CN Found in Breach of Service to Grain Shippers

(Today’s Trucking)

Four out of six grain shippers have been vindicated in their cases against CN Railway, which they claim has not been providing a adequate and reasonable level of service for the movement of Western grain for crop in 2007 and 2008.

The Canadian Transportation Agency ruled that CN did not fail to meet its obligations under the Canada Transportation Act for services to Canadian Wheat Board and Providence Grain Group Inc.

However, the CTA did side with North East Terminal Ltd., Paterson Grain, Parrish and Heimbecker Limited, and North West Terminal Ltd. in similar complaints.

“Our grain terminals are now struggling to get rail cars when we need them for our markets because CN’s program requirements have been so rigid and unworkable for us,” said GNP Transportation & Logistics manager Perry Pellerin. “As a result, none but the largest grain handlers with multiple elevators could fit within CN’s service model, which strongly favored those who can ship in large rail car blocks, week after week, to a single destination.”

In its ruling, the quasi-judicial agency determined that a performance benchmark should be applied as a basis for determining whether CN is providing the shippers proper levels of service, including the confirmation of the number of rail cars requested by the shipper, as the timeliness and predictability of railcar delivery. Read more here.