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Car Allocation

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    Car Allocation

    We do not hear much about grain car allocation compared with past years when it was a big issue.
    It goes back as an issue to 1900 and earlier and passage of federal grain act establishing car order book at each delivery point. Railways were to allocate cars in way ordered. Sintaluta court case confirmed this right for producers and others including grower associations. At that time, only fifty per cent of producers grew enough to fill a small size car of those days with a single grade of grain.
    Over the years, it became more of an issue between graincos. Wheat board had a system where elevators got cars based on past year handling. Can remember an agent complaining about working to build business only to have customers go to opposition when he did not get cars.
    System today seems to be one where railways have considerable leeway in where and when cars are spotted but based on elevator and grainco orders.
    Some growers suggest a stricter contract system with reciprocal penalties between shippers and railways. Neither parties seem keen on this and suspect that freight rates and revenue cap come into picture as well as government imposed shipping orders.
    At WCWGA convention, Burlington Northern spokesperson advised Canadian growers to look at US system and potential change to our revenue entitlement and a more market driven approach to grain car ownership and allocation.
    Hear some on this forum complain about higher elevator price in USA, could be a way to narrow the gap.

    #2
    Not sure if I understand allocation and how it works. Local grain company buyers near me are in meetings Most of the time. More grain availlable from producers than they can possibly ship. What a quick change from 0 canola basis to now. I think the workers would like to pay us but thinking upper management is saying steal the grain. Several locations one month without cars. Was january that bad?

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      #3
      Need short lines to be able to run on all lines and that would solve alot of problems. CN and CP have terrible customer service

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        #4
        Was talking to government people the other day.

        Was explaining that branchlines should be more efficient to operate if they would tell the railways to drop x amount of cars at a point. Let the short line or elevator shuttle the cars and have them ready to pickup at the end of week with a fresh set of empties waiting.

        They could be staged to direct to port/end user.

        Our local line is all viterra. At the end is a locomotive used to load 112. They could be shuttling cars back to moose jaw and servicing both points instead of ignoring the 10000 tonne concrete with a 38 car spot.

        No one is thinking about efficiencies by getting the branchlines working again. Instead of wrecking highways.

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          #5
          I don't think the Gov't, RR, Grain Co's, Dept of highways are going to service short lines any better.

          That would be admitting that they were wrong during all the rail line rationalization meetings that went on and were told by the locals that it was a mistake.

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            #6
            I agree but what is done is done.

            Why not start saving the highways from both a cost saving but logistics and safety as well.

            Seems odd that I could move my crop in h Alf the time if they would use these points that were large 20 years ago.

            A 10000 tonne 38 car spot shouldn't be treated like a wooden elevator.

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