Quit Looking At Past, KAP Leader Responds To CN CEO

Rail company executives should quit talking about their past performance, says the president of Keystone Agricultural Producers.

Doug Chorney was in attendance for CN Rail CEO Claude Mongeau's speech at a Winnipeg Chamber of Commerce event on Wednesday.

Defending his company's performance in light of the grain backlog in Western Canada, Mongeau said the grain industry has had unrealistic expectations of the rail system , ordering many more graincars than the railways have ever been able to provide.

"Their best performance wasn't really all that good to begin with. Comparing themselves continuously to their past performance is not a good way to show how they're doing today. We need to look at the reality that farmers are growing bigger crops than they have in the past," says Doug Chorney, who farms in the East Selkirk area. "They have to prepare for the future and stop talking about the past."

Mongeau argued the federal government has unfairly targeted the rail sector with increased regulations through Bill C-30, which could receive third and final reading in the House of Commons today.

"We were told (by Mongeau) it was a heavy-handed move by government in the heat of the moment, but there was plenty of time for the railways to enter into commercial service level agreements," responds Chorney. "In reality, the railways were not cooperating with shippers to accomplish that, so government was left with no choice."

KAP's president also took issue with Mongeau criticizing the government's move to extend interswitching distances - the distance a railway can "pull" grain off another company's rail line.

"They very much fear the threat of competition by other railways. This will give 150 shipping points in Western Canada the option of having different shippers. It's certainly a concern for them and a competitive challenge they've never had to face," says Chorney. "But maybe we need a little more competition to make them more accountable."

Source: SteinbachOnline