Rail competition pilot may not be renewed amid parliamentary break

The CN MacMillan Yard is shown in Vaughan, Ont., Thursday, Aug. 22, 2024. THE CANADIAN PRESS/Paige Taylor White

MONTREAL — A pilot project designed to boost railway competition is set to expire before a prorogued Parliament returns, with shippers and railways squaring off over its demise.

In 2023, the federal government temporarily increased the distance railways are required to haul goods being shipped by their competitors, a practice known as extended inter-switching.

The longer range means the vast majority of food producers and wholesalers have access to more than one rail line, offering more choice.

The experiment is set to expire on March 20, four days before the House of Commons returns from prorogation, and would need to be extended via legislation to continue.

Grain Growers of Canada executive director Kyle Larkin says the new rule has drastically increased the number of producers with access to two railways rather than one, enhancing competition and efficiency on the tracks.

But the Railway Association of Canada, which represents the country’s two main rail companies, says shippers already enjoy some of the lowest freight rates globally and calls extended inter-switching a failed policy that should be ditched for good.

This report by The Canadian Press was first published Jan. 20, 2025.

Christopher Reynolds, The Canadian Press