CANADIAN SHIPPERS FAULT GOVERNMENT’s ?MODAL SHIFT? PLAN

CANADIAN SHIPPERS FAULT GOVERNMENTÆS ôMODAL SHIFTö PLAN    The Canadian Industrial Transportation Association said the Canadian government’s proposal to reduce truck emissions by shifting freight to rail and marine transport is seriously flawed.
   “Throwing money at infrastructure isn’t going to change the primary reason why shippers choose to use truck transportation over other modes,” said Lisa MacGillivray, president of CITA. “Shippers use trucks because they meet the service requirements needed by Canadian companies to be competitive.”
   The Canadian shippers group said rail and marine transport modes are “hampered by closed-boxed thinking that allows monopolistic practices by service providers to continue unchecked.”
   Canada’s shippers recently presented Transport Canada through the Canada Transportation Act Review Panel their plan for how to make railroads more attractive. The plan includes:
   * Retaining current legislation that prescribes the fees railroads can charge to switch traffic from one railroad to another that is offering competing service.
   * A fix to the “flawed provision” that allows rail shippers to offer traffic to potential rail competitors at railheads more than 30 kilometers from the origin or destination at a reasonable cost.
   * A “limited rail running rights” provision that would allow trucking companies and other carriers the opportunity to sub-contract or provide competitive intercity rail service if they “meet or exceed the requisite safety standards and fairly compensate the owners of the tracks.”
   * Retaining federally managed final arbitration on rates for rail shippers.
   CITA and other shipper groups maintain their calls to reform government-mandated marine services, such as pilotage, icebreaking, navigational aids and other government cost-recovery mechanisms. Marine transport will become more attractive to shippers when reforms are made, MacGillivray said.
   Lastly, CITA promotes the creation of a general complaint provision for all three federally regulated transport modes where monopoly situations exist. “This will allow users to turn to the Canadian Transportation Agency, which oversees the air, marine and rail modes, to evaluate the situation and direct the monopoly service providers to amend their rules and practices if required,” the group said.