The Canadian unit of global grain trader Louis Dreyfus Corp has complained to the Canadian government about service from the country’s biggest railway, Canadian National Railway Co, following a record-breaking harvest that has led to transportation bottlenecks.
Louis Dreyfus Commodities, which operates a canola-crushing plant at Yorkton, Saskatchewan, and 10 country elevators in Western Canada, filed a complaint on April 16, the Canadian Transportation Agency said.
The agency said Dreyfus complained about CN’s service based on a contract between the two companies. The company has also requested that the agency issue an interim order requiring CN to abide by contractual terms during the proceedings.
A huge crop combined with a frigid winter caused CN and rival Canadian Pacific Railway Ltd to fall behind on filling requests for grain hopper cars to country elevators. This caused grains and oilseeds to pile up in commercial and farm storage, including the largest wheat stocks in 20 years as of March 31.
Brant Randles, president of Louis Dreyfus Commodities, said the company does not comment on pending legal proceedings. A Canadian National spokesman could not immediately comment.
The complaint was filed under the Canada Transportation Act. Under provisions of the act, if the CTA determines a railway is not meeting its contractual obligations, it can order it to meet them within a set time period. (Reuters)