pr"> pr" />

1370 Ontario St. - Mezzanine, Cleveland, Ohio 44113 • (216) 241-2630 / Fax: (216) 241-6516

Membership
Benefits
News and Issues
Departments
Secretary-Treasurers
Information
Merchandise
Communications
FELA
Events
Links
User Info

CN says Canada's rail transportation system is ready for new harvest

(Source: CN press release, July 28, 2014)

MONTREAL — CN said today Canada’s rail transportation system is ready to accommodate the new harvest with a solid throughput rate in line with the grain supply chain. The supply chain will also be able to address the excess carry-over from last year's extraordinary crop by as early as next spring.

Claude Mongeau, president and chief executive, said: “CN posted a record performance in the 2013-2014 crop-year just ending – our movement of Western Canadian grain was a full 25 per cent greater than past average performance.

“We can be proud of our performance and for making good on the commitments we gave the federal government a month before the order-in-council requiring railways to move specific grain volumes took effect last March.

“By virtue of normal commercial incentives, the grain handling and transportation system is now fully back in sync and ready to accommodate the upcoming harvest.

“This positive development is very encouraging and calls for careful balance from the federal government in how it pursues the regulatory agenda it announced in haste in the midst of a very difficult winter.”

Mongeau said CN transported record grain volumes last fall until extreme cold weather affected the rail industry’s ability to move grain efficiently between mid-December and early March. In February, CN promised the federal government it would ramp back up to record performance as soon as the weather eased – and it did just that. The weather clearly challenged CN’s operations, but the company’s winter grain shipments ultimately turned out to be only two per cent below normal winter volumes.

CN’s run rate of spotting approximately 5,500 grain hopper cars per week since April 2014 has exceeded unconstrained orders placed by its customers, and its wait-list has declined significantly in the last few months due to a high level of order cancellations. As such, CN’s wait-list now represents a normal level of only one week of shipments.

With the rail transportation system running efficiently, Mongeau said the grain supply chain is very well positioned to handle the coming harvest.

“According to Agriculture Canada, the carry-over from the crop-year just ending will be about 18 million tonnes, only 5.5 million tonnes higher than an average carry-over. Given a late-planted crop this spring, the supply chain will have another five or so weeks to deplete stocks further by five to six million tonnes prior to the harvest starting in full gear. All this means there should be sufficient storage capacity available in the system.

“Looking forward, given Agriculture Canada’s latest 2014-2015 crop forecast of 59 million tonnes – slightly higher than a trend-line average crop – the current throughput level for the rail industry should be sufficient to eliminate all the excess carry-over of grain by as early as next spring.”

Mongeau concluded: “End-to-end balance has been restored to the grain supply chain through hard work and normal commercial incentives. As there is no structural problem to fix, the government of Canada should limit the scope of new rail regulations, and instead focus on encouraging true supply chain collaboration.

"CN urges the federal government to adopt such a commercial approach and is ready to play its key role in the grain handling and transportation system for the benefit of Canadian grain growers.”

Tuesday, July 29, 2014

Like us on Facebook at
Facebook.com/BLETNational

© 1997-2014 Brotherhood of Locomotive Engineers and Trainmen

 


Safety Task Force Hotline
800-306-5414

Decertification Helpline
800-393-2716

DAILY HEADLINES

Teamster Nation: Get the latest updates in the War on Workers
Crude oil train disclosures raise risk of attack, regulators told
Sen. Schumer presses rail industry to phase-out DOT-111 tank cars
5 critically hurt as freight train hits tourist train in Arkansas
U.S. Senator raises concerns over potential CP, CSX deal
Pershing Square's Ackman says some rail mergers pro-competitive
Possible CSX-CP Rail deal could aid Albany region
CSX COO Oscar Munoz sells $2.53 million in company stock
CSX earnings: Volumes up but revenue per unit remains sluggish
CSX expects continued growth in domestic intermodal
'Okay, we're in hell:' Lac-Megantic fire chief recounts night of train explosion
Brakes tampered with on runaway train cars in south Edmonton, CP Rail says
AAR: Combined weekly rail traffic up 4.6 percent over 2013 for week ending October 11
Editorial: If passenger rail service is to have a future, Amtrak and freight lines must get more cooperative
Trial date pending in BNSF homicide case
CSX celebrates Winter Haven transportation hub
A chat with Amtrak CEO Joe Boardman on the state of U.S. passenger rail
Credit for military service under the Railroad Retirement Act

More Headlines


Enter your e-mail address to receive BLET news updates.

Subscribe  Unsubscribe