DISCUSSION OF THE RELATIONSHIP BETWEEN OWNERSHIP OF RAILCARS USED FOR GRAIN TRANSPORTATION AND RAILWAY FREIGHT RATES FOR GRAIN TRANSPORTATION
Presents an economic discussion of the relationship between the ownership of railway cars used for grain shipment and the levels of freight rates which would be established by the railways for transportation of the currently-statutory grain, in the event that the maximum rate scale for currently-statutory grain is abolished. Begins with a review of the principles of railway freight-making and the constraints on establishment of freight rates, including availability of effective transportation competition, market competition, legislative and regulatory constraints, and Canadian railway freight structure. The relationship between railway freight rates and rail car ownership is then discussed. Finally, the extent to which effective competition will play a role in the constraining railway freight rates is analyzed in the context of the transportation of grain, a type of commodity for which effective competition is normally lacking. In particular, the financial impact of producer ownership of rail cars is estimated.
- Prepared by Travacon Research Ltd., Regina, Canada.
Saskatchewan Department of Highways and Transportation, CanadaGovernment Administration Building
Regina, Saskatchewan S4S OB1, Canada
- Publication Date: 1996
- Pagination: 18 p.
- TRT Terms: Car ownership (Railroads); Competition; Freight handling; Freight traffic; Grain; Marketing; Rates
- Uncontrolled Terms: Freight rates; Grain trade
- Old TRIS Terms: Freight operations
- Subject Areas: Freight Transportation; Railroads;
- Accession Number: 00731939
- Record Type: Publication
- Report/Paper Numbers: TAG-CY-Regina
- Files: TRIS
- Created Date: Feb 5 1997 12:00AM