(The following appeared on the Today’s Trucking website on April 9.)
OTTAWA — Transport Canada has begun its long-awaited review of rail freight service levels in this country.
Transport Canada is now inviting comments from interested parties on the draft terms of reference for the review, which was promised last year after Ottawa tabled Bill C-8, proposed amendments to the shipper protection provisions of the Canada Transportation Act (CTA).
The scope of the review is Canada’s rail-based logistics chain, including shippers, terminal operators, ports and vessels. It will focus on service provided by CN and CPR, including to and from ports and border crossings.
Various shipping groups have been lobbying the government for years to take a hard look at the railways’ systems, service levels and operations.
Most notably, the wheat and grain sector has been calling for major transport service improvements. Shippers complain that service has deteriorated while rates have risen in recent years.
“Shippers need an effective, efficient, consistent, and reliable rail transportation supply chain to remain competitive in domestic, continental, and international markets,” said Transport Minister Lawrence Cannon. “There is widespread support for this review because it will identify service problems and their impacts and make recommendations to improve Canada’s rail freight logistics system.”
The review will be conducted in two stages and is expected to take 12-18 months to complete.
In the first part, consultants would gather and analyze data from shippers, railways and terminals, assess railway operational issues and conduct shipper surveys on railway best practices and issues. Transport Canada would then assess how service issues are addressed in other transportation sectors.
After that a panel will develop recommendations based on the results of the work before and submitting a final report to the Minister of Transport.