COALITION OF RAIL SHIPPERS - SHIPPERS CALL FOR EARLY ACTION TO IMPROVE RAIL
SERVICE

OTTAWA, Nov. 16 /CNW/ -The Coalition of Rail Shippers (CRS) is calling for early action including federal policy measures to find durable solutions to ongoing service problems resulting from a lack of competition in Canada's rail transportation industry.

The CRS, a group of eighteen industry associations representing hundreds of companies and hundreds of thousands of workers, accounts for over 80% of the revenues of Canada's national rail freight carriers, CN and CP. Members of the coalition met in Ottawa yesterday to finalize their response to the interim report of the Rail Freight Service Review Panel which conducted the most exhaustive review of rail freight service ever undertaken in Canada. 

The Coalition appreciates the work of the Panel but maintains the recommendations did not go far enough in addressing what the report identifies as a lack of effective competition and inadequate service.  CRS agrees with the analysis which identifies the major cause of rail service failures as "railway market power, which leads to an imbalance in the commercial relationships between the railways and other stakeholders."   However the Coalition notes there is a disconnect between this conclusion and the recommendation to give the railways three more years to voluntarily address the service problems. At the same time, the Panel said the government should impose regulatory measures if the railways fail to voluntarily make the necessary changes by 2013.

"Canada's shippers need regulations at an early stage to rebalance the bargaining power between railways and their customers." says the Chairman of the CRS, Bob Ballantyne.  "Rail service is too inconsistent to provide the reliable and predictable service that Canadian industry needs to remain competitive. We would like a regulatory backstop to be brought in now, not years from now," Ballantyne says the Panel's report acknowledges "it has long been recognized in transportation law that regulations are required to address potential abuse of market power by the railways."

With the final report expected by the end of the year, the CRS feels there is still time for the Panel to consider more robust recommendations that would address the root cause of rail freight service failures and ensure there are acceptable and durable solutions for the future.  The Coalition wants the Panel to include a fair and balanced dispute resolution process, consequences for non-performance, and independent monitoring of railway service related to performance standards.

"It's now time for the government to bring in measures that would ensure effective, efficient and cost-effective rail service that will allow shippers in Canada to remain competitive both in domestic and export markets", says Ballantyne. "Shippers need that action now."

About the Coalition of Rail Shippers:

The CRS is a group of 18 industry associations representing hundreds of companies and hundreds of thousands of workers across Canada. It accounts for over 80% of the revenues of Canada's national rail freight carriers, CN and CP. 

Coalition of Rail Shippers

Members

• Animal Nutrition Association of Canada
• Association of International Automobile Manufacturers of Canada
• Canadian Association of Recycling Industries
• 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 (Shippers Committee)
• Western Canadian Shippers' Coalition
• Alberta Forest Products Shippers Association
• Canadian Oilseed Processors Association
• Western Canadian Wheat Growers Association
• Western Grain Elevator Association

Canadian Industrial Transportation Association
Ottawa, ON
November 5, 2010

For further information:

Media Contact:
Rebecca Peters
604.637.6649 (direct)

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[email protected]