CN challenges grain elevator companies as it delivered 5,100 hopper cars
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CN challenges grain elevator companies as it delivered 5,100 hopper cars
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| March 31, 2014
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CN challenges grain elevator companies as it delivered 5,100 hopper cars
Description
March 31, 2014
MONTREAL - Canadian National Railway says it is making progress to meet the government's target of increasing grain shipments, but also called on Western Canadian grain elevator companies to ‘step up’ their performance.
“Having wrongly singled-out railways and unrealistically called for a near-doubling of rail car capacity since last fall, it is now time for grain elevators companies to step up to the capacity they claim to have, and do so in the corridors that will benefit Canadian farmers the most,” CEO Claude Mongeau said Monday.
The country's largest railway said it provided 5,102 hopper cars for loading last week, the most in its history at this point of the season.
It marked the fourth week in a row the railway has delivered more than 4,000 cars. The average of 4,550 cars per week is 21 per cent greater than CN's average March performance for the last decade.
Calgary-based Canadian Pacific said it is not disclosing the weekly grain car numbers it has been reporting to federal officials. However, CP spokesman Ed Greenberg also said the results show the railway is continuing to move record amounts of grain.
The federal government passed an order-in-council on March 7 that imposes a daily fines of up to $100,000 on CN and rival CP should they fail to double the volume of grain shipments.
Both CP and CN have blamed abnormally cold weather for much of the slowdown in shipments. For safety reasons, the railways reduced the number of cars their locomotives pull in winter to 70 per cent of what they move during warmer months.
Mongeau said it continues to make ‘significant progress’ to reach its goal of transporting close to 5,550 gain cars per week, but can only meet its commitment “if other key players in the supply chain are equally held to account for their performance.”
He said railways are the only segment of the supply chain to be targeted ``by heavy-handed regulation'' as Ottawa hasn't yet regulated grain elevator operators.
“The faster space is created at country elevators, the more grain, from the most farmers, will be able to move to market,” he added.
CN has said grain elevator companies acted too slowly at the beginning of last year's harvest to get it to market.
Elevator operators failed to take advantage of around 10,000 carloads of available rail capacity on the Prairies when the bumper crop started coming in during August, CN said.
“One of the biggest root causes of the challenge we face is a lack of co-ordination across the supply chain and growing pains from new grain marketing strategies following the change in role of the Canadian Wheat Board,” Mongeau said.
“The faster we can ramp up tonnage, the quicker we will be able to mitigate the effects of the grain backlog for all Canadian farmers.”
Last week, CP chief executive Hunter Harrison decried the speed and lack of consultation before the government changed the rail transportation system, that could result in unintended consequences.
“We need to move away from reactionary legislative interventions that target unfairly one participant and potentially damage the Canadian economy,” Harrison said.
“Instead we should all focus on commercial solutions to maximize overall capacity in the grain supply chain.”
-
CN challenges grain elevator companies as it delivered 5,100 hopper cars -
Purds vs Pats – De Caria04:12 | May 15, 2023 -
FSIN says treaties trump NRTA01:44 | April 14, 2023 -
Political punch-up follows questions over treaty rights01:42 | April 11, 2023 -
Purds vs Pats – Brown03:18 | March 17, 2023 -
Sask. government tightens restrictions on independent schools02:02 | March 9, 2023 -
Passengers offered bus ride after WestJet cancelled flight due to maintenance01:45 | February 27, 2023 -
The newest chapter in a storied career: Rob Vanstone joins Saskatchewan Roughriders03:06 | February 22, 2023 -
Rural community says faith in Saskatchewan health care shaken after ER disruptions01:57 | February 22, 2023 -
‘Ramen and the food bank’: SAID recipient urges province to increase benefit rates01:51 | February 16, 2023 -
New report highlights ‘labour trafficking’ in Canada01:31 | February 15, 2023 -
University of Regina strips Mary Ellen Turpel-Lafond of honorary degree02:19 | February 14, 2023 -
Premier Scott Moe addresses federal funding, changes for health care01:27 | February 13, 2023
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Workers worry for future as SLGA store closures loom01:46 | January 16, 2023 -
2000 “anomalies”, child’s bone fragment found amid radar search at Qu’Appelle residential school02:08 | January 12, 2023 -
‘We feel defeated’: Family responds after Saskatchewan coroner denies inquest into overdose death02:03 | January 5, 2023 -
Saskatchewan airports optimistic for year ahead despite airline cancellations02:03 | January 3, 2023
-
CN challenges grain elevator companies as it delivered 5,100 hopper cars| March 31, 2014
-
Purds vs Pats – De Caria04:12 | May 15, 2023
-
FSIN says treaties trump NRTA01:44 | April 14, 2023
-
Political punch-up follows questions over treaty rights01:42 | April 11, 2023
-
Purds vs Pats – Brown03:18 | March 17, 2023
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Sask. government tightens restrictions on independent schools02:02 | March 9, 2023
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Passengers offered bus ride after WestJet cancelled flight due to maintenance01:45 | February 27, 2023
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The newest chapter in a storied career: Rob Vanstone joins Saskatchewan Roughriders03:06 | February 22, 2023
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‘Ramen and the food bank’: SAID recipient urges province to increase benefit rates01:51 | February 16, 2023
