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    Railways fined

    Railways fined for failing to meet grain targets
    Kelsey Johnson
    iPoltics
    Jan 8, 2015

    Canadian Pacific Railway Ltd. and Canadian National Railway Co. have been fined by the federal government for their failure to move grain, the transport minister’s office said Wednesday.

    A Transport Canada enforcement officer has determined CN missed two weeks of federally-mandated grain volume targets, Lauren Armstrong, spokeswoman for Transport Minister Lisa Raitt, said in an e-mail.

    The officer, Armstrong said, found CN did not move enough grain the week of July 28 to August 3, nor did the railroad meet the minimum volumes the second week of September.

    Canadian Pacific, the e-mail noted, also hadn’t moved enough grain the week of September 7 to 13. At the time, both railways were required to move 536,250 metric tonnes of grain each per week. Failure to comply risked fines of up to $100,000 per violation payable to the federal government.

    A notice of violation has been issued to both companies, Armstrong said, Wednesday, with fines set at $50,000 per violation totalling $150,000. It is unclear how long CN and CP have to pay their respective fines.

    Both CN and CP have yet to respond to requests for comment.

    The federal fines come months after Transport Minister Lisa Raitt said last September CN had failed to move three weeks worth of federal grain volume targets – initially issued last March after millions of tonnes of Prairie grain was left stranded in bins and grain elevators across Western Canada for months. Canadian Pacific, she said at the time, continued to meet its targets.

    The massive grain backlog has been blamed on major miscommunications across the supply chain, poor rail service, a record crop and frigid temperatures across Western Canada last winter. The crisis lead to severe cash flow problems for some farmers and rattled international confidence in Canadian grain markets. It was expected to cost the Canadian economy between $7.2 billion and $8.3 billion, according to federal estimates.

    Both Raitt and Agriculture Minister Gerry Ritz came under heavy criticism in September after it was revealed the maximum penalties CN could face was $300,000. While federal penalties had initially been set in March at $100,000 per day, the figure was quietly reduced in May under the Fair Rail for Grain Farmers Act to $100,000 per violation – which both ministers now interpret as per week.

    Wednesday’s revelations show neither CN nor CP have been fined the maximum penalty. The minister’s office has not said why the railways were not fined the maximum amount.

    Both railways remain under federal orders to move 325,000 metric tonnes of grain each per week.

    #2
    The 650000 tonne/week requirement requires 60 112 car, 90 tonnes/car, unit trains. Or 8.6 trains per day. 33.8 million tonnes per year. How does this stack up to demand?
    Depending on rates, that's over a billion dollars gross per year.

    Comment


      #3
      yes i bet the railways are just shaking in their boots.
      300,000 $ wow.
      cost farmers billions
      i guess it pays to have political connections
      too bad farmers don't

      Comment


        #4
        i think your math is wrong,
        don't know how many farmers are left
        but i am guessing closer to 3 $

        Comment


          #5
          What's even funnier is that the railways pushed the freight into a better freight rate. Meaning the freight still had to move but they got the farmers to pay higher freight rates.

          Actually by doing so the farmers paid the fines.

          The ****ing guys at the cta should also make sure the rate that got charged was at the lower or previous years rate.

          Not likely they thought that through. Or will consider it the next time they rubber stamp an increase.

          Comment


            #6
            With lower priced crude, freight rates should decline by at least 30%. what chance of that happening?

            Comment


              #7
              All I have to say is What a F%^king Joke!

              Now CP is challenging the fine. FM.
              What a joke!
              We loose Billions and get shit all in return they get off Scott free.
              Great system tom.

              Comment


                #8
                With the drop in fuel prices, no one will give up a nickel of what was gained because higher fuel costs passed on to customers in the name of fuel surcharge. Dream on.

                Fast to react to increases though.

                Comment


                  #9
                  I think the fine was a Total of $150,000
                  100 for CN and 50 for CP
                  OOOOH they wont do that again. lol

                  Comment


                    #10
                    They have spent more in lawyers fees and press releases about the good work they are doing.

                    Comment


                      #11
                      And don't forget Harrison could expense the fines himself.

                      Comment


                        #12
                        at least we know for sure where farmers fit in the scheme of things.

                        Comment


                          #13
                          This fining of the RRs for not performing is totally ridiculous. Better yet would be to threaten them with NATIONALIZATION if they don't want to play fair.

                          Either that or send in the ARMY to run their damned trains for them at the RRs expense.

                          One thing is for sure...Ritz has no concept of a fair solution nor does his boss...El Harpo.

                          ======

                          Comment


                            #14
                            Sadly, Warren Buffet is too smart to buy one of our railroads. There is a much bigger shit show coming down the track than we realize at this time. But, at least in relative terms, it's a few years away.
                            Only in times of war has an army successfully ran a RR. I think you'ld like living in China Willy. See ya.

                            Comment

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