RR's , grain co's and Tom...

[furrowtickler]

A little bird told me a year ago and again just recently that grain companies are givin a chance at the start of the crop year to bid on a pool of grain cars. I have heard this from several sources now and it explains why some locations are getting very high car allocations locally and some very low - I would imagine else where?
So who is to blame if your local grain co is not getting grain cars and those customers are very far behind in deliveries and are having a tough time meeting payments because of zero cash flow ?
I applaud your effort Tom on the bigger picture of grain movement but you poked a bear with a stick and it swatted you.
The situation for the rest of us is a 50/50 pissing match between grain co's and RR's.
More capacity is needed for sure on the rails and at the coast but 1/2 the trouble with late deliveries remains hidden behind closed doors.

[TOM4CWB]

I think your birdie has been whispering sweet nothings in your ears.
The hoppercars are pooled in the gov fleet.
CNCP have first right of refusal we were told years ago... Which was one reason the cars were not given to the rail car coalition.
Someone is baiting you... The railways would fight to the supreme court to get those railcars...even if they say they don't want them.
In 2014 those graincars were all upgraded at gov expense.

[bucket]

And ritz has indicated that they are not worth much. But the railways will go to the Supreme Court to get them.

Probably use court costs to pay for them

Kill 2 birds with one stone. Hey Tom.

[TOM4CWB]

Bucket
When maximizing shareholder values is at stake... Anything goes for CNCP.

If you had first dibs wouldn't you do exactly the same negotiations?

The cheaper the cars are the more profit to be made!!!

[sawfly]

your govt. tom.
who are they working for again.

[bucket]

But tom,

Ritz represent the taxpayers. He should trying to maximize the returns on those cars.

Won't let a farmer group own and control them but he will give them to railways.

Seems odd. Good prerequisite to a board seat hey?

[TOM4CWB]

Bucket,

I don't get it.

The Hoppercars... ARE working for grain growers right now in western Canada!

If Minister Ritz had given them to the Farmer Rail Car Coalition... our freight would not have gone down $2.20/t... like Minister Ritz accomplished... because the FRCC was going to use that money to buy the Hopper cars after 10 years.

The Railways do NOT own the rail cars now. Nor do the Grainco's. As soon as someone else buys the gov/CWB grain cars... the freight rate to export position goes UP close to $10/t!!!

It looks to me you folks have this backwards... Minister Ritz did the best possible to keep our freight rates down... as he actually lowered our cost base going forward, now in effect... from 2007-08 that $2.20/t into the future.

[bucket]

So if we go to a commercialized system like the people that want rid of the revenue cap - our freight rates go up 10 bucks a tonne?

And better service?

Sounds like a winning idea to me.

[TOM4CWB]

"but he will give them to railways."

Why do you say this?

The facts are the reverse... Minister did not sell the grain hopper cars as the contract in place states the gov. must... if they are sold to anyone.... the Railways have first right of refusal without compensation for the lost revenue the railways could be entitled to under the existing contracts in place.

[TOM4CWB]

Bucket... the 'grain profit cap'... is totally aside from the gov. Hopper cars.

Commercial cost for additional hopper cars are added to the cost base (grain profit cap'... if those become additional costs are incurred by the Railways... my understanding is.

[sawfly]

why do the railways have first right of refusal?
who signed that agreement and why?
why do the rr.s have any say on govt. or board owned cars?

very complicated

[furrowtickler]

Regardless of he word play , why are some locations receiving great rail service - all winter - right beside ones that can't get cars and blame railways ??????? There is far more going on than just rail service - that's a fact

[TOM4CWB]

Sawfly,

Quite likely the contracts were made when the gov. cars were purchased...Before of during Goodale's reign... the railways were supposed to maintain them and keep them current. Somehow the cars became cash cows instead... we are being played for every last cent the RR monopoly can milk out of us...