The most efficient way to move goods is with as few interchanges as possible. Think of it this way: it is most efficient to fly direct, on one airline, without stops at multiple airports. Railways are similar. Encouraging additional, avoidable interchanges is bad public policy.
By adding delays and congestion, extended interswitching will result in less rail capacity and higher greenhouse gas emissions. It will increase — not lower — transportation costs for all shippers. Ultimately, it will drive up prices for goods at a time when Canadians are already coping withAdvocates for extended interswitching argue it is needed to give shippers access to other railways to support competition.
This is shortsighted and damaging. The returns generated by railways are invested into safety and capacity, benefiting all shippers and the Canadian economy. Extended interswitching will chase investment dollars and jobs out of Canada. This is the opposite of what Canada’s transportation system needs.
CPKC competes fiercely against other railways and modes of transportation, and we always welcome more intense competition on a level playing-field. Canadian Pacific’s recent combination with Kansas City Southern forming CPKC is all about creating new competition and providing rail customers new choices. But extended interswitching isn’t about competition; it’s about some shippers wanting to manipulate regulation to pay less.
Canada saw the harmful consequences of extended interswitching when it was in place temporarily, from 2014 to 2017. An independent review commissioned by Transport Canada in 2016 thoroughly studied extended interswitching, the same proposal now before Parliament, and concluded it should be ended. All Parliamentarians should reject resurrecting this damaging policy and insist on a serious, fact-based approach to encourage more investment, capacity and resiliency in the rail transportation system.