OTTAWA, Dec. 11, 2012 /CNW/ - Canada's chemistry industry is pleased by
the introduction of the Fair Rail Freight Service bill today -
legislation that will provide greater balance to commercial
negotiations between shippers and Canadian railways, and will
ultimately improve rail performance.
The bill ─ which follows the recommendations of the 2011 Rail Freight
Service Review Panel's report ─ will give all shippers, regardless of
size, the right to negotiate service-level agreements with rail
carriers. It also outlines an arbitration process should negotiations
break down - the results of which are binding and unappealable - as
well as consequences should the railways fail to meet the terms of
their service-level agreements.
As Canada's third largest manufacturing sector, the chemistry industry
is very dependent on the railway system- with over two-thirds of its
annual shipments moved by rail.
"The level of service offered by Canada's railways can make the
difference between companies investing here, or taking their business
elsewhere," says Richard Paton, President and CEO of the Chemistry
Industry Association of Canada (CIAC).
"So this legislation is critical - not only for our industry's
competitiveness, but for Canada's overall productivity and prosperity."
While the Fair Rail Freight Service bill addresses many of the concerns
raised by Canadian shippers, its provisions do not apply to shipments
carried beyond the Canada-U.S. border. CIAC hopes that the increased
accountability placed on Canada's railways through this legislation
will nevertheless result in commercial agreements that cover the full
extent of Canadian shippers' needs.
CIAC commends Transport Canada, Natural Resources Canada, and
Agriculture Canada for their collaborative efforts in addressing
shippers' needs through the Fair Rail Freight Service bill, and looks
forward to working with Parliamentarians to ensure its speedy and
successful passage into law. CIAC also hopes that this legislation will
serve as a platform for continued collaboration with Canada's railways
- with the goal of achieving both efficient rail services and a more
competitive manufacturing sector.
SOURCE: Chemistry Industry Association of Canada
For further information:
Director, Business & Economics
Chemistry Industry Association of Canada