wit grain trucks
Grain trucks waiting to unload at Weyburn Inland Terminal


New numbers that were released this week by Statistics Canada seem to indicate that what many expected about the grain backlog in Western Canada were true. Grain was being left in elevators by rail companies, as they loaded other commodities in their place for transport.

In January, 25,900 rail cars were loaded with grain in Western Canada. That was a decrease of 4,830 from December, and down nearly 14,000 from November. Railways did point out that the colder weather in December, January and February had an impact on their operations. CN Rail, while hitting almost 5500 cars a week in the autumn, saw their numbers drop according to spokesperson Mark Hallman.

"In December, we got hit by extreme cold, and that had a significant impact on CN's operation, right across the west and in through northern Ontario and in our corridor south of Winnipeg to Chicago," Hallman said. 

Where the large discrepancy with the numbers and the statements from rail officials comes in to play, is that the overall number of rail cars from December to January actually increased by more than 4700 cars for the month. As well, during the same time frame that less grain cars were being loaded, other commodities like oil, coal and potash were seeing increases in the number of cars loaded.

CN Rail wouldn't comment on industry wide numbers, so we reached out to Quorum Corporation for further clarification. They were unavailable for comment prior to the deadline. CP Rail was also contacted. While they didn't comment specifically on these numbers, a press release was issued by them that stated they were moving more grain than ever before in their history. They echoed the same sentiments in early February after meeting with a delegation of cabinet ministers from Saskatchewan that was led by Economy Minister Bill Boyd and Agriculture Minister Lyle Stewart. We provided the numbers to Stewart and asked him for comment.

"You know, I'll take Statistics Canada's word for it," Stewart said. "From my own experience, there were plenty of long trains moving in January, they just mostly weren't grain trains. So, I'm surely not going to argue with Statistic's Canada's numbers. I am sure they are correct."

The complete numbers from Statistics Canada show year over year, the number of grain cars being loaded remained fairly steady year over year, until 2013, when that number declined by more than 30,000 when compared to 2012. In the same time period, the number of rail cars being loaded overall increased by more than 80,000. The largest contributor to this increase was from the oil and gas sector, which saw an increase of 49,130 rail cars loaded in 2013. 

Total Annual Rail Car Loads
Year Grain Cars % of Total Total Cars Year Petro Cars % of Total
2009 379559 26.95% 1408583 2009 71763 5.09%
2010 357425 23.76% 1504249 2010 71819 4.77%
2011 363033 21.94% 1654317 2011 75993 4.59%
2012 378385 22.21% 1703565 2012 102747 6.03%
2013 348165 19.51% 1784226 2013 151877 8.51%
   
Rail Car Loads Oct 2013-Jan 2014
Month Grain Cars % of Total Total Cars Month Petro Cars % of Total
Oct 2013 40305 24.39% 165286 Oct 2013 14068 8.51%
Nov 2013 39860 25.32% 157405 Nov 2013 15463 9.82%
Dec 2013 30730 22.11% 138984 Dec 2013 15137 10.89%
Jan 2014 25900 18.02% 143702 Jan 2014 17387 12.10%
   
January by January Comparison
Year Grain Cars % of Total Total Cars Year Petro Cars % of Total
2009 26571 24.87% 106583 2009 7764 7.28%
2010 28925 24.40% 118552 2010 6928 5.84%
2011 24862 20.55% 120973 2011 7267 6.01%
2012 34044 25.11% 135559 2012 7742 5.71%
2013 29899 21.38% 139842 2013 12580 9.00%
2014 25900 18.02% 143702 2014 17387 12.10%

Numbers for this chart are from Statistcs Canada CANSIM 404-0002

As more information and reaction is obtained about this story, we will update it.