Welcome!

News Feed Item

Important Measures for the Grain Handling and Transportation System Now in Force

New regulations all related to the Fair Rail for Grain Farmers Act

SASKATOON, SASKATCHEWAN -- (Marketwired) -- 08/01/14 -- Agriculture Minister Gerry Ritz and Transport Minister Lisa Raitt announced today the coming into force of a series of important regulations and an Order in Council (OIC) related to the implementation of the Fair Rail for Grain Farmers Act (Bill C-30), which received Royal Assent on May 29, 2014.

The Fair Rail for Grain Farmers Act amended the Canada Transportation Act and the Canada Grain Act to ensure that Canada's rail transportation network moves grain to markets as quickly and efficiently as possible, following a record crop year for Canadian farmers.

The measures, which take effect immediately, include:


--  The passing of an OIC, which sets out the minimum grain volumes that
    Canadian National Railway Company (CN) and Canadian Pacific Railway
    Company (CP) are each required to move from August 3, 2014 to November
    29, 2014.

--  Regulations requiring CN and CP to provide additional data on grain
    movement to better monitor the overall performance of the rail-based
    supply chain.

--  Regulations to clarify the operational terms in a service level
    agreement that can be arbitrated by the Canadian Transportation Agency,
    to support commercial negotiations between shippers and railways. These
    newly defined rail service obligations will increase predictability for
    all shippers.

--  An amendment to the Railway Interswitching Regulations extending the
    limit for rail interswitching from 30 kilometres to 160 kilometres in
    the provinces of Alberta, Saskatchewan and Manitoba for all commodities
    to increase competition among railway companies and give shippers access
    to alternative rail services.

--  Regulations to provide farmers with better protection through more
    accountability for grain companies in contracts.


Quick Facts


--  At 76 million tonnes, the 2013-14 Western Canadian crop was 50% higher
    than the 10-year average.

--  Since March 7, 2014, when the initial Order in Council, which set out
    minimum weekly volumes of grain that CN and CP were each required to
    move was passed, the railways have together moved an average of more
    than 1 million metric tonnes of grain per week.

--  The regulations passed today are intended to maximize the amount of
    grain moved by rail before the winter season and allow the government to
    re-assess the situation later in the fall, with the longer term goal of
    returning carryover stocks to normal levels by the end of July 2015.


Quotes

"After taking immediate action to get grain and other commodities moving, our Government has been building a solid foundation for managing future challenges. Today's regulations are the latest step in our ongoing efforts to create a rail supply chain that farmers and all shippers can depend on as they grow the Canadian economy."

- Agriculture Minister Gerry Ritz

"The coming into force of these important regulations puts the measures in place to avoid a repeat of last year's problems. Our Government has made tough decisions for the benefit of our producers, and to maintain Canada's good reputation as a global supplier."

- Transport Minister Lisa Raitt

Related Products

Associated Links

- Regulations on Operational Terms for Rail Level of Services Arbitration

- Regulations amending the Railway Interswitching Regulations

- Amendments to the Canada Grain Regulations

- Harper Government Welcomes Passage of Fair Rail for Grain Farmers Act

- Bill C-30 Passes Third Reading in the House of Commons

- Harper Government Introduces Legislation to Address Rail Capacity Challenges

- Harper Government acts to get grain moving in Western Canada

Backgrounder: Important measures for the grain handling and transportation system now in force

The Fair Rail for Grain Farmers Act (Bill C-30), which received Royal Assent on May 29, 2014, was introduced to bring stability to the grain sector while participants in the rail-based supply chain work together to bring greater capacity, predictability and accountability to the system.

Following the passage of the legislation, regulations are being introduced to ensure grain products continue to be transported to market as quickly and efficiently as possible.

The measures include:

Order in Council (OIC) specifying the minimum amount of grain to be moved

This OIC ensures that minimum grain volume requirements, which are currently in place under the Fair Rail for Grain Farmers Act, and previously in place under an OIC enacted in March 2014, continue to apply.

This OIC states that the minimum amount of grain that CN and CP must each move is 536,250 metric tonnes a week for the period beginning on August 3, 2014 and ending on November 29, 2014. This will ensure that more than one million tonnes of grain is moved per week through this fall's harvest.

As recommended by the Canadian Transportation Agency, this order has been drafted with the goal of ensuring that over the course of the full crop year, CN and CP continue to move on average one million metric tonnes of grain per week, taking into account reduced capacity through the winter months.

Regulations amending the transportation information regulations

The amended regulations allow the government to collect more detailed information from CN and CP on a more frequent basis. The new data to be collected will include:


--  Railway car cycle data covering all grain movements.

