Grain movement booms; timeliness a concern\n\nSaskatoon — Canadian National Railway moved a record volume of grain in 2024-25. The company transported 31 million tonnes of grain and processed grain products for the crop year that ended July 31, more than one million tonnes more than the previous record. \"This achievement, which included robust movement of canola and wheat, was delivered despite significant headwinds, including prolonged port labour disruptions and early-onset extreme cold weather,\" CN president Tracy Robinson said in the company’s statement.\n\nCanadian Pacific Kansas City Limited transported more than 27 million tonnes of Canadian grain and grain products, the highest volume since the record setting year of 2021-22, according to the company’s Grain Service Outlook.\n\nWade Sobkowich, executive director of the Western Grain Elevator Association, said there are two components to grain movement that are important — volume and precision. \"The increase in capacity is important, but it has to go along with moving it when it needs to be moved,\" he said. That did not happen in 2024-25. It was the worst year for weekly rail car order fulfilment since the industry started tracking that statistic a decade ago. For instance, only 31 per cent of rail car orders were filled by both railways in Week 29 of the crop year, according to data provided by the Ag Transport Coalition. That was the low point of the year. \"They eventually made that up, but it happened outside the peak period,\" said Sobkowich. \"That’s where we hope we’re going to see an improvement in the upcoming crop year.\"\n\nCN expects to move 27 to 29.5 million tonnes of grain in the current crop year, which would be well below its maximum capacity of 36 million tonnes. It plans to move up to 7,800 cars per week (744,000 tonnes) outside of winter and 6,250 cars (595,000 tonnes) during winter. CPKC expects to move up to 34 million tonnes of grain and grain products, a seven million tonne increase from the crop year that ended July 31. It plans to provide the capacity required to move up to 685,000 tonnes of grain on average each week when the Port of Thunder Bay is open (generally from August through early-January and from April to July). When the port is closed, it plans to supply the capacity to move up to 525,000 tonnes per week.\n\nCN is forecasting 70 million tonnes of production for the eight major grains, oilseeds and pulses grown in Canada in 2025. CPKC said Agriculture Canada is forecasting 70 million tonnes of total western Canadian grain production, but its grain customers are indicating it could be 73 million tonnes.\n\nSobkowich thinks the railways should be preparing to move a crop that is the same size as last year’s crop. CN is forecasting 41.39 million tonnes of exports of the eight major crops, a 5.33 million tonne drop from the crop year that just ended. Both railways indicated that there are several factors that could alter their projections, including labour disruptions and harsh weather. CN said potential gaps in service could be avoided if grain customers provided the railway with better forecasting and communication. \"While some customers provide detailed and reliable eight-week forecasts, others may offer projections that are less consistent, less detailed or, occasionally, customers do not provide them at all,\" the railway said in its Grain Plan. Sobkowich bristled at that suggestion. \"It feels like they are making excuses before the event happens,\" he said.\n\nEvery grain company signs service contracts with the railways in advance of the new crop year, outlining what their anticipated demand will be on a week-by-week basis, he said. And there is \"constant communication\" throughout the year to ensure the railways deliver what they need. CN mentioned that ongoing global trade friction is also making it \"increasingly difficult to plan forward.\" CPKC also talked about shifting trade routes. \"With grain and other customers looking to diversify end markets amid trade policy uncertainty, CPKC is uniquely serving as a land bridge between Canada and Mexico,\" accompanying its Grain Service Outlook.\n\nSobkowich said the grain has to go somewhere. If one market puts up a barrier, it will move to another market. \"For the most part, most of the grain wants to go through the West Coast,\" he said. \"And that’s not going to change, so that’s where we need to see maximum capacity from the railways.\"\n\nCPKC wants Ottawa to introduce 100 per cent immediate depreciation for supply chain capital investments to become competitive with U.S. policy. It also wants the federal government to increase Canadian grain and other exports to Mexico, address the challenge of frequent labour disruptions and improve infrastructure. CN said new federal labour regulations mean the railway needs approximately 15 per cent more people to move the same amount of freight, which increases costs to customers. It is pushing for accelerated capital depreciation measures and regulatory stability to unlock private infrastructure funding. Both railways strongly oppose reinstating federal labour regulations.

Grain movement booms; timeliness a concern

Canadian National Railway (CN) and Canadian Pacific Kansas City Limited (CPKC) reported record volumes of grain transportation in the 2024-25 crop year, with CN moving 31 million tonnes and CPKC transporting over 27 million tonnes—both exceeding previous records. Despite this volume growth, timeliness of shipments remained a critical issue, with only 31% of rail car orders fulfilled in Week 29, the worst performance since tracking began a decade ago. Industry experts, including Wade Sobkowich of the Western Grain Elevator Association, emphasized that volume alone is insufficient without precision in movement timing. Both railways plan to adjust capacity based on seasonal operations and port availability, with CPKC highlighting its role as a land bridge between Canada and Mexico due to shifting trade routes. CN and CPKC have called for federal policy changes, including 100% immediate depreciation for supply chain capital investments and increased exports to Mexico, to address challenges from labour disruptions, weather, and global trade friction.