J-MAS thoughts after listening to Terry Whiteside – Whiteside Associates.
Duopolies exist in both Canada and the US and they actually commands better market power than monopolies as monopolies can be challenged on their rates via government intervention, but a duopoly can’t, and obviously collusion can come into play. The same rail problems exist I the US S in Canada as our railroads are the equivalent to a single lane highway with very few passing lanes. In 100 years this has never been fixed.
There is a tremendous threat ahead (aside from Oil present already) with the possibility of Coal being transported through Oregon through two terminals which may move 110 million annual tonnes of coal. The entire Corn, Bean and Wheat crop exported through Oregon is 36 million tonnes (don’t quote this as was a point passed over quickly in the presentation).
The key factor to get farmers a voice in these debates is to get the rail and governments to recognize the farmer as the bearer of freight costs and not the elevators as then the farmers will have a voice.
I have a lot more notes on this so visit the office for a talk on it sometime.