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Panel Terms of Reference

When the government tabled proposed amendments to the shipper protection provisions of the Canada Transportation Act (CTA) on May 30, 2007, it announced its commitment to begin a review of railway service (within 30 days of the Bill receiving Royal Assent) given significant concerns of railway shippers and other rail-based logistics stakeholders. Bill C-8 received Royal Assent on February 28, 2008. Following consultations with stakeholders, terms of reference for the Review of Rail Freight Service were released on August 12, 2008.

The objectives of the Review are:

• To conduct a review of the rail-based logistics chain (including shippers, terminal operators, ports, and vessels), with a focus on service provided to Canadian shippers and customers by Canadian National Railway (CN) and Canadian Pacific Railway (CPR) within Canada, including to and from ports and border crossings;
• To identify problems and issues with respect to railway service including those stemming from other elements of the logistics chain;
• To examine the relationship between shortlines and main line railways to determine whether any rail service problems being experienced by shortline shippers are attributable to service, operating, or marketing practices of the main line carriers;
• To identify best practices and how these can be expanded to address service issues; and
• To make recommendations on how to address these problems and issues, including both commercial and, if necessary, regulatory solutions.

• Phase I consists of quantitative and qualitative analytical work being carried out by independent consultants for Transport Canada.
• Phase II consists of the development of recommendations for the Minister by a Panel of three eminent persons based on the results of the analytical phase, any other relevant information, and consultations with stakeholders.

The panel will propose recommendations to address problems and issues with respect to service within the rail-based logistics system. The recommendations may include both commercial and, if necessary, regulatory solutions. The recommendations will be aimed at improving the efficiency, effectiveness, and reliability of service within the system, facilitating economic growth and trade expansion, and improving accountability among stakeholders.

In undertaking its work, the panel will be guided by the general Terms of Reference for the review.

In conducting its work, the panel will:

• meet with the Phase I consultants to review and discuss their findings;
• undertake site visits of the rail transportation logistics operations in both western and eastern Canada;
• solicit comments from interested parties on issues, solutions, best practices, and factors the panel should consider in developing its recommendations;
• conduct bilateral meetings with stakeholders, as required;
• develop draft recommendations based on the Phase I consultant reports, stakeholder input; and other relevant information;
• release an interim report by May 31, 2010 containing the draft recommendations and solicit comments from interested parties;
• conduct bilateral meetings with stakeholders, as required;
• finalize a set of recommendations after considering comments submitted by interested parties and other relevant information; and
• submit its final report and recommendations to the Minister by August 31, 2010.

The panel's draft report will cover the topics referenced in the Panel's Objective which are to be included in its final report. The draft report will be based on the results of the work completed under Phase I, stakeholder submissions and consultations, and any other information the panel considers relevant.

In seeking comments on its draft report, the panel will request stakeholders to:

• provide comments on the general acceptability of the draft recommendations;
• where recommendations are not acceptable, provide specific comments on how to improve the draft recommendations;
• provide a sense of prioritization of recommendations;
• comment on the impact of the panel's recommendations on stakeholders and on service within the system; and
• provide other possible solutions to identified service-related problems that may not have been reflected in the draft recommendations.

FINAL REPORT & RECOMMENDATIONS

The final report will:

• describe key problems and issues with the rail-based logistics system;
• summarize stakeholder positions on the key problems and issues;
• summarize solutions put forward to address the key problems and issues, including stakeholder positions on the solutions;
• identify key factors considered by the panel in developing its recommendations; and
• set out recommendations to address the panel's assessment of the key problems and issues within the system.

September 17, 2009

Date modified:

2010-03-15

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