Canada said late on Saturday it would maintain rules requiring the country’s main railroads to carry a minimum amount of grain a week, adding such regulations are necessary to ensure the country’s important commodities get to market in a timely manner, The Wall Street Journal reports.
The grain-shipment rules, first introduced last winter and designed to avoid the type of backlog witnessed earlier in the year, were set to expire Sunday. They have been renewed until March 28, the government said in a statement, although the minimum amount that Canadian National Railway Co and Canadian Pacific Railway Ltd must transport has been reduced.
Under the current regime, the two railroads are compelled to carry more than one million metric tons of grain a week. Under the new order issued, the two railroads are set to carry anywhere between 650,000 metric tons and 690,000 metric tons, with the exception of the last two weeks of December — when shipments are scaled back for the holiday season — and the last full calendar week in March, when it increases to over 900,000 metric tons.
“Our government continues to act to ensure that grain and all commodities get to market in a timely manner,” said Gerry Ritz, Canada’s agriculture minister.
The statement didn’t elaborate on changes to the minimum grain amounts, other than the volumes established are meant to ensure the remainder of last year’s crop, along with this year’s wares, get to market. A representative for Mr. Ritz wasn’t immediately available for comment.
In recent weeks, Canadian railroads said they would reduce the number of railcar orders farmers would be able to place this crop season in a bid to manage rail congestion and prevent the kind of months-long grain bottleneck that plagued North America last winter.
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