Canadian Wheat Board, farmers demand freight rate review

WINNIPEG (April 30) — A group led by the Canadian Wheat Board is demanding a federal review of freight rates charged by railways.

“The CWB, along with leaders of the major Prairie farm organizations, today called on federal Transport Minister David Collenette to initiate immediately a grain freight rate costing review,” the groups said in a statement released yesterday by the board.

The most recent review of freight rates was in 1992. Grain transportation and handling has since become more efficient, but the railways are still collecting freight fees based on seven-year-old costs, the group said.

“Preliminary research indicates that current freight rates may be as much as $200 million higher (on a crop year basis) than they should be based on actual railway costs,” the statement said.

Last year, Ottawa concluded a study of how grain is moved in the Prairies called the “Grain Handling and Transportation Review.” Among the recommendations were to allow the railways to set their own rates, and to remove the CWB from management of inland transportation and handling.