Grain industry official says he feels there is still a void and legislation is required
The head of an organization that represents Western Canada’s largest grain shippers says he is not surprised by Ottawa’s decision to end mandatory volume requirements for the country’s major railways.
Wade Sobkowich, executive director of the Western Grain Elevators Association, said weekly grain movement targets were not intended as a permanent solution to rail service concerns.
However, removing the targets puts grain shippers back to square one when it comes to dealing with Canadian National and Canadian Pacific Railway.
“We are left with a void in the sense that nothing has changed in the competitive environment and nothing has changed in the policy environment,” Sobkowich said.
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“That’s why it’s very important that the government enact legislation after the recommendations come in from the CTA review panel.”
The federal government an-nounced March 28 that it would not renew an order in council requiring railways to haul minimum weekly amounts of western Canadian grain.
Canada’s major railway companies welcomed that decision.
CN’s Mark Hallman said in an email that the company supports the federal government’s decision, adding “Canada’s grain supply chain is fully back in sync in all corridors.”
He said CN moved an average of 4,650 grain hoppers a week in Western Canada between Aug. 1 and March 21, which was 20 percent more than during the same period in 2013-14.
“In the 12 month-plus period since the first government (order) … CN’s cumulative tonnage of western grain has exceeded its mandated volumes by nearly three million metric tonnes, or more than 12 per cent,” he said.
The company said normal commercial relationships and a stable regulatory framework will benefit the railway industry and shippers.
The response from CP was more reserved.
“CP is proud to be a crucial link in the supply chain that moves Canadian goods to the world’s markets,” it said in an email.
