No. H071/13
For release - May 30, 2013
OTTAWA – The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, today welcomed the passage of the Fair Rail Freight Service Act Bill by the House of Commons.
“Our government is pleased to see that another significant step has been reached regarding this important legislation,” said Minister Lebel. “Once adopted, this new Act will contribute positively to relations between shippers and railway companies, and enhance the effectiveness, efficiency and reliability of the entire rail freight supply”.
Once adopted, the Fair Rail Freight Service Act will encourage shippers and railways to negotiate service agreements. If these negotiations are not successful, shippers will be able to trigger a fast and efficient arbitration process to establish terms of service through the Canadian Transportation Agency. The goal of the legislation is to encourage railways and shippers to work together. Through enhanced collaboration, shippers and railways can increase the efficiency of the supply chain. The Act will help strengthen the Canadian economy and make Canada more competitive in international trade.
An administrative monetary penalty of up to $100,000 could be issued by the Canadian Transportation Agency for each violation of an arbitrated service level agreement.
Further details about Fair Rail Freight Service can be found at: http://www.tc.gc.ca/eng/policy/acg-acgb-menu.htm.
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