Saskatchewan asks federal committee to toughen grain law to clear crop backlog

REGINA – Saskatchewan is urging a federal committee to toughen legislation aimed at clearing a rail bottleneck that has left grain sitting in bins across the Prairies.

The province has made a written submission to the House of Commons Standing Committee on Agriculture, which is reviewing the proposed law introduced last month.

It would impose daily fines of up to $100,000 on railways should they fail to double the volume of grain shipments to 11,000 cars a week.

Saskatchewan says that should be bumped up to 13,000 cars a week and the penalty should be increased to $250,000 a day.

Agriculture Minister Lyle Stewart also wants the committee to remove a clause that would see the legislation end in August 2016.

He says that doesn’t provide long-term security to the industry.

Both Canadian Pacific (TSX:CP) and Canadian National Railway (TSX:CNR) have blamed abnormally cold weather for much of the slowdown in shipments.

CN said earlier this week that it is making progress to meet the government’s target of increased grain shipments. The country’s largest railway said it provided 5,102 hopper cars for loading last week — which it said is the most in its history at this point of the season.