taking on the risks of guessing at rail car orders and moving the wrong grain to port at the wrong time, and wanted the program stopped.
CWB spokesperson Maureen Fitzhenry said the board used to be able to call for cars four days in advance of shipping. Now, it must do so weeks ahead.
In its April 30 decision, the CTA said the issue was serious enough to be considered and that the changes created some service problems. However, it ruled there wasn’t enough evidence that the changes would result in service failures.
“Because the balance of inconvenience weighs strongly in favour of CN, the agency finds that it would not be reasonable to order CN to cease utilizing its new grain car order-taking system at this time,” said the decision.
The complainants had also suggested CN was not in compliance with earlier CTA decisions regarding its service.
“The issue they have raised relative to compliance with earlier agency rulings will be the subject of a finding when the agency determines whether CN has failed to provide adequate rail service for crop year 2007-08,” said the decision.
Fitzhenry said the complainants were encouraged that the CTA recognized the need to consider all the concerns they raised.
CN spokesperson Mark Hallman said May 5 the company was still reviewing the letter but agreed with the decision. He declined further comment, saying the matter is ongoing.
Fitzhenry said the board has incurred demurrage charges in six out of eight months during the current shipping season.
“This car order system was certainly part of it,” she said.
She also said the board has had to guess at some of its allocations. The system doesn’t recognize that wheat is not a single product, she said, referring to the 15 to 20 different wheat products the board ships to different markets from different sources.
