A new rail shipping rule is poised to drive up inefficiency and consumer costs.
Set to come into effect with Ottawa's federal budget bill, an obscure law has Canada’s two main railways fighting back over concerns about expenses and congestion, with the drama playing out in social media posts and a backroom lobbying push.
The budget bill, which passed in the House of Commons on Thursday and now awaits Senate approval, proposes a pilot that would extend the interswitching zone to 160 kilometres from 30 kilometres in the three Prairie provinces for an 18-month period. Echoing CN's concerns, CPKC said the "drastic" and"extraordinary remedy" seeks to solve a nonexistent problem in a move that will further boost inflation.Lobbyists with Canadian Pacific had 96 meetings with public office holders in the first four months of 2023, the same number it posted through all of 2022, according to the federal lobbyist registry. More than 30 involved civil servants — mainly Transport Canada's — or ministerial offices.
Over the past month, groups ranging from the Alberta Wheat Commission to the Canadian Canola Growers Association have promoted the effort on social media. Kevin Waugh, chair of the Conservatives’ Saskatchewan caucus, has touted the Liberal measure on Twitter as offering “greater flexibility in transportation choices” and “more efficient and cost-effective supply chains.”
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