Grain Movement 2015

[jdepape]

When you regulate a monopoly (like the RRs) the objective should be to make them act as if they were operating in a competitive market.

IMHO service levels should be based on <b>WEEKLY DEMAND</b> and <b>by shipper</b>.

If a small shipper orders 25 cars for a particular week and the RR agrees to provide them, but then fails to provide them (within a set amount of time), then the RR pays a penalty <b>TO THE SHIPPER</b>, not to the government.

Incentives (and disincentives) work.

[jdepape]

Another oddity:

Exporting graincos are making sales for shipment in 4-6 months.

But they can only order railcars for then next two weeks.

So today you make a sale of say 50,000 tonnes for shipment in June. But you have no idea whether you will get the railcars or not. What does that do to your perception of risk in doing the business?

[wmoebis]

I highly doubt there is any grain Co that hasn't had cars for a full 4-6 months. They could have hauled it by truck by then. Farmers would find away to GIT R DONE.

Funny never used to happen with pulse's until big grain Co's started to handle them. Usually there were cars spotted at elevators, farmers were hauling and it was loaded straight into the cars.

[jdepape]

wmoebis
Not saying they didn't get cars for 4-6 months.
They MAKE SALES 6 months out - but can't even order the cars they will need until 2-3 weeks before they need them.

When they make sales out of the Gulf, at the same time, they can book the barge freight they will need. Much less execution risk.

[fjlip]

"RR pays a penalty TO THE SHIPPER, not to the government.
Incentives (and disincentives) work." Agree...
Ritz set it up as a FINE, should be a regulation.
Keep at the MP's with suggestions, must be some intelligence out there.

[bucket]

Depape

I know we go back and forth on other issues.

But this is one where we can agree.

It's probably the biggest impediment to making the whole system work better.

The day a farmer signs a contract for let's say September delivery is the same day that the car should be put in the schedule for spotting. If it's 6 months in advance so be it. At least something is getting planned.

[wmoebis]

Bucket at the very very least the elevators should be made to make sure they have room to honor contract and not 3 months later. If that means building bins, getting bagger or building a bunker so be it.

Farmers do, when they see a big crop coming or even a harvest that they have grown and don't have the storage. And lots of times they don't have 4-6 month notice or control like the elevators do.
We can't leave our crops on the ground we do something about it not just bitch and blame the next guy. Used to be that the CWB was the whipping boy now it is the RR.

[Hopalong]

Ag Transportation Coalition Weekly Performance Measurement to shipping week 21 confirms that port shipping of bulk grains is receiving better car supply than other corridors.
Does not make a comparison with same period for last year but do not hear of extreme shortfall that happened last year in oats to US or feed grains to Fraser valley.
With less ice and earlier start to Great Lakes and seaway system there should be greater movement through it, especially with present higher prices available at eastern ports.
Things point to continued easing of RR transport problem for this year but would not want us to lose sight of longer term situation.
Hope we can get to a better relationship with other shippers and railways rather than the one we have just come through.