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Canadian Wheat Board

Prairie strong, worldwide

Newsroom

2001

August 10, 2001

CWB announces transportation agreement reached

Winnipeg - The Canadian Wheat Board announced today that a transportation and handling agreement has been reached with the Western Grain Elevators Association (WGEA) and Inland Terminal Association of Canada (ITAC). The agreement lays the groundwork for a more commercial transportation and handling system.

"This is a historic announcement and we are looking forward to moving ahead with it," said CWB President and CEO Greg Arason. "We now have a clear set of business rules that will allow us to focus our energies on moving farmers' grain as efficiently and effectively as possible."

The Government of Canada introduced transportation legislation May 10, 2000. Since that time, the WGEA, ITAC and CWB began negotiating in order to implement a more commercial grain handling system.

"Given the importance of this agreement it is not surprising that it took a significant amount of time to finalize," said CWB Chair Ken Ritter. "But our goal from the outset was to ensure farmers interests were protected and we feel confident farmers will benefit from this agreement."

The three-year transportation and handling agreement is an important step in enhancing the competitive environment at the farm gate. Several significant initiatives - from a farmer-based system of car awards to an improved tendering process - have been incorporated in the deal. Through the upcoming CTA review process, the CWB will continue pushing for increased railway competition to benefit farmers.

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.

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