Ottawa - The Association of Regional Railways of Canada (ARRC) welcomes the publication of "Straight Ahead - A Vision for Transportation in Canada" by Transport Canada and the introduction of Bill C-26 in the House of Commons by the Minister of Transport to amend the Canada Transportation Act accordingly.  "This is an important initiative of needed reform to the Canadian transportation system that will support Canada’s economic and social development over the next several decades", said Bob Ballantyne, President of ARRC.

"Straight Ahead" enunciates the policy that "government intervention may be necessary, on occasion, to ... prevent abuse of market power." "Straight Ahead" supports continued shipper access to regulatory remedies to balance the market dominance of the Class I railways.  Canada’s short line and regional railways operate in a climate where they are dependent on their main line partner, either CN or CPR, and face the same problems in their commercial dealings with the Class I railways.  ARRC is therefore pleased that the Government has accepted its recommendation to extend final offer arbitration to cover incidental and ancillary charges and that this remedy will be available to other non-shipper parties that are subject to these charges.

With regard to other provisions such as running rights and regulated connection rates, "Straight Ahead" indicates that these provisions will apply only to federally-regulated railways.  ARRC agrees with the policy of "Straight Ahead" of promoting "partnership and integration among jurisdictions."  "The railway industry is an integrated network across all North American jurisdictions", says Mr. Ballantyne, "and ARRC believes that these provisions should be therefore extended to provincially-regulated railways."  The ARRC position on running rights can be found on ARRC’s website (www.arrc.ca).

"Straight Ahead" has rejected the CTA Review Panel’s recommendations regarding extension of running rights except as an "exceptional remedy".  ARRC believes that regulated running rights should be available as a final recourse where a commercial agreement cannot be reached.  In ARRC’s view, the conclusion of "Straight Ahead" with respect to running rights is a lost opportunity to increase competition within the railway industry, and in the coming months, ARRC will be urging the Minister to reconsider the Government’s position in this regard.

ARRC is pleased that Transport Canada will include short line freight infrastructure as one of its high priorities for strategic investment, as recommended in the ARRC Submission of February 1, 2002. Road-rail crossings are also identified for priority investment.  In the past, this fund has only been available to federally-regulated railways.  ARRC continues to advocate that such investment be extended to provincially-regulated railways.

ARRC supports the proposal to develop charging mechanisms for road users that will incorporate the real infrastructure costs as well as environmental and social costs.

The performance-based approach to safety enshrined in the current Railway Safety Act has resulted in continued rail safety improvements.  ARRC supports the proposal in "Straight Ahead" to continue to improve transportation safety using this performance-based approach.

"ARRC looks forward to the debate and discussion on the future of Canadian transportation that this initiative will promote and commends the Minister and Transport Canada for this initiative", said Mr. Ballantyne.

Contact:   Cindy Hick
               (613) 726-7111
               hick@arrc.ca

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