March 28, 2015 – Ottawa - Transport Canada & Agriculture and Agri-Food Canada
Transport Minister Lisa Raitt and Agriculture Minister Gerry Ritz today announced that the Government of Canada will not renew its requirement for Canadian National Railway (CN) Company and Canadian Pacific Railway Company (CP) to transport minimum volumes of grain by rail after the current Order in Council expires on March 28, 2015.
A year ago, the government took the unprecedented step of mandating volume requirements for moving grain by rail to protect Canada's farmers and maintain its reputation as a reliable grain shipper. As a result, Canada's overall grain exports have improved and the projected carry-out going into this new crop year is within the average range historically.
Mandatory volume requirements continue to be an option if the grain supply chain compromises farmers' livelihoods, the economy or Canada's international reputation as a reliable shipper. The Government of Canada is encouraging CP and CN to continue to address shipper specific issues so shippers across Canada can grow and build their businesses.
The government is also announcing that more grain monitoring statistics are now publically available. Today, a summary of the grain volume shipped by rail from August 2014 to January 2015 is available on the Grain Monitor's website and new weekly and monthly reports will also be posted at www.grainmonitor.ca.
With government support, the Ag Transport Coalition is now reporting by corridor on weekly rail car supply to help individual shippers make business decisions. The government, with input from the Crop Logistics Working Group and the Ag Transport Coalition, will review the Grain Monitor Program before the new crop year to determine how more effective data can be collected to find efficiencies in the supply chain.
The government is pleased that measures in the Fair Rail for Grain Farmers Act are being utilized within the supply chain:
- Transparency in the supply chain is improving thanks to increased sharing of data on grain movement.
- Service Level Agreements continue to be signed, providing shippers with rail car supply certainty and creating confidence in the supply chain, and reducing customer complaints and contract penalties.
- Expanded interswitching provisions are allowing previously captive shippers to make use of different rail lines in order to meet the needs of their businesses.
- Farmers continue to have the right to negotiate delivery contract penalties with their buyers; increasing accountability.
The government remains committed to promoting economic growth by opening up and maintaining markets around the world, and looks forward to receiving, before the end of the year, the Canada Transportation Act review recommendations that will help inform long-term supply chain improvements.
Zach Segal
Press Secretary
Office of the Honourable Lisa Raitt
Minister of Transport, Ottawa
613-991-0700
Media Relations
Transport Canada, Ottawa
613-993-0055
Emily Hogeveen
Press Secretary
Office of the Honourable Gerry Ritz
Minister of Agriculture, Ottawa
613-773-1059
Media Relations
Agriculture and Agri-Food Canada (AAFC), Ottawa
613-773-7972
1-866-345-7972
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