Thursday, August 27th28.0°C
27271
27267

Ottawa hails new rail shipping regulations, says farmers to benefit

SASKATOON - The federal government hopes new rail transportation rules will speed up deliveries of grain and harvest some goodwill with farmers hard-hit by a shipping bottleneck.

The Fair Rail for Grain Farmers Act includes measures that set minimum grain volumes that Canadian National (TSX:CNR) and Canadian Pacific (TSX:CP) must meet from Aug. 3 to Nov. 29.

The railways are also to provide more information about grain shipments to allow for better monitoring.

There are also provisions to more clearly define service level agreements that can be arbitrated by the Canadian Transportation Agency.

The legislation, effective Friday, was passed last spring after a rail bottleneck left huge amounts of grain from a record crop sitting in bins across Western Canada, causing producers financial hardship.

At one point, Ottawa ordered rail companies to double the amount of grain they were moving each week to a minimum of one million tonnes or they could face fines of up to $100,000 a day.

"The regulations passed today are intended to maximize the amount of grain moved by rail before the winter season and allow the government to reassess the situation later in the fall, with the longer-term goal of returning carryover stocks to normal levels by the end of July 2015," Agriculture Minister Gerry Ritz said in a release.

"Today's regulations are the latest step in our ongoing efforts to create a rail supply chain that farmers and all shippers can depend on as they grow the Canadian economy."

CN President Claude Mongeau said the new law isn't necessary and could hurt the rail sector.

He said the railways did a reasonably good job last fall and this year of dealing with a record grain crop. The supply chain is now operating normally and is ready to deal with the next grain harvest, he added.

"As there are no structural problems to fix, there is no need for such burdensome and ill-advised regulatory intervention," he said in a release.

"The government’s approach can only stifle supply chain collaboration and may ultimately undermine investment in the rail sector."

CP President Hunter Harrison was also unhappy with the new rules.

"Today's disappointing announcement by the Government of Canada is very unfortunate and clearly demonstrates that despite the facts, this government has not listened," Harrison said.

"Issues relating to the transportation of grain will not be solved in Ottawa but by the joint collaboration of all partners in the supply chain."

Transport Minister Lisa Raitt said the regulations will help avoid a repeat of the grain bottleneck.

"Our government has made tough decisions for the benefit of our producers and to maintain Canada's good reputation as a global supplier," she said in a release.

The Canadian Press


Read more Business News

27314


Recent Trending




Today's Market
S&P TSX13766.67+385.08
S&P CDNX545.55+15.85
DJIA16654.77+369.26
Nasdaq4812.71+115.17
S&P 5001987.66+47.15
CDN Dollar0.7588+0.0015
Gold1119.50-5.10
Oil43.24+0.68
Lumber242.90-4.00
Natural Gas2.666+0.002

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.24+0.05
Cantex0.04-0.01
Anavex Life Sciences1.35+0.00
Metalex Ventures0.055+0.000
Russel Metals20.98+1.54
Copper Mountain Mining0.65+0.06
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.61-0.12

 



27194

FEATURED Property
23467783330 Neid Road
4 bedrooms 6 baths
$9,800,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



26586

26586


Member of BC Press Council


26785