The federal government is making railway competition available on single lines owned by one company.
Farmers who want to use a competing railway company can under the Extended Interswitching policy. The owners of the line must allow the railway of the client’s choice to use the line.
It was mandatory from 2014 to 2014, but then ended. The task force on supply chains recommended it be made policy.
“Extended interswitching is one of the only policy tools that has historically created competitive options for shipper business,” said the Western Grain Elevator Association’s executive director Wade Sobkowich.
“it offers an alternative service provider for single-served shippers which balances negotiations in a way that encourages better service or pricing for the benefit of entire supply chains.”
“Extended interswitching, provided it’s at the right distance and automatically available, is a very important start to the government’s response to the Supply Chain Task Force’s report,” said Sobkowich.
“We look forward to providing the grain sector’s input to the full response, especially those further measures that address the imbalance in the business relationship with shippers, such as automatic demurrage penalties associated with railcar supply and service level performance.”
