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2000
May 10, 2000
New CWB's work on transportation for farmers pays off
Winnipeg --The CWB Board of Directorstoday announced that its hard
work for farmers has begun to pay off with changes coming out of
the federal government's announcement for grain transportation
reform. However, much work remains to be done.
Revenue Cap
"On behalf of farmers, the CWB battled for lower rail rates and the
evidence we produced showed that farmers were entitled to
substantially lower freight rates than those recommended by Justice
Estey," said Board Chair, Ken Ritter. "The federal government has
recognized the savings advocated by farmers through the reduced
level of the proposed revenue cap. For an average farmer who
delivers 1000 tonnes of grain that will mean a saving of more than
$5,000."
Railway Competition
"The federal government's recommendation has no new major
competitive elements regarding railway competition and that is
clearly a win for railways in the short term," said Ritter. "Moving
to a revenue cap was contingent on having the railways in a
competitive environment, which has not happened. However, the
federal government has provided us the opportunity to continue to
work on farmers' behalf. The Board of Directors will aggressively
pursue more competitive features in the upcoming CTA review in
conjunction with shippers of other products to ensure grain
freights remain as low as possible."
The CWB's Role
"Minister Goodale has clearly recognized that the CWB must have a
key role in transportation in order to maximize returns to
farmers," Ritter said. "The federal government's decision that the
CWB is to negotiate directly with the railways and the grain
companies on farmers' behalf is our endorsement to move forward
with our plans for a commercial CWB logistics system."
The CWB will be introducing bilateral contracts for both country
and port movement in discussion with the grain companies. As well,
the CWB will be approaching the railways with innovative ideas for
service contracts. "It's key that the interests of farmers are
first and foremost, especially when it comes to tendering," said
Ritter. "That is why it is important that tenders can be at an
instore basis to ensure blending revenues stay with farmers. We are
also pleased the CWB will negotiate 100 per cent of rail capacity
to ensure we meet the needs of farmers and customers."
The CWB is the world's largest farmer-controlled wheat and barley
marketer. Headquartered in Winnipeg, Manitoba, it is one of
Canada's biggest exporters and the largest net earner of foreign
currency. Marketing Prairie-grown wheat and barley to over 70
countries around the world, the CWB returns all sales revenue, less
the costs of marketing, to farmers in Western Canada.
