Grain Transportation & Logistics: Issues and Opportunities for 2015 and beyond. Presented at M.A.B.E. January 22, 2015 by Chris Ferris. https://www.cabe.ca/jmv3/index.php/presentations-documents/grain-transportation-and-logistics-for-2015-and-beyond/viewdocument

1. 1/22/2015
1
Grain Transportation & Logistics:
Issues and Opportunities for 2015 and beyond
Presented by:
Chris Ferris
Senior Grains
Analyst ‐ Canada
1
Thursday January 22, 2015: Winnipeg, Manitoba

2. 1/22/2015
2
Informa Economics, Inc. (formerly known as Sparks Companies, Inc.) is a world leader in
broad‐based domestic and international agricultural and commodity/product market
h l i l i d l i
About Informa Economics
research, analysis, evaluation and consulting.
We analyze most major value chains in the crops, livestock sectors, along with
transportation.
The company was founded in 1977. It was acquired by Informa plc ("Informa") in 2003.
Informa Economics Inc serves hundreds of firms institutions and trade organizationsInforma Economics, Inc. serves hundreds of firms, institutions and trade organizations
worldwide. http://www.informaecon.com/aboutus.asp
2

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 Demand for Rail Transportation
 Demand and Issues with Transporting Grain by Rail
 Grain Handling System
 Expected Demand for Rail
 Looking Forward
3

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Demand for Transportation
4

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5
Overall
Rail Movement Stats
By Crop Year (Aug Jul)By Crop Year (Aug‐Jul),
By Crop Year and Month
5

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6
345
350
Canada Total traffic carried Millions of Metric Tonnes Moved on a Crop Year
(Aug-Jul) Basis
310
316 316 315
322
331
310
320
330
340
arriedbyRailways
302
274
280
300
270
280
290
300
MillionsofMetricCa
Effects of Financial
Crisis driven recession
6
260
270
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Tonnage
Source: Statistics Canada

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7
114
120
Canada Total traffic carried Index of MMT carried on a Crop Year (Aug‐
Jul) Basis: where 2003‐04 = 100
100
103
105 105 105
99
107
110
114
105
110
115
91
93
85
90
95
100
Effects of Financial
Crisis driven recession
7
80
85
2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15
Index 2003‐04 as baseline (=100)
Source: Statistics Canada

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8
32.0
34.0
Canada Total traffic carried - on a Crop Year (Aug-Jul) Basis (MMT)
24 0
26.0
28.0
30.0
nnagemovedbyrail
18.0
20.0
22.0
24.0
Monthlyton
Minimum Monthly Movement in 2003‐04 to 2013‐14
8Source: Statistics Canada
16.0
08 09 10 11 12 01 02 03 04 05 06 07
Months
min 2012-13 2013-14 2014-15 max

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9
For the period
2003‐04 to
2013 14:
10.0%
10.5%
l
Canada Total traffic carried - Monthly Share for a Crop Year (Aug-Jul) Basis
(%)
2013‐14:
Issues:
The share
moved during
Dec 2013 –
March 2014 8 0%
8.5%
9.0%
9.5%
nnualtonnagemovedbyrai
March 2014
set a new low.
Then
proceeded to
set new highs
May and June
6.5%
7.0%
7.5%
8.0%
MonthlyShareofan
9Source: Statistics Canada
y
after OIC &
Legislation.
6.0%
08 09 10 11 12 01 02 03 04 05 06 07
Months
min max 2012-13 2013-14 2014-15 Total

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Intermodal
Rail Movement Stats
By Crop Year (Aug Jul)By Crop Year (Aug‐Jul),
By Crop Year and Month
10

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2,100
2,200
Canada Total intermodal traffic loaded - Thousands of Units Moved on a Crop
Year (Aug-Jul) Basis.
1 839
1,901
1,895
1,958
2,080
1 800
1,900
2,000
sandsofUnits
Effects of Financial
Crisis driven recession
1,674
1,727
1,805
1,839
1,692
1,711
1,796
1,600
1,700
1,800
thous
11Source: Statistics Canada
1,500
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Crop Year
Thousands of intermodal units Moved by Rail

