Canada’s Prime Minister Stephen Harper says it's not in the country’s economic interest to have two railway companies with "extraordinary market power" dictating terms of the transportation industry, CTV News Saskatoon reports.
The Prairies experienced months of railway
backlogs after a bumper grain crop last year.
Canadian National (TSX:CNR) and Canadian
Pacific railways (TSX:CP) were fined a total of CAN$150,000 for failing to
transport the minimum required grain volumes set out by the federal government.
The prime minister took part in a moderated
question-and-answer session at the annual conference of the Saskatchewan
Association of Rural Municipalities in Saskatoon on Thursday.
"For the most part the railways have
fulfilled the obligations we set out," Mr Harper said.
"The system is clearly not under
anywhere near the strain it was a year ago, but nevertheless we remain
concerned."
Farm lobby groups in Saskatchewan and
Manitoba have said the fines didn't reflect the damage caused by the delays.
CN was billed CAN$100,000 for violations
related to shipments for the weeks of July 28 and September 7. Canadian
Pacific, which was assessed a CAN$50,000 penalty for the week of September 7,
is disputing the fine on the basis that the shortfall was a result of matters
beyond its control.
Read more HERE.
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