Now that the weather is finally forecast to warm and
improve...
Friday, March 07, 2014
FOR IMMEDIATE RELEASE
Alberta Wheat Commission Supports Government Push
to Resolve Rail Backlog
Government takes immediate action to improve rail
service issues and get grain moving.
(Calgary, Alberta), March 7, 2014 – The Alberta Wheat
Commission (AWC) supports the Government’s push to
resolve rail transportation issues with today’s
unprecedented announcement for an Order in Council
that will require rail companies to increase grain
shipments immediately, and be penalized if the
minimum requirements are not met.
“Today’s announcement demonstrates that the
government is committed to ensuring Canada remains
a primary and reliable supplier of agriculture products,
and recognizes the long-term, negative impact that
poor rail service can have on Canada’s international
reputation,” says Kent Erickson, Chair of AWC. “The rail
backlog has resulted in significant costs to the
agriculture industry, and AWC applauds the actions of
the government for the immediate and long-term
solutions that are being implemented.”
The Order in Council announced by the Minister of
Transport will require Canadian National Railway
Company (CN) and Canadian Pacific Railway Company
(CP) to increase grain shipments immediately by
moving a minimum of 5,500 grain cars per week, or
500,000 million metric tonnes (MMT). Grain companies
will be held accountable by providing regular reports
to the government, and face prosecution fines of up to
$100,000 per day if the requirements are not met.
“AWC would like to thank Honorable Gerry Ritz,
Minister of Agriculture, and Honorable Lisa Raitt,
Minister of Transport for taking regulatory action to
ensure growers have access to rail service and the
supply chain to meet the needs of our global
customers,” adds Erickson. “AWC’s mandate is to
ensure long-term profitability for wheat growers, and
our Board supports any action that will meet this goal.”
The delay in rail service has already had a significant
economic impact on western Canadian growers with
numerous ships waiting to load in Vancouver and
Prince Rupert and demurrage charges now exceeding
$25 million. In addition, news out of Japan indicates
that they plan to buy more grain from the United
States instead of Canada due to poor delivery and no
clear resolution to the bottlenecks. In addition to the
$2-4 billion cost this has had on growers, more
importantly, Canada’s reputation as a quality and
reliable supplier has been hanging on the line.
AWC will continue to work with government, industry
and growers to ensure long-term solutions are in place
to avoid rail transportation issues in the future, and
ensure Canada’s reputation as a quality and reliable
supplier is maintained.
For more information please contact:
Amanda Ryan
Communications Manager
P. (403) 219-7902 C. (587) 777-6344
E. Amanda.ryan@albertawheat.com
The Alberta Wheat Commission is a producer-directed
organization representing the interests of and serving
as a single voice for all of Alberta’s 11,000 wheat
producers.
www.albertawheat.com
improve...
Friday, March 07, 2014
FOR IMMEDIATE RELEASE
Alberta Wheat Commission Supports Government Push
to Resolve Rail Backlog
Government takes immediate action to improve rail
service issues and get grain moving.
(Calgary, Alberta), March 7, 2014 – The Alberta Wheat
Commission (AWC) supports the Government’s push to
resolve rail transportation issues with today’s
unprecedented announcement for an Order in Council
that will require rail companies to increase grain
shipments immediately, and be penalized if the
minimum requirements are not met.
“Today’s announcement demonstrates that the
government is committed to ensuring Canada remains
a primary and reliable supplier of agriculture products,
and recognizes the long-term, negative impact that
poor rail service can have on Canada’s international
reputation,” says Kent Erickson, Chair of AWC. “The rail
backlog has resulted in significant costs to the
agriculture industry, and AWC applauds the actions of
the government for the immediate and long-term
solutions that are being implemented.”
The Order in Council announced by the Minister of
Transport will require Canadian National Railway
Company (CN) and Canadian Pacific Railway Company
(CP) to increase grain shipments immediately by
moving a minimum of 5,500 grain cars per week, or
500,000 million metric tonnes (MMT). Grain companies
will be held accountable by providing regular reports
to the government, and face prosecution fines of up to
$100,000 per day if the requirements are not met.
“AWC would like to thank Honorable Gerry Ritz,
Minister of Agriculture, and Honorable Lisa Raitt,
Minister of Transport for taking regulatory action to
ensure growers have access to rail service and the
supply chain to meet the needs of our global
customers,” adds Erickson. “AWC’s mandate is to
ensure long-term profitability for wheat growers, and
our Board supports any action that will meet this goal.”
The delay in rail service has already had a significant
economic impact on western Canadian growers with
numerous ships waiting to load in Vancouver and
Prince Rupert and demurrage charges now exceeding
$25 million. In addition, news out of Japan indicates
that they plan to buy more grain from the United
States instead of Canada due to poor delivery and no
clear resolution to the bottlenecks. In addition to the
$2-4 billion cost this has had on growers, more
importantly, Canada’s reputation as a quality and
reliable supplier has been hanging on the line.
AWC will continue to work with government, industry
and growers to ensure long-term solutions are in place
to avoid rail transportation issues in the future, and
ensure Canada’s reputation as a quality and reliable
supplier is maintained.
For more information please contact:
Amanda Ryan
Communications Manager
P. (403) 219-7902 C. (587) 777-6344
E. Amanda.ryan@albertawheat.com
The Alberta Wheat Commission is a producer-directed
organization representing the interests of and serving
as a single voice for all of Alberta’s 11,000 wheat
producers.
www.albertawheat.com