Soy Canada Applauds Federal Government’s Commitment to Introduce Reciprocal Penalties in Service Level Agreements for Grain Transportation

Posted on: November 3, 2016

November 3, 2016

Soy Canada welcomed the Government of Canada’s announcement today that it will be introducing legislation to address major issues outstanding from the Canada Transportation Act Review.

Specifically, Minister of Transport Marc Garneau announced the government’s intention to bring forward legislation in the first quarter of 2017 that will establish reciprocal penalties for parties unfulfilling service level agreements.  The legislation will also include an improved definition of “adequate and suitable” service, providing more clarity surrounding the transport and movement of grains in Canada.

“It is clear that Minister Garneau and Minister MacAulay have listened and acted on the rail transportation priorities of the grains and oilseeds sector,” said Jim Everson, Executive Director of Soy Canada.  “We will continue to work closely with the government in the coming months to ensure that the spirit and intent of this announcement is fully captured in the legislation to be introduced in the spring.”

The federal government’s announcement comes as Soy Canada participates in the Minister of Agriculture’s trade mission to China.  Canada’s production of soybeans is increasing to meet growing international demand.  Efficient and reliable rail transportation is a critical link in moving these increasing volumes from the field to markets around the world.  This legislative framework promises to establish an effective partnership with the rail sector as the soybean sector grows.

The Minister also highlighted that the government will be providing more details in the coming months on the future of extending interswitching limits and maximum revenue entitlements.  The government is currently in the process of developing a “Rail Rate Framework” to help guide the industry.

Soy Canada is the national association representing the full soybean value chain.  Our members include producer associations representing soybean farmers across Canada, seed development companies, soybean exporters and processors.  Soy Canada facilitates industry cooperation and represents the industry on domestic and international issues affecting the growth and development of the sector.

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Jim Everson