What was/is our Jan-June 2014and 2015 graintrain problem...

[TOM4CWB]

Dear Charlie etel;

2015 is grain shipping is shaping up to be no different than 2014 on the prairies.
Isn't it more likely... that CP CEO Hunter's capacity to remove 400 locomotives... 4500 people, and 11,000 railcars...and Hunters previous 10 years before that with CN... is the proper issue to concentrate on?

Below is an analyst's view... Is the wheat basis a fair deal for farmers?
Brian Wittal
grainews.ca
2015-03-02
His conclusion:

"Last winter’s historically wide basis levels were spurred on by a number of factors that came together in a perfect storm. Cold weather stalled out the rail transportation system which put grain companies at risk of not meeting sales commitments or losing future sales, plus paying demurrage costs on waiting vessels.

To protect themselves, they widened out the basis or refused to take deliveries until they felt they could continue doing business as usual. Basis did eventually come back down to more traditional levels after a few months, which shows that the marketplace is competitive.

It’s just unfortunate that the situation caused so much angst for so many across the entire industry. All we can do is hope we don’t experience a similar situation and that we’re better prepared to manage such a situation should it happen again."

http://206.75.155.11/Agcan/m.bbsummaries.asp?articleId=/agcan/products/news/f0023657.htm

Figures on CP CEO Hunter's railreign...

"simpsonseeds.com/wp-co…/…/2014/.../SSI_Spring2014_News_Web.p...
SPRING 2014. We are all fully ... of service , CP Rail blamed the weather but the truth is Mr. Hunter. Harrison, CEO for CP Rail, since mid-2012 has laid off 4550 people, and removed 400 locomotives and 11,000 railcars off the rails."

[dmlfarmer]

Tom: CP is a public owned corporation and the CEO is answerable to his shareholders. Our governments have given away most of the controls and requirements for service. So who are you as a farmer to tell CP how it is to run its business. Why should farmers have any more rights to a privately run service and a potash miner, oil producer, or even a passenger (who has lost all CP service)? Why are you not listening to Hunter and his shareholders as they tell you via poor service and reduced rolling stock availability that you should be shipping less grain and not more - so cut your production or find other modes to move your production.

You did not feel the CWB had any right to tell you, a private entity, where and when you could sell your grain even though it may have been for the public good and you fought hard against the CWB. Yet you feel you have the right to tell a private entity that they have to provide the service you want. Why are you all for private enterprise when it benfits you but are a raving socialist demanding private industry provides the services at your beck and call and if they don't then government better set in and force that company to meet your needs.

[crusher]

Good point. Although I do believe agriculture should have historical rights to a reasonable level of service.

[dmlfarmer]

crusher: and what historical level of service would that be? The historical level when we farmed with horses and before fertilizer and pesticides?

I dislike the railroad service as much as anyone but the system we have now is one that we as shippers, shareholders, and government have created and in fact encouraged. We claim to believe in free enterprise and that is what the railways are. To attack the railroads now because they are acting like free enterprise is not only wrong, unless we NEGOTIATE the result we want we will end up repeating the same mistakes we have in the past. Like giving up the Crow rates for next to nothing. Now we know how the Indians feel when they sold NA for a handful of beads.

[crusher]

Great comparison to the Indians. I believe there was a recent period in time when the rail companies were not profitable and the feds chose to support them believing the rail industry was worth saving. Now that times have changed dramatically perhaps a little payback is required. I'm also not overly concerned at having a little pushback from our government against shareholders Gates and Buffett-what have they done for me lately?

I'm generally a free market participant though and try not to get too involved, except with my wallet or feet. How about yourself? Do you see the price of land coming down to reflect the decrease in cash flow supporting that investment?

[dmlfarmer]

crusher. The take home message the government has heard from agriculture for the past 10 years is give me free trade, free enterprise, less government, leave me alone, let me make it or fail on my own. And that is what this government have promised and delivered. Now for farmers to complain that they are victims of this same free enterprise and government must protect us from evil -like the publically owned railroads is wrong.
Tom seems to feel it was his right to sue the railways but now feels victimized when hit with a bill for costs when he lost the suit so he is trying to lead a farmer revolt. Sorry, you have lost all credibility with me.
Too many farmers refuse to look at all possible outcomes of policy. Anyone who did not foresee the rail problems, the basis problems, the volatility and the quality concerns which have arose since the CWB was privatized never understood the full role of the CWB in the first place.
Sorry for rambling. To answer your question - Land goes up and down for lots of reasons. Poor movement of grain certainly should impact a buyer`s decision to purchase. In some areas where delivery is and has been good land prices may not change. In areas where movement is continually bad, an informed buyer will take that into consideration in bidding for land.

[Oliver88]

Sorry dmlfarmer your attitude with railways would destroy our country and greatly decrease our GDP of exports.
Without regulation CN&CP would simply cut their workforce, hopper cars and capital investments more than now which would increase the demand for their services. Than this duopoly would simply increase freight rates and please their shareholders.
First step for CN and CP is to keep all promises and agreements they made this past year regarding performance.
Step #2: Keep all promises they made when the crow rate was ended.

[dmlfarmer]

Oliver, I am all for regulation and service requirements. I wish we had some left that were effective. My point is we have very few controls left because we have given (traded) them away. The current government can't (or won't) even enforce the lack of service fines they imposed last year. Why not?

[Oliver88]

I think we are in agreement than dmlfarmer.
(I initially took what you wrote as advocating wide open free market for the railways.)

I am starting to wonder if we can involve the army for the movement of freight, manage logistics and upkeep of railway beds?

In the USA, the army corps controls the Mississippi River and is a huge subsidy for all who use it to transport freight.

[TOM4CWB]

dml

The railbeds are works for the general advantage of Canada. This is an essential utility for the creation of a "Dependable Commodity in domestic and export markets'.

Since CN/CP have decided to neglect reasonable service; their common carrier obligations; now obviously the utility provisions require changes to the CTA Act.

CN is only recently a privatized railway... only 25 years ago... with much forgiven debt that Canadians still retain a share in the value and concerns of the railways.

Everyone knows a showdown is coming. Hunter most of all. Wall street has had its way with Acerman leading the charge... we have NO CHOICE but to reign in this travesty of justice.

Your defense using 'free enterprise' concerning a monopoly utility provider, is full of holes and holds No Water!

[Oliver88]

Railways along with rail beds should be treated similar to a highway system for the benefit of the nation.

Trucking companies have open running rights to ALL highways.
The provincial ministry of highways maintain highways.

[foragefarmer]

Tom4cwb

If your trying to rally other posters on Agriville to start the letter campaign to various parties regarding poor rail service.

Please stop belittling poster who disagree with you. Your chasing people away and it's not helping the cause.