A pilot program aimed at bringing more competition to Canada’s rail system is among the casualties of outgoing Prime Minister Justin Trudeau’s decision to prorogue Parliament.
The federal government announced an 18-month trial for extended interswitching in the 2023 federal budget, and the clock started ticking on the program in September 2023.
Interswitching allows a shipper, such as a grain company, that’s served by one railway to seek service from another rail company via an interchange between the two lines, within a specific distance.
Historically, shippers could access interswitching service at distances of up to 30 km — a measure that’s largely used to smooth rail traffic flows in and around cities.
The pilot program increased the distance to 160 km, giving some grain elevators access to interswitching service from other railways, but the 18-month period is set to expire in March.
“The only way to extend that pilot or to make it permanent is through a piece of legislation and with Parliament prorogued until March 24th, we won’t see a piece of legislation passed before then,” explained Kyle Larkin, executive director of Grain Growers of Canada, in an appearance on the Friday Issues Panel on RealAg Radio.
“We’re going to go back to 30 kilometre interswitching, which is, as you know, kind of useless for grain farmers and the grain sector at large,” he noted. “But the hope is, through an election, and with a new government, we can have permanent, extended interswitching that’s across the country.”
While railways have actively lobbied against extended interswitching, a group of more than 20 commodity and farmer organizations are advocating for extended switching to be made permanent. Their “Flip the Switch” campaign also calls on government to set the interswitching distance at 500 km to make interswitching available to all grain elevators.
Watching/listen to Kyle Larkin of Grain Growers of Canada discuss the impact of prorogation on federal policies, including the capital gains tax changes and extended interswitching, and the incoming Trump administration’s tariff threat on the RealAg Radio Issues Panel:
Related: Grain shippers urge MPs to move ahead with extended interswitching
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