The very Canadian problem at the heart of our supply chain woes via financialpost
published earlier this month, the group gave 21 recommendations to help stabilize and unclog the supply chain, including a call for more investment to build “redundancies” and new backup routes for the most vulnerable choke points in trade corridors and border crossings.“Failures could occur anywhere in the country: in the West by mountains, fire or weather; in Central Canada by floods; or in the East by winter storms, ice and washouts,” the report said.
“Everybody wants to say, ‘Oh we need more capital. We’ve got to invest billions in the supply chain.’ Not true,” he said. “We move grain long distances, through mountains and over rivers. And look, there’s going to be a problem from time to time. But it’s not like a bridge is going out every two weeks and it’s not like landslides happen all the time.
Grain elevators in rural areas are typically served by CN or CP, not both. Alghabra’s task force noted that those relationships between grain shippers and the big railroads aren’t “balanced by normal market forces.” In other words, grain companies are stuck with whichever railway runs through town, with little choice but to accept whatever train service they’re offered.“You’ve got two railways that act as a virtual monopoly,” Heimbecker said.
Farmers across the Prairies finished harvesting their grain in October, yielding an expected 75.2 million tonnes, according to forecasts by “One of the things that’s lost in this is, during the pandemic, both railways really downsized. They got rid of a number of people,” UBC’s Gillen said. “And now that demand is just growing like crazy, they don’t have the crews.”The railways appeared to start falling behind in September. A collection of grain industry lobby groups known as the Ag Transport Coalitionhow many grain cars are ordered and how many the railways actually provide on a weekly basis. During the week of Sept.
The railway is only one part of an interconnected supply chain, so it’s impacted by things outside its control, like weather and delays at port terminals, he said. If the industry wants to move the bulk of the harvest in the span of a few weeks, all through the same corridor through the Rockies, “it’s not going to fit,” Przednowek said in anThis advertisement has not loaded yet, but your article continues below.
In statements for this story, both CN and CP pointed to this system as proof that they are held accountable for the level of service they provide to shippers. Heimbecker said the federal protection has helped, but it’s not enough.“It’s not that the railways can’t move the grain. It’s that they won’t move it,” Heimbecker said. “And they won’t do it because they pick and choose. They pick the highest margin products to move at the time.”, the “grain and fertilizers” category earned $5.
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