How Should Rail Interswitching Rates Be Set?
Official title: Consultation on commercial market factors to be considered in determining fair and reasonable interswitching rates
When a shipper needs to move freight between two railways, they pay an "interswitching" fee. A court ruled the Agency's method for setting these rates was flawed. Now the Agency wants input on how commercial market factors should influence these regulated rates.
Why This Matters
This is technical stuff that mostly affects big shippers and railways. But interswitching rates can influence shipping costs, which eventually trickle down to consumer prices. If you work in freight, logistics, or agriculture, this matters more directly.
What Could Change
The Agency will revise how it calculates interswitching rates for 2024, 2025, and 2026. Commercial market factors could be weighted into the formula. This could raise or lower what shippers pay when transferring freight between CN and CPKC.
Key Issues
- What commercial market factors should influence interswitching rates?
- What additional data should railways provide for rate-setting?
- How much weight should market factors carry in the rate formula?
- What methodology should calculate these weighted rates?
How to Participate
- Review the Letter decision on interswitching rates and the Railway Interswitching Regulations to understand the context.
- Submit your responses to the consultation questions by email to ferroviaire-rail@otc-cta.gc.ca by February 6, 2026.
- Optionally, respond to other stakeholders' initial submissions by April 7, 2026.
Submit Your Input
Questions Being Asked (4)
- What are the commercial market factors that the Agency should consider in its determination of regulated interswitching rates? Provide data and a rationale for your response.
- What additional data should railways provide in order for the Agency to consider these market factors? Provide a rationale for your response.
- What weight, if any, should the Agency give to commercial market factors in its rate-setting methodology? Provide data and a rationale for your response.
- What methodology should be used to apply these weights to calculate interswitching rates? Provide a calculation and a rationale for your response.