KAP President Concerned Rail Backlog Could Hurt Grain Bids

Feb 21, 2018

Keystone Agricultural Producers President Dan Mazier isn't impressed with how the railways have performed so far this winter. He says this is probably the worse it's been since stats started to be recorded.

The latest data from the Ag Transport Coalition shows CN and CP supplied a combined 49% of hopper cars ordered for the week ending February 10. Mazier says CN's numbers are much lower for Manitoba.

He explained what effect this backlog is going to have on the industry.

"Our shippers are trying to move grain out of the Prairies, a big crop. It's going to start getting into carry-over and I think that's going to be the biggest concern. If we have to much carry-over in the Prairies, the grain bids are just not going to come up."

Mazier commented further on how individual farmers trying to deliver grain will be affected.

"They committed to these contracts back during the growing season and they just can't haul the grain out. Your cash flow is all impacted, you can't take your grain, your product to a shipper because he's got either no room or he's got no cars to move the grain."

Source : Steinbachonline

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