Former Alta. treasurer named rail freight facilitator

Rail-reliant shippers in Canada are to sit down with railway officials during the next six months in talks to draft a boilerplate service agreement and dispute resolution process, refereed by a former Alberta finance minister.

Federal Transport Minister Denis Lebel on Monday named Jim Dinning, then-premier Ralph Klein’s ‘s provincial treasurer from 1992 to 1997, to lead a six-month facilitation process to "enhance rail freight service" in Canada.

Dinning, who’s now chairman of Western Financial Group and other companies, is to lead discussions between Canada’s railway operators, rail freight shippers and "other key players" to develop a template for future service agreements between shippers and railways, and for a "streamlined commercial dispute resolution process" for the industry.

Once the templates are in place, such service agreements are to become a legal right of shippers. The federal government plans to legislate that right once Dinning’s facilitation process is completed.

"Discussions among participants during the facilitation process will help our government develop the specific legislative provision on service agreements," Lebel said Monday.

The government’s bill, when passed, would also include the agreed-upon dispute settlement process to establish such a service agreement if a railway and shipper can’t reach one through "commercial negotiations."

"Important exercise"

Dinning’s involvement is part of the federal government’s ongoing response to the Rail Freight Service Review launched in 2008.

The government, responding to the December 2010 report for the rail review panel, agreed that railways should be required to provide 10 days’ advance notice of any service changes; that shippers should be able to negotiate individual service agreements with railways; and that a "fair, timely and cost-effective" dispute resolution process should be in place where agreements can’t be reached.

Groups whose members include several rail-reliant shippers hailed Dinning’s appointment in statements Tuesday.

"This new phase means we are getting closer to sustained improved performance of the entire rail supply chain, ensuring our product reaches Canadian farmers and coastal ports in a cost effective and efficient manner," Roger Larson, president of the Canadian Fertilizer Institute, said in a release.

"The appointment of a facilitator is an important step, and we look forward to future announcements about the remaining recommendations outlined in the Rail Service Review, including the tabling of legislation, the creation of performance metrics, and an in-depth analysis of the grain supply chain and rail shipment related issues and solutions," Canadian Canola Growers Association general manager Rick White said in a separate release.

"I look forward to working with stakeholders over the next few weeks to take the next steps in this important exercise," Dinning said Monday.