Propane industry supports Fair Rail Freight Service Act – new act offers balanced approach to managing railway/shipper relations

OTTAWA – The Canadian Propane Association (CPA) announced support for the new Fair Rail Freight Service Act (the Act) and views it as a balanced approach to managing relations between railways and shippers.
“The new legislation respects the commercial nature of the relationship between the railway carrier and the propane shipper, but also addresses the recommendations of the Rail Freight Service Review Panel,” said CPA President & CEO Jim Facette. “It contains all of the measures that the propane industry requested – the right to a Service-Level Agreement, an arbitration process should commercial negotiations fail, and consequences for non-compliance.”
The propane industry has been an active participant throughout the entire Rail Freight Service Review process, including the six-month facilitation process led by Mr. Jim Dinning.  Due to the industry impact of the issue, over half of the propane produced in Canada is exported to the United States, 50% of which is shipped via railway. It is estimated that 3.5 billion litres of propane is shipped using Canadian railways.
“The propane industry is pleased to support the Fair Rail Freight Service Act. It is our hope that the Act, coupled with recent improvements we have seen from the railways, will enhance competition and promote positive relationships between the railways and the shippers,” said Mr. Facette

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