Fed. Rail Cars

[TOM4CWB]

WD9

Why wasn't Goodale honest about the hopper cars... and didn't they adjust the rail cap years ago to reflect the real costs of maintance?

It is astonishing how two faced the liberals were... giving $2/t to the railways for years!

I commend the Transport Minister in the decision... too bad the Liberals didn't have the guts to do this 5 years ago!

[JD4ME]

Does he have the guts to go after the railways for the estimated 450 million stolen from producers I'm thinking he doesn't.
Now all thats going to happen is the government will retain ownership of the cars make 10-15 million a year off farmers, are they going to invest that money into AG? or new cars or more bureaucrats to keep a closer eye on those pesky railroads. They likely don't have a plan they just had to oppose it because the liberals were for it and politics works like that.

Not sure if I agreed with the FRCC but I do believe farmers need a greater stake in the transportation system because we see what happens when it's left to gov't, to the tune of a half a billion dollars.
I take it you have cn or cp shares Tom you seem quite pleased with the decision. Do you honestly believe farmers best interests were at the heart of the decision?? If you do your sadly mistaken, so here we sit on the outside still getting taken for a ride by the railways some more. Nice.
Oh by the way 2 dollars just happens to be just about what the freight rate will jump August first Tom. Thanks to the 6% Rail cap increase given to the railways last week.


In the words of the Who,
Meet the new boss, same as the old boss.

[Incognito]

I'm all for more power to the farm.

How does owning railcars, with no power (locomotives) and no track ownership equate to more power though?

[WRAPper]

It's unfortunate that the conservatives moved this way, it appears very political as a decision like this often is. Owning the cars may not have been perfect but we as farmers needed a way to be more "at the table" as it is we continue to be in some form but with the federal government as proxy as they will continue ownership of the the cars.
I had some doubts on this proposal too because of the track record in other farmer owned ventures (saskpool, alberta pool etc) but what were our other options? Will the conservatives now then move in the area of joint running rights or some such way to make the transportation of goods more responsible?
I note the above post where JD speaks of an additional 2 dollar increase in rates if this comes to pass it will wipe out any of the savings the minister says he will get, which by the way remains to be seen, these transportation costs will be what pushes change in the industry long before anything else as we have become non competitive and this will acclererate the move to domestic usage.
Increased feeding, bio usage etc.


One thing the Liberals jerked the FRCC's chain for what 8-10 years they are not blameless by any stretch here, I just get tired of farmers porviding wealth and everyone else making it.


Looks like good seeding weather folks for us over the next week hope everyone is having success, and staying out of the mud holes it certainly is among the wettest seeding conditions in my young/though feeling old these days life

[wd9]

We all need to spend a lot of time on transportation. Even if more markets open up, we can't get it to the ships and loose millions in sales, so I think it is #1 to get rail running as best we can.

I don't think owning cars was the answer - maybe if rail ran like Westjet, improved car turn-around, constant power trains (trains that never unhook with 112 cars like in the US), well coordinated merchant trains, much better communication, etc are needed. Whether CP, CN, or farmers own the cars, if they are sitting on a siding or sitting full of grain for a month, that issue needs to be addressed. Rail is a tough one, but is Canada's limiting factor for progress.

[wd9]

From the CTA newswire in case some were wondering about the 6.6%

Transmitted by CNW Group on : April 28, 2006 15:05


Western Grain Revenue Cap Price Index increased for crop year 2006-2007

OTTAWA, April 28 /CNW Telbec/ - The Canadian Transportation Agency, in
Decision No. 253-R-2006, today announced a 6.6 per cent increase in the
Volume-Related Composite Price Index to be used to establish railway-specific
revenue caps for the movement of western grain for crop year 2006-2007. This
index is essentially an inflation factor to cover Canadian National (CN) and
Canadian Pacific Railway (CP)'s price changes for railway labour, fuel,
material and capital inputs.
In an earlier interlocutory decision, the Agency directed that the index
be adjusted to reflect the incremental costs incurred by CN and CP as a result
of the withdrawal from service of a number of government hopper cars and the
subsequent leasing of these cars by CN and CP from the Canadian Wheat Board.
This adjustment accounts for 1.2% of the 6.6% increase in the Volume-Related
Composite Price Index.
The revenue cap applies to the movement of grain by prescribed railway
companies from Prairie elevators to terminals at Vancouver, Prince Rupert,
Thunder Bay and Churchill.
In the course of establishing the Volume-Related Composite Price Index,
the Agency consulted with parties in the grain handling and transportation
industries including producer representatives, the Canadian Wheat Board,
shipper organizations, railway companies, grain companies and federal,
provincial and municipal governments.
The current "revenue cap" regime, which came into effect on August 1,
2000, applies to the movement of western grain by a prescribed railway
company. As a result, the Canada Transportation Act requires the Agency to
determine each railway company's revenue cap annually and whether or not each
cap has been exceeded by the railway company. The Volume-Related Composite
Price Index is one of several inputs required in the determination of the
railway company revenue caps.

The Canadian Transportation Agency is a Government of Canada quasi-
judicial tribunal. The Agency deals with, among other things, rate and service
complaints arising in the rail industry; disputes between railway companies
and other parties; applications for certificates of fitness for the proposed
construction and operation of railways; approvals for railway line
construction; regulated railway interswitching rates; and revenue caps for the
movement of western grain by rail. The Agency also develops costing standards
and regulations, and audits railway companies' accounting and statistics-
generating systems.



-30-

/For further information: please contact: Marc Comeau, Senior
Communications Adviser, (819) 953-9961; The Canadian Transportation Agency is
online at www.cta.gc.ca.; To keep up-to-date with our latest news releases and
other information, use our subscription service available on our home page
under "subscription"./