Canada to force minimum rail grain shipments as backlog builds

|By:, SA News Editor

The Canadian government is proposing legislation that would force the country’s two main railway companies, Canadian National Railway (CNI -0.8%) and Canadian Pacific (CP -1.2%), to allow commodities shippers to switch between their rail lines for greater distances at no additional cost.

The move would attempt to boost shippers’ flexibility in getting products to market by easing rail bottlenecks, but the rail companies are unhappy; CN Rail says it is "disturbed that the government has decided to punish railways with re-regulation for an outsized crop and winter conditions totally beyond their control."