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Rail service blog from Montana

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    Rail service blog from Montana

    Another opinion...http://www.ttmsgroup.com/blog/


    "Contrast the foregoing with a longer-term concern: The Canadian rail system and their export terminals have a much more serious problem because not only is there no planned short-term investment fix to handle their record crops but the Canadian government continues to disincent their railroads from investing in agriculture. Experts are concerned that this situation could also spill over and could disrupt the U.S. grain infrastructure. Railroads in Canada have operated for decades under a revenue cap for grain exports, incenting them to favor traffic in every other sector and underinvest in agriculture. Railroads and export terminals had been operating for decades under an allocation system of exporting grain by the Canadian Wheat Board, which distorted efficient logistical supply chain economics, thereby further disincenting appropriate private sector investment in efficient grain handling infrastructure. Now operating in a demand pull market, their entire system is dysfunctional. Now you add insult to injury; Ottawa and the provincial governments are considering various legislative actions to force their railroads to allocate more capacity to agriculture at the expense of their other businesses. Clearly, Canadian lawmakers have not considered the long-term consequences of these actions to Canadian and US agriculture interests."
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