A federal regulator says Canadian National Railway Co. (TSX:CNR) has failed to meet its level-of-service obligations to the Canadian Wheat Board and five other shippers for services provided for the 2006-07 crop year.
Under the Canada Transportation Act, shippers can file a complaint if they believe railway companies fail to provide adequate and suitable service to them.
The Canadian Wheat Board called the ruling "a milestone victory."
It said the issue was CN's 2006 decision to provide most of its advance-booked grain hopper cars in blocks of 100, booked for 42 consecutive weeks to a single destination - called the GX100 program.
"This system essentially prevented participation by smaller shippers and those without multiple terminals. It also failed to satisfy the diverse needs of Prairie farmers in moving their grain to port," the wheat board stated in a release Friday.
The transportation agency said its ruling that it recognizes that CN, the country's largest railway, has revised its grain product programs for 2007-08 in an effort to address shortfalls.
However, the transportation agency also said it had insufficient information to rule on the 2007-08 crop year at this time.
It has ordered CN and the six shippers to file service information for the period of August 2007 to April 2008 adding, "the agency will be able to make a final determination on the adequacy of CN's service to grain shippers once it has all the necessary information."
CN spokesperson Jim Feeny said the ruling is related to a similar one made in July which directed the company to make changes to its car allocation and ordering program.
"The agency acknowledges we made those changes and now has asked for more information on service and performance, which we will fully comply with," Feeny said in an interview.
Besides the Canadian Wheat Board, the other five shippers to complain about CN were: North East Terminal Ltd., Paterson Grain, Parrish and Heimbecker Ltd., Providence Grain Group Inc. and North West Terminal Ltd.
Source :http://www.brandonsun.com
Friday, January 18, 2008
Transportation Agency says CN fails to meet service obligations to wheat board
The politics of transportation
This was the just the kind of advice that Congress could have done without.
Three years ago, Congress created a special panel to come up with ways to finance the country’s highways
The current highway plan is running a deficit, and lapses next year. The new plan needs money. The new plan will be critical for funding new highway projects in the Kansas City area, including light rail.
The problem? The new plan. The so-called National Surface Trans-portation Policy and Revenue Commission came up with an idea that just about everyone hates: Raise the gas tax by up to 40 cents over five years.
The commission also recommended imposing fees on bus and train tickets as well cargo to help spread the financial burden around. Bottom line, if we want better ways to get around, including light rail for Kansas City, we’re going to have to pay.
The U.S. Transportation Department, no friend of raising the gas tax, has been circulating a press release showing the national reaction, mostly from Republicans, to the proposed tax hike.
Here is a sampling tof he quotes, confirmed by PrimeBuzz, about Congress’ reaction to the tax increase.
U.S. Sen. Chuck Grassley, R-Iowa and the ranking member of the Senate Finance Committee: “Raising gas taxes should be a last resort. Instead, it’s a first resort for this commission. Raising the gas tax would put us in the fast lane to a recession. Businesses and consumers depend on strong transportation infrastructure. A gas tax increase would ramp up transportation costs without ensuring road improvements.”
U.S. Rep. John Mica, R-Fla. and ranking member of the House transportation committee: “A dramatic increase in the gas tax does not stand a snowball’s chance in hell of passing Congress."
U.S. Rep Roy Blunt, R-Mo. and Republican whip: “As Congress and the administration work to create a package to stimulate our economy, it should be obvious that more than doubling the federal gas tax on working Americans would have precisely the opposite effect.”
And here is what other folks have said.
U.S. Rep. Peter DeFazio, an Oregon Democrat and highway subcommittee chairman on the House transportation committee:
“It is imperative that the federal government lead the way in investment in our infrastruc-ture. Without substantial commitment on the federal level, our transportation infrastruc-ture will continue to deteriorate to a third world status.”
U.S. Rep. Jim Oberstar, D-Minn. and chairman of the House transportation committee: “This report does precisely what the commission was instructed to do: It lifts our vision above the horizon; challenges our thought processes with innovative ways of addressing es-tablished, vexing, complex problems that seem irreconcilable.”
Source :http://primebuzz.kcstar.com