13 November 2012

Rail Shippers Anticipate Legislation

Ottawa Ontario - Long-awaited legislation aimed at improving rail service is expected in the House of Commons before the Christmas break.
 
Farm and ag industry groups say the legislation is needed to hold rail companies accountable for poor service.
 
"Our understanding is Transport Canada officials have been working on the draft legislation, and I would assume that the drafting must be just about complete," says Bob Ballantyne, Chair of the Coalition of Rail Shippers. "The minister has indicated that it will be introduced into the House of Commons before the Christmas recess."
 
The legislation stems from the Rail Service Review that started in 2008. The review panel's recommendations and the government's implementation plan were announced in March 2011, but the government has yet to introduce the legislation.
 
The Coalition of Rail Shippers is recommending the legislation include three key components that were part of the government's implementation plan:
 
1. The right to Service Level Agreements with railways to provide a definition of the service the railway can be expected to supply.
 
2. A dispute resolution process to settle disputes between shippers and railways.
 
3. Consequences for railways if they fail to meet service expectations.
 
Ballantyne says despite being part of the government's implementation plan, he's not completely confident these measures will be in the legislation.
 
"I'm uncertain, to tell you the truth. Until we see the legislation, it's hard to say, but the railways have been mounting a fairly aggressive campaign to keep the details of the Service Level Agreement and the other two points as minimal as possible. It remains to be seen what the government will include in the bill," he says.
 
The Coalition of Rail Shippers represents 17 industry associations, including the Animal Nutrition Association of Canada, Canadian Canola Growers Association, Grain Growers of Canada, Inland Terminal Association of Canada, Pulse Canada, Western Canadian Wheat Growers Association, and Western Grain Elevator Association.
 
Kelvin Heppner.