New rail legislation will support jobs, growth and prosperity says forest industry

OTTAWA, Dec. 11, 2012 /CNW/ – The Forest Products Association of Canada
(FPAC) believes that the new Fair Rail Freight Service Act is moving in the right direction to help shippers retain and create jobs
for the benefit of the Canadian economy. The legislation was tabled
after years of complaints by rail customers about inefficient and
inadequate service from the railway monopoly.

“Ensuring a fair and balanced relationship between shippers and the
railways will help the forest products industry retain and create jobs
for the benefit of the entire Canadian economy,” says the President and
CEO of FPAC, David Lindsay.  “We give the proposed new legislation a
passing mark.”

FPAC is encouraged to see that many of their proposed remedies for
leveling the playing field have been addressed.  This includes the
right to a service level agreement, a dispute settlement mechanism and
significant penalties for non-compliance.  The requirement for
performance standards and a communication protocol are also welcomed.

However FPAC is disappointed that the legislative proposals will not
cover existing confidential contracts, forcing companies to potentially
wait for years before they can access the measures outlined in the
legislation. There are concerns about implementation; for example the
proposed remedy process requires further clarification.  FPAC also
hopes the House will deal quickly with this legislation on an urgent
basis.

“Forest companies are located in far flung rural communities and rely on
a single means of transportation to get their goods to market. We have
waited for a long time for the government to take action to level the
playing field between shippers and the railways,” says Lindsay.  “The
proposed measures will go some way in helping to ensure that shippers
can reliably serve their customers both national and internationally.”

The Canadian forest products industry now supports more than 230,000
direct jobs and is the mainstay of about 200 rural communities.

SOURCE FOREST PRODUCTS ASSOCIATION OF CANADA