By Kevin Hursh

Railways have great lobbyists

Nov 18, 2010 | 5:29 AM

The Canada Grains Council meeting that wrapped up yesterday in Ottawa provided a great example of the persuasive powers of Canada’s two major railways.

One of the sessions at the meeting was to garner reaction to the draft recommendations of the Rail Freight Services Review. The review recognizes that the railways have inordinate market power because there isn’t true competition.

Rail shippers agree with that assessment, but they’re disappointed that the review says shippers and the railways should try to work it out themselves. If the two sides can’t work it out, the need for regulations to balance the playing field wouldn’t be assessed until after 2013. Shippers want the regulatory backstop now, saying there’s no reason for further delay.

Read more