Saskatchewan wants Ottawa to act on grain negotiations to clear backlog

REGINA – Saskatchewan wants the federal government to immediately oversee talks between grain companies and railways to set parameters for getting grain to port.

Economy Minister Bill Boyd says there need to be service agreements with penalties for grain companies and railways to ensure service levels.

Boyd led a delegation that met with Canadian National (TSX:CNR) and Canadian Pacific rail (TSX:CP) officials last week to talk about ways to get a backlog of grain moving.

He says both CN and CP indicated they’re prepared to negotiate and sign level of service agreements with grain shippers with reciprocal penalties.

Federal legislation allows a government arbitrator to decide if a signed service agreement between a shipping company and a railway has been violated, but grain handlers don’t currently have such contracts.

Boyd says Ottawa could also look at strengthening legislation.