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12
12
130
Canada Total intermodal traffic loaded - Index of thousands of units carried on
a Crop Year (Aug-Jul) Basis: where 2003-04 = 100.
108
110
114
107
113
117
124
105
110
115
120
125
ovementIndex
Effects of Financial
Crisis driven recession
100
103
101
102
107
85
90
95
100
105
IntermodalMo
12Source: Statistics Canada
80
85
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Index 2003-04 as baseline (=100)

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For the period
2003‐04 to
2013‐14:
190
200
Canada Total intermodal traffic loaded - on a Crop Year (Aug-Jul) Basis
(thousands of Units)
Issues:
2013‐14 set
the 2003‐04
record for the
period.
150
160
170
180
190
ntermodalUnits
2014‐15 so far
has achieved
higher levels of
unit
movement by
rail. 110
120
130
140
150
ThousandsofI
Minimum Monthly Movement in 2003‐04 to 2013‐14
13Source: Statistics Canada
100
08 09 10 11 12 01 02 03 04 05 06 07
min 2012-13 2013-14 2014-15 max

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14
10.0%
10.5%
%)
Canada Total intermodal traffic loaded - Monthly Share for a Crop Year (Aug-
Jul) Basis (%)
8.5%
9.0%
9.5%
movedonanannualbasis(%
6.5%
7.0%
7.5%
8.0%
MonthlyShareofunitsm
14Source: Statistics Canada
6.0%
08 09 10 11 12 01 02 03 04 05 06 07
min max 2012-13 2013-14 Total

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Fuel Oils and Crude Petroleum
Rail Movement Stats
By Crop Year (Aug Jul)By Crop Year (Aug‐Jul),
By Crop Year and Month
15

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15 0
17.0
Canada Fuel oils and crude petroleum - Millions of Metric Tonnes (MMT)
Moved on a Crop Year (Aug-Jul) Basis.
12.2
15.0
11.0
13.0
15.0
MMT)CarriedbyRailways
Expanded Oil‐by‐Rail
5.0 4.8
5.0 5.4 5.4
5.0
5.3
5.2
7.2
5 0
7.0
9.0
llionsofMetricTonnes(M
16Source: Statistics Canada
3.0
5.0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Mi
Tonnage Moved b y Rail

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350
Canada Fuel oils and crude petroleum - Index of MMT carried on a Crop Year
(Aug-Jul) Basis: where 2003-04 = 100.
200
250
300
Expanded Oil‐by‐Rail
(up approx 300%)
100
150
200
17Source: Statistics Canada
50
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Index 2003-04 as baseline (=100)

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1 4
1.6
Canada Fuel oils and crude petroleum carried on a Crop Year (Aug-Jul) Basis
(MMT)
For the period
2003‐04 to
2013‐14:
0.8
1.0
1.2
1.4
agemovedbyrail
Issues:
2013‐14 set
the 2003‐04
record for the
period. 2014‐
15 so far as
0.2
0.4
0.6
Monthlytonna
15 so far as
achieved
higher levels of
tonnage
movement by
rail.
18
0.0
08 09 10 11 12 01 02 03 04 05 06 07
Months
min 2012-13 2013-14 2014-15 max
Source: Statistics Canada

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12.0%
Canada Fuel oils and crude petroleum Index of MMT carried on a Crop Year
(Aug-Jul) Basis: where 2003-04 = 100
6.0%
8.0%
10.0%
nualtonnagemovedbyrail
2.0%
4.0%
MonthlyShareofann
19
0.0%
08 09 10 11 12 01 02 03 04 05 06 07
Months
min max 2012-13 2013-14 2014-15 Total
Source: Statistics Canada

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Wheat Market
Rail Movement Stats
By Crop Year (Aug Jul)By Crop Year (Aug‐Jul),
By Crop Year and Month
20

