Transportation Summit

[Hopalong]

APAS, Sask Wheat and Sask Barley are hosting a summit July 20 in Saskatoon.
Discussion on current state of transportation industry and CTA review process.
Some farm groups and growers insist that maximum revenue entitlement stay in place, others say it does not provide enough incentive to railways to provide additional or surge capacity for grain movement.
Can see farmer opinion slowly shifting from entitlement position on statutory rates to considering incentives to provide shipping capacity.

[farmaholic]

I hope something positive comes from last year's poor service. The problem of a lack of capacity could be diminished with the potential of a poor Western Canadian crop.

[bucket]

The railways base their rates off the last review of costs that date back to 1992. And since then they have received rubber stamped increases from the CTA.

Until they look at the consolidation that took place and the reduction of the railways actual costs why discuss what should happen in the future.

Here is an idea.

Have an independent body manage the rail cars on a schedule. Most points can now handle 112 cars weekly that still leaves them with enough capacity to load the next week as well.

When do people think and realize that letting the railways regulate themselves is a bad thing for the taxpayer more do than it is for farmers.

That's if people look at highway cost, in what the railways have been allowed to do to date.

This nation should be looking at growing it's transportation capacity by thousands of tonnes not 40 tonne trucks running across the public highway system that can't handle it.

But hey, drop the revenue cap, build highways and watch your freight rates and taxes balloon to the point that only cattle walked to the stockyards makes sense.

FFS. The dumb****led farmer.

[gustgd]

At the SWDC meeting they promoted this seminar and it looks like it may be worth the time?
Richard Grey talked about how there might be a way to incentivize shipping in the winter. That they earn the same on grain hauled in the summer as winter.
Another might say that it averages out, but it's worth considering

[rockpile]

Throwing more money at it won't solve the problems. Read the Annual Reports for CN and CP. Grain is a filler that pumps up revenues, year after year. There is no need to compete for business when competition doesn't exist. Honestly, I don't have a solution. It's been like this through perpetuity.

[bucket]

Here is another idea regarding the railways.

Do your ****ing job with appropriate rates and the government won't nationalize you.

And that may be the only way to deal with them. Indexed freight rates haven't worked to date.

[bucket]

The railways got their incentive years ago when they were allowed to abandon branchline and only use mainline.

Jesus Christ they get everything they ask for in the last 30 years and now some ****ing dummies want to suggest giving them more incentives.

What's next hauling grain to calgary to make short hauls for the railways?

When are some of these farm leaders and experts going to wake up.

[Rareearth]

Well no one is happy with the current system.

So let's look at it from two extremes.
1. Rail ways have only main lines, and grain is shipped from 3 points on each line.
Or
Vs.
2. Maintain what's left of the rail lines, and terminal elevator system. Increase rail running rights to other private companies or what happens in the system if freight rates rail were for discussion purposes twice what they are today?

[farmaholic]

Twice? Freight at $2.00/ bu of wheat, (Mid point Sask) Are you ****ing kidding me? I guess that means not alot of wheat gets grown.

Let the oxymoron, Government "think" tank, figure it out? Your dealing with a monopoly, good luck.

[bucket]

Which leads to chasing cattle to town as the only viable option for the prairies.

With branchline abandonment and elevator consolidation it seems rates would go down not up.

Then came the fuel surcharge when diesel went thru the roof and never removed.

I think people have forgot some of he promises made when railways got their way.

Maybe they should be reminded. And the lazy asses that haven't done a real costing review since 1992 - some 23 years ago.

[Rareearth]

Farmaholic you have correctly identified the problem, they are quickly moving to execute both extremes, as a monopoly.

[Hopalong]

Advertising for summit meeting suggests five billion $ loss for farmers, suspect some of this estimate is lingering resentment from single desk end.
That said, it is in our interest to continue to look for more capacity and competition in rail service.
Short crop may take pressure off but support leadership that is looking five or ten years ahead, not backwards.