Navigating Canadian Rail Delays: A Path to Agricultural Prosperity and Global Trade Resilience

Abstract

This Capstone delves into the repercussions of Canadian rail delays on both agricultural producers and Canada's global trade standing. It focuses on Western Canadian grain transportation by CN and CP railways, evaluating the challenges resulting from delays, exploring the viability of an interswitching policy, and presenting a policy solution. Addressing these rail issues is pivotal for future trade success, as uncertainty in transportation currently hinders economic prosperity for farmers and jeopardizes Canada's international reputation. A more diverse and competitive rail transportation landscape would enhance the efficiency of grain transportation and contribute to a more resilient and sustainable agricultural supply chain in Canada. The recommended policy, an expanded Extended Interswitching Policy (Flip the Switch Campaign) presents the opportunity for positive economic impacts. These gains would extend to shippers, railways, and regional economies, with shippers poised to gain enhanced flexibility and cost savings in transporting their products to market. The policy must also carefully consider the potential impacts on all stakeholders and ensure appropriate infrastructure development to provide the greatest success. This paper endeavors to provide context on the issue and offer a practical recommendation to amplify competitiveness in the agricultural market and streamline supply chain efficiency moving forward.