Should Railway Interswitching Rules and Rates Be Changed?

Official title: 2024 Interswitching consultation

Closed Regulations & Permits Economy & Jobs Transportation
The Canadian Transportation Agency reviewed rules that let shippers move freight between railway companies at interchange points. These 'interswitching' rules affect how much it costs to ship goods by rail. The consultation asked whether the regulations are clear and whether the rate-setting method is fair to railways and shippers alike.

Why This Matters

Ship goods by rail? These rules affect your costs. Interswitching lets shippers access competing railways, which can mean better prices. Farmers, manufacturers, and resource companies all depend on fair rail rates to stay competitive.

What Could Change

The CTA may propose amendments to the Railway Interswitching Regulations through the Canada Gazette process. Changes could affect which shipments qualify for interswitching and how rates are calculated. Any formal regulatory process could begin in Spring 2025.

Key Issues

  • Which types of freight traffic should be eligible for interswitching?
  • What factors should determine interswitching rates?

How to Participate

  1. Review the interswitching review paper and the Railway Interswitching Regulations to understand the issues.
  2. Submissions were accepted by email to ferroviaire-rail@otc-cta.gc.ca or by mail to the CTA Secretariat in Gatineau.

What Happened

The consultation received 7 submissions from railways (CN, CPKC), shipper associations (FAIR Rail Coalition, Fertilizer Canada, Freight Management Association, Responsible Distribution Canada), and an academic expert. All submissions have been posted publicly. The CTA anticipates any formal regulatory amendments could begin through the Canada Gazette process in Spring 2025.

Key Documents