The Western Canadian Wheat Growers Association is pleased with the action the federal government intends to take to improve rail service in the hauling of grain and other commodities.
The federal government announced today it will be adopting several recommendations of the Rail Freight Service Review panel and is implementing further measures to improve rail service. The further measures include the tabling of legislation requiring the railways to enter into service agreements with shippers, the establishment of supply chain performance metrics and a separate analysis of the grain supply chain.
“These measures should lead to improved railway performance and accountability,” says Kevin Bender, President of the Wheat Growers. “We are especially pleased the government intends to move forward with improvements in legislation now rather than take the wait-and-see approach that the panel initially recommended.”
Among the panel’s recommendations to be adopted are improved notice provisions of service changes; negotiated service agreements; a commercial dispute resolution mechanism; and improved monitoring and reporting. In its submission to the panel’s interim report in November, the Wheat Growers supported these measures and also called on the panel to recommend a separate review of grain transportation issues.
“The service agreements are important in establishing performance standards for the railways and shippers, and for spelling out the consequences of non-performance,” says Bender. “The Wheat Growers see these as key to improving service over the long-term.”
The Wheat Growers will also be looking forward to the analysis of the grain supply chain. In our latest submission to the review panel, the Wheat Growers called for such a review to consider the revenue cap, the establishment of a two-tier revenue cap, the introduction of discontinuance provisions relating to producer car sidings, and a review of the Canadian Wheat Board’s role in the grain transportation system.
“We appreciate the government’s commitment to undertake a separate review of the grain supply chain,” says Bender. “That process, together with the initiatives announced today should significantly improve our industry’s ability to meet the needs of our customers on a more timely and reliable basis.”
