Ferroequus Railway says transport costs would fall if competition plan succeeds

Edmonton-based Ferroequus Railway Company Limited, which is attempting to introduce competition in Canada’s grain transportation industry, will see its plan to operate on Canadian National Railway’s track put to a public hearing
in Winnipeg on April 29.

The Canada Transportation Agency ordered the public hearing and dismissed objections to the FE plan which had been filed by both CN and Canadian Pacific Railway.

“If Ferroequus is successful, the Canadian Wheat Board will pay less to get their product to port. Competition is the cornerstone of business efficiency and it simply doesn’t exist in the transportation of Prairie grain by rail in Canada,” said FE President Tom Payne.

The Canadian Wheat Board, an advocate of increased running rights provisions under the Canada Transportation Act and the principal shipper that utilizes the Port of Prince Rupert, says that its core objective is ensuring that western Canadian grain producers receive a reasonable level of rail service at affordable rates.

“CN stands to gain millions in track access fees if Ferroequus is successful in its application. Their opposition to the application seems to be primarily about maintaining their monopoly power rather than serving the public interest. Under the present system, transportation is the single largest input cost of grain at port. The CTA is correct in its view that the public has an interest in the outcome of the Ferroequus plan,” said Payne.