Canada: Canadian government takes steps to improve the performance of the rail supply chain to help farmers get grain to market

Canadian Agriculture Minister Gerry Ritz announced on February 5 the federal government is taking further measures to improve the grain transportation supply chain based on the Crop Logistics Working Group's recommendations, according to Progressiverailroading.com.

Immediate actions include pursuing enhancements to the grain monitoring program to improve the frequency of reporting and providing an ongoing forum for grain industry representatives to discuss improvements.

A proposed expanded range of metrics and reporting frequencies would include railroad order fulfillment information pertaining to weekly rail-car orders; the size of the grain service covered hopper fleet for both mainline carriers by class of service on a weekly basis; terminal unloading performance by railroad; Western Canada grain traffic via rail to Eastern Canada, U.S. and Mexican destinations; U.S. grain traffic to Western Canadian destinations; and Western Canadian grain traffic shipped to ports in containers.

"Canada's crop industry is a vital part of the Canadian economy and we will continue to work with all parts of the supply chain to get farmers' products to market," said Ritz in a press release. "Current transportation challenges faced by producers present an opportunity for the entire value chain to improve efficiencies and position Canada's grain sector for future growth."

The Canadian government has also taken a long-term approach to addressing logistical challenges in the grain, pulse, oilseeds industries via a five-year, C$1.5 million multi-sector collaboration project aimed at improving supply chain efficiency and reliability, he said.

Officials at Alberta Barley — a nonprofit organization that represents the interests of the province's barley farmers — welcomed the government's actions as a "good start" to addressing rail transportation issues. But reliable transportation for export grain must remain a priority, said Alberta Barley Chairman Matt Sawyer in a press release.

"Efficient rail service is vital to the future of farming in Western Canada, but we also have to think about the food processors across Canada," he said.

07 February, 2014