The federal government today introduced new legislation aimed at helping to clear the backlog of 2013-crop Prairie grain and maintain better grain transportation in the years ahead.
The Fair Rail for Grain Farmers Act amends the Canada Transportation Act and the Canada Grain Act, and will do such things as increase supply chain transparency, strengthen contracts between producers and shippers and ensure the entire grain handling and transportation system is “working efficiently at the top of its capacity."
Also today, Ottawa said it is taking steps to address the medium and long-term implications of higher crop yields and extreme cold weather. To that end, railways will be required to deliver more timely data on grain movements to better monitor the overall performance of the supply chain.
As well, the Canadian Transportation Agency will gather information from all grain supply chain partners on shipping capacities and plans prior to each new crop year, and will advise the Minister of Transport whether specific grain volumes should be mandated for the coming year. Furthermore, the government said it will accelerate the review of the Canada Transportation Act with a view to further improving Canada’s grain handling system over the long term in order to achieve improved capacity, predictability, planning and accountability for all parties in the supply chain.
Earlier this month, the government announced Order in Council to force CN and CP Rail to increase their capacity to each carry a minimum of 500,000 tonnes of grain per week, by the week of April 7, and for them to report on the volume of grain moved each week.
The order imposes these obligations from March 10 to June 7, 2014 and creates a legal obligation on railways, and penalties of up to $100,000 per day for failing to comply. Today’s proposed legislation also extends these performance requirements to Aug. 3, 2014.
"A strong rail-based supply chain system is essential so that Canadian shippers can remain competitive in domestic, continental and offshore markets," Transport Minister Lisa Raitt said in a release. "Building on our previous announcement of immediate and concrete measures to move grain in Western Canada, the introduction of this legislation is another important step to address this backlog."
The current grain transportation backlog was caused a massive 2013 Prairie crop and an unusually cold winter that has constrained railway movement.
The Fair Rail for Grain Farmers Act amends the Canada Transportation Act and the Canada Grain Act, and will do such things as increase supply chain transparency, strengthen contracts between producers and shippers and ensure the entire grain handling and transportation system is “working efficiently at the top of its capacity."
Also today, Ottawa said it is taking steps to address the medium and long-term implications of higher crop yields and extreme cold weather. To that end, railways will be required to deliver more timely data on grain movements to better monitor the overall performance of the supply chain.
As well, the Canadian Transportation Agency will gather information from all grain supply chain partners on shipping capacities and plans prior to each new crop year, and will advise the Minister of Transport whether specific grain volumes should be mandated for the coming year. Furthermore, the government said it will accelerate the review of the Canada Transportation Act with a view to further improving Canada’s grain handling system over the long term in order to achieve improved capacity, predictability, planning and accountability for all parties in the supply chain.
Earlier this month, the government announced Order in Council to force CN and CP Rail to increase their capacity to each carry a minimum of 500,000 tonnes of grain per week, by the week of April 7, and for them to report on the volume of grain moved each week.
The order imposes these obligations from March 10 to June 7, 2014 and creates a legal obligation on railways, and penalties of up to $100,000 per day for failing to comply. Today’s proposed legislation also extends these performance requirements to Aug. 3, 2014.
"A strong rail-based supply chain system is essential so that Canadian shippers can remain competitive in domestic, continental and offshore markets," Transport Minister Lisa Raitt said in a release. "Building on our previous announcement of immediate and concrete measures to move grain in Western Canada, the introduction of this legislation is another important step to address this backlog."
The current grain transportation backlog was caused a massive 2013 Prairie crop and an unusually cold winter that has constrained railway movement.