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Rail legislation worries

1K views 6 replies 5 participants last post by  misterjade9 
#1 ·
So I haven't seen the complete bill, but my main concern is what entices the rail and grain companies with moving grain from slower turn around areas such as the northeast of saskatchewan. I bought grain for enough years to understand that rail allocation can be flexed out of one zone to another by the elevator/rail companies. We've experienced this all year with allocations being transfered to points closer to vancouver and rupert. Personally I see this only getting worse with the stipulations outlined in the new bill. Since announcement of the proposed bill, rail service has gotten worse.
Secondly, I feel the government missed the mark when they left the rail revenue cap alone. I'm sorry but trying to strong arm the railways will only make things less efficient. I realize the rail companies make too much money as is, but throwing a revenue cap increase carrot in front of their nose. Have it tied to performance across all corridors. They meet so many weeks of rail targets, the cap increases by x amount.
 
#3 ·
You are right dwh039.
My wife works at Viterra in Crossfield which happens to be about the closest terminal to port. So of course the quickest turn around time back to port. They are getting trains so fast now that they are scrambling to find enough grain to fill the cars! I am sure what will happen next is when the terminals can't source enough grain fast enough to fill the cars the railroads can they say it is the grain handling system that is the problem not the railroads. It will be their way to get back at the government being they were forced to start moving grain. It is getting bad enough that people are hauling from as far away as Moose Jaw and Lloydminster to Crossfield. How stupid is that? Would make a lot more sense to put the train at Moose Jaw or Lloyd! But that is the game the railroads are playing right now.
 
#5 ·
As usual the government is a dollar short and two days late. This entire let's get tough on the railways talk is nothing but optics. Why do you think the government waited until March to roll this out. The weather improves, making for longer trains, improving turnaround times, and just in time for breakup when most people can't get into the field to empty bags and clean up piles. When the grain dosen't hit the elavators the railways will say look see we have the cars here where's the grain. and we as producers will be villified for not delivering. As far as the freight cap, I'd like to see it eliminated, regulate the cost per car then it gives the railways an incentive to move more cars of grain. The more cars you move the more you make, now what is their incentive if you have to pay back the overage why would you try and move any. I reiterate again we need competition in our railway system.
 
#6 ·
As far as the freight cap, I'd like to see it eliminated, regulate the cost per car then it gives the railways an incentive to move more cars of grain. The more cars you move the more you make, now what is their incentive if you have to pay back the overage why would you try and move any. I reiterate again we need competition in our railway system.
That IS how the revenue cap works. It is a cap on the revenue that the railway is allowed to charge above their operating costs per car (ie. cap on the profit per car). The more grain they haul, the more money they make.

Andrew
 
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