Canadian government postpones repeal of transportation act provisions

Canadian Minister of Transport Marc Garneau and Minister of Agriculture and Agri-Food Lawrence MacAulay on Wednesday announced the nation's government is postponing the repeal of certain 2014 provisions of the Canada Transportation Act for about a year.

The postponement until August 2017 will allow the various participants in the freight-rail supply chain to plan for the upcoming year under "predictable conditions," while the Canadian government fully assesses the recommendations presented in a report from the Canada Transportation Act Review Panel, Garneau and MacAulay said in a joint statement.

Enacted in 2014 by the Fair Rail for Grain Farmers Act, the provisions prescribe different distances, by region or goods, for inter-switching regulations; specify operational terms that can be referred to in level-of-service arbitration; and mandate that a railroad pay compensation to a shipper or any person for any expenses incurred as a result of failing to comply with a level-of-service obligation. The provisions also set a minimum amount of grain to be moved by CN and Canadian Pacific during any period within a crop year.

"Developing a long-term plan for the freight-rail sector, one that addresses all goods that are transported by rail and that ensures maximum efficiency, is my priority," said Garneau. "This extension will allow us the time to carefully examine and consult with stakeholders on the [report] recommendations to help us determine those important next steps."