Battle rages over obscure law to expand railway competition in Canada
Or it will drive them straight down. It depends who you ask.
The practice seeks to spur competition, as someone shipping from a grain elevator on Canadian National Railway Co. tracks, for example, could choose to have the freight transported by Canadian Pacific Kansas City Ltd. instead if the price is better. Shipping times will grow by up to 25 per cent, the ad warns, comparing the cargo hand-offs to “forcing airlines to deliver passengers to their competitors back and forth on several flights instead of a direct non-stop.”
“They can control their networks and control their customers … without having to adjust to competitive forces or adjust to what their customers may want,” said Greg Cherewyk, who heads Pulse Canada, which represents 25,000 farmers of peas, lentils and beans. “There’s a reluctance to lose that power.”
The Teamsters Canada Rail Conference, representing 16,000 workers, also warned of possible job cuts if U.S. operators pick up more business.
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