--  Weekly grain traffic by tonnage, carloads, railway car type and corridor
    travelled.

--  Railway car fleet information for all railway cars used for grain
    transportation, including the number of cars that are empty, loaded, in
    storage, enroute or in bad order.

--  Railway car order fulfilment information, including dates orders were
    placed, name of shipper, origin and destination of the grain, the total
    number of railway cars ordered and cancelled by the shipper, and number
    of railway cars the rail carriers have committed, placed and/or
    cancelled.


This information will allow the Grain Monitor to provide more timely updates on the state of Canadian grain transportation. Transport Canada will use the additional information collected to ensure a continuous and effective monitoring of the grain handling and transportation system. With the collection of information on all grain movements and the improvement in the completeness, accuracy and timeliness of the information, Transport Canada will have the opportunity to monitor, plan and react sooner in the event of a spike in demand for all grain movements and to better foresee capacity shortages in the sector. The information will also be shared with the Canadian Transportation Agency to assist the agency in developing its advice for the Ministers of Transport and Agriculture and Agri-Food Canada in regards to the determination of minimum grain volumes.

Regulations amending the railway interswitching regulations

Interswitching is a competitive access provision for the benefit of shippers. It ensures that shippers with only one choice of railway have fair and reasonable access to another competing railway at a regulated rate.

The Regulations Amending the Railway Interswitching Regulations prescribe new rates for extended interswitching distances of 160 km for shippers of all commodities in Alberta, Saskatchewan and Manitoba. This amendment extends the limit from the existing limit of 30 km, increasing competition among railways and improving shippers' access to markets.

Regulations on Operational Terms for Rail Level of Services Arbitration

The new Regulations on Operational Terms for Rail Level of Service Arbitration specify what constitutes operational terms that may be brought to a rail level of service arbitration. The Canadian Transportation Agency may consider, on a case-by-case-basis, whether other terms are operational for purposes of the Canada Transportation Act.

By defining operational terms, these regulations clarify the matters eligible for arbitration by the Agency. This will support the efficient processing of arbitration cases within the 45 to 65 calendar day statutory deadline.

The operational terms set out in the Regulations include railway obligations such as the furnishing of railway company cars, pick-up times, and transit times, along with terms that stipulate the circumstances that would make it impossible for the railway company to comply with an operational term (a force majeure provision). The regulations also stipulate than an operational term includes an obligation of recovery that the railway company must comply with if it fails to comply with the other operational terms and includes a recovery plan for the purposes of minimizing the consequences for the shipper of the railway company's non-compliance and of ensuring that compliance.

Operational terms related to a shipper's obligations would include, for example, loading and unloading of railway company cars and the subsequent release procedures, number of switches required and provision of access to the shipper's facilities.

Administrative monetary penalties will be used to enforce railway compliance with arbitration decisions. Alleged violations of an obligation imposed on a railway company in a level of services arbitration decision will be investigated. If a contravention has taken place, the Agency has the authority to issue a notice of violation of up to $100,000 per violation. In addition, in level of service adjudications, the Agency may now order a railway company to pay a shipper compensation for expenses arising from a breach of an obligation contained an obligation contained in an arbitrators' decision to allow shippers to be compensated for these expenses rather than downloading them to the farm gate.

These regulations complement the Rules of Procedure for Rail Level of Service Arbitration.

Regulations providing accountability between producers and grain companies

Amendments to the Canada Grain Act provide the Canadian Grain Commission with the authority to regulate provisions of grain contracts between producers and licensed primary and process elevators and licensed grain dealers.

New provisions in the Canada Grain Regulations address non-compliance for grain contracts between licensed grain companies and farmers that specify a delivery timeframe. Farmers now have a mechanism where they could be paid a penalty amount if their grain deliveries are not accepted within the timeframes defined in their contracts with grain companies licensed by the Canadian Grain Commission.

The new provisions will result in enhanced producer protection and will contribute to more balanced contractual relationships between grain companies and farmers.

Contacts:
Jeff English
Director of Communications
Office of the Honourable Gerry Ritz
613-773-1059

Jana Regimbal
Press Secretary
Office of the Honourable Lisa Raitt
Minister of Transport, Ottawa
613-991-0700

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972

Media Relations
Transport Canada, Ottawa
613-993-0055

Media Relations
Canadian Transportation Agency
819-934-3448

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 20th Cloud Expo, Tom Eck, Industry Platforms CTO at IBM Cloud, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing developers ...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...