NEW – Federal: CPA calls on Minister of Transport to address poor rail service
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The CPA has written to the federal government to act now and address the significant delays and associated additional costs incurred by CPA members from across Canada due to the increasingly problematic service provided by Canada’s railroads.
In a recent letter to federal Transport Minister Omar Alghabra, CPA Interim President and CEO Allan Murphy stated that CPA members are experiencing frequent delays and missed switches in rail service from both CPRS and CN. In Alberta for example, CPA members have reported that rail cars are sitting for much longer time periods than normal (up to 6 days on site) as they wait to be loaded.
Propane locations across the country have experienced service changes that have negatively impacted customers. These range from decreased switching to revising switching yards (i.e., staging cars versus switching out of the yard) and other issues. All these impact service to customers, which is of particular concern during these cold winter months.
Murphy stated that CPA members are “hesitant to advise their customers when cars will be expected for delivery as they do not have consistent timelines to follow, based on these delays. This ultimately impacts downstream service, as volumes will be slow in getting to customers, especially as the cold weather moves east.”
Adding to the frustration is the lack of urgency on behalf of the railroads to address these issues in a timely manner. The result is that the propane industry continues to pay more to the railroads for what has become a declining service.
As Murphy told the minister, “The time has come for the federal government to intervene and to ensure that the railroad companies are accountable and held responsible for performing this critical service. As we have previously expressed to the government, it is not economically or operationally feasible to switch over to all truck transportation, especially given the critical shortages of drivers currently available. As well, if Line 5 was ever disrupted, there would be disarray in terms of railway transportation of propane and many other goods, if current operations are any indication.”
To address this serious situation, real accountability is required from the railroads, and financial penalties should be considered. Poor service impacts more than just the individual companies, it impacts propane customers who rely on propane to heat their homes, farms, businesses and institutions such as schools, senior residences and hospitals.
Murphy concluded his letter by noting that the time for action is now and that “prioritizing service for propane during the cold winter months should be an important and immediate action for government to address.”
The CPA has asked to meet with the minister and his officials to seek immediate solutions.