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Canadian Railways Ration Space as Commodity Congestion Problems Worsen

(Rod Nickel – Reuters)

Canada’s two major railways are rationing space on trains traveling to the country’s biggest port and recently prioritized some commodities over others to deal with congestion, the latest indication of their struggle to meet demand from new trade deals.

That move prompted Canada’s transport regulator last week to start an investigation into rail services around Port Metro Vancouver, after shippers complained of “discriminatory treatment of certain commodities” by Canadian National Railway and Canadian Pacific Railway.

Canada is a top shipper of crops, fertilizer, oil and pulp, but has in recent years needed government intervention to keep commodities moving, from ordering railways to clear grain backlogs to Alberta’s crude oil curtailments this month due to full pipelines. Click here to read more.