Ottawa tables shipper-friendly changes to Transportation Act

OTTAWA — Transport Canada is proposing a new set of guidelines for settling disputes between shippers and their rail service providers, including eliminating the need of a third party agency to determine harm to shippers before issuing a remedy.

Transport Minister Lawrence Cannon has tabled amendments to the rail freight provisions of the Canada Transportation Act in the House of Commons.

The proposed amendments would clarify and strengthen the Act’s current provisions that protect rail shippers from the potential abuse of market power by railways, as well as help address shipper concerns about rail service and rates, while “providing regulatory stability to the railways.”

Under Transport Canada’s proposal, railways would have
to publish a list of rail sidings available, among other things.

Among the amendments:

Removing the requirement for the Canadian Transportation Agency to be satisfied that a shipper would suffer substantial commercial harm before it grants a remedy; and extending final offer arbitration to groups of shippers on matters relating to rates or conditions.

— Allowing for the suspension of any final offer arbitration process, if both parties consent to pursue mediation

— Permitting the CTA, upon complaint by a shipper, to investigate charges and conditions for incidental services and those related to the movement of traffic; and to establish new charges or terms and conditions if it finds those in the tariff to be unreasonable.

— Increasing the notice period for augmentations in rates for the movement of traffic from 20 to 30 days to ensure that shippers receive adequate notice of rate increases.

— Requiring railways to publish a list of rail sidings available for grain producer car loadings and to give 60 days notice before removing such sidings from operation; and

— Ensuring that the abandonment and transfer provisions apply to lines that are transferred to provincial short lines and subsequently revert to a federal railway.

Furthermore, Ottawa has would review railway service within 30 days after the above amendments have been passed.

The government will consult with shippers and the railways on the scope and terms of reference for this review.

“I made a commitment that these amendments would be introduced after working with the shippers and the railways to develop possible commercial solutions for resolving disputes,” said Minister Cannon.

“I am confident that these proposed amendments will go a long way in addressing the concerns that I have heard from shippers across the country,” added Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. “Reliable and competitive rail service is essential for our producers to succeed in the global marketplace.”