Resolution

WHEREAS The Maximum Revenue Entitlement (MRE) provides rate protection for producers in an uncompetitive freight market;  

WHEREAS The railway cost structure used in the MRE formula has not been reviewed in over 20 years and is continuing to change due to the retirement of government owned hopper cars and the purchase of new high efficiency replacements;  

WHEREAS A costing review is necessary to ensure that rising freight rates are fair and reasonable given the current railway cost structures;  

WHEREAS The Canadian Transportation Agency is responsible for administering the costing framework for the MRE, but is unable to undertake a full costing review without authorization from the federal Minister of Transport;  

BE IT RESOLVED That APAS renew its request for the Minister of Transport to immediately instruct the Canadian Transportation Agency to undertake a costing review of grain movements to ensure regulated freight rates are transparent and consistent with railway cost structures.