Interswitching refers to the transfer of cargo between two rail companies at a point where their tracks meet. Extended interswitching is when Company A must transport that cargo along its own tracks to a point where it meets Company B’s rails, and it’s currently required on request for distances of up to 30 kilometres.
The move aims to tamp down prices, but it has awoken Canada’s two railway giants, prompting them to go on the offensive to warn of the deep harm they say it will inflict. Echoing CN’s concerns, CPKC said the “drastic” and “extraordinary remedy” seeks to solve a non-existent problem in a move that will further boost inflation.Lobbyists with Canadian Pacific had 96 meetings with public office holders in the first four months of 2023, the same number it posted through all of 2022, according to the federal lobbyist registry. More than 30 involved civil servants – mainly Transport Canada’s – or ministerial offices.
“They can control their networks and control their customers … without having to adjust to competitive forces or adjust to what their customers may want,” said Greg Cherewyk, who heads Pulse Canada, which represents 25,000 farmers of peas, lentils and beans. “There’s a reluctance to lose that power.”
In an e-mailed statement, association CEO Marc Brazeau said U.S. railroad operators will be able “to reach hundreds of kilometres into Canada” to snap up shipments handed over involuntarily by domestic railways. The government based its decision on a recommendation from a supply chain task force report last fall, said Nadine Ramadan, a spokeswoman for Transport Minister Omar Alghabra.