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Transport Canada Launching Consultations on Rail Policies, Including MRE for Grain Shippers
Introduction In a significant development for Grain Transportation Policies in Canada, Transport Canada has initiated a comprehensive review of various rail regulations. The consultations, involving key stakeholders, aim to address critical issues, with a particular focus on the Maximum Revenue Entitlement (MRE) for grain shipments. This review is a response to the final report of the National Supply Chain Task Force, which identified areas for reform within the Canadian rail system.   Consultation Details Transport Canada has scheduled separate in-person consultations with shippers and railways in Ottawa, Saskatoon, and Winnipeg, with a deadline of November 1 for completion. Additionally, other stakeholders, including provincial governments, have until November 15 to provide comments and feedback online.   Key Issues Under Discussion The discussions encompass eight vital areas that profoundly impact Grain Transportation Policies in the country:
  1. Administrative Monetary Penalties (AMPs)
  2. Contracting Practices
  3. Final Offer Arbitration (FOA)
  4. Grain and Winter Contingency Plans
  5. Extended Interswitching
  6. Maximum Revenue Entitlement (MRE)
  7. Canadian Transportation Agency’s Own-Motion Powers
  8. Shortlines
The MRE, in particular, is a pivotal point of contention, as it determines the revenue limits for railways handling shipments of western grain. The discussions surrounding MRE are of paramount interest to industry experts and stakeholders due to their significant impact on grain transportation and trade.   Stakeholder Perspectives Steve Pratte, Senior Manager of Transportation and Biofuel Policy for the Canadian Canola Growers Association (CCGA), emphasized the comprehensive nature of the consultation. He observed that the review covers issues ranging from fundamental to trivial within the Grain Transportation Policies landscape. Pratte also raised concerns about the influence of the railway lobby on the regulatory protection of specific grain movements and commodities, an issue that became particularly evident during the 2023 budget implementation and extended interswitching debate.   Future Actions While Transport Canada has not outlined its specific action plan following the consultations, stakeholders have been informed that the feedback received will be considered during the winter months. The department will then present a comprehensive "framework" to address the identified issues. It is important to note that there is no commitment to publishing a "What We Heard" report. The grain sector, represented by organizations like the Canadian Canola Growers Association (CCGA), is set to collaborate with the Crop Logistics Working Group to communicate their key messages and concerns to Transport Canada. These consultations represent a crucial juncture in the ongoing dialogue about Canada's rail policies and their implications for the grain industry. They have the potential to shape the future of grain transportation in the country.   Conclusion Transport Canada's consultations on Grain Transportation Policies, including the Maximum Revenue Entitlement, signal a significant step in evaluating and potentially reforming Canada's rail policies. These discussions are pivotal in determining the direction of grain transportation in the country and will have a profound impact on the grain sector and related stakeholders.