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The Canadian government recently reached new 10-year agreements with Canadian National Railway Co. and Canadian Pacific Railway governing the operation, maintenance and refurbishment of the federal grain hopper fleet.

The government owns 11,900 hopper cars, which the railroads use at no cost to transport federally regulated grain from the western prairies to ports in Vancouver and Prince Rupert, British Columbia; Armstrong and Thunder Bay, Ontario; and Churchill, Manitoba. CN and CPR manage, maintain and operate the cars.

In May 2006, the government announced plans to retain ownership of the fleet and negotiate new operating agreements with the railroads.

The new pacts call for the government to continue providing hopper cars to CN and CPR at no cost for regulated grain moves, and continue charging the railroads for using the cars to transport freight other than regulated grain. The Class Is agreed to refurbish the fleet to keep cars in good operating condition, replace hoppers as they retire and meet monthly federal reporting requirements to ensure they comply with the pacts' obligations.

During the next five years, the railroads must inspect every steel hopper car built after 1974 to determine needed repairs. An independent third party will conduct follow-up inspections to ensure repair work is completed and inspect cars every two years.