Feds move on rail reforms
By Brian Cross, Saskatoon Newsroom
25/08/2011 12:00:00 AM Western Producer
Ottawa will soon take steps to address farmers’ concerns over poor rail service, say officials from Transport Canada.
Transport department spokesperson Melanie Quesnel has confirmed that the federal government plans to launch a six-month process aimed at improving rail services and implementing recommendations from the Rail Freight Service Review, which was completed earlier this year.
The process is expected to result in a streamlined system for resolving disputes between shippers and railways and develop a template service agreement outlining service standards that shippers can expect from railway companies.
The measures are part of a commercial approach to improving rail services, which was a key recommendation contained in the Rail Freight Service Review’s final report, released in March.
“The government agrees with the panel that the commercial approach is the best way to improve relationships between railways and stakeholders across the entire rail freight supply chain,” said Quesnel.
Industry sources say the template service agreement could include guidelines on a variety of items including acceptable shipping times, shipper and rail company responsibilities and monetary penalties that could be applied to either party if they fail to meet contractual obligations.
Richard Phillips, executive director with the Grain Growers of Canada, said his organization met with transportation officials last week in Ottawa and was briefed on the plans.
“Transport Canada people told us very, very clearly … ‘we understand how important this is and … we’re working on it’,” he said.
Poor rail service has been an ongoing concern for the western Canadian grain industry.
GGC has lobbied for service changes that would result in more responsive service, better rail car availability and more predictable delivery times to port.
Phillips said Canadian exporters, including those in the pulse and special crops industries, are often unable to cash in on spot premium markets because there is no guarantee of timely rail service.
Failure to meet contracted delivery dates can result in financial penalties for shippers, a cost that is often passed on to primary producers.
As well, the expected elimination of the CWB’s single-desk structure next August places added pressure on Ottawa and the grain industry to ensure railways are meeting the needs of industry stakeholders.
“In the new world, where there’s no one person controlling that amount of freight … we have to have … (reforms) in place … that are going to guarantee adequate service to us,” Phillips said.
“We’ve been fighting for this for years … but I think with the wheat board going, … some of the smaller shippers are saying, ‘now you have to ensure that you fast track this to get it through’.”
As part of the process, Ottawa is also expected to establish a new commodity supply chain table that will serve as a forum for exporters to raise concerns, provide advice and address issues that affect exports.
An in-depth analysis will also be conducted to identify shipping concerns that are specific to the grain industry. Transport Canada plans to oversee that analysis along with Agriculture Canada.
Kevin Hursh, executive director of the Independent Terminals Association of Canada (ITAC) said his association has also been encouraging the federal government to make rail service reforms a priority.
“Some really good progress was made on levelling the playing field with the railways just previous to the federal election call and we’re a little bit concerned that some of that momentum could be lost,” Hursh said last week.
ITAC members met with federal agriculture minister Gerry Ritz last month to discuss shipper concerns such as grain grading issues and access to terminals and vessels at port position.
However, Hursh said rail service reforms and the development of template rail service agreements are critical to ensuring an efficient grain industry.
“None of (those other issues) matter if you can’t service your customers because the transportation system isn’t reliable,” he said.
http://www.producer.com/Search/Article.aspx?aid=39571
By Brian Cross, Saskatoon Newsroom
25/08/2011 12:00:00 AM Western Producer
Ottawa will soon take steps to address farmers’ concerns over poor rail service, say officials from Transport Canada.
Transport department spokesperson Melanie Quesnel has confirmed that the federal government plans to launch a six-month process aimed at improving rail services and implementing recommendations from the Rail Freight Service Review, which was completed earlier this year.
The process is expected to result in a streamlined system for resolving disputes between shippers and railways and develop a template service agreement outlining service standards that shippers can expect from railway companies.
The measures are part of a commercial approach to improving rail services, which was a key recommendation contained in the Rail Freight Service Review’s final report, released in March.
“The government agrees with the panel that the commercial approach is the best way to improve relationships between railways and stakeholders across the entire rail freight supply chain,” said Quesnel.
Industry sources say the template service agreement could include guidelines on a variety of items including acceptable shipping times, shipper and rail company responsibilities and monetary penalties that could be applied to either party if they fail to meet contractual obligations.
Richard Phillips, executive director with the Grain Growers of Canada, said his organization met with transportation officials last week in Ottawa and was briefed on the plans.
“Transport Canada people told us very, very clearly … ‘we understand how important this is and … we’re working on it’,” he said.
Poor rail service has been an ongoing concern for the western Canadian grain industry.
GGC has lobbied for service changes that would result in more responsive service, better rail car availability and more predictable delivery times to port.
Phillips said Canadian exporters, including those in the pulse and special crops industries, are often unable to cash in on spot premium markets because there is no guarantee of timely rail service.
Failure to meet contracted delivery dates can result in financial penalties for shippers, a cost that is often passed on to primary producers.
As well, the expected elimination of the CWB’s single-desk structure next August places added pressure on Ottawa and the grain industry to ensure railways are meeting the needs of industry stakeholders.
“In the new world, where there’s no one person controlling that amount of freight … we have to have … (reforms) in place … that are going to guarantee adequate service to us,” Phillips said.
“We’ve been fighting for this for years … but I think with the wheat board going, … some of the smaller shippers are saying, ‘now you have to ensure that you fast track this to get it through’.”
As part of the process, Ottawa is also expected to establish a new commodity supply chain table that will serve as a forum for exporters to raise concerns, provide advice and address issues that affect exports.
An in-depth analysis will also be conducted to identify shipping concerns that are specific to the grain industry. Transport Canada plans to oversee that analysis along with Agriculture Canada.
Kevin Hursh, executive director of the Independent Terminals Association of Canada (ITAC) said his association has also been encouraging the federal government to make rail service reforms a priority.
“Some really good progress was made on levelling the playing field with the railways just previous to the federal election call and we’re a little bit concerned that some of that momentum could be lost,” Hursh said last week.
ITAC members met with federal agriculture minister Gerry Ritz last month to discuss shipper concerns such as grain grading issues and access to terminals and vessels at port position.
However, Hursh said rail service reforms and the development of template rail service agreements are critical to ensuring an efficient grain industry.
“None of (those other issues) matter if you can’t service your customers because the transportation system isn’t reliable,” he said.
http://www.producer.com/Search/Article.aspx?aid=39571
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