Level of Rail Service

Year: 2014

Number: POP 12-14A

Department: Transport Canada

WHEREAS the level of rail service for the grain industry is extremely poor and is affecting grain profitably across Canada; and

WHEREAS having the rail capacity to handle increased grain exports is vital to supporting the Canadian economy and to the competitiveness of our agriculture sector and other rural based industries in Canada; and

WHEREAS SARM applauds the recent decision made by the Federal Government to use an Order in Council to require CN and CP railways move one million metric tonnes of grain per week for four weeks with the potential for $100,000 per day penalties will assist with the immediate backlog of grain from last year’s bumper crop on the Prairies; and

WHEREAS SARM recognises this as a vital short-term solution; and

BE IT RESOLVED that in order to ensure that a similar backlog does not reoccur in future years that mandatory levels of rail service agreements be legislated with much stiffer penalties imposed when levels of service are not met; and

BE IT FURTHER RESOLVED that legislation be implemented to ensure that the railways move a minimum of 13,000 grain cars a week.

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