The Canadian Oilseed Processors Association (COPA) welcomes the announcement that the Government of Canada will pursue a one year extension of certain provisions enacted in 2014 by the Fair Rail for Grain Farmers Act.
“We appreciate the government’s decision to work with Parliament to keep the provisions of the Fair Rail for Grain Farmers Act in place while considering permanent changes,” said Chris Vervaet, Executive Director of COPA. “Our members are particularly pleased that the 160 km interswitching provision will be kept in place.”
Extended interswitching is being used by shippers and is an effective tool to provide additional competition between the two Canadian Class I railways as well as with other North American carriers.
“COPA members are reporting an improvement in the level of service and are noticing more competitive freight rates when using the 160 km interswitch provision,” said Vervaet.
“It provides a level of competition in an environment where shippers are often captive to a single railway service provider.”
COPA will continue to advocate for permanent regulatory solutions that encourage competitive behaviour and also balanced accountability between railway companies and shippers. Additional accountability measures such as reciprocal penalties in service level agreements are essential for any commercial relationship.
“Currently, there is not an effective mechanism for oilseed processors to hold railways commercially accountable for their level of service,” explained Vervaet. “Holding railways accountable for service with financial penalties is essential to bring a level of balance between shippers and the railways.”
COPA appreciates the Government of Canada’s commitment to remain engaged with all stakeholders during its ongoing assessment of the Canada Transportation Act Review. COPA looks forward to working with the government to establish solutions that support a competitive and efficient shipping environment.
The Canadian Oilseed Processors Association (COPA) is a federally incorporated non-profit industry association that works closely with the Canola Council of Canada to represent the major oilseed processors in Canada.
