Transport Canada has issued a report on the quality of freight-rail service provided to shippers, reports progressiverailroading.com.
The website outlined some of the reports findings:
The Canadian rail-based logistics system has gone through a period during which rail service was less than adequate;
Some service issues are attributable to non-railway stakeholders, including poor forecasting and over-ordering of rail cars, but most issues relate to railway behavior;
There are no practical ways to directly increase rail competition;
Railroads have instituted a number of initiatives that are generating service improvements for shippers and should continue;
It will take some time for the initiatives to be fully implemented and for the benefits to be fully achieved;
The Canadian government should assess the success of the initiatives after a reasonable transition period, therefore undertaking an assessment in 2013;
Regulatory solutions should be implemented under a fallback provision if the 2013 assessment concludes that the initiatives have not resulted in adequate service.
The panel recommends an approach that would provide railroads an opportunity to demonstrate commercially their ability to properly deal with service issues on a sustained basis, reported progressiverailroading.com, citing the report.
If adequate service is not achieved and sustained commercially, the panel recommends that legislative remedies be implemented, according to the report.
Progressiverailroading.com reported a response from Canadian National, that CN wants to make clear it has issues with certain panel recommendations, which are disconnected from the panels factual research showing: solid Canadian railway transit times and order fulfillment performance; no discrimination on any of the key service dimensions; no evidence of structural market issues from a service standpoint; a robust rail regulatory framework in Canada; and all stakeholders in the supply chain shippers and receivers, terminal operators, port authorities, truckers and steamship lines are accountable for system performance, not just railways,
Progressiverailroading.com also reported a response from Canadian Pacific that Canadian Pacific also continues to demonstrate a commitment to its customers and service reliability. The railroad has negotiated a number of service agreements with key supply-chain partners, including customers, ports and terminals, and implemented a number of new initiatives that focus on improving first-and-last-mile performance, including a yard reliability program.
