Canada extends grain transport requirement for railroads

Carriers will face $100,000 fines if new volume minimums imposed to make sure grain freight moves efficiently are not achieved.    The Canadian government has extended its minimum grain volume requirements until March 28, ordering railroads to move a certain amount of grain each week or face a fine of $100,000 per violation.
   Each week until Dec. 20, railroads must move 345,000 tons of grain; this minimum drops to 200,000 tons from Dec. 21 to Jan. 3. The requirements ramp back up starting Jan. 4, when carriers must move 325,000 tons of grain each week through Feb. 21. From the end of February to March 22, the government will require railroads to transport a weekly grain load of 345,000 tons.
   Between March 22 and March 28, carriers must move 465,000 tons of grain.
   The government first imposed volume limits in March “to move the remainder of last year’s crop along with this year’s crop and ensure that the grain supply chain will return to normal operations,” according to a statement.
   The new limits are a drop-off of previous requirements. Starting last May, the government mandated that railroads transport 500,000 tons per week, and that requirement inched up to 535,230 tons per week from Aug. 1 to Nov. 29.  
   Canadian Pacific and Canadian National must also submit winter contingency plans to the government. In addition, all railroads must supply basic information to the government. 
   “In order to expand transparency in the logistics system, railways are also expected to provide information on car order fulfillment by corridor, including the placement of rail cars at producer car loading sites and along short line railways to the grain monitor,” according to the statement. “The government continues to call on all parties in the grain supply chain to work together to develop solutions to ensure the timely movement of grain.”