SUPPORTING RAIL COMPETITION
KEY MESSAGES
- The Government of Canada is taking action to strengthen Canada’s rail-based supply chains by introducing a temporary extension of the interswitching limit to 160 km in the prairie provinces.
- Temporarily extending the interswitching limit in the prairies is expected to give shippers increased options when it comes to rail carriers and better leverage to improve their rail service and rates, while giving the Government time to evaluate the impacts of the extension.
- 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 the National Supply Chain Task Force 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.