(Alice McFarlane/farmnewsNOWStaff)

By Alice McFarlane

Rail service

CN Rail breaches service obligations

Apr 18, 2019 | 10:26 AM

A Canadian Transportation Agency (CTA) investigation revealed Canadian National Railway (CN) contravened its level of service obligations when it announced it would impose embargoes on wood pulp shipments in September 2018 in the Vancouver area. This was several months before rail congestion and other challenges emerged.

According to a release on the Canadian Transportation Agency website, CTA said CN imposed those embargoes in December 2018, rather than making every reasonable effort to deal with those challenges before unilaterally restricting the transportation of the shippers’ traffic.

The CTA ordered CN to develop and submit a plan to respond to future traffic surges in the Vancouver area and to avoid, or minimize, the use of embargoes. The CTA also set out a criteria for the lawful use of embargoes including that they be imposed only on an exceptional basis, be targeted to address specific challenges, and be lifted as soon as possible.

Canadian Transportation Agency Chair and CEO Scott Streiner said the ruling sends a strong message.

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“Freight rail service is essential to manufacturers, farmers, importers, shippers, and the Canadian economy. Through this investigation, the CTA was able to quickly look into possible issues with rail service in the Vancouver area that were brought to its attention in late 2018 and early 2019,” Streiner said. “The determination provides all parties with greater clarity on when rail service embargoes are, and are not, lawful.”

The CTA initiated the investigation on Jan. 14, 2019, based on information received from shipper associations and other parties. This was the first own motion investigation undertaken by the CTA under a provision added to the Canada Transportation Act in May 2018.

The CTA found Canadian Pacific Railway Company and BNSF Railway Company had not breached service obligations.

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alice.mcfarlane@jpbg.ca

On Twitter: AliceMcF