The Forwarder - CIFFA.com

Unexpected Property and Auto upgrades can really add up.So can the discounts from Waterloo Insurance TM .Did you really wanta new paint job?Group Property and Auto Insuranceprotects you from unwanted upgrades.cont’d from page 5uncoordinated and disconnected from the larger whole. This leadsto fragmented, inconsistent and unreliable service outcomes forcustomers. The prevailing opinion is that de-regulation has beena failure in Canada because it does not recognize the uniquenessof the country - its geography, vastness, sparse population,spread-out population centres. Deregulation is designed to encourage/attractmore competition. Canada, unlike the U.S., doesnot have multiple entrants in the rail sector. The most significantobservations by our members relate to service erosion – includingbut certainly not limited to ever-increasing transit times, unreliableservice due to delays and congestion, capacity problems due toserious shortages of rolling stock and exorbitant fees for storage,extra drayage and much more.Another significant observation by our members relatesto performance standards. Notwithstanding these identifiedcritical service failures, systematic, national performanceis almost impossible to evaluate becausethere are currently no key performance measures(KPI’s). There are no comprehensive standards, serviceexpectations, tracking or monitoring. There is no systemin place with which to hold all players to account. Becauseof the lack of an integrated information systemacross the supply chain, the railways are slow to respondto sudden changes in demand. They take severalweeks to adjust staffing levels and get equipment outof storage and in-service again. This results in less thanreliable services and volatile prices. There is no oversightor national policy that governs performanceacross all of the functional entities i.e. between port andrail, steamship line and rail.6www.cgbgroup.comCall today and save up to 60% on your propertyand auto insurance premiums.Ontario: 905-752-8717 or 1-866-872-8717Quebec: 1-888-542-4811All Other Provinces: 1-866-247-7700Visit our website at: www.WaterlooInsurance.comPerformance standards are a critical tool to help coherent functioningof the intermodal system. They help establish expectationsand put in place a framework for collective performance and cooperation.The monopoly/duopoly – the lack of competition – isvery problematic. Market dominance has led to a lack of focus onor commitment to Canadian customer service by rail providers.Service decisions are often made without analysis of system-wideimplications. Historically, there has been a lack of consultation byrailways before change is introduced and lack of measurement ordata sharing after change is implemented...e.g. changes that impactimport or export supply chains such as those to free time allowedand increased storage fees.RecommendationsIn our submission, CIFFA recommended that the government moveas quickly as possible to address the market dominance issue relatedto the railways. Three strategies seem apparent for consideration.One, the government could endeavour to attract massiveamounts of new competition, but this is most likely not realistic,timely or affordable given the level of investment required.A second option would be for the government to regulate competitionand force the railways to open their infrastructure to competitionand for the government actively to work to attractcompetitors to this essential service (of particular importance toAtlantic Canada.).The Forwarder April 2010