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Thousand Tonnes 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Seeded Acres 000's 21 133 21 562 23 796 26 257 24 216 23 475
Canadian All Wheat Supply & Disposition
Seeded Acres, 000 s 21,133 21,562 23,796 26,257 24,216 23,475
Harvested Acres, 000's 20,500 21,133 23,468 25,802 23,381 23,068
Yield (bu/acre) 41.8 44.0 42.6 53.4 46.0 44.6
Supply
Carryin (Aug 1) 7,743 7,360 5,932 5,052 9,795 7,315
Production 23,300 25,288 27,205 37,530 29,281 28,000
Imports /1 413 466 378 416 415 420
Total Supply 31 456 33 114 33 516 42 998 39 491 35 735Total Supply 31,456 33,114 33,516 42,998 39,491 35,735
Disposition
Food, Seed & Industrialization 4,427 4,730 4,509 4,550 4,826 4,900
Feed and Residual 3,413 4,882 5,004 5,179 5,150 5,105
Total Domestic Use 7,840 9,612 9,513 9,729 9,976 10,005
Total Exports 16,256 17,570 18,950 23,474 22,200 19,800
Total Use 24,096 27,182 28,463 33,203 32,176 29,805
21
Carryout (Jul 31) 7,360 5,932 5,052 9,795 7,315 5,930
Stocks/Use 31% 22% 18% 30% 23% 20%
Source: Statistics Canada, GTA, with Informa projections in bold
/1 Imports were adjusted to include wheat flour and product imports

22. 1/22/2015
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42.6
48.0
Canada Wheat Millions of Metric Tonnes (MMT) Moved on a Crop Year (Aug-
Jul) Basis. Correlation: 91.93%
25.2
28.8
30.8
33.7
35.0
27.0
33.0 33.7
31.1
32.7 33.2
28.0
33.0
38.0
43.0
MMT)CarriedbyRailways
18.3
18.1
18.9
21.4
17.4
21.5 21.7
19.3
21.2
20.6
8 0
13.0
18.0
23.0
MillionsofMetricTonnes(M
22Source: Statistics Canada
3.0
8.0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
M
Tonnage Moved b y Rail Total Supply Wheat

23. 1/22/2015
23
150
160
Canada Wheat Index of MMT carried on a Crop Year (Aug-Jul) Basis: where
2003-04 = 100
120
130
140
Rebuilding stocks
Large Production
90
100
110
23
80
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Index 2003-04 as baseline (=100) Index Total Supply Wheat
Source: Statistics Canada

24. 1/22/2015
24
3.0
Canada Wheat carried on a Crop Year (Aug-Jul) Basis (MMT)
1.5
2.0
2.5
nagemovedbyrail
0.5
1.0
Monthlyton
24
0.0
08 09 10 11 12 01 02 03 04 05 06 07
Months
min 2012-13 2013-14 2014-15 max
Source: Statistics Canada

25. 1/22/2015
25
12.0%
Canada Wheat Index of MMT carried on a Crop Year (Aug-Jul) Basis: where
2003-04 = 100Issue ‐ for the
period 2003‐04
to 2013 14:
6 0%
8.0%
10.0%
ltonnagemovedbyrail
to 2013‐14:
With record
wheat to move,
the share moved
during Nov 2013
– March 2014 set
2.0%
4.0%
6.0%
MonthlyShareofannual
Minimum Monthly Movement in 2003‐04 to 2013‐14
March 2014 set
a new low.
Then proceeded
to set new
records May,
June and July.
25Source: Statistics Canada
0.0%
08 09 10 11 12 01 02 03 04 05 06 07
Months
min max 2012-13 2013-14 2014-15 Total

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Canola Market
Rail Movement Stats
By Crop Year (Aug Jul)By Crop Year (Aug‐Jul),
By Crop Year and Month
26

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18 6
21.0
Canada Colza seeds (canola) Millions of Metric Tonnes (MMT) Moved on a
Crop Year (Aug-Jul) Basis. Correlation: 96.99%
11 6
14.2
15.0
15.8
16.9
14.7
18.6
13.0
15.0
17.0
19.0
MMT)CarriedbyRailways
4.6
5.9
5.9
6.1
8.3
7.5 7.9
9.7
7.7
9.7
7.9
8.4
11.2 11.2
11.6
5 0
7.0
9.0
11.0
MillionsofMetricTonnes(M
27Source: Statistics Canada
4.6
3.7
3.0
5.0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
M
Tonnage Moved b y Rail Total Supply Colza seeds (canola)

