Regulator rules against shippers’ complaints over railway billing

OTTAWA (July 11, 2002) — The Canadian Transportation Agency has rejected a complaint from the Canadian Industrial Transportation Association with respect to how Canada’s two largest railways develop and impose tariffs upon shippers.

CITA-“the national voice of the shipper”- argued that Canadian Pacific and Canadian National Railways lack the authority to unilaterally impose rules and charges contained in certain tariffs. The association cited everything from the use and storage of railway and shipper-supplied equipment, to weighing, switching, cleaning, loading and unloading of cars, as some of the extra charges. CITA also says shippers are billed and pursued to pay for actions that didn’t occur. The appeals process for these mistakes is one-sided, says CITA president Lisa MacGillivray, and there really is no recourse for the shipper to seek redress when they are made.

But the agency ruled yesterday, that under the way the Canada Transportation Act is presently framed, the railway companies are free to impose such tariffs as they see fit. It added CITA may still take its concerns to the Competition Bureau.

Both railways welcomed the ruling, adding that if shippers have concerns, they should be resolved through dialogue, not regulatory intervention.

CITA says it will study the ruling before deciding whether to appeal.