Newsroom
2001
May 4, 2001
Farmers remain captive to railways
Winnipeg -- The CWB said the decision yesterday by
the Canadian Transportation Agency puts western Canadian farmers in
a position where there is no rate regulation or competition for
moving their grain.
The Agency ruled that the Canadian Transportation Act (CTA) does
not provide for the ability of a competitor railway - seeking
running rights over another railway´s rail lines - to solicit
business on those lines. In its decisions the Agency dismissed the
running rights applications of both Hudson Bay Railway and
Ferroequus Railway saying that they were beyond the competitive
provisions included in section 138 of the Act.
This decision reinforces the need to clearly spell out what is
meant by competitive access and encourage much needed competition
in Canada´s rail sector. "The ball is now fully in the court
of the CTA Review Panel to make meaningful recommendations to the
Minister of Transport to change the Act to ensure there is
effective competition for captive shippers," said Ken Ritter, Chair
of the Board of Directors for the CWB. "We are writing the CTA
Review Panel to voice our concerns about the implications of this
decision on farmers and ensure that provisions for effective
competition are included in the new legislation."
"Yesterday´s decision puts farmers totally at the mercy of CN
and CP," said Ritter. "It gives them a virtual monopoly because
other railways that want to offer meaningful competition do not
have the ability to compete for business currently captive to these
railways."
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 currency. 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.