Newsroom
2005
CWB lauds federal government's plan to negotiate with FRCC
March 10, 2005
Winnipeg - Western Canadian farmers achieved a milestone yesterday when the Federal Transport Minister announced the Government of Canada will negotiate with the Farmer's Rail Car Coalition (FRCC) about transferring ownership of the federal railway hopper car fleet.
"We're pleased the federal government sees the FRCC's innovative proposal as a way to make farmers full-fledged partners in Canada's grain handling and transportation system," said Ken Ritter, Chair of the CWB's farmer-controlled board of directors. "We're equally pleased that the government is working to keep transportation costs down and empower farmers."
Currently, there are approximately 12,400 railway hopper cars in the government-owned fleet. These cars are provided at no cost to the railways for the transportation of grain from the Prairies for export through the ports of Vancouver, Prince Rupert, Thunder Bay, and Churchill.
The FRCC plan would see ownership of these cars transferred to farmers through the FRCC, who would manage and maintain the railcar fleet.
"This proposal would prevent increased transportation costs that would occur if other stakeholders took ownership of the cars," said Ritter. "The FRCC has already saved farmers millions of dollars annually by preventing such a transfer from occurring prematurely, before farmers were able to submit a viable plan such as this one."
Ritter noted that the FRCC plan calls for better car maintenance at a lower cost and increasing the carrying capacity of the cars. This plan could save farmers between $50 and $75 million annually. Transferring the cars at a nominal fee, as the FRCC plan recommends, would allow that group to build a reserve fund sufficient to replace the cars as they wear out.
Each year between 18 and 22 million tonnes of grain move from the Prairie region to customers across Canada, North America and around the world. The region's substantial distance from port position makes transportation costs the single-largest component in the cost of marketing grain.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Louise Waldman
Manager, Media Relations
Tel: (204) 983-3101
Cell: (204) 479-2451