RAIL SERVICE
LOCATION: NATIONAL
Issue/Source: RAIL SERVICE CHALLENGES
Date: MARCH 16, 2022
Suggested ResponseS
- A strong Canadian economy depends on consistent, reliable, and predictable rail service throughout the year to supply the necessary inputs to our industries, and to move goods to market domestically and abroad.
- The railways recovered well from the significant challenges they faced in 2021; however, since then, shippers in a number of industries have experienced declines in rail service, in some cases resulting in production curtailments and shutdowns.
- Supply chain resiliency is a key focus of this department, and we continue to consider what steps may be required to improve resiliency – from collaborative forums and voluntary or industry-led initiatives, to other available tools.
- Transport Canada continues to work with all stakeholders, including railways and shippers, to find solutions and ensure that the transportation system is able to meet the needs of the Canadian economy.
Responsive if asked about regulatory tools being considered:
- Transport Canada is developing amendments to the Transportation Information Regulations that would require major rail carriers to report much more detailed service and performance information in relation to their Canadian operations, to enhance transparency and accountability.
BACKGROUND INFORMATION
Rail Service following 2021 challenges
- The freight rail sector in 2021 saw many challenges, from the continued impacts of COVID-19 driving high consumer demand; to shipping container availability issues; to major wildfires and flooding in British Columbia; that had significant adverse effects on the rail network and rail based supply chains.
- While the railways recovered well following the flooding, shippers across industries such as grain, propane, forestry, and mining have since raised concerns about poor rail service over the winter.
- Despite a much smaller crop this year, both railways experienced challenges moving grain. [ Redacted ] . Shippers in other industries have also reported an inconsistent or unreliable supply of empty cars into early March.
- Weekly service and performance data indicated significant spikes in dwell times at origin, particularly in January, and declines in train speeds.
- While dwell times and system-wide train speeds began to improve by early March, several shippers continue to report poor service. Some shippers continue to press TC for further action, including strengthening the remedies in the Canada Transportation Act, and others have shared their concerns in the media.
- Additionally, several indicated concerns about a CP strike further exacerbating the backlogs in the network; particularly where shippers are not served by another railway, or where their volumes are impractical to ship by truck (where there are capacity constraints as well).