Skip to page content

Canadian Wheat Board

Prairie strong, worldwide

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.

Back to top