The Prairies - Farm groups from across the country are asking producers to lobby federal ministers
and MPs and urge them to super-size a government proposal for what's called "extended
interswitching."
The measure, part of this spring's federal budget, essentially gives grain shippers a choice in which railway they deal
with, as long as the competitor's line is no more than 160 kilometres away.
It means a railway would have to pick up rail cars loaded by the shipper and hand them off to the other
railway.
"Extended interswitching is a vital tool for Canadian shippers that is proven to increase competition while
lowering costs to shippers and consumers," Alberta Wheat tweeted in support of the Flip the Switch
campaign.
The commission, along with Alberta Barley and Alberta Pulse Growers, has joined a dozen other commodity groups and
industry organizations in the lobbying campaign.
They want the budget pledge of an 18 month trial extended to five years, and the maximum distance for interswitching
upped to 500 kilometres so it applies to the Peace Country and northeastern Saskatchewan.
"Extended interswitching is one of the only policy tools that has historically created competitive options for
shipper business. It offers an alternative service provider for single-served shippers, which balances negotiations in
a way that encourages better service or pricing for the benefit of entire supply chains," Wade Sobkowich, head of
the Western Grain Elevator Association, said in a release.
The railways disagree.
"Extended regulated interswitching is inherently inefficient because it introduces more operational complexity to
the movement of rail cars as it unavoidably requires additional hand-offs for rail cars between carriers, which in turn
causes increased cycle time," CPKC (the new name for CP) said in a response to the interswitching
proposal.
"Overall, this slows down the entire rail supply chain and reduces capacity because it introduces inefficiencies
that could otherwise be avoided."
It typically takes an additional 24 to 48 hours for interswitching, said the railway, adding a move to 160 kilometres
interswitching in 2014 (that lasted four years) caused "significant harm to Canada's supply
chains."
The grain group alliance calls this a "myth" on its website (interswitching.ca), arguing it actually improves
efficiency.
"Extended interswitching will reduce congestion by moving traffic from a full capacity railway to a railway with
excess capacity," the website states.
And bringing a measure of competition to the country's rail duopoly has been shown to cut freight bills, the group
contends.
"Data is clear that the increased competition from extended interswitching reduces costs for shippers who are
using the rail network."
The website also has an e-letter that producers can send to their MP.
In addition to backing a five-year pilot and a 500 kilometre interswitching distance, the letter urges the federal
government to "invest in rural rail infrastructure that can accommodate larger trains to expand the use of
interchanges."
Glenn Cheater.
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