CN chief calls on Ottawa to reject shipper demands for intrusive regulation

CANADIAN NATIONAL Railway (CN) chief executive Claude Mongeau has warned Ottawa that shippers demands during the federal government's Rail Freight Service Review (RFSR) for "intrusive" regulation would stifle service innovation and damage Canada's railway system.

"Shippers' demands for greater government intervention in rail service are clearly misguided. This regulatory stance represents a missed opportunity to take supply chain collaboration to the next level," he said in a press release.

He said CN actively supported the facilitation process directed by James Dinning to produce a template for service-level agreements and enhanced commercial dispute resolution mechanisms.

The objective of the facilitation process was to develop commercial measures to enhance the effectiveness, efficiency and reliability of the rail freight supply chain. But throughout shippers continually demanded new intrusive, regulatory intervention, he said.

Mr Mongeau said shipper lobbyists advocated a regulatory agenda rather than work within the commercial approach to reach for the next level in supply chain collaboration and service agreements.

Mr Mongeau called on the government to weigh the future regulatory environment for Canada's rail industry, now that the facilitation process is complete.

"Make no mistake - the intrusive, regulatory-based approach to service demanded by shippers would be unprecedented in a market-based economy. Such an approach would send mixed signals to customers and suppliers around the world about the government's approach to commercial markets for rail transportation in Canada," he said.