OTTAWA – The federal government last week announced a package of grain transportation reforms it says will help avert future congestion in grain movement.
It includes plans to penalize rail companies if they do not provide enough cars and to penalize shippers if they use rail cars as storage bins.
It will end the practice of sending U.S.-bound grain to Thunder Bay simply to draw the Crow Benefit subsidy.
It will improve forecasting and rail car co-ordination.
It will set rules to allow private cars into the grain fleet in certain, still-undefined circumstances.
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And it will allow grain companies to increase terminal elevation charges to cover added costs from weekend work at the terminals. Maximum tariffs will be abolished.
“Through these changes we are beginning to make, we fully expect Canada to be able to restore its reputation as a reliable supplier of quality grain,” Goodale told the House of Commons June 8. “Nothing less is acceptable.”
Most in favor
Although one Opposition MP called the proposals “a timid response,” they generally received favorable opposition and industry reviews.
“We support the initiatives,” said Jim Feeney of CN Rail. “We will work with others to make them work.”
“We find these proposals encouraging,” said Ken Edie, chair of Prairie Pools Inc. “What we have to focus on is making sure this doesn’t happen again.”
Allan Kerpan (Moose Jaw-Lake Centre) promised that Reform MPs will co-operate and urged Goodale to involve more farmers in finding solutions.
“Farmers can fix almost anything if they can get their hands on it.”
The government proposals will be implemented in stages.
Two require changes to the Western Grain Transportation Act, to be introduced to Parliament in the fall and implemented Jan. 1, 1995:
- Ending payment of Crow Benefit subsidies on grain hauled to Thunder Bay and then back to Manitoba for shipment south.
- Giving the government the power to charge demurrage against shippers who hold rail cars too long, using them as storage for product until an export ship is in place. The railways say hundreds of cars last winter were being used as storage for specialty crops.
“We will also be considering not just the possibility of penalties … but also the possibility of bonuses if they use and turn around the cars faster than expected,” Goodale said.
Other changes will be made throughout the summer.
Officials will prepare a cabinet order that allows future governments to invoke never-used powers in the WGTA, imposing penalties on railways if they do not provide enough rail cars.
A committee of senior industry officials will offer advice on how the forecasting of rail car requirements and co-ordination of grain movement can be improved.
And in consultation with the industry, guidelines will be written this summer to indicate when shippers can bring their own private rail cars into the fleet.
