The Government of Canada recently responded to the Rail Freight Service Review, which was launched in 2008 to address ongoing issues with rail freight service, raised by users of the rail supply chain.

"Our government is focused on the economy. By launching the Rail Freight Service Review, our government made a commitment to help ensure Canada has the rail system it needs to support a strong economy and our domestic and international trade," said Rob Merrifield, Minister of State (Transport). "Today we are following through on that promise with measures to enhance the effectiveness, efficiency and reliability of the entire rail freight supply chain."

The review was conducted in two phases. The first phase comprised analytical work to achieve a better understanding of the nature and extent of problems and best practices within the supply chain, including those experienced by shippers, terminal operators, ports and vessel operators, with a focus on railway performance. An independent panel, chaired by Walter Paszkowski, led the second phase, which included extensive consultations with stakeholders across the supply chain. The panel's final report was also made public.

The government intends to implement the following steps to improve the performance of the entire rail supply chain:

• initiate a six-month facilitation process with shippers, railways and other stakeholders to negotiate a template service agreement and streamlined commercial dispute resolution process;
• table a bill to give shippers the right to a service agreement to support the commercial measures;
• establish a Commodity Supply Chain Table, involving supply chain partners that ship commodities by rail, to address logistical concerns and develop performance metrics to improve competitiveness;
• in collaboration with Agriculture and Agri-Food Canada, Transport Canada will lead an in-depth analysis of the grain supply chain to focus on issues that affect that sector and help identify potential solutions.

"The Rail Freight Service Review has been a very important undertaking for Canada's rail system, involving close consultation with key stakeholders," said Minister Merrifield.