The Fair Rail for Grain Farmers Act was introduced to Parliament by Canada’s Transport Minister, Lisa Raitt, and Agriculture Minister, Gerry Ritz, March 26, 2014 saying the legislation “amends the Canada Transportation Act and the Canada Grain Act, providing additional measures designed to help the entire grain transportation system reach the goal of getting product to market quickly and more efficiently following a record crop year for Canadian farmers. “The Government of Canada is taking immediate, concrete action to get grain moving faster through legislation and regulations designed to: increase supply chain transparency; strengthen contracts between producers and shippers; and, help ensure the entire grain handling and transportation system is working efficiently at the top of its capacity.” The act requires Canada’s two Class One railways (CN and CPR) to deliver more timely data on grain movements to better monitor the overall performance of the supply chain. The Canadian Transportation Agency will also gather information from all grain supply chain partners on shipping capacities and plans prior to each new crop year, and will advise the Minister of Transport whether specific grain volumes should be mandated for the coming year. Canada Transportation Act In addition, Raitt announced, on June 25, that she was launching a statutory review of the Canada Transportation Act, which takes into consideration all transportation systems including urban transportation, shipping by rail and truck, saying, “We need to create the right conditions for a safer and efficient transportation system to move Canadians and help Canadian businesses compete internationally.” The review has been moved ahead one year because of the urgent need for more capacity in the transportation system.  A six-person review board, headed by David Emerson, former Minister of Industry and then Minister of Foreign Affairs, has been given a list of transportation issues to consider, with a mandate to give priority to grain transportation issues. Among the issues they will be considering are: • how technological innovation can contribute to improvements in transportation infrastructure and services; • whether adjustments to legislation are required to support Canada’s international competitiveness, trade interests, economic growth and prosperity; • how strategic transportation gateways and corridors can be developed; • whether adjustments to transportation safety and environmental regimes are needed to achieve high standards for safe and sustainable transportation, given increasing system volumes and demands. The review board has an 18-month window to report its findings and recommendations. According to federal numbers, Canada has nearly 46,000 kilometres of operating railroad tracks and more than 240 marine ports and harbours. In 2013, Canada’s transportation system supported about $471.4 billion in exported Canadian merchandise. In response to the announcement the Railway Association of Canada said in a statement it welcomes the review launched by Raitt. “The Canadian railway industry is anxious to participate in this review,” said RAC President and CEO, Michael Bourque. “It will allow us to foster a greater understanding of rail’s significant capacity and its positive role in both export and domestic supply chains.” Throughout the CTA review, the federal government will call upon the rail sector to provide input on realistic ways to improve Canada’s transportation system. The industry will highlight the importance of supply chain collaboration, network capacity investments, and winter weather’s impact on rail technologies and service reliability. “Our economy depends on a multitude of supply chains - each one with its own characteristics and performance measures - but all of them need to cooperate and collaborate in order to work effectively,” Raitt said. In response to the announcement Alberta’s ministers of Agriculture, Transportation, International and Intergovernmental Relations, Energy and Environment emphasized that market access is an issue the federal government should not undervalue. “Alberta is the largest-volume rail shipper in the country and the demand for our products is growing as we expand into new markets. A repeat of last winter’s backlog of commodities moving by rail to port would put our long-term economic growth at risk,” the statement says. “For Alberta and Canada to avoid any permanent damage to our reputation as a reliable global supplier of food, forestry products, energy and other goods, we must aggressively seek and swiftly implement solutions to strengthen our ability to safely deliver goods to market in a timely manner.” The Saskatchewan Government offered its views to the panel, stating, “The strength of Saskatchewan’s economy is dependent on getting all of our commodities to market – whether it is grain, potash or oil.” The Government of Saskatchewan requested the legislation include the following: • Service Level Agreements between shippers and railways, including reciprocal penalties for damages and an expedited arbitration process; • service for all customers and all shippers in all corridors; • railway delivery of a minimum of 13,000 grain cars per week; • minimum penalties of $250,000 per day for railways for failing to meet these targets; and • removing the sunset of August 2016 until a review of the Canada Transportation Act is complete and permanent legislation is in place. “Clearing this grain transportation backlog has been the number one priority for our government,” Agriculture Minister, Lyle Stewart, said.    “We are focused on ensuring the system has the necessary capacity to accommodate future economic growth. All customers, big and small, in all corridors must have assurance of adequate service. Canada has made significant efforts to expand trade agreements and reduce barriers to market access around the world. These opportunities should not be squandered by an inability to get our production to export position.”