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Transport Minister Marc Garneau - 6 Dec 2017 Matthew Usherwood.
15 March 2018
CN and CP Have Submitted Grain Plans

Ottawa Ontario - Canada's two major railways have submitted required plans to ensure Western Canadian grain starts moving again.
 
In a statement Thursday afternoon, Transport Minister Marc Garneau said both Canadian National (CN) and Canadian Pacific (CP) have complied with a ministerial ask that ordered the railways to come up with a detailed plan to address the backlog.
 
"I would like to thank CN and CP for their responses," Garneau's statement read.
 
"I appreciate their commitment to addressing the problems that have developed over the past months, and the insight into their strategies for the immediate future."
 
The ministerial order was included in a 7 Mar 2018 letter to both railways and jointly issued by Agriculture Minister Lawrence MacAulay.
 
As part of its compliance, CN and CP were required to post their grain movement plans publicly on their websites.
 
CN unveiled their strategy on Wednesday, promising to spot 5,000 grain cars by the end of March.
 
The railway has also leased 125 locomotives, with a target of 130.
 
For their part, CP said it "continues to add both crews and locomotives to support volumes across all commodities."
 
Garneau's office said it also received a letter from the railway.
 
The federal government has been under increased pressure from Canadian grain groups who say poor railway service has left millions of tonnes of Prairie grain stuck in Western Canada.
 
The backlog, farmers say, is causing serious cash flow issue on many farms across the Prairies, just weeks before spring seeding is set to start.
 
MacAulay's office confirmed the receipt of both railways' plans.
 
"I appreciate their commitment to addressing the problems that have developed due to their performance over the past months. Our farmers must be able to get their products to market," he said in a statement.
 
Farm Credit Canada, this country's largest agriculture lender, has said it is willing to work with producers who are struggling to pay their bills.
 
Farmers strapped for cash are also encouraged to use the Advance Payment Program, which allows producers to access to up to $400,000 in loans, with the first $100,000 interest free.
 
Prairie farmers have said they want the federal government to draft a plan to get grain moving by the time Parliament returns from a two-week break 19 Mar 2018.
 
That plan, farmers told reporters, should include an order in council, similar to the one issued by the Conservative government in 2014 that mandated CN and CP move a certain amount of grain per week.
 
Failure to comply risked fines of up to $100,000 per week.
 
Saskatchewan's Premier Scott Moe has also called on the federal government to act, telling iPolitics in an interview last week he would back any federal efforts taken to get prairie grain moving again.
 
The Saskatchewan government has also extended winter weight restrictions for central and northern regions of the province.
 
On Thursday, Garneau gave no indication an order-in-council was under consideration.
 
He instead urged the passage of the Liberals overhaul of Canada's transportation system, bill C-49, as quickly as possible.
 
The bill is currently under Senate consideration.
 
Hearings are set to resume Tuesday.
 
"Until Bill C-49 becomes law, the Government of Canada encourages CN and CP to work collaboratively with their supply chain partners towards more fluid movement of grain and other commodities," the minister's statement reads.
 
"Everyone, government, railways, producers, and shippers, need to work together to promote an efficient and effective transportation system that promotes trade and economic growth."
 
The House of Commons agriculture committee is scheduled to hold a four-hour long emergency meeting Monday afternoon.
 
CN and CP are expected to appear as witnesses for the first hour of testimony.
 
The remaining three hours is reserved for farm groups and other grain stakeholders.
 
Kelsey Johnson.

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