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Friday, 19 April 2019 14:29

CTA finds breach in CN service obligations

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Following an investigation authorized by the Minister of Transport, the Canadian Transportation Agency (CTA) has found that Canadian National Railway Company (CN) breached its level of service obligations. In September, CN announced its intention to impose embargoes on wood pulp shipments, several months before rail congestion and other challenges emerged in the Vancouver area, and imposed those embargoes in December 2018, rather than making every reasonable effort to deal with those challenges before unilaterally restricting the transportation of the shippers' traffic.  The CTA ordered CN to develop and submit a plan to respond to future traffic surges in the Vancouver area and to avoid, or minimize, the use of embargoes. The determination also sets out criteria for the lawful use of embargoes, including that they be imposed only on an exceptional basis, be targeted to address specific challenges, and be lifted as soon as possible.  The CTA found that Canadian Pacific Railway Company (CP) and BNSF Railway Company (BNSF), the two other railway companies investigated, had not breached their service obligations.

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