Canadian railway shippers got their wish last week after more than a decade of lobbying for better legal protection and mandatory rail carrier service obligations.
Bill C-52, the Fair Rail Freight Service Act, was approved by the Senate June 21 and passed into law.
Now, shippers will begin to chronicle railway performance and prepare to argue during the 2015 Canada Transportation Act review that the rules need strengthening to support shipper rights.
“We have mixed feelings and we are disappointed because we had hoped the legislation would be much stronger,” Coalition of Rail Shippers chair Bob Ballantyne said June 21.
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The legislation will for the first time give shippers the right to demand a Canadian Transportation Agency-imposed level of service agreement with shippers if a commercial agreement cannot be reached. Railway breach of the terms can lead to fines of up to $100,000 per breach.
The government claims it is a balance between railway market power and shipper need for service guarantees that puts shippers in the driver’s seat.
The Shippers’ Coalition begs to differ, arguing that the legislation has enough legal loopholes that railway lawyers will find ways to tie up any potential improvements in court.
“In many ways it is not too likely to be effective because it opens up potential legal challenges that the railways will be happy to exploit,” said Ballantyne.
The Conservatives consider the bill a success.
“When both sides are not completely happy, it has to be right. It strikes the right balance. Striking the right balance in an imperfect market relationship is accomplishing something,” said Alberta Conservative senator Betty Unger, sponsor of C-52 in the Senate.
