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News Release

The Canadian Transportation Agency Will Hold a Hearing to Examine Complaints Filed by Naber Seed and Grain Against CN

OTTAWA - January 7, 2002 - The Canadian Transportation Agency (the Agency) will hold an oral hearing in Saskatoon commencing on January 28, 2002 into two complaints filed by Naber Seed and Grain Co. Ltd. (NSG), a specialty crop shipper, alleging that the Canadian National Railway Company (CN) has failed to fulfill its common carrier obligations in a number of grain weeks during the crop year 2000-2001.

At the hearing, the Agency will hear evidence on NSG's allegations that CN has breached its level of service statutory obligations for grain weeks 18 to 38 for crop year 2000-2001. With respect to the remedy sought by NSG in both applications, the Agency will hear evidence on the issues of whether running rights are an appropriate remedy; on the alternate relief sought by NSG; on CN's new car allocation programs in particular as they relate to NSG, and on CN's argument concerning the rationing of railway hopper cars.

The complaints were filed by NSG on November 22, 2000 and October 11, 2001 pursuant to section 116 of the Canada Transportation Act.

On May 29, 2001, the Agency issued its decision (No. 282-R-2001) on the complaint filed by NSG in November 2000. In its decision, the Agency decided that CN had failed to provide NSG with a reasonable level of service during weeks 6 to 17 of the crop year 2000-2001 and, as a result, had breached its common carrier obligations under sections 113 to 115 of the Canada Transportation Act. CN was therefore directed to negotiate a service arrangement and communication procedures with NSG. However, the parties have not been able to conclude a negotiated service arrangement as ordered.

The Canadian Transportation Agency is a federal administrative tribunal. Agency procedures are governed by the rules of natural justice which ensure that all parties are dealt with in a fair and equitable way.

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For more information, please contact:

Sophie Boisvert
Communications Advisor
Canadian Transportation Agency
Tel.: (819) 953-9961

The Canadian Transportation Agency is a quasi-judicial, federal administrative tribunal. Its mission is to administer transportation legislation and government policies to help achieve an efficient and accessible transportation system by education, consultation and essential regulation.

The Agency and Rail Transportation

The Agency:

• deals with rate and service complaints arising in the rail industry;
• helps resolve disputes between railway companies and other parties over railway infrastructure matters;
• processes applications for certificates of fitness for the proposed construction and operation of railways, and approvals for railway line construction;
• determines regulated railway interswitching rates and the railway revenue caps for the movement of western grain;
• develops costing standards and regulations;
• audits railway companies' accounting and statistics-generating systems, as required.

Rail Complaints

In most commercial situations, shippers (companies shipping commodities) and carriers negotiate freight rates and levels of service themselves. When negotiations break down, a number of alternatives are available to shippers. Part of the Canadian Transportation Agency's mandate is to help resolve disputes between shippers and rail carriers. The Rail Complaints Directorate investigates complaints about the following topics:

Agency determinations on rates or conditions of service must be commercially fair and reasonable to all parties. When shippers complain about transportation rates or services, the Agency may grant the relief they seek, in whole or in part. The Agency must be satisfied, after considering the circumstances of the case, that the applicant would suffer substantial commercial harm if the Agency did not grant the relief.

The Canada Transportation Act also allows shippers and carriers to use final offer arbitration (FOA) to resolve private commercial disputes.