28. 1/22/2015
28
240
260
Canada Colza seeds (canola) Index of MMT carried on a Crop Year (Aug-Jul)
Basis: where 2003-04 = 100. Correlation: 96.99%
180
200
220
Large Production
100
120
140
160
28Source: Statistics Canada
80
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Index 2003-04 as baseline (=100) Index Total Supply Colza seeds (canola)

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29
1.2
1.4
Canada Colza seeds (canola) carried on a Crop Year (Aug-Jul) Basis (MMT)
0.8
1.0
nagemovedbyrail
0.2
0.4
0.6
Monthlytonn
29
0.0
08 09 10 11 12 01 02 03 04 05 06 07
Months
min 2012-13 2013-14 2014-15 max
Source: Statistics Canada

30. 1/22/2015
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Canola Market Case
30

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31

32. 1/22/2015
32
Canada Canola Supply & Disposition
Thousand tonnes 2011/12 2012/13 2013/14 2014/15 2015/16
Supply
Seeded Acres, 000's 18,989 22,021 19,940 20,324 20,550
Harvested Acres, 000's 18,753 21,743 19,785 19,952 20,139
Yield (bu/acre) 34.3 28.1 40.0 34.4 35.7
Beginning Stocks (Aug 1) 2,186 707 588 2,363 2,083
Production 14,608 13,869 17,966 15,555 16,300
Imports 97 128 66 75 100
T t l S l 16 890 14 704 18 620 17 993 18 483Total Supply 16,890 14,704 18,620 17,993 18,483
Disposition
Crush 6,999 6,717 6,979 7,200 7,500
Seed 64 58 58 60 61
Residual 419 84 123 150 150
Exports 8,701 7,257 9,096 8,500 9,100
Total Disposition 16 183 14 115 16 257 15 910 16 811
32
Total Disposition 16,183 14,115 16,257 15,910 16,811
Ending Stocks (July 31) 707 588 2,363 2,083 1,672
Stocks/Use 4% 4% 15% 13% 10%
Source: Statistics Canada with Informa projections in bold

33. 1/22/2015
33
Drop in Exportsp p
33

34. 1/22/2015
34
1 000
1,200
Canola (rapeseed): Exports by Month (KT)
600
800
1,000
byMonth(KT)
200
400
Exportsb
34
0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2012-13 2013-14 Five-year Avg 10-year Average

35. 1/22/2015
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35

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Canola Crush
36

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Canola Board Crush Margin:
Seeks to replicate the gross margin of a
typical canola crush plant, by calculating
the spread between input costs and
output sale price.p p
Input:
Canola
Outputs:
37
Canola meal (hedge against BM),
Canola Oil (hedge against BO)

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Long canola crush (simultaneously):
Long positions in canola,
Short positions in soy oil and soy meal.
Canola Board Crush (CDN$/T)Canola Board Crush (CDN$/T)
= (BO*22.0462*Noon Rate*0.40)
+ (SM*1.1023*Noon Rate*0.60*0.75)
- RS
38

39. 1/22/2015
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39

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40
1 60
1.80
2.00
Central Illinois Soybean Basis
2010/11
2011/12
0.80
1.00
1.20
1.40
1.60
shel
2011/12
2012/13
2013/14
2014/15
5-YrAvg
0.00
0.20
0.40
0.60
$/bus
40
-0.40
-0.20
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

41. 1/22/2015
41
180
200
Central Illinois Soybean Meal Basis
2010/11
2011/12
100
120
140
160
ortTon
2012/13
2013/14
2014/15
5-YrAvg
20
40
60
80
$/Sho
41
-20
0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

42. 1/22/2015
42
1.0
1.5
2.0
Central Illinois Soybean Oil Basis
-1.0
-0.5
0.0
0.5
1.0
pound
-3.0
-2.5
-2.0
-1.5
cents/p
2010/11
2011/12
2012/13
2013/14
42
-4.0
-3.5
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2014/15
5-YrAvg

