The Conservative government said it will help shippers and railways negotiate terms for service agreements -- something they don't have now -- and improve ways to resolve disputes.
Those steps will require the government to pass legislation giving shippers the right to the service agreements.
Ottawa's moves, which come amid rising expectations of a spring general election, are aimed at making railway transportation more efficient and reliable, said Transport Minister Rob Merrifield at a grain terminal near Winnipeg.
The country's two main railways, Canadian National and Canadian Pacific, handle most of Canada's rail freight, and have faced criticism from farmers that unpredictable service is keeping growers from fully cashing in on high grain prices.
Canadian farmers lean heavily on railways to move grain to port because distances are too vast to rely on trucks, and the western grain belt lacks a river freight system.
Grain Growers of Canada, an umbrella group of farmer organizations, said earlier this month that service by Canadian Pacific in particular has been getting worse, and called for Ottawa to impose penalties on railways for poor performance.
The government, which was responding to an independent panel's three-year review of rail service, also said it will establish an industry group to tackle broad problems and draft performance measurements.
The moves come as speculation rises that the minority Conservative government, which has strong support in Western Canada, will be defeated over next week's federal budget, forcing an immediate election call. (Reuters)
