The Globe and Mail reports in its Friday, Sept. 19, edition that Canadian Pacific Railway
has commenced legal action against
the federal government in an
effort to overturn new regulations.
The Globe's Eric Atkins writes that CP
is seeking permission in the Federal
Court of Appeal to fight
changes made by the Canadian
Transportation Agency to the
rules governing a customer's ability
to ship goods with a competing
railway, known as
interswitching.
Those changes came into effect
last spring with the passing of the
Fair Rail for Grain Farmers Act.
The legislation gave rail customers
in the three Prairie provinces
extended rights to demand their
local railway move their goods to
another railway, if the rail interchange
is within 160 kilometres.
Previously, the distance was just
30 kilometres. The government
also widened interswitching
rights to shippers of all commodities,
not just grain.
In court filings, CP said its cost
to switch a car to a rival line is
$825, but it can charge only the
regulated rate of $461. Based on
expected traffic volumes, this
means a loss of $13-million a year,
the company said, describing the
changes as "arbitrary" and
beyond the regulator's authority.
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