The Western Canadian Shippers’ Coalition (WCSC) expressed cautious optimism today about the federal government’s steps in response to the final report of the Rail Freight Service Review Panel.
The review was launched in 2008 to address issues with rail freight service and fulfil a government commitment made when the Canada Transportation Act was amended.
The panel was directed to submit recommendations aimed at improving efficiency and reliability, facilitating economic growth and trade expansion and improving accountability among stakeholders.
On Friday, the government announced various steps would be taken to improve Canada’s rail system, including the introduction of a bill giving shippers the right to establish service agreements with railways.
WCSC chairman Ian May said, “Given the finding of the review panel that railway market power is at the root of service problems faced by our members, we have long believed that legislation is necessary to properly re-balance the market place.”
WCSC members are western-based commodity shippers whose business operations are often located in remote communities, leaving railways as the only realistic transportation option to get their goods to market. In most cases, they are captive to one railway.
Minister of state (transport) Rob Merrifield stated, “Our government made a commitment to help ensure Canada has the rail system it needs to support a strong economy and our domestic and international trade.”
May noted more far-reaching legislation would ultimately be necessary, but expressed an eagerness to work with the government to ensure the appropriate commercial response to the railway issues.