VANCOUVER — A small western railway company attempting to introduce competition in Canada’s grain transportation industry will have its plan to operate on Canadian National Railway’s track put to a public hearing in Winnipeg on April 29, according to a press release distributed by Ferroequus Railway Company Limited.
Edmonton-based Ferroequus Railway Company Limited rejoiced when the Canada Transportation Agency ordered a public hearing and dismissed objections to the FE plan 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,” said FE President Tom Payne. “Competition is the cornerstone of business efficiency and it simply doesn’t exist in the transportation of Prairie grain by rail in Canada.”
The Canadian Wheat Board is an advocate of increased running rights provisions under the Canada Transportation Act and is the principal shipper that utilizes the Port of Prince Rupert. A core objective of the CWB 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,” Payne said. “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,” Payne said.