Canadian grain shippers again angry at CN Rail

WINNIPEG, Manitoba, Feb 12 (Reuters) - A group of grain shippers has complained to Canada's transport regulator about a new system used by Canadian National Railway (CNR.TO: Quote, Profile, Research) to distribute rail cars, the Canadian Wheat Board said on Tuesday.

The new program requires shippers to order cars a month in advance, compared with previous programs that aimed to order cars just before they were required to ship grain to meet incoming ocean vessels, a CWB spokeswoman said.

The program risks sending the wrong grain to port at the wrong time, Maureen Fitzhenry said.

"There could be serious demurrage here," Fitzhenry said. "There could be serious congestion at terminals."

Canadian National, Canada's largest railway, said it was disappointed by the CWB's actions and in announcing the complaint in the media.

"The CWB has deliberately chosen to mischaracterize CN's car-ordering system," the railway said, adding the program will improve its operational planning and "is not an allocation system."

The shippers include Parrish and Heimbecker Ltd, Paterson Grain, Providence Grain Group Inc and North West Terminal Ltd.

The shippers have been involved in a formal service complaint against CN Rail. The Canadian Transportation Agency ruled last month that CN failed to provide adequate service to grain shippers last year, but needed more data before evaluating the current year's performance.

The agency ordered the railway and shippers to provide information for the August 2007-April 2008 period, which it will use to make a final ruling.