CP and CN submit annual grain plans to Ottawa, outlining plans for weekly grain car allocations over the next 12 months
Canada’s two major railway companies said last week they are prepared to move this year’s western Canadian grain crop to export position, regardless of its size.
“There’s a lot of uncertainty as to what the final outcome of the crop is going to be, given the hot, dry conditions that Western Canada (has been) experiencing,” said David Przednowek, director of sales and marketing for Canadian National Railway.
“We expect that grain movement, obviously, will be below the three-year average,” he added.
“But we’ve got the resources in place … to move this crop.”
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“CP anticipates the 2021-22 western Canadian grain crop volume will be lower than the past two crop years,” added Joan Hardy, vice-president of sales and marketing for grain and fertilizer at Canadian Pacific Railway.
In the 2020-21 crop year that ended July 31, Canada’s two major railway companies both had record breaking years in terms of overall grain volumes moved.
CN moved more than 31 million tonnes of bulk grain and grain products, exceeding the company’s previous record of 29.4 million tonnes, set during the 2019-20 crop year.
That number doesn’t include an additional 1.1 million tonnes moved in shipping containers.
CN moved record volumes of Canadian grain for 14 consecutive months beginning in early 2020, said the company’s president and chief executive officer, JJ Ruest.
Meanwhile, Calgary-based CP moved a record 30.6 million tonnes of grain and grain products, as well as 590,000 tonnes of containerized grain.
It marked the fourth straight year that CP set a new single-year record for total bulk grain movements.
The company’s previous record of 29.5 million tonnes was set in 2019-20.
In late July, CP and CN both submitted annual grain plans to the federal government, outlining plans for weekly grain car allocations over the next 12 month period.
In its plan, CN said it would increase its weekly car spots in non-winter months to a maximum of 7,800 cars per week, up from 7,600 per week last year.
In winter months, maximum allocations will increase by 150 cars per week, rising to a maximum of 6,250 cars this winter, up from 6,100 cars last winter.
In an email to The Western Producer, CP said it anticipated a slow start to grain movements in the current crop year.
“We anticipate a slow start… as the anticipated carry-in volume of Canadian grain is seven million metric tonnes, an eight-year low,” the company said.
“The typical carry-in stock is 11 million metric tonnes on average, which allows customers to use available grain supply chain capacity to move grain early in the crop year.”
CN and CP said significant investments by railway companies and supply chain partners have contributed to a grain handling network that’s capable of moving larger volumes of grain more efficiently than ever.
The addition of two new grain export terminals in Vancouver has bolstered Canada’s ability to export grain faster and more efficiently.
“You’ve got to have investment at all points in the supply chain to increase capacity,” said Przednowek.
“And most certainly, it goes without saying that all players in the supply chain have been making significant investments.”
Added Hardy: “The challenge created by the COVID-19 pandemic over the past 17 months has underpinned the value of strong communication and supply chain collaboration.
“Despite a sharp reduction in demand this spring, CP and our customers have again broken our movement record, and we celebrate that achievement across the supply chain.”
Hardy said CP continues to work with customers to upgrade the network infrastructure to CP’s new 8,500-foot HEP train model, and add new 8,500-foot-capable loop track elevators at strategic locations.
“By the end of 2021, CP expects that more than 40 percent of the elevators we serve will be loading 8,500-foot HEP trains,” she said.
