(The following appeared on the Canadian Transportation & Logistics website on August 15.)
OTTAWA, Ont. — The final terms of reference for the rail freight service review have been established and the first stage of the review is set to begin. The review will examine the services offered by Canadian National Railway (CN) and Canadian Pacific Railway (CP) to Canadian shippers and customers. A request for proposals (RFP) has been issued for some of the work to be completed in the first stage of the review.
“The fact that we are moving forward with this review is good news for shippers of a broad range of commodity groups and will benefit grain farmers as well. Our priority is to have an effective, efficient, consistent and reliable rail transportation supply chain,” said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. “I am particularly interested in the development of indicators that would help monitor system performance and expedite improvements when problems arise.”
When the government tabled amendments to the shipper protection provisions of the Canada Transportation Act (CTA) last year, it announced its commitment to conduct a review of railway service to commence after the amendments were passed. Bill C-8 received Royal Assent on Feb. 28 and draft terms of reference were released for stakeholder comments on April 7. The terms of reference have now been finalized and the review process is moving forward. The final terms of reference can be found at www.tc.gc.ca/pol/en/acg/acgb/freight/terms-final.htm.
An RFP has been issued for two of the key projects under the first stage. The first project will focus on describing key elements of the logistics chain and conducting a quantitative analysis of the railways’ ability to fulfill shipping orders and to provide consistent transit times in moving traffic from origin to destination. The second project will examine operating practices within the rail-based logistics system and identify those practices that adversely affect service to shippers.
The scope of the review will include Canada’s rail-based logistics chain (including shippers, terminal operators, ports and vessels). The review will focus on service provided to Canadian shippers and customers by CN and CPR within Canada, including to and from ports and border crossings.
The review will be conducted in two stages and may take up to 18 months to complete. The first stage will consist of analytical work to achieve a better understanding of the nature and extent of problems within the logistics chain, with a focus on railway performance. This analysis will help focus discussion on solutions and reduce the reliance on anecdotal evidence.
The second stage of the review will be led by a panel of three eminent persons who will develop and consult on recommendations to address problems that are identified. The panel will be established near the completion of the first stage. A final report will be submitted to Minister Cannon.