Revenue cap

[Hopalong]

Not hearing much about Wheatgrower suggestion for changes to revenue entitlement to encourage railroad investment and provide surge capacity.
Instead, the focus is on penalties for non performance.
It seems that RRs make more profit in moving grain to port under revenue entitlement than domestic and USA destinations not under cap.
Past time to get over our obsession with regulation driven and look at incentive and market driven solutions.

[bucket]

Let me guess. They will say " ... Just because you don't read about it doesn't mean things are not happening ..."

It always amazes me that something that affects so many is done behind closed doors and by so few.

And if you try to join the conversation, the requirements are to belong to a certain group or you are not qualified to speak.

[MBgrower]

Id prefer to see the railways earn more so long as it went into increased capacity, rather than the grain cos making excess basis profits, and providing no value to farmers. Railways must be pissed that they are regulated, but the grain cos arent. We need transparent reporting of weekly export volumes and prices to truley see who is reaping all the rewards.

[bucket]

Well said.

A farmer should be able to see vessel reports, sales , unloads, space on prairies and port , basis levels from port to prairie etc.

This government failed on implementing the easiest part of the open market.

Most would have thought it was similar to expecting to have tires on a new vehicle.

The incompetence continues.

[Rareearth]

MB it's not just about farmers, or shouldn't be "marketed this way". It's about the economy, GDP, lost income and revenue to the country as a whole. The multiplies effect and lost income or revenues from one sector - multiplied and spread into all other areas of economy through general income taxes, pst, GST, auto manufactures, machinery manufactures, airlines, travel, housing, on and on

Many producer groups talk about the multiplier effect of producer check off dollars and the ROI or return on investment. The income that could fund this research is also limited due to lost revenues , no arbitrage or ability to trade competitively in global markets.

So if a farmer has another dollar, and it's a taxable dollar and profit that he could spend what should the multiplier, be for this dollar, the impact on GDP and the Canadian economy as a whole, benefitting the nation (Canada Day).
20:1 ? Probably more like 50:1 because it would have multi years, or decade impact

[bgmb]

We need to tweak the revenue cap not eliminate it.

[Hopalong]

As much as farmers tend to criticize anything that might improve railway profits, it may be time to look at tax or other concessions to encourage investment in capacity.
Capacity constraints impact all of western Canada so either joint provincial or federal incentive seems justified.
As grain growers we might support this avenue rather than remaining too rigid on regulated freight rates.

[ado089]

My problem is that for over a century now the Canadian government makes concessions to the rr's in exchange for level of service standards. Invariably, these agreements are broken due to the latest issue of the day. So then the leash get lengthened a little and the process repeats itself.

In the absence of competition there must be regulation. So we either need a big heavy stick or we need to nationalize the rail beds and allow for open completion on the rolling stock.

Until then...

Three simple steps.

1) scheduled service and appropriate delay penalties (both ways)
2)CTA regulated train lengths for temperatures below 20. (so they don't piss away two shifts trying to air up train pulling one car off at a time)
3) Public, accessible, reporting on spots, pickups and unloads.

These assholes should not be given another cent until they prove that they can do what they are already supposed to.

[Rareearth]

Governments have no appetite to run or nationalize anything, that would never happen today politically.

If the main corridors had open running rights, like our highways? Maybe

In a due oppoly it's dam tough to fix. The railways and there shareholders don't want to spend , expand or improve the system. There goal is to extract cash and improve equity.

[westernvicki]

I have a proposal which suggest the government allow railways to reinvest the revenue cap in targeted capacity expansions: increase tracks in key points to maximize traffic and facilitate the congestion created by new oil traffic. Went so far as to suggest any money over should become matching funds and/or a tax credit. Directed money rewarding performance and driving investment in strategic infrastructure.

[jdwerker]

Railways are a mess but the grain cos are the ones in bed with Ritz and Harper. No accountability from any of them, and they're making money hand over fist this year.

Railways are getting all the blame and my bet is we'll see record profits from everyone but the farmers this year.