SUPPORTING RAIL COMPETITION
This measure proposes to increase the interswitching limit from 30 km to 160 km in the prairie provinces (Alberta, Manitoba, and Saskatchewan), on a temporary basis [ Redacted ] . Interswitching is a competitive access measure that enables rail shippers to have their cars transferred to an alternate rail carrier at an interchange point near to either their origin or destination, at a regulated rate set by the Canadian Transportation Agency. This gives shippers located near a railway line operated by one railway company access to additional rail carriers. The current interswitching limit is 30 km.
In addition to providing easy access to an alternate carrier, access to interswitching enhances competition and provides shippers with leverage in their negotiation with railways, enabling improved rates and service. Extending the interswitching limit to 160 km in the prairie provinces is expected to enhance competition for shippers that are located within the expanded distance, enabling them to access improved options, service, and rates.
The extension of the interswitching limit is a reflection of the Government of Canada’s commitment to strengthening rail-based supply chains, and responds directly to the recommendation of the National Supply Chain Task Force Final Report. While that report called for interswitching to be extended across the country, this more geographically and time-limited pilot will limit the potential for unintended consequences, particularly in the already congested Vancouver-Kamloops and Quebec-Windsor corridors. At the same time, the collection of data throughout the pilot will enable the government to more fully assess the impacts of the extension and consider whether longer-term change is appropriate.