Category: Logistics

Grain backlog growing as railways fall behind

Canada’s two major railways supplied less than half of the hopper cars ordered by grain shippers last week, according to data from the Ag Transport Coalition. The farm group and grain shipper coalition’s weekly report says Canadian National Railway (CN) only supplied 34 percent of cars that were ordered in week 28 of the crop… Read more »

CN and CP to pay $7 million combined for exceeding revenue entitlement for grain

The Canadian Transportation Agency says both CN Rail and CP Rail exceeded their maximum grain revenue entitlements during the 2016-17 crop year. CN’s grain revenue of $808,213,784 was $5,773,741 above its volume-based entitlement of $802,440,043, while CP’s revenue from grain of $725,457,448 was $1,078, 947 above its entitlement of $724,378,501. Both railways have 30 days… Read more »

CN cites derailments, frack sand demand as factors affecting grain movement

With winter weather settling in across Western Canada and new rail legislation meant to protect grain shippers stalled in Ottawa, there are serious concerns that railways could fall further behind in shipping a larger-than-expected 2017 crop to market. According to data from the Ag Transport Coalition, which includes grain companies and some farm groups, CN… Read more »

AGT signs 20-year service deal for new port terminal to be built in Vancouver

Regina-based pulse and specialty crop exporter AGT Food and Ingredients has signed a 20-year deal for access and certain exclusive rights to a new agriculture export terminal to be built at the Port of Vancouver. The long-term service agreement with Fibreco Export Inc. is pursuant to the B.C.-based forestry products exporter building a new crop… Read more »

Rail bill won’t be passed until after winter break

Farmers and grain shippers won’t be getting long-awaited changes to grain transportation rules for Christmas this year. Bill C-49, the Transportation Modernization Act, cleared the House of Commons at the end of October, but has only reached second reading in the Senate. Transport Minister Marc Garneau, who has been urging the Senate to approve the… Read more »

West Coast port capacity is surging, but can it be put to use?

From Prince Rupert down to Vancouver’s Fraser River ports, grain companies are investing hundreds of millions of dollars in infrastructure for loading grain onto ships destined for overseas markets. Just a few weeks ago, Raymont Logistics opened the only unit train stuffing facility on Canada’s west coast at Prince Rupert. In Vancouver, on the north shore of Burrard… Read more »

AGCO increases investment in Regina based parts distribution center

Waiting for parts can be brutally frustrating during very time critical moments like planting or harvest. Part inventories at the dealership have shrunk and farmers more regularly have to wait for a part to be shipped across the continent or the world. AGCO has announced that they will be expanding their parts distribution facility in… Read more »

Shortline railways to buy Saskatchewan’s hopper car fleet

The Saskatchewan government says it has reached deals with three shortline railways in the province to sell the Saskatchewan Grain Car Corporation’s fleet of 898 hopper cars. Big Sky Rail Corp. (663 cars), Great Western Railway Ltd (150 cars) and Great Sandhills Railway (85 cars) have committed to buying the fleet for $9.7 million, or… Read more »

Railways anticipating $1 billion annual carbon tax bill by 2022

Canada’s freight railways say they anticipate paying over a billion dollars per year by 2022 under carbon pricing policies proposed and planned by the federal and provincial governments. “It’s difficult to get a precise figure, but we’ve tried to run some estimates based on the existing pricing structures and fiscal instruments, as well as the… Read more »

GrainsConnect plans fourth Canadian elevator, at Huxley, Alta.

GrainsConnect Canada has announced plans to build a fourth grain terminal in Western Canada. Pending necessary approvals, the company will build a 35,000 tonne elevator at Huxley, Alberta (approximately 75km southeast of Red Deer.) GrainsConnect, a joint venture between Australia-based GrainCorp and Japanese ag co-op Zen-Noh, has three other elevators under construction, at Maymont and… Read more »

Grain companies looking forward to taking proposed rail legislation for a test drive

“It’s not perfect, but it is better than we expected.” The new rail legislation introduced by the federal government checks off most of the boxes on the list for grain shippers, says Wade Sobkowich, who represents major grain companies as executive director of the Western Grain Elevator Association. Bill C-49 would give shippers the right… Read more »

Garneau aiming to pass new rail legislation “later this year”

Farm and grain industry groups are optimistic new freight rail legislation proposed by the federal government will shift the balance of power in the market toward shippers. Some are even saying the bill introduced by Transport Minister Marc Garneau goes further than they expected. If passed, Bill C-49 would give shippers the right to charge railways… Read more »

Commodity groups optimistic new rail legislation will improve grain transportation

Farm and crop industry groups are welcoming the legislation introduced by Transport Minister Marc Garneau on Tuesday. Bill C-49 would, among other things, give shippers the ability to charge reciprocal penalties to railways for poor performance, clarify of the definition of “adequate and suitable” service, and increase requirements for railway reporting and contingency planning —… Read more »

New rail legislation keeps revenue cap, adds “long-haul interswitching”

Federal Transport Minister Marc Garneau introduced draft legislation on Tuesday that includes long-awaited changes to the rules governing grain transportation by rail. Bill C-49 will, among other things, give shippers the right to seek reciprocal financial penalties in service agreements with railways, define “adequate and suitable” rail service, and implement new data reporting requirements for railways… Read more »

New rail bill yet to be introduced

Update, May 12: A bill entitled “An Act to amend the Canada Transportation Act and other Acts respecting transportation and to make related and consequential amendments to other Acts” was added to the House of Commons notice paper on Friday, May 12, meaning it could be introduced as early as Tuesday, May 16. A spring… Read more »