43. 1/22/2015
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43

44. 1/22/2015
44
100
120
Canola Basis Comparison
40
60
80
US$PerTonne
-40
-20
0
20
44
-60
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
CIF Basis Japan Vancouver Basis PAR Basis Thunder Bay Basis

45. 1/22/2015
45
Historically
Vancouver to
120
Monthly Avg VCR/PAR Cash Spread
“Par” region
is a C$40/T
spread
60
80
100
ars per metric tonne
20
40
Canadian dolla
45
0
AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15

46. 1/22/2015
46
Canola
dropped off
relative to
soybeans
due to a
shortage of
soybeans,
large
supply ofsupply of
canola,
along with
the logistics
problems.
46

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47
Oats Market Case
47

48. 1/22/2015
48
Thousand tonnes 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Seeded Acres, 000's 3,697 2,989 3,244 2,879 3,168 3,188
Harvested Acres, 000's 2,428 2,204 2,678 2,433 2,737 2,730
Canadian Oat Supply & Disposition
Yield (bu/acre) 77.8 72.1 76.4 74.9 92.1 81.9
Supply
Carryin (Aug 1) 1,527 1,162 733 810 511 1,190
Production 2,912 2,451 3,158 2,812 3,888 3,350
Imports 17 25 12 18 10 10
Total Supply 4,455 3,638 3,902 3,640 4,409 4,550
DispositionDisposition
Food, Seed and Industrialization 163 197 190 181 195 195
Feed and Residual 1,056 847 655 812 929 950
Total Domestic Use 1,218 1,044 845 992 1,124 1,145
Exports - Grain 1,502 1,336 1,701 1,570 1,485 1,635
Exports - Products 574 525 546 567 610 600
Total exports 2,075 1,862 2,248 2,137 2,095 2,235
Total Use 3 293 2 906 3 093 3 129 3 219 3 380
48
Total Use 3,293 2,906 3,093 3,129 3,219 3,380
Carryout (July 31) 1,162 733 810 511 1,190 1,170
Stocks/Use 35% 25% 26% 16% 37% 35%
Source: Statistics Canada with Informa projections in bold
48

49. 1/22/2015
49
$5.00
$5.50
Oat Prices
CBOT Oat Futures
Minneapolis Cash - 20 Day Delivery
Manitoba
Saskatchewan 3CW
$3.50
$4.00
$4.50
rsperBushel
$2.00
$2.50
$3.00
USDollar
49
$1.50
1/3/2011
3/3/2011
5/3/2011
7/3/2011
9/3/2011
11/3/2011
1/3/2012
3/3/2012
5/3/2012
7/3/2012
9/3/2012
11/3/2012
1/3/2013
3/3/2013
5/3/2013
7/3/2013
9/3/2013
11/3/2013
1/3/2014
3/3/2014
49

50. 1/22/2015
50
Grain Prices (Instore Saskatoon)
0.00
Average of Oats 3 CW basis over OatsC (CDN$/T)
‐150.00
‐100.00
‐50.00
‐250.00
‐200.00
150.00
8 9 10 11 12 1 2 3 4 5 6 7
50
CDN$/T
2010‐11 2011‐12 2012‐13 2013‐14 2014‐15
Crop_year
Month

51. 1/22/2015
51
Oat futures spreads as of April 4 2014
51

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52
Grain Handling Transportation System
(GHTS)
52

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53
North American Class I Railways
53

54. 1/22/2015
54
Potential Canadian Inter‐switching (Prairies are
the relevant area of application of 160 KM)
54

55. 1/22/2015
55
Growing Elevator capacity
55

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56
Western Canadian Crop Production difference, YoY
56

