Question Period Note: Grain Transportation

What is the Government doing to address the serious problems in grain transportation which have arisen because of the blockades?

1. The Government fully understands the importance of an efficient and responsive transportation system for our grain farmers.

2. Farmers expect a reliable transportation system that can get their products to market safely and in a timely manner.

3. Re-storing rail service to the Port of Prince Rupert has been a positive development, given the critical role of the Port to our agriculture sector.

4. I will continue to support my colleagues, the ministers of Indigenous Services, Crown-Indigenous Relations and Transport, as we work towards a resolution.

Blockades:
Since February 8, 2020, protests have been taking place at various locations across Canada, which have blocked major rail transportation routes. Major blockades have occurred at New Hazelton in northern B.C., Tyendinaga/Marysville, Ontario (near Belleville), and Kahnawake, south of Montréal. Protests have also affected some activity at the Ports of Vancouver and Halifax.
As a result of the blockades, Canadian National (CN) Railway announced it had to temporarily discontinue service in key corridors. Service on Canadian Pacific (CP) Railway has also been affected, although to a lesser extent. VIA Rail passenger rail service has also been disrupted.
As of February 17, 2020, blockades remained at Tyendinaga/Marysville, Ontario, and Kahnawake, Quebec. CN’s operations east of Belleville, Ontario, remain shut down. The blockade at New Hazelton, B.C., was removed on February 14, 2020, restoring CN’s access to the Port of Prince Rupert.

Railway Safety Act Ministerial Order on Rail Traffic:
On February 6, 2020, a Canadian Pacific train carrying petroleum crude oil derailed near Guernsey, Saskatchewan. The Minister of Transport subsequently issued a Ministerial Order under the Railway Safety Act, requiring the immediate slowdown of trains carrying large quantities of dangerous goods. Since then, Transport Canada officials have worked with large railway companies to further assess the causes of recent derailments, and to develop a plan to address the areas of greatest concern. As a result of this work, an amended Order was issued on February 16, 2020, which takes a more targeted, risk-based approach which requires reduced speed limits for higher risk key trains traveling through areas of greatest concern. The Order will remain in place until April 1, 2020.
CN has stated that the revised Order will allow its operations to recover more efficiently from the blockades. CN had asserted that the consequence of the previous Order was a reduction in at least a third of CN’s overall network capacity for all trains, even those not carrying dangerous goods.
Grain Supply Chain Status:
The 2019-2020 Western Canadian crop is estimated to be 75.1 million Metric Tonnes (MT), which is up 4.9 per cent from 2018 and 2.5 per cent below the record 2013 harvest of 77 MT. The federal government’s Grain Monitor estimates carry-forward stock to be 9.8 MT, resulting in an estimated supply of 80.9 MT for the 2019 Western Canadian grain crop.
The protest blockades have significantly worsened rail service at this time when the rail system was already experiencing strain caused by a combination of factors, including: the lingering effects of the November 2019 CN labour strike, several line outages in British Columbia in the past month caused by poor weather, and heavy rainfall along the west coast, which can slow vessel loading.
At this time of year, Vancouver (the largest) and Prince Rupert are the two major ports available for the export of western Canadian grain. The other major port at Thunder Bay, Ontario, is closed due to winter ice, and will re-open in the spring.
As of February 17, 2020, there are significant vessel line-ups at the Ports of Vancouver and Prince Rupert, which is an indication of rail system deterioration. As at February 14, 2020, the grain terminal at the Port of Prince Rupert had effectively run out of inventory due to the rail blockade at New Hazelton, B.C. Since removal of the blockade on February 14, 2020, CN is now in the process of resuming rail service to Prince Rupert, including the delivery of grain.
Infrastructure – National Trade Corridors Fund (NTCF):
Budget 2017 announced the Trade and Transportation Corridors initiative, which includes $2 billion over 11 years for the NTCF to invest in trade and transportation projects to build stronger, more efficient trade corridors. Commitments to date include over $300 million for several infrastructure projects in and around Vancouver, specifically targeting improvements to the port and rail infrastructure aimed at reducing congestion and improving fluidity in the port area. An additional $153 million in investments has also been announced for several infrastructure improvements to the Port of Prince Rupert and surrounding area.

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