Why Canada's two big railways are livid over Justin Trudeau's attempt to force competition via financialpost
,” Creel wrote in a blunt op-ed in the Financial Post earlier this month. “Extended interswitching isn’t about competition; it’s about some shippers wanting to manipulate regulation to pay less.”
“It will drive up prices for goods at a time when Canadians are already coping with high inflation,” Creel wrote. “I’m concerned it’s going to have ripple effects,” said Murad Al-Katib, chief executive of the Saskatchewan grain processing giant AGT Food and Ingredients Inc., which owns a short-line railway in the province“We’re not in favour of supply chain measures that benefit very few shippers yet can have a very serious impact on the supply chain.”
For example, if a railway told a grain elevator it wouldn’t be able to provide the railcar capacity it needed, the grain elevator could threaten to interswitch. “And then the first primary carrier would say, ‘OK everybody let’s just back away from the ledge. I think we can get you those cars this week,'” Sobkowich said.Article content
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