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Ottawa Quietly Reduces Fair Rail Grain Fines

(Eric Atkins – Globe & Mail)

While the federal government has publicly criticized Canada’s two major railroads for the slow pace of grain shipments last winter, officials have quietly slashed the fines the railways face for not moving a minimum amount of grain each week.

The changes came in the fine print of the Fair Rail for Grain Farmers Act, which was introduced in March to address complaints by farmers and the grain industry about poor service from the two major railways, Canadian National Railway Co. and Canadian Pacific Railway Ltd.

According to the law, which came into effect on April 1, railways would face “maximum penalties of $100,000 a day” for failing to handle 500,000 tonnes of grain each week for the next 90 days. Read more here.