- Unconventional Ag
Grain Rail Transport Requirement Will Not be Extended – Canadian Government
The Government of Canada will not renew grain transport requirements, according to an announcement made by Transport Minister Lisa Raitt and Agriculture Minister Gerry Ritz on Saturday. The non-renewal means that Canadian Pacific Railway Company (CP) and Canadian National Railway (CN) will no longer be required to meet requirements for minimum volumes of grains transported by rail.
The requirements grew out of significant grain transportation shortfalls in 2013 and 2014 resulting, at least in part, from a large increase in the amount of crude oil being shipped by rail. In an effort to ensure Canada’s farmers were protected and to ensure the quality of Canada’s reputation as a grains shipper, the government instituted a 90-day order made on March 7, 2014 for CP and CN to meet minimum grain shipment requirements and to report on these shipments on a weekly basis. These requirements were repeatedly extended through out 2014 and through March 28, 2015.
The government still has the ability to bring back mandatory transport requirements if grain supply chain appears to be impacting famers’ livelihoods, the overall economy or the country’s reputation as a reliable shipper. It also encouraged CP and CN to continue to address the concerns of grain stakeholders.
Along with this announcement, the government shared that it is working with several organizations to ensure more grain transport data is made publicly available. A summary of the grain volume shipped by rail from August 2014 to January 2015 that is now available on the Grain Monitor's website (www.grainmonitor.ca). The website will also offer new weekly and monthly reports. To help shippers make business decisions, the government and the Ag Transport Coalition will now report corridor on weekly rail car supply. Before the new crop year, the government, the Crop Logistics Working Group and the Ag Transport Coalition plan to review the Grain Monitor Program in an effort to ensure the most effective data is collected to maximize supply chain efficiencies.