Canadian Railroads To Limit Farmers’ Railcar Orders

[bucket]

If you think about the railway backlog as a multi industry problem something has to be done.

I think a really poor solution would be to wait until the new potash mines can't move their product.
Although when you think about it if the province wasn't making any royalty revenue off that new potash they might be more motivated to get involved.

Bottom line this problem isn't going away for any industry with growth that the government always wants to be in the photo with.

It's time for an overhaul.

[OneOfMany]

As i have stated before another reason why... " why we keep hearing the price of land is so much cheaper here than the rest of the world"

[farmaholic]

...who the **** cares anymore?

[bucket]

Farmaholic


I do but wonder why.

[bucket]

Bnsf is adding 1000 tonnes of railcar capacity every week. Times that by turns and that's close to 35000 tonnes a year by adding two cars per week to the system.
In Canada we read nothing of infrastructure plans from our railways.

They have limited their revenue by doing nothing to increase capacity.

A country that relies on exports this is going to explode into a multi industry disaster.

Maybe not today or tomorrow but doing nothing is a recipe for failure.

At least in the states the railways are seizing the opportunity by spending on there infrastructure and grabbing more of the revenue.

[farmaholic]

.....you are whipping a dead horse.

[Hopperbin]

Klause would be interesting to hear the full story. If cn is behind by a month and cars are ordered 100 every two weeks. Then they deliver them all in one week. I think cn is to blame on that one. They need to have a better handle on the system and be there. So grain companies have come to expect cars not to arrive and need to order more so they think. If cn delivers tooo many for the spot to handle it is all cn in my opinon. Shouldnt grain companies now demand cars show up?

[Hopperbin]

For smaller shippers, CN said orders can’t be bigger than twice the car capacity that each grain-loading facility can handle. 


Actually this can be interpretted many different ways. Need more Info.

[bucket]

Sorry folks. That is 10 cars per week . 2 cars per day.

Anyhow they are doing something to recognize the coming problems.

5 billion spent in infrastructure.

In Canada they would rather ignore the issue even though they admit they are not keeping pace.

[samhill]

If you hunt around, you find that most of oil moved by rail is owned by non Canadians. Also, in 2011, Bill Gates owned most of CNR. CPR is owned almost entirely, 4out of 5, RBC owing a small amount, by American companies.

So, Canadians built it, but have no say.
We need to "Call Saul" for breach of contract, maybe 1st Nations have a good "Saul".

Well, good luck. If you want service, outbid the oil.

[Nudge]

I think everyone is missing the point. The rr should limit the number of cars that graincos can order. Last year the graincos were ordering multitudes of what they actually needed in hopes that they would get a few extra. How is that fair to the ones (producer car loaders for one example) that only order what they need?
And another point, while I will not argue that last years fiasco cost farmers a lot of money, to assume that all the grain that got shipped during the time of excessively wide basis was actually purchased during that time is completely wrong. How many of you sold into minus $1.50 basis??? Not many right?? Sometimes economists, while they sound smart, are completely uninformed, or worse yet paid by those who want a certain view put forward. You should know everyones politics before listening to what they have to say.

[grower99]

I think that if the railways are given this power with no oversight they will become king makers and leave many out in the cold. We don't like PH or the CWB terminal in Manitoba or Viterra in Rosetown... so they will not get as many cars.Too many concerns.Thoughts?