-
New report highlights ‘labour trafficking’ in Canada01:31 | February 15, 2023
-
University of Regina strips Mary Ellen Turpel-Lafond of honorary degree02:19 | February 14, 2023
-
Premier Scott Moe addresses federal funding, changes for health care01:27 | February 13, 2023
-
Canadian Paralympian Tyler McGregor skates 42 kilometres in Saskatchewan on Canada tour02:03 | February 9, 2023
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Tight race expected in Regina Coronation Park byelection as MLA Docherty resigns01:36 | February 7, 2023
-
Team Knapp excited to represent Saskatchewan at 2023 Brier01:53 | February 6, 2023
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Sask. Premier Scott Moe expecting increased health care funding ahead of meeting01:50 | February 6, 2023
-
Regina Flying Club looks to produce more commercial pilots in Saskatchewan skies01:47 | February 3, 2023
-
Province, Sask. NDP trade barbs five years after Moe takes office01:57 | February 2, 2023
-
‘You’ve got go have fun and enjoy the moment:’ Team Silvernagle ready for run at the Scotties02:03 | February 2, 2023
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Regina lotto worker caps 32-year career with $250K win just before retirement01:42 | January 31, 2023
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Evraz says ‘unfair’ steel imports to blame for coming Regina layoffs01:29 | January 30, 2023
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‘Tone deaf’: former Regina police commissioner decries lack of Black representation on current board01:43 | January 27, 2023
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Advocates frustrated a year after Saskatchewan’s pledge to explore rare disease strategy01:51 | January 24, 2023
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Zack Stringer return from injury01:50 | January 18, 2023
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Despite severance deal, workers worried as SLGA store closures loom01:45 | January 16, 2023
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Workers worry for future as SLGA store closures loom01:46 | January 16, 2023
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2000 “anomalies”, child’s bone fragment found amid radar search at Qu’Appelle residential school02:08 | January 12, 2023
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‘We feel defeated’: Family responds after Saskatchewan coroner denies inquest into overdose death02:03 | January 5, 2023
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Saskatchewan airports optimistic for year ahead despite airline cancellations02:03 | January 3, 2023
CN challenges grain elevator companies as it delivered 5,100 hopper cars
Description
March 31, 2014
MONTREAL - Canadian National Railway says it is making progress to meet the government's target of increasing grain shipments, but also called on Western Canadian grain elevator companies to ‘step up’ their performance.
“Having wrongly singled-out railways and unrealistically called for a near-doubling of rail car capacity since last fall, it is now time for grain elevators companies to step up to the capacity they claim to have, and do so in the corridors that will benefit Canadian farmers the most,” CEO Claude Mongeau said Monday.
The country's largest railway said it provided 5,102 hopper cars for loading last week, the most in its history at this point of the season.
It marked the fourth week in a row the railway has delivered more than 4,000 cars. The average of 4,550 cars per week is 21 per cent greater than CN's average March performance for the last decade.
Calgary-based Canadian Pacific said it is not disclosing the weekly grain car numbers it has been reporting to federal officials. However, CP spokesman Ed Greenberg also said the results show the railway is continuing to move record amounts of grain.
The federal government passed an order-in-council on March 7 that imposes a daily fines of up to $100,000 on CN and rival CP should they fail to double the volume of grain shipments.
Both CP and CN have blamed abnormally cold weather for much of the slowdown in shipments. For safety reasons, the railways reduced the number of cars their locomotives pull in winter to 70 per cent of what they move during warmer months.
Mongeau said it continues to make ‘significant progress’ to reach its goal of transporting close to 5,550 gain cars per week, but can only meet its commitment “if other key players in the supply chain are equally held to account for their performance.”
He said railways are the only segment of the supply chain to be targeted ``by heavy-handed regulation'' as Ottawa hasn't yet regulated grain elevator operators.
“The faster space is created at country elevators, the more grain, from the most farmers, will be able to move to market,” he added.
CN has said grain elevator companies acted too slowly at the beginning of last year's harvest to get it to market.
Elevator operators failed to take advantage of around 10,000 carloads of available rail capacity on the Prairies when the bumper crop started coming in during August, CN said.
“One of the biggest root causes of the challenge we face is a lack of co-ordination across the supply chain and growing pains from new grain marketing strategies following the change in role of the Canadian Wheat Board,” Mongeau said.
“The faster we can ramp up tonnage, the quicker we will be able to mitigate the effects of the grain backlog for all Canadian farmers.”
Last week, CP chief executive Hunter Harrison decried the speed and lack of consultation before the government changed the rail transportation system, that could result in unintended consequences.
“We need to move away from reactionary legislative interventions that target unfairly one participant and potentially damage the Canadian economy,” Harrison said.
“Instead we should all focus on commercial solutions to maximize overall capacity in the grain supply chain.”
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