Alberta grain producers call on Ottawa to speed new transportation legislation

Warren Sekulicis paid on delivery.

When his 3,000-ton harvest of wheat, peas and canola isn't delivered, he isn't paid.

For the lifelong farmer near thevillage of Rycroft, Alta., it'sthat simple.

That's whySekulictravelled nearly 4,000 kilometres to Ottawa on Monday to advocate for changes to BillC-49, proposed legislationto amend and modernize the Canada Transportation Act.

As a farmer in northern Alberta,Sekulicsaid he relies on railroads to get the products of hisfourth-generationfarm to markets.

Roughly one-third of therailway shipments he contracted forlast year's harvestwere delayed.

• Grain industry raising concerns over growing backlog of rail shipments
• Rail shipment delays causing 'dire situation' for Canadian farmers
• CN apologizes, promises immediate action to clear backlog of grain shipments

"That's a significant impact on my cash flow, my ability to pay my bills, my ability to pay my rent," Sekulic said.

"It's causing some concern among our buyers, that we aren't a reliable supplier of our grain. If we lose markets, that's a terrible outcome. And all we needed is rail service to get it to the port."

Sekulic, a regional director of the Alberta Wheat Commission, said it's an issue affecting grain producers across the province.

He said BillC-49needs to be amended and passed as soon as possible, to help farmersget their upcomingharvests to market.

Sekulic travelled to Ottawa with what he calls Team Alberta representatives from the province's pulse, canola, barley and wheat commissions.

The team met with senators and members of Parliament over three days to talk about Bill C-49. The proposed legislation includes changes to air and railway transportation nationally.

"There's lots of good things in it," Sekulic said. "With the changes that we're asking for, we think that it could be quite a significant win for us."

Long-haul inter-switching

The Alberta Wheat Commission is especially interested in changes to long-haul inter-switching, the ability to change carriers along a railway line,he said.

Under the proposed legislation, a shipper canapply for a long-haul inter-switching order against a railway company that isn't meeting its contractual obligations.

The legislation applies when a shipper has access to only one railway company at the origin or destination of the product being transported, and when there is more than one company operating on the connecting route.

"Our shippers tell us that just the threat of theinter-switchactually significantly increased the performance of the railways,"Sekulicsaid.

Just the prospect of having competition in the system will move grain better, and if grain moves better throughout the system, it benefits everyone.- Warren Sekulic, Alberta Wheat Commission

"Just the prospect of having competition in the system will move grain better, and if grain moves better throughout the system, it benefits everyone."

Sekulic said the wording of the amendmentneeds to be changed to put more pressure on railway companies.

For instance, BillC-49states shippers can apply for a long-haulinter-switchat the nearest opportunity.Sekulicsaid that's useless if the interchange doesn't connect to a route leading to the shipping destination.

Instead, he said shippers should be able to apply for an inter-switch at the nearest interchange that will allow a product to get to its intended market.

"There's no competition in the system right now, and the grain is captive and they know they'll get to it eventually," Sekulic said about Canadian railway companies.

"They're the backbone and the bottleneck of our system right now, so we really want them to perform to the maximum of their ability. It's good for everybody."

Bill C-49passed its third reading in November 2017. Sekulic said the proposed legislation needs to be expedited, to take effect before fall.

"We sure don't want to be going into harvest next year still without any rail legislation," he said."It'll be really tough on farmers ...so we really need to get this passed."

Bill C-49before Senate

In a written statement, Transport Canada said the proposed freight rail measures in Bill C-49 are meant to support atransparent, fair, efficient and saferail system across the country.

"The proposed amendments aim to sustain the commercial orientation that has helped make Canada's railways among the world's most efficient and Canadian rates among the lowest in the world," the emailed statement said.

"In particular, the amendments promote fair access to dispute resolution processes, system efficiency, long-term investment, and transparency."

• Grain, oil shipments sit idle on Prairies as railways struggle to meet demand
• 'Late in the game' for this season to mandate rail deliveries, says Sask. agriculture minister

The department confirmed it is aware of the advocacy in Ottawa by the Alberta Wheat Commission and acknowledged the "critical importance of an efficient and reliable rail system in moving Canadian grain to market."

Bill C-49is before the Senate, which is considering the proposed amendments to the Canada Transportation Act.

Transport Canada said it supports a quick passage of the legislation, but added it "understands the Senate has an important responsibility of reviewing thebill."

@ZoeHTodd