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Michael Bourque, Railway Association of Canada: Facts - Not Politics - Should Shape Canada's Grain

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    #25
    My fully regulated idea would be to place high tariffs on railway high revenue traffic, ie. intermodal and/or oil. The tariffs would be returned to railways incrementally as grain targets were met. Meet all targets and railways would get their full consideration.

    The tariffs would have to be punitive enough to force performance on the grain side.

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      #26
      Revenue cap would stay in place in both examples.

      Producer cars have to be protected, always. New Producer car loading spots should be available to new applicants.

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        #27
        Infrastructure, including loop tracks, twinning track, etc. would naturally evolve to make meeting commercial obligations or regulatory targets easier and more efficient.

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          #28
          Braveheart, ask oil and intermodal what they think of your model. The carrot turns into a stick, at their expense. Sounds like a subsidy to grain traffic to me.

          If farming was a "normal" business that enabled us to pass on our increased costs, even if that would be higher rail freight, we could effectively compete with others for capacity. But it isn't a normal business and there is no competition to keep rail rates at "competitive" levels.

          This isn't poo-pooing your idea, just the way I see it. Keep them coming.

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            #29
            You're right Farmaholic, this idea is a stick not a carrot.

            The tariff would be paid by the railways calculated against rates applied to the underlying traffic. I'm sure intermodal and oil wouldn't like it, but, as a farmer dependent on rail, I haven't appreciated having our business displaced by intermodal or oil.

            There would be no reason for any slowdown for anyone's transportation needs providing adequate performance.

            As far as poo pooing ideas, that's all they are right now. If they can't stand up to criticism they were never any good anyway.

            This is just how I like to brainstorm. Throw out ideas no matter how corny. It might inspire someone with good suggestions or approaches.

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              #30
              I'm not wishing for anything, just thinking out loud.

              If ,if, if there was a two month rail strike by the union because they can, (and it cold in the winter) and also have rights, what would that impact be to Western Canada, not just the grain industry but all commodity types plus finished retail goods?
              How many billions?
              No one can question "essential service" under this scenario, can they?

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