Train
photo: Steinbach online

 

With the spring melt underway and seeding around the corner, farmer deliveries of grain have been delayed by poor rail service at elevators in western Canada.

The Western Grain Elevator Association says CN and CP Rail are meeting less than half of railcar orders on time.

"We started to see rail service slipping in January. It's snowballed to the point where it is today with railways providing less than 50 percent of the railcars in accordance with their service plan," says WGEA Executive Director Wade Sobkowich. "CP is providing an average of 52 percent of what's required to hit sales and vessels. CN is at 48 percent, and both are getting worse by the week."

He says CN reports its problems are due to poor winter weather conditions, while CP's service issues are related to the company moving under new management.

"As far as we're considered, the reasons are almost immaterial. We feel the railways should be obligated to do what it takes to make sure they're providing these railcars," says Sobkowich.

The delays are resulting in demurrage charges and contract penalties for the grain companies.

"For example, one company had 112 cars sitting for 10 days loaded on its track at the country elevator while they had a vessel waiting in Vancouver. It cost them about $100 thousand in vessel demurrage," he explains.

It all means farmers may not get their grain moved by when they when they had hoped to, says Sobkowich.

"We'd like to get this product cleared out. We have sales we need to meet, and things are just getting worse."