Forest Products Association Calls for Action Now on Rail Service
By 250 News
Friday, October 15, 2010 03:57 AM
Prince George, B.C.- The Forest Products Association of Canada (FPAC) is calling on the federal government to act quickly and decisively on the problem identified by the Rail Freight Service Review panel.
The interim report from the Rail Freight Service Review panel recognizes “there is a need for change” and that “improvement in rail service is required”. It goes on to make several recommendations that would help address some of the service inadequacies faced by all Canadian shippers. However the FPAC is disappointed the panel is relying on CN and CP to voluntarily bring in the changes with the government only considering regulatory measures after 2013.
“If the railways were serious about improving service they would have done so by now” says Avrim Lazar, the President and CEO of FPAC. “Service is poor because there is no effective competition. A delay is simply unacceptable and a deep blow to resource communities in rural Canada that depend on rail shipping.”
Lazar points to the panel report that notes “the major cause of rail service problems is railway market power, which leads to an imbalance in the commercial relationships between the railways and other stakeholders.”
For the forest products industry, most mills served by rail are captive to such a rail monopoly. “Why would the government want to give the railways another three years of virtual monopoly status, three more years to under serve and overcharge, and three more years of failing to adequately serve rural communities? The government needs to do its job now.”
Previous Story - Next Story
Return to Home