REGINA – The federal government is fining CN Rail up to $100,000 for not moving enough grain.
“When grain doesn’t move, the people that ultimately pay the price are the farmers,” said Todd Lewis, vice president of the Agricultural Producers Association of Saskatchewan.
The memory of last year’s grain backlog is fresh in the minds of farmers who were hit hard.
“All we’re asking is that the railroads that say they’re going to move x-number of cars a week, then there has to be some kind of regulation that ensures that happens,” said Lewis.
This past May, the federal government delivered just that. The Fair Rail for Grain Farmers Act requires rail companies like CN move one million tonnes each week until the end of November. But just like last year, that hasn’t happened.
“And that’s why the first monetary penalty under the Fair Rail for Grain Farmers Act will be imposed on CN railway for failing to move a minimum amount of grain each week,” said parliamentary secretary for agriculture, Pierre Lemieux.
CN argues that claim is unfounded – issuing a statement which says low grain supply is to blame for decreased volume.
Meanwhile on Saskatchewan farms, bins are topping up with grain ready to be hauled away.
Farmers say location of the railway cars also affects shipment times.
“There are large areas of the province that still have lots of last year’s crop but they haven’t got shipping. It’s very easy for the railroads to move the grain close to the mainlines and so on, but to the short lines and the private railroad companies, they need that shipping as well,” said Lewis.
The federal government remains hopeful that the new act will help make railway companies more accountable. But they still haven’t said just how much of a financial penalty CN will face.
Comments