Ends Extended Rail Interswitching in Prairies

Summary#

This bill, the Extended Interswitching Repeal Act (S-287), would end the temporary extension of regulated rail interswitching in the Prairie provinces. It repeals clauses in the Canada Transportation Act that currently allow regulated interswitching up to 160 km from an interchange in Manitoba, Saskatchewan, and Alberta, and it removes related rate-setting and reporting rules (Bill, Clauses 2–4). Other interswitching and long‑haul interswitching remedies in the Act are not changed by this bill.

• Ends the 160 km “extended interswitching” option in the Prairies immediately, rather than after the built‑in sunset (Bill, Clause 2; s.127(5); Clause 4; s.127.2).
• Stops the Canadian Transportation Agency (CTA) from setting and publishing a special rate for the 160 km zone (Bill, Clause 3; s.127.1(1.1), (4.1), (6)).
• Repeals an order-making power for interswitching within 30 km that was added with the 2023 changes (Bill, Clause 2; s.127(2.1)).
• Ends railway reporting to the Minister that was intended to assess the effects of the 30 km and 160 km provisions (Bill, Clause 2; s.127(6), (7)).
• Removes the existing sunset clause because the targeted provisions would be repealed right away (Bill, Clause 4; s.127.2).

What it means for you#

• Households

  • No direct changes to passenger travel or household rules. Any indirect effects on prices or delivery times are unknown. Data unavailable.

• Businesses (shippers in Manitoba, Saskatchewan, and Alberta)

  • If your origin or destination is 31–160 km from an interchange, you would lose access to regulated interswitching at a CTA‑set rate once this bill takes effect (Bill, Clause 2; s.127(5)).
  • You could still use standard interswitching within 30 km where available, or seek service through commercial agreements. Long‑haul interswitching in the Act remains unchanged (Preamble; Bill does not amend long‑haul provisions).
  • The CTA would no longer publish a special 160 km rate or method (Bill, Clause 3; s.127.1(1.1), (4.1), (6)).
  • Timing: Provisions would end on Royal Assent of S‑287, not on the later date in the existing 18‑month sunset (Bill, Clause 4; s.127.2).

• Railways (Canadian National, CPKC, and other carriers)

  • No obligation to interswitch traffic 31–160 km from an interchange in the Prairies at the regulated rate once the repeal takes effect (Bill, Clause 2; s.127(5) repeal).
  • The CTA’s authority to order interswitching and facilities within 30 km under s.127(2.1) would be removed; other interswitching provisions in s.127 are not amended (Bill, Clause 2; s.127(2.1) repeal).
  • Reporting to the Minister on shipments affected by the 30 km/160 km rules would stop (Bill, Clause 2; s.127(6), (7) repeal).

• Governments and regulators

  • The CTA would cease work tied to the 160 km rate and method publication (Bill, Clause 3).
  • The Minister of Transport would no longer receive data used “to assess the effects” of the 30 km and 160 km provisions (Bill, Clause 2; s.127(6), (7)).

Expenses#

Estimated net cost: Data unavailable.

• No direct appropriations, taxes, or fees are created or changed in the bill text.
• Administrative effects:
  • Repeals CTA duties to determine and publish a 160 km rate and method (Bill, Clause 3; s.127.1(1.1), (4.1), (6)).
  • Repeals railway reporting requirements to the Minister related to the 30 km/160 km rules (Bill, Clause 2; s.127(6), (7)).
  • Potential administrative savings are not quantified. Data unavailable.
• No official fiscal note identified. Data unavailable.

Proponents' View#

• The 160 km extension is intrusive, regionally uneven, and anticompetitive; it was tried in 2014 and rescinded in 2017, with long‑haul interswitching kept as the remedy for shippers (Preamble).
• The 2023 reintroduction occurred without consultation with railways and without evidence that market intervention was needed (Preamble).
• Extended interswitching encourages inefficient operations and shifts traffic to U.S. railways without reciprocity, reducing Canadian economic activity and taking work from Canadian railway employees (Preamble).
• The regulated rate for extended interswitching is below market and does not fully compensate railways, while railways still face commercial input costs (Preamble).
• Canadian shippers already pay some of the lowest freight rates globally; adding extended interswitching is unnecessary (Preamble).
• Ending the measure now avoids further harm and does not wait for the scheduled sunset after roughly 18 months (Preamble; Bill, Clause 4; s.127.2).

Opponents' View#

• Removing the 160 km option reduces a regulated competitive alternative for shippers located 31–160 km from an interchange in the Prairies, which could weaken leverage in rate and service negotiations (Bill, Clause 2; s.127(5) repeal). Data unavailable on price or service impacts.
• The existing law already set an 18‑month sunset and required data reporting to assess impacts; early repeal cuts off both the evaluation period and the evidence stream (Bill, Clause 2; s.127(6), (7); Clause 4; s.127.2).
• Repealing the CTA’s order‑making power for interswitching within 30 km (s.127(2.1)) may reduce a formal tool to ensure access where shippers are eligible, even though other interswitching provisions remain (Bill, Clause 2; s.127(2.1) repeal).
• Sudden rule changes can disrupt business planning and logistics contracts that assumed the temporary 160 km rules would remain until the scheduled sunset; transition guidance is not provided in the bill (Bill text; s.127.2).