57. 1/22/2015
57
57

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58
Dwell Times
58

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59
59

60. 1/22/2015
60
CN System
60

61. 1/22/2015
61
M&A and Investment activity in the GHS
• Viterra was purchased by Glencore in 2011 with some assets spun off to• Viterra was purchased by Glencore in 2011, with some assets spun‐off to
Richardsons
• P&H, Cargill, Viterra, Richardson and others have purchased some inland
terminals in SK and AB
• CWB has purchased a number of inland terminals, and a terminal in ThunderBay
as well. Also building four high‐throughput elevators in SK and MB.
• Others are building or expanding their foot prints.Others are building or expanding their foot prints.
• Seeing new entrants from Ontario, USA, and offshore setting up shop in Western
Canada. Usually start by working with others first (no/small asset base); some
already have added concrete.
• Grain dealers are expanding and new ones are entering W. Canada
• Types:
61
• High through‐put high velocity systems for big exports;
• Smaller more local/continental moves, or
• Low/no asset (other than trucks)

62. 1/22/2015
62
Selected,
Expected Demand Factors
forfor
Rail Movement
62

63. 1/22/2015
63
Expected Demand Due to Trade Agreements
1 Canada Korea Free Trade Agreement (CKFTA):1. Canada Korea Free Trade Agreement (CKFTA):
• Royal assent was granted in Canada on Nov 26, 2014.
• Korea has likewise approved the deal, so it is in force in 2015.
• Expected to add to two‐way flows off of West Coast.
2. Canada European Union Trade Agreement (CETA):
• Some outstanding details still waiting to be cleansed and translatedSome outstanding details still waiting to be cleansed and translated
• Should be concluded within two years time.
• Expected to add to two‐way flows off of East Coast, and through SLAW.
3. Other Trade Agreements will have effects, including the WTO (if the year+ ago
agreement ever gets implemented).
• Could add to flows East, West, Mississippi, Continental.
63

64. 1/22/2015
64
Expected Demand for Selected Commodities
1. Continuing Pipeline on Rail
• Until new pipelines are in place (Pipeline East Keystone Ones WestwardUntil new pipelines are in place (Pipeline East, Keystone, Ones Westward
bound) expect to have fairly substantial demand for pipeline on rail.
• Even then, there will likely remain somewhat elevated demand for moving oil
on rail. This is because it allows companies to deliver to some markets where
there is no pipeline infrastructure. Enables better price arbitrage than prior.
• Could keep flows strong flows East, West, Continental.
2. Potash
• Demand for potash movement off the West Coast is expected to double in
the next few years to 10 MMT (from 5). Unit trains to move it.
3. Grains and Oilseeds
• Expect that import demand for grains and oilseeds will continue to grow.
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Canadian supply expansion will have greater movement demand, particularly
West Coast, but other corridors as well.

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Looking Forward
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Logistics issues in 2013/14
DEMAND SIDE:
G i d d f hi i b ll t• Growing demand for shipping by all sectors
• 2013 Monster Crop that was significantly larger than any previous
crop, and scale of which was not anticipated (anticipated
directionally): 20 MMT bigger.
SUPPLY SIDE:
• Unusually cold, snowy and nasty winter (polar vortex)
• Lead to slower train speeds, longer dwell times and shorter trains.
• Other factors
RESULT:
• Lead to OIC, and ultimately to legislation (Bill C‐30)
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Lead to OIC, and ultimately to legislation (Bill C 30)
• Review of Canada Transportation Act underway

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Note: This was not just a Canadian Issue
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Not likely to repeat 2013/14 this year, but issues need solving.
Logistics issues
Canada Transportation Act Review:
• Will this help improve shipper‐railway relationships?
Need to work on improving
• Service Reliability & Car Supply
• Future Demand & Network Capacity
• Information Sharing
• Investment in Rolling stock & Infrastructure – Funding Sources?
• Building Trust between shippers and railways
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Building Trust between shippers and railways
• Balancing responsibilities to Investors & Customers

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Some Expectations for
Grain Handling Transportation Systemg p y
Expect to continue seeing investment in system velocity:
• primary elevator capacity to quickly spot 120 to 140 cars and rapidly
load them out.
• Expect to see more unit train service to these sites in partnership
with carriers (e g CN CP)with carriers (e.g. CN, CP)
• Further investment in cars by shippers, perhaps others
• Terminal elevator capacity to store/clean diverse grains/oilseeds
and turn them over rapidly.
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Chris Ferris
Senior Grains Analyst ‐ Canada
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Informa Economics
Chris.Ferris@informaecon.com
204‐925‐7072

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