A new report on Canada\u0027s transportation supply\u002Dchain troubles follows the wrong track to improve railway shipping. Read more here.
The task force would have the government expand the current “inter-switching radius.” Inter-switching is the rail industry term for the transfer of freight from one rail company to another. One railway takes the shipper’s freight partway to its destination but then hands it over to a competing company. The transfer, or switching, is done at an interchange — a place where the two companies’ lines meet.
Right now, the freight transfer must take place within 30 kilometres of the interchange; and railways are required to ship at a rate set by Ottawa. The proposal would extend this distance, allowing the railway receiving the goods to carry the freight over greater distances and at a regulated rate. Railways are required to accept the rate, which can be uneconomic for these switches. The rates are set and regulated by the Canadian Transportation Agency , a federal regulator and tribunal.
Inter-switching is inefficient. It multiplies the number of times rail cars are passed between railways, adding complexities, headaches, and costs. Railways can’t simply refuse to make the switch, however: federal law requires they do it. The law the government is contemplating pushing through would increase the number of switches and the distances railways are required to carry goods.
The task force says expanding the inter-switching radius would “give shippers more rail options.” But it was supposed toinefficiencies and snarl-ups along the supply chain, not add to them. Improving shippers’ competitive options was never the point of the exercise. The point was to untangle the supply chain and speed up the movement of goods.Article content
Increasing competition never was the point of inter-switching. Canada first mandated the practice in 1908, in the days before trucks and airplanes. Rail was the only means to ship goods over long distances. There were many healthy railway companies at the time. The goal of inter-switching was to try and slow the construction of new track in cities, asking railways to share the existing track rather than having each company build its own.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ottawa assembles roundtable to figure out how to load grain ships when it rains in VancouverRain was one of the main hurdles blocking one of Canada\u0027s most anticipated grain harvests from reaching global markets this fall. Read more.
Read more »
Ottawa assembles roundtable to figure out how to load grain ships when it rains in VancouverRain was one of the main hurdles blocking one of Canada\u0027s most anticipated grain harvests from reaching global markets this fall. Read more.
Read more »
Ottawa assembles roundtable to figure out how to load grain ships when it rains in VancouverRain was one of the main hurdles blocking one of Canada\u0027s most anticipated grain harvests from reaching global markets this fall. Read more.
Read more »
Ottawa assembles roundtable to figure out how to load grain ships when it rains in VancouverRain was one of the main hurdles blocking one of Canada\u0027s most anticipated grain harvests from reaching global markets this fall. Read more.
Read more »
Couche-Tard pledge to add EV chargers, sell cage-free eggs may be too little for ESG investorsAs the green transition speeds up and gasoline demand slows, is one of Canada\u0027s biggest companies doing enough for the future? Read on.
Read more »
Couche-Tard pledge to add EV chargers, sell cage-free eggs may be too little for ESG investorsAs the green transition speeds up and gasoline demand slows, is one of Canada\u0027s biggest companies doing enough for the future? Read on.
Read more »