RAIL SHIPPERS TO GOVERNMENT: PLEASE HONOUR YOUR PROMISE NOW

By Avrim Lazar, President and CEO of the Forest Products Association of Canada  

Bob Ballantyne, Chairman Coalition of Rail Shippers

Hard-working rail shippers cheered when the Conservative government announced back in March that it would “enhance the effectiveness, efficiency and reliability of the entire rail freight supply chain”.   

After all, resource shippers such as the forest products, mining and grain industries, had patiently waited for years for the government to finally address a fundamental problem ―how remote areas face a virtual monopoly situation since they are captive to a single rail company to transport their products. Industries in urban areas, including manufacturers, have also struggled with inadequate and unpredictable rail service.  The Rail Freight Service Review released late last year acknowledged that lack of competition and concluded “the major cause of rail service problems is railway market power” and that “improvement in rail service is required”.

That’s why the 18 members of the Coalition of Rail Shippers, a group representing millions of workers, were so pleased with the dual announcements made in Winnipeg and Saguenay on March 18^th. At that time, the government said it would accept the recommendations from the Service Review panel and act swiftly and decisively to “enhance the performance of the entire rail freight supply chain."  

The promised first step was to set up a six month process aimed at negotiating a template for service agreements and a new streamlined and effective commercial dispute resolution process.  The government pledged to bring in regulations and also recognized the need for legislation to implement the recommendations of the Rail Service Review to ultimately ensure adequate rail freight transportation that would accelerate the speed and efficiency of business.

Now six months later rail shippers―and the communities that depend on them― are still anxiously waiting.  The government has yet to announce when the six month process will begin or even who will facilitate it.   Whatever the reason for this delay, it is disheartening for those with limited or no options to move their goods.     

Canadian companies, especially in the resource and manufacturing sectors, struggled during the recent recession and they still face strong economic headwinds.   Efficient and cost competitive rail transportation remains essential so that all shippers can get their products to market and contribute to Canada’s economic recovery.  The recommendations from the review process need to be implemented if companies want to compete internationally, preserve communities, create jobs and contribute to the prosperity of Canada to the benefit of all taxpayers. 

Canadian companies and communities feel that without government action, the on-going service problems identified by the Review panel will continue.  Rail shippers urgently require regulatory or legislative changes so they can conduct their business with the predictability and reliability of service found in a normal competitive and commercial environment.

That’s what the Canadian government promised to do in March.  Now it’s time for the government to act on that promise.  For the sake of the livelihood of millions of Canadians, let’s get on with it.