Newsroom
2000
September 1, 2000
CWB launches first transportation tender
Winnipeg -The CWB today announced it has issued its first tender as
part of the new commercial grain handling and transportation
contract-based system. The CWB, grain companies and railways have
been meeting for a number of weeks to reach agreement on how the
new transportation system should operate.
"This comprehensive process took the views of all parties into
consideration," said Adrian Measner, Executive Vice-President of
Marketing. "The negotiations were very professional, and while
everyone is not in total agreement, we've come up with a document
that will allow us to start the process of tendering. We will
continue to work with the grain companies and make any necessary
refinements as we gain more experience with tendering."
As part of the new legislative environment, the CWB is expected to
tender for the movement of 25 per cent of its business through the
ports of Vancouver, Prince Rupert, Thunder Bay and Churchill over
the next two years. Grain companies that win tenders will be
responsible for making arrangements for the movement of this grain
such as deciding where the grain will originate, which port
terminal will be used and other details to ensure the tender is
effectively executed and the grain gets to port on time. The
contracts between the grain companies and the CWB include penalties
for non-compliance by either party.
To complement the tendering process, the CWB has also developed a
new car award system for non-tendered movement. The system,
expected to be in place by December, requires more discussion with
industry but it will award cars to the grain companies based on
where farmers sign contracts and deliver. "Because the new system
ties rail cars to farmer contract sign-up and deliveries,
competition should increase and farmers should have more
negotiating power with the grain companies," said Measner. "These
were critical features in designing a new system. Our bottom line
was to enhance the position of farmers in their dealings with grain
companies."
In addition to these details, the CWB and grain companies also
agreed on both Board and non-Board rail car requirements for the
next six weeks to ensure all grains move as smoothly as possibly
until all new procedures are in place.
Under the new environment, the CWB will maintain its status as the
shipper of grain which ensures the grain is routed to the most
economical facility, port or destination.
The CWB is the world's largest farmer-controlled wheat and barley
marketer. Headquartered in Winnipeg, Manitoba, it is one of
Canada's biggest exporters and the largest net earner of foreign
exchange. Marketing Prairie-grown wheat and barley to over 70
countries around the world, the CWB returns all sales revenue, less
the costs of marketing, to farmers in Western Canada.