Proposed Changes To Interswitching Regulations In Bill C-30 Raise Many Questions
April 21, 2014
On March 26, 2014, the Government of Canada introduced into Parliament Bill C-30, the Fair Rail for Grain Farmers Act. Bill C-30 contains a number of proposed amendments to the Canada Transportation Act and the Canada Grain Act. These include, in particular, amendments to the Canada Transportation Act (the CTA) to:
“Create regulatory authority to allow the Canadian Transportation Agency to extend the interswitching distances in Saskatchewan, Alberta and Manitoba to 160km, for all commodities, to increase competition among railways and give shippers’ access to alternative rail services.”
The proposed changes to the regulated interswitching regime raise a number of questions including:
- How was the new limit for regulated interswitching of 160km determined?
- How did the Government decide that this should apply in the three provinces specified and to all commodities in those provinces?
- How much additional traffic will now be subject to regulated interswitching?
- What is the reason for the unusual sunset clause?
- How much will the changes to regulated interswitching contribute to speeding up grain movements and clearing the backlog?
- What will be the impact on the rail sector and shippers of the proposed changes to regulated interswitching?
- What do the changes to regulated interswitching imply for the other CTA “shipper protection” provisions?
The Canadian Transportation Research Forum has issued this Policy Brief to describe the facts, context surrounding the possible regulatory changes, and to raise questions for further research and policy discussion.
The Canadian Transportation Research Forum is a non-profit association of transportation professionals that has been operating since 1965. Its mission is to promote the development of research in transportation and related fields and provide a forum for networking and discussion by: publishing research papers, providing opportunities to discuss transportation issues, and providing an environment for professional networking and encouraging student interest in transportation research.
Bill C-30 Rail Freight Interswitching Provisions: What are the questions?
For more information contact:
Author Contact:
Joseph Schulman, CPCS, Email: jschulman@cpcs.ca