The Organization Of Cereal Crops Transportation By Rail Transport In Canada

Authors

DOI:

https://doi.org/10.58423/2786-6742/2024-5-56-68

Keywords:

logistics, transportation, grain crops, railway, rail transportation, regulation, Canada, subsidy, crow rate

Abstract

Canada is one of the world's largest grain producers, such as wheat, barley, corn, etc. Canada agriculture owns 12% of world wheat production. The vast majority of Canadian wheat is grown in Saskatchewan, Alberta and Manitoba. Canadian prairies are ideal for growing wheat due to flat terrain, fertile soil and prolonged sunny vegetation period. The territories of these provinces are the territories of the so-called large prairies. They are located in the Middle North American continent and do not have a direct access to the oceanic ports. Farmers of large prairies depend entirely on the efficient and coordinated operation of the railways. Wheat grown by farmers and other grains must be delivered to ports on the Pacific and Atlantic coasts. Canadian farmers planted approximately 25 million acres of wheat in 2022. Wheat is one of Canada's best crops. It is grown on nearly 50,000 farms across Canada. Canada exports wheat to more than 70 countries. The total annual crop of wheat is about seven times the domestic consumption in Canada. The main means of transportation of grain crops in Canada is railway transport. It is a strategic branch of the country's economy.  Farmers transport grain to grain elevators.  They are stored, sorted and processed there before further transportation. The key role in grain transportation belongs to two railway companies Canadian Pacific Railway and Canadian National Railway. These companies play an important role in transporting grain from the Canadian prairies to ports in the east and west of the country. Railways ensure fast and efficient transportation of grain from farms to destinations, thanks to the development of infrastructure and technology. Rail transportation plays an important role in the export of Canadian grain crops to world markets through seaports on the Atlantic and Pacific coasts. The purpose of the article is to study the process of transportation of grain crops by rail transport in Canada, as well as to study the peculiarities of state regulation of this process. The author investigated the organization of the logistics of grain crops by rail transport in Canada in the article. The history of providing subsidies to agricultural producers by the Canadian government in order to reduce the cost of grain transportation by railway companies is described. The legislative field of Canada in the field of grain transportation regulation is analyzed. The mechanism of regulation by the federal government of Canada of railway companies' profits from the transportation of grain crops is characterized. It is proposed to apply the Canadian experience of transportation of grain crops in the practice of state regulation of Joint-stock company «Ukrzaliznytsia».

Author Biography

Natalia Gretska, State Organization «Institute for Economics and Forecasting, NAS of Ukraine»

Candidate of Economic Sciences, Senior Researcher

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Published

2024-06-27

Issue

Section

Economics and management