Vulnerability of Canada’s Grain Handling Sector to Rail Disruptions
A fire on a 600-foot long rail bridge near Latornell, Alberta, earlier this month caused a one-week shutdown of rail traffic in and out of Grande Prairie, Alberta, halting the movement of grain carts on the line. That said, as the line is only responsible for a relatively small portion of the total grain volumes coming out of Western Canada, the incident is unlikely to have any meaningful impact on the operating results of the larger players in Canada’s Grain Handling sector and furthermore does not represent a change in the level of risk associated with rail disruptions for the sector. Nevertheless, the incident highlights the sector’s vulnerability to rail disruptions and the importance for Grain Handlers to have adequate railway, infrastructure, and customer diversification to mitigate the associated risks.
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