Alberta, Saskatchewan energy ministers rip Canada's rail and port infrastructure

CALGARY — Alberta Energy Minister Brian Jean and Saskatchewan Energy Minister Chris Beaudry gave a blunt assessment of the reality of Canada's infrastructure in Calgary on Thursday.The two ministers were taking part in a fireside chat at The Energy Roundtable conference when they were asked about the nation’s port efficiency and rail capacity — which have been described by some industry insiders as “choke points” in Canada’s ability to export products such as oil and potash.Beaudry said it does not matter whether Canada is exporting grain, potash or oil if products cannot efficiently move through ports and rail systems.He pointed to Canada’s poor standing in the World Bank and S&P Global Market Intelligence’s annual Container Port Performance Index (CPPI), noting one Canadian port ranked 347th out of 348 globally.“It doesn't matter if we produce more grain, more oil, more potash,” he said.“If it can't get out of our port, then we're sitting at a moot point.”.Energy executives believe Canadian LNG has huge Asian potential despite carbon taxes, red tape.He cited Nutrien’s recent decision to expand potash shipping capacity by going through Washington State instead of Canada as an example of investment leaving the country due to transportation bottlenecks.He also criticized lengthy permitting delays for projects such as dredging, calling them “simple things” that remain stalled for years, and added that Canada can get things done in a much shorter time period without sacrificing safety measures.“I really think in this country that we have enough mechanisms to work safely and efficiently, where an entire port doesn't have to stop because one tanker is moving through,” he said.Jean argued a major point of contention was Canada’s rail system, which he described as a “duopoly between Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC).”CN and CPKC currently own more than 75% of Canadian rail track and carry roughly three-quarters of the country’s freight tonnage.“I've mentioned it to the federal government. We truly have to find ways to create competition there and credible competition that's prepared to invest,” Jean said.“As our economy booms, we're seeing rail companies close down short lines and long lines.”.CN Rail shutting down eastern Canada lines, VIA cancels service over Indigenous blockade.Jean warned rail closures in the Northwest Territories could devastate northern economies, calling rail a “lifeline” for remote regions.“We have probably the greatest riches in the world in the North, but we're not prepared to invest in it because we allow duopolies to control the agenda,” he said.“We need to have aggressive regulatory system change in rail in this country, and we need to get the federal government more serious about port and port efficiencies because they're in charge of it.”Jean isn’t the first to raise concern over the dominance CN and CPKC wield over shipping and rail across Canada.Last year, the Forest Products Association of Canada released a report stating most Canadian shippers are effectively captive to CN or CPKC and that the lack of competition leads to higher costs and poorer service.“Rather than serving as pure enablers of trade and economic prosperity, railways have effectively assumed a gatekeeping role,” the report reads.“Without meaningful competitive pressures, a service provider has little incentive to make improvements to its offering.”

Alberta, Saskatchewan energy ministers rip Canada's rail and port infrastructure

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