WINNIPEG, Manitoba — The Canadian Wheat Board has expressed disappointment a ruling from the Canadian Transportation Agency that denied increased rail competition to haul grain.
The CTA Tuesday announced it had denied an application from Ferroequus Railway Company for running rights on a Canadian National Railway line from Camrose, Alberta, to the Port of Prince Rupert, British Columbia.
“This ruling has a negative impact on farmers by again limiting competition among Canada’s major railways,” stated Ken Ritter, chair of the CWB’s board of directors. “As we noted in our application in support of FE, the introduction of FE as a competitive threat to CN and CP (Canadian Pacific) would bring a desperately needed element of competition to the rail industry. In fact, the mere filing of FE’s application immediately modified the behavior of CN and CP, leading to lower rates and better service.”
Ritter said the ruling was particularly frustrating because the CTA did acknowledge that farmers would benefit from the increased competition that FE’s presence would bring to the grain industry. But the agency rejected the application partly on the grounds that it would negatively impact the revenue generated by other grain industry participants, like the railways.
“With the kind of returns that the railways are generating, this is particularly galling, especially at a time when Prairie farmers are facing one of the worst crop years on record,” added Ritter. “Farmers have a right to ask themselves if the CTA has given any consideration to their bottom line.”