Standing Up for Rail shippers, farmers and Western Canada. 

The rights of Rail Shippers in Western Canada, particularly grain shippers have been continually trod upon by the major railways, in particular Canadian National Railway.

Defending the rights of rail shippers, farmers and rail-dependant industry members is a task that I have actively undertaken since being elected.

I have worked to lobby the Minister of Transportation, Transport Canada and even Prime Minister Harper to ensure that legislation comes forward in the near future to ensure that the major railways in Canada must have some degree of accountability in their dealings with shippers and producers.

It was to this end that I has compiled a report outlining the plight the Shipping Industry faces when dealing with the railways and what they feel needs to be accomplished by our Government to rectify this situation.

Shipper’s Bill of Rights: Report on the need for Railway Accountability---- Brief

Brian Storseth M.P. -- Westlock—St. Paul

Background

To date, in the Canadian Transportation Act (CTA) there are a few provisions that freight shippers can exercise to challenge a railways level of service or freight rates. These provisions were designed to offer shippers and rail-dependant entities a means to bring to bear some competitive pressure upon the railways. As these provisions exist, filing for arbitration, a level of service complaint, or a competitive line-rate from the Agency is a very expensive, time-consuming and overall ineffective process. The current CTA provisions do not provide an adequate avenue for shippers and other captive individuals to access recourse with the railways. Balanced accountability must be ushered in to prevent: increasing rail freight transportation costs; lost grain sales domestically and internationally; lost revenue because grain will be sold outside of peak price periods; large potential for significant vessel demurrage bills; lost confidence in Canada as a reliable supplier; and increasingly higher costs and reduced revenue for shippers and farmers in the West.

What needs to be included in this Bill

The ‘Shippers Bill of Rights’ should at the very least amend the Canadian Transportation Act to:

•§         Allow groups of shippers and individuals to file jointly for Final Offer Arbitration (FOA);

•§         Allow groups of shippers and individuals to file a level of service (LOS) complaint;

•§         Allow single shippers or groups of shippers to file for arbitration of ancillary charges, and increase the notification time for any changes in charges;

•§         Extend maximum inter-switching limits; and

•§         Repeal the provision in the CTA requiring applicants to prove substantial commercial harm.

It is also necessary that upon this Bill receiving Royal Assent an independent and comprehensive level of service provision review be undertaken to determine the effectiveness of the provisions, and outline recommendations for subsequent legislation.

Conclusion

This Bill is a reaction to the state of affairs between the shipping community and the railways; it is not the final solution.  It will, however, allow shippers and rail-dependant individuals a chance to operate their businesses with the knowledge they are no longer without competitive options. This Bill would serve to: move the railways closer to balanced accountability as the gap between the threat of Agency arbitration and the actual process of arbitration is closed; create a legislative backstop that would encourage other methods of commercial dispute resolution between multiple parties without resorting to Agency arbitration; ensure that most shippers and farmers can gain and retain competitive rail access in Western Canada and competitive market access wherever they wish; and ensure that the shipping industry can continue effectively moving the products that fostered Canada’s historical prosperity and drive our current and future economy.

For more information on this report please feel free click on the link to read my report the 'Shippers Bill of Rights': Report on the Need for Railway Accountabiliy in its entirety or contact my office.