Government of Canada Appoints Facilitator to Lead Rail Freight Service Discussion Process

OTTAWA, Oct. 31, 2011 /CNW/ - The Government of Canada has appointed Mr. Jim Dinning to lead a six-month facilitation process to enhance rail freight service. The announcement was made today by the Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, and Minister of the Economic Development Agency of Canada for the Regions of Quebec. This facilitation process is a key part of the government's response to the Rail Freight Service Review.

Today, we are following through on our government's commitment to improve the effectiveness, efficiency and reliability of Canada's rail freight supply chain by appointing Jim Dinning to lead the facilitation process, said Minister Lebel. We are delighted to have a facilitator of such high calibre who has significant experience and expertise in building collaborative relationships among industry leaders, public-sector executives and elected officials.

Throughout an extensive career that spans both government and business, Mr. Dinning has often led discussions among partners with diverse interests and objectives to find common ground and negotiate solutions that work. The government believes that this experience will be invaluable to the success of this facilitation process.

This process will bring together shippers, railways and other key players to develop a template for service agreements and a streamlined commercial dispute resolution process. These commercial measures are key steps that the Government of Canada has committed to, in order to enhance the effectiveness, efficiency and reliability of the rail freight supply chain.

I am very pleased to lead the facilitation process and further build the commercial relationships in the rail freight system, said Mr. Dinning. I look forward to working with stakeholders over the next few weeks to take the next steps in this important exercise.

In March 2011, the government announced that it would act on the key recommendations of the Rail Freight Service Review, which was launched in 2008.

To support the commercial measures described above, the government also intends to table legislation to give shippers the right to service agreements with the railways and provide a process to establish such agreements when commercial negotiations fail.

I am committed to tabling a bill once the facilitation process is complete, said Minister Lebel. Discussions among participants during the facilitation process will help our government develop the specific legislative provision on service agreements.

In addition to these measures, the Government of Canada is taking further steps to improve the rail freight supply chain. Together with Agriculture and Agri-Food Canada, Transport Canada will also lead an in-depth analysis of the grain supply chain systems to focus on issues that affect that sector and identify potential solutions. This initiative will get underway soon.

In addition, building on the success of the Gateway initiatives, Transport Canada will establish a Commodity Supply Chain Table as a forum for exporters to address issues that affect the supply chain and to provide advice on the development of supply chain performance metrics. The government expects to launch this initiative once the facilitation process is complete or is nearly complete.

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Backgrounder

GOVERNMENT OF CANADA RESPONSE TO THE RAIL FREIGHT SERVICE REVIEW

Appointment of Jim Dinning as Facilitator

Mr. Dinning was born on December 4, 1952, in Edmonton, Alberta, and was schooled in Calgary from 1958 to 1970. He attended Queen's University and attained a bachelor of commerce degree in 1974, as well as a master's degree in public administration in 1977.

Mr. Dinning worked for the Alberta government in the Cabinet Office from 1977 to 1979. He served as Cabinet researcher and subsequently as Cabinet committee secretary. From 1979 to 1982 he was the executive assistant to the provincial treasurer.

In 1983, Mr. Dinning became the manager of Provincial Government Affairs for Dome Petroleum. He then returned to the Alberta government as the director for Southern Alberta, Office of the Premier, before being appointed deputy minister of Alberta, Federal and Intergovernmental Affairs in mid-1984. He served in that position until early 1986.

Jim Dinning was elected to the Legislative Assembly of Alberta as the member for Calgary-Shaw in 1986 and was re-elected twice, in 1989 and 1992.

In June 1986, Mr. Dinning was appointed Minister of Community and Occupational Health, and in September 1988 he was appointed Minister of Education. He served as Provincial Treasurer from December 1992 to March 1997 and was named executive vice-president of TransAlta Corporation in 1997, a position he held until 2004.

Today Mr. Dinning is the chair of the board of directors of Western Financial Group, of Liquor Stores NA Ltd. and of Export Development Canada. He is also chair and director of a number of other public and private companies and not-for-profit organizations.

Mr. Dinning received an honorary doctor of laws degree from the University of Calgary in 2002. In June 2010, he was elected the 12th chancellor of the University of Calgary and also serves as the chair of the board of directors of Canada West Foundation.

Mr. Dinning is married to Evelyn Main, has four children and two grandchildren, and lives in Calgary.

The Rail Freight Service Review

The Rail Freight Service Review was launched in 2008 to address ongoing issues with rail freight service and fulfil a government commitment as part of the 2008 process that amended the Canada Transportation Act. The amendments focused on shipper protection provisions related to rates and charges.

The review was conducted in two phases: analytical work to better understand the nature and extent of problems within the logistics chain (including shippers, terminal operators, ports and vessel operators); and consultations with stakeholders on issues and recommended solutions. This second phase was led by an independent panel of three eminent persons. Mr. Walter Paszkowski, who was appointed chair, has an extensive public policy background. Mr. David Edison has extensive railway experience and Mr. William (Bill) LeGrow has extensive experience as a rail shipper.

The panel consulted with 85 different stakeholders and received 141 written submissions from across the rail-based logistics chain. On October 8, 2010, the review panel released its interim report to the public. Then, after considering feedback from stakeholders, the panel submitted its final report to the Minister of State (Transport) on December 22, 2010.

Government of Canada Response

In March 2011, the Government of Canada announced a series of measures to enhance the effectiveness, efficiency and reliability of the entire rail freight supply chain.

The government accepted the panel's commercial approach and its four key elements:

Railways should provide 10 days' advance notice of service changes.

Railways and stakeholders should negotiate service agreements.

A fair, timely and cost-effective commercial dispute resolution mechanism should be developed.

Supply chain performance should be monitored through enhanced bilateral performance reporting between shippers and railways, and through public performance reporting.

The government accepted the recommendation to begin a six-month facilitation process and also went beyond the measures outlined in the panel's report. The facilitation process will focus on developing a streamlined commercial dispute resolution process and will also develop a template service agreement, in consultation with shippers, railways and other stakeholders.

Once the facilitation process is complete, the Government of Canada intends to table a bill giving shippers the right to a service agreement with the railways and provide a process to establish an agreement if commercial negotiations fail. Progress made during the facilitation process will contribute to the development of legislation on service agreements.

Other measures the government will take to enhance the rail freight supply chain are as follows:

First, Transport Canada will establish a Commodity Supply Chain Table to give exporters a forum to address issues that affect the freight logistics system and provide advice on the development of supply chain performance metrics. These would be publicly available.

Second, together with Agriculture and Agri-Food Canada, Transport Canada will lead an in-depth analysis of the grain supply chain to focus on issues that affect the sector and help identify potential solutions.

The government's response combines a commercial approach, supported by a proposed bill to give shippers the right to a service agreement. It also takes a broader supply chain perspective to continue addressing logistical issues and develop publicly available performance metrics.

Further information can be found on the Rail Freight Service Review website <http://www.tc.gc.ca/eng/policy/acg-rfs-review-examen-sfm-rvw-eng-442.ht…; .