Status of Policy Issue: Extended Interswitching
A fair and competitive marketplace benefits all Canadians. Budget 2023 proposes to amend the Canada Transportation Act to increase the extended interswitching limit in the prairie provinces on a pilot basis. This policy is a step in the right direction for Canadian shippers and Canada’s economy.
What is extended interswitching?
Extended interswitching is a measure which gives shippers who are physically located on a single rail line the ability to seek competing service from the next closest railway within a certain distance. This balances negotiations in a way that encourages better service or pricing for the benefit of entire supply chains.
What are the benefits?
Extended interswitching is a vital tool for Canadian shippers that is proved to increase competition while lowering costs to shippers and consumers. Ultimately, extended interswitching will strengthen Canada’s reputation as a reliable shipper and help grow our economy.
Increased Competition - Businesses will have access to a larger pool of rail providers, promoting competition and helping to drive down transportation costs.
Improved Efficiency - More options mean businesses can find the most efficient and cost-effective ways to move their goods to market, leading to greater productivity and profitability.
Better Access to Markets - By expanding the reach of interswitching, businesses will have greater access to new markets and customers, providing opportunities for growth and expansion.
Take action:
Extended interswitching will be brought to a vote this spring. Tell your MP to Flip the Switch for competition. Click here to send a letter today.