Exerpts from todays WSJ.
TORONTO—Service problems at Canadian National Railway Co. CNI -0.98% , caught off guard by an oil-sector rebound, are causing severe delays in deliveries of grain, fracking sand, crude and other goods from Wisconsin to the Canadian west coast.
Producers say they are falling weeks, and in some cases months, behind deliveries to customers because of erratic and reduced service at CN, Canada’s largest railway.
The slowdown is particularly critical for grain farmers in Alberta and Saskatchewan, where CNhascanceleddeliveries of more than 18,000 cars ordered to fulfill weekly grain shipments since August, according to an agricultural coalition that tracks shipments. Rival Canadian Pacific Railway Ltd. canceled 100 cars during that period. Most grain from Western Canada is shipped overseas.
The delays are so acute that Canada’s federal government has asked CN and rival CP to submit a plan this week for clearing up the crop backlog.
CN was delivered 17% of grain cars ordered in Western Canada for the last two weeks of February, according to the agricultural coalition, leaving some 40 ships idling off Canada’s Pacific coast as they wait for grain loads going overseas. Some farmers are months behind in deliveries to customers, threatening cash flows needed as this year’s planting season approaches


