CP CEO Harrison upset with minimum grain
shipment order
Canadian Pacific Rail CEO Harrison calls
an order requiring Canada's two major
railways to ship a minimum amount of
grain each week politics.
Are we going to do everything we can?
Absolutely. But we would have done
everything we could prior to the
emergency order, Harrison tells BNN.
I think for Ottawa to pick between
commodities is not appropriate.
The federal government is forcing major
rail companies to ship at least 500,000
tonnes of grain weekly to help deal with
a massive backlog that is hurting
farmers. In a statement, CN Rail says it
will do its part to move the record grain
crop.
Our assessment shows that an upper limit
of around 5,500 cars per week may be
achievable, but only if all members of
the supply chain work together closely.
This is broadly in line with what was
mandated by the government in today's
Order in Council. But we all have to
recognize that the challenge we jointly
face is unprecedented, and it will
require a new level of collaboration to
succeed, said Claude Mongeau, CN
president and chief executive officer.
Canadian Pacific Railway Ltd. and
Canadian National Railway Co. will be
required to increase the volumes carried
each week over a period of four weeks to
move 1 million metric tons of grain each
week. Railways that don't comply will
face penalties of as much as $100,000 per
day.
The move comes as record harvests and
railroad logjams across Canada's prairie
provinces make shipments difficult for
grain companies and farmers. The rail-car
order backlog tops 60,000, eight times
higher than a year ago, according to
Quorum Corp., the Edmonton-based company
appointed by the federal government to
monitor Canada's grain transportation
system.
Saskatchewan Premier Brad Wall and
Liberal MP Ralph Goodale have called on
the federal government to pass an
emergency law to clear the backlog on
rails controlled by Canadian Pacific and
Canadian National.
shipment order
Canadian Pacific Rail CEO Harrison calls
an order requiring Canada's two major
railways to ship a minimum amount of
grain each week politics.
Are we going to do everything we can?
Absolutely. But we would have done
everything we could prior to the
emergency order, Harrison tells BNN.
I think for Ottawa to pick between
commodities is not appropriate.
The federal government is forcing major
rail companies to ship at least 500,000
tonnes of grain weekly to help deal with
a massive backlog that is hurting
farmers. In a statement, CN Rail says it
will do its part to move the record grain
crop.
Our assessment shows that an upper limit
of around 5,500 cars per week may be
achievable, but only if all members of
the supply chain work together closely.
This is broadly in line with what was
mandated by the government in today's
Order in Council. But we all have to
recognize that the challenge we jointly
face is unprecedented, and it will
require a new level of collaboration to
succeed, said Claude Mongeau, CN
president and chief executive officer.
Canadian Pacific Railway Ltd. and
Canadian National Railway Co. will be
required to increase the volumes carried
each week over a period of four weeks to
move 1 million metric tons of grain each
week. Railways that don't comply will
face penalties of as much as $100,000 per
day.
The move comes as record harvests and
railroad logjams across Canada's prairie
provinces make shipments difficult for
grain companies and farmers. The rail-car
order backlog tops 60,000, eight times
higher than a year ago, according to
Quorum Corp., the Edmonton-based company
appointed by the federal government to
monitor Canada's grain transportation
system.
Saskatchewan Premier Brad Wall and
Liberal MP Ralph Goodale have called on
the federal government to pass an
emergency law to clear the backlog on
rails controlled by Canadian Pacific and
Canadian National.