The federal Conservative government is proposing a broad rail freight service review that will cast its net far beyond the commodity shipper community that prompted it.
On April 7, transport minister Lawrence Cannon published proposed guidelines for the rail service review that was promised in Bill C-8. That legislation, approved by Parliament last winter, strengthens the rights of shippers to challenge railway service performance.
Industry players have until May 11 to respond to the review guidelines. The review itself could last until the end of 2009.
“Shippers need an effective, efficient, consistent and reliable rail transportation supply chain to remain competitive in domestic, continental and international markets,” Cannon said.
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“There is widespread support for this review because it will identify service problems and their impacts and make recommendations to improve Canada’s rail freight logistics system.”
Cannon is proposing that over the next six months at least, consultants hired by the government gather information and meet with industry players. Transport Canada would compare service issues in other regulated industries in Canada and the United States.
Then, the government would appoint a three-member panel to consider the findings, consult the industry and make recommendations within six months.
Cannon’s proposed terms of reference stress the need for an efficient and reliable rail transportation system but also a shipper community that meets its obligations to have product ready when cars are delivered.
And it says agreement between market players is better than government intervention.
“Commercial solutions are preferable to increased regulation.”
Members of the Coalition of Rail Shippers that have lobbied for a review, including many Prairie agricultural shippers, were not available for comment before Western Producer deadlines.
But coalition members in the past have said that the review is key for the industry.
“The main objectives that we have in a review of railway service would be first to end inadequate service provided by the railways to freight shippers by correcting inadequate car supply, unreasonable shortfalls between cars requested by a shipper and cars supplied by the railway company serving that shipper,” said Wade Sobkowich, executive director of the Western Grain Elevator Association, during a late 2007 presentation on Parliament Hill.
