Canadian Pacific Railway is blasting the federal government's attempt to legislate a solution to the grain transportation backlog as unfair and potentially harmful to the economy.
Legislation introduced this week will do nothing to boost capacity in the grain handling system and could even damage the Canadian rail transportation system, said Hunter Harrison, chief executive of Calgary-based CP in a statement on the company's website.
"We are very concerned about the speed and lack of consultation by the government in making such significant changes to the rail transportation system that could result in unintended consequences for all stakeholders," Harrison said.
The Prairies had a record fall harvest last year, but much of it hasn't been shipped to market because of a transportation bottleneck, prompting farmers to demand Ottawa force the railways to move it faster.
Agriculture Minister Gerry Ritz tabled a bill Wednesday that would see the Canadian Grain Commission regulate how much a grain company pays a farmer if the company doesn't meet contracted delivery dates.
Harrison said it's easy to blame the railways, but it ignores the facts.
"Canada's grain handling system is just not built to handle this record amount of grain," he said, adding that an extremely cold winter has made the job even more challenging.
"Targeting the railways when our dedicated men and women are working 24/7 to recover from some of the harshest winter operating conditions ever seen, is not only ineffective but grossly unfair."
Ottawa is also amending what are called inter-switching limits from 30 kilometres to 160 kilometres in Alberta, Manitoba and Saskatchewan — adding more competition among railways to service grain elevators.
But Harrison warns that increasing inter-switching will harm Canadian competitiveness and put jobs at risk by transferring traffic to U.S. railroads and ports.
"We need to move away from reactionary legislative interventions that target unfairly one participant and potentially damage the Canadian economy. Instead we should all focus on commercial solutions to maximize overall capacity in the grain supply chain," Harrison said.
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