Canada regulator dismisses grain rail complaint

Fri May 2, 2008 2:02pm EDT
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WINNIPEG, Manitoba (Reuters) - Canada's transport regulator said it has dismissed a request from a group of grain shippers to order Canadian National Railway to stop using a new system to distribute rail cars.

The railway's new program has created problems for the Canadian Wheat Board and five small grain companies, the Canadian Transportation Agency said in an April 30 letter.

But the agency said there was not enough evidence to show the shippers or farmers suffered irreparable harm from the program, which allows shippers to order cars to specific elevators up to 16 weeks in advance.

The shippers have been involved in a formal service complaint against CN Rail. The Canadian Transportation Agency ruled in January that CN failed to provide adequate service to grain shippers last year, but said it is still evaluating the railway's service for the current year.

(Reporting by Roberta Rampton; Editing by Peter Galloway)