Feds announce new regs to grain handling and transportation system

SASKATOON, Sask.–A series of new regulationsand an Order in Council (OIC) related to the implementation of the Fair Rail for Grain Farmers Act (Bill C-30) are coming into place, announced  Agriculture Minister Gerry Ritz and Transport Minister Lisa Raitt.

 The Fair Rail for Grain Farmers Act amended the Canada Transportation Act and the Canada Grain Act to ensure that Canada’s rail transportation network moves grain to markets as quickly and efficiently as possible, following a record crop year for Canadian farmers. 

Thenew measures, which take effect immediately, include:

The passing of an OIC, which sets out the minimum grain volumes that Canadian National Railway Company (CN) and Canadian Pacific Railway Company (CP) are each required to move from August 3, 2014 to November 29, 2014.

Regulations requiring CN and CP to provide additional data on grain movement to better monitor the overall performance of the rail-based supply chain.

Regulations to clarify the operational terms in a service level agreement that can be arbitrated by the Canadian Transportation Agency, to support commercial negotiations between shippers and railways. These newly defined rail service obligations will increase predictability for all shippers.

An amendment to the Railway Interswitching Regulations extending the limit for rail interswitching from 30 kilometres to 160 kilometres in the provinces of Alberta, Saskatchewan and Manitoba for all commodities to increase competition among railway companies and give shippers access to alternative rail services.

Regulations to provide farmers with better protection through more accountability for grain companies in contracts.

The regulations are intended to maximize the amount of grain moved by rail before the winter season and allow the government to re-assess the situation later in the fall, with the longer term goal of returning carryover stocks to normal levels by the end of July 2015, the government said,

“After taking immediate action to get grain and other commodities moving, our Government has been building a solid foundation for managing future challenges. Today’s regulations are the latest step in our ongoing efforts to create a rail supply chain that farmers and all shippers can depend on as they grow the Canadian economy,” said Agriculture Minister Gerry Ritz.

“The coming into force of these important regulations puts the measures in place to avoid a repeat of last year’s problems. Our Government has made tough decisions for the benefit of our producers, and to maintain Canada’s good reputation as a global supplier,” said Transport Minister Lisa Raitt.