COALITION OF RAIL SHIPPERS - An Open Letter to All MPs

OTTAWA, Oct. 25 /CNW/ - The Coalition of Rail Shippers (CRS) is deeply disappointed with the "wait and see" recommendation of the Rail Freight Service Review panel and is instead urging the federal government to act decisively now to address shortcomings in rail service.  Frustrated CRS members, who account for over 80% of the revenues of the national rail freight carriers, simply cannot wait until 2013 for the government to get engaged in solving the problem identified by the panel report.

The panel correctly pinpoints the current unacceptable condition in stating that "the major cause of rail service problems is railway market power which leads to an imbalance in the commercial relationships between the railways and other stakeholders".  So it makes no sense to recognize the problem as the superior market clout of the railways and then propose giving the railways three more years to find commercial solutions. 

Shippers were promised a full review of rail freight service issues by Transport Canada in 2008.  CRS members have waited patiently for close to three years of process and deliberation for the results of this review.  That is why it is so objectionable to suggest the government sit back and wait yet three more years to see whether the railways voluntarily improve service.

The panel report clearly states that "improvement in rail service is required" in acknowledging that the rail network now operates to the advantage of the rail freight carriers and to the disadvantage of shippers.  The interim report further suggests "it has long been recognized in transportation law that regulations are required to address the potential abuse of market power by the railways".     

We remain steadfast in our belief that without a regulatory impetus to do so, the railways will continue to be able to overcharge and under deliver to shippers.   This review has established that the shippers have bona fide issues with rail freight service levels.   Contrary to the claims of railways, rail service has not improved overall in a significant way.

The time to act is now. The government must roll up its sleeves and work with CRS members on regulatory or legislative changes so we can conduct our business with the predictability and reliability of service of a normal competitive and commercial environment .  This will help ensure strong Canadian companies who can compete in international markets, create jobs and contribute to the economy to the benefit of all Canadians.

The following organizations support this open letter:

• Animal Nutrition Association of Canada
• Association of International Automobile Manufacturers of Canada
• Canadian Canola Growers Association
• Canadian Dehydrators Association
• Forest Products Association of Canada
• Grain Growers of Canada
• Inland Terminal Association of Canada
• Pulse Canada
• Shippers Council of Canada, a coalition of:
• Chemistry Industry Association of Canada
• Canadian Fertilizer Institute
• Canadian Industrial Transportation Association
• Mining Association of Canada
• Propane Gas Association of Canada
• Western Canadian Shippers' Coalition
• Alberta Forest Products Shippers Association
• Canadian Oilseed Processors Association
• Western Canadian Wheat Growers Association
• Western Grain Elevator Association

Sincerely,

R.H. Ballantyne
Chairman
Coalition of Rail Shippers
& President
Canadian Industrial Transportation association
[email protected]

cc: Coalition Members

For further information:

R.H. Ballantyne
Chairman
Coalition of Rail Shippers
& President
Canadian Industrial Transportation association
[email protected]