(The Canadian Press circulated the following on October 3.)
MONTREAL — The Canadian Transportation Agency has ruled that Canadian National Railway Co. (TSX:CNR), Canada’s largest railway and a major commodities transporter, failed to meet service obligations to four western grain shippers.
The agency dismissed two other complaints, including one from the Canadian Wheat Board.
It found that CN Rail did not meet its Canada Transportation Act obligations to provide an adequate and reasonable level of service during the 2007-08 crop year, which ended July 31.
The ruling related to complaints from North East Terminal Ltd. in Wadena, Sask.; Paterson Grain, which has 50 Prairie elevators; Parrish and Heimbecker Ltd., with about 20 locations across the West; and North West Terminal Ltd. near Unity, Sask.
The grain shippers welcomed the ruling and accused the Montreal railway of “steadily shifting the balance against shippers for years.”
While officials with the Canadian Wheat Board were disappointed that two of the complaints, including the board’s, were dismissed, they were pleased the others succeeded.
“This case is really about addressing a trend that has been going the wrong way for years – about whether CN Rail designs programs for shipper and farmers or whether they design programs that work only for the railway,” Ward Weisensel, chief operating officer of the Canadian Wheat Board, said in a conference call.
A CN spokeswoman in Vancouver said the complaints that were upheld involve four smaller shippers that represent less than five per cent of the railway’s grain hauling business.