Law to Change How Railways Share Tracks
Railway Track Sharing Changes
This proposed law wants to change how railway companies share tracks. Right now, if a business is only served by one railway, it can be stuck paying high prices to ship goods. The proposed law would make it easier for that business to ask another railway to use a short section of the first railway's tracks. This is called "interswitching." This change would mostly affect businesses that rely on railways to move their products. For example, farmers, manufacturers, and resource companies could benefit. If they can get a second railway to bid for their business, they might get lower shipping costs. This could make their products more competitive. This matters because it could help businesses save money and grow. It could also make the railway industry more competitive. If businesses have more choices for shipping, it could lead to better service and lower prices overall.
Where this proposed law falls on the policy spectrums that Canadians care about
The bill aims to reduce the power of dominant railways by allowing shippers access to other lines, which could be seen as a slight move towards regulating business practices to benefit shippers.
By potentially lowering shipping costs for agricultural products and other goods, the bill could provide a small boost to rural economies that rely on rail transport.
This proposed law removes the extended interswitching rules for Prairie provinces, which were meant to help shippers access different railway companies. While it simplifies regulations, it removes protections for shippers in Manitoba, Saskatchewan, and Alberta who are located further than 30km from an interchange.
Things to Watch For
- Shippers in the Prairie provinces may face higher costs and fewer options for moving their goods by rail.
- The law does not address how to support competition among railway companies in the absence of extended interswitching.
- It is unclear if there will be any monitoring of the effects of removing these regulations on Prairie shippers.
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How likely this proposed law is to be approved
This proposed law was introduced by a single senator, not the government, so it's less likely to pass. It's also still early in the process, having only reached the second reading in the Senate.
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