Here’s what Wet’suwet’en rail blockades could mean for farmers, retailers and consumers

VANCOUVER—As Prime Minister Justin Trudeau asks for “patience” in Parliament on Tuesday, many Canadians are already starting to feel the impact of ongoing blockades to the country’s rail system.

Approximately 450 rail workers have received temporary layoff notices as a result of ongoing rail blockades in support of those fighting the construction of Coastal GasLink’s natural gas pipeline in northern B.C., the Canadian National Railway said Tuesday.

Wet’suwet’en hereditary chiefs have said they will do everything they can to stop Coastal GasLink from building a gas pipeline through Wet’suwet’en territory in northern B.C.

The project would span 670 kilometres from Dawson Creek to Kitimat and is expected to create between 2,000 and 2,500 jobs.

Coastal GasLink has maintained it has the support of every elected body on its proposed pipeline route, which is meant to supply natural gas to the B.C. coast, where it would be converted to liquefied natural gas for export.

Last Thursday, both Via Rail and Canadian National rail shut down major parts of their network as protests escalated throughout the country in solidarity with the hereditary chiefs.

About 450 CN employees in Eastern Passage, Moncton, Charny, and Montreal were handed temporary layoff notices, CN spokesperson Alexandre Boulé said in an emailed statement on Tuesday.

“This situation is regrettable for its impact on the economy and on our railroaders as these protests are unrelated to CN’s activities, and beyond our control.”

A total of 6,000 workers are also at risk of layoffs if blockades continue, according to transportation-sector union Teamsters Canada.

Trudeau says his government is listening to those opposed to construction of a natural gas pipeline through traditional Wet’suwet’en territories.

He addressed Parliament Tuesday, saying it is a “critical moment” for the country as protests flare over the multibillion-dollar project. But he also says a solution will not be quick or simple.

Rail workers aren’t the only ones affected by the passenger and freight disruptions. Many Canadians, from consumers to farmers are already feeling the impact, experts say.

How important is the rail system in Canada anyway?

CN transports more than $250 billion worth of goods every year across 20,000 miles of railway spanning Canada and Mid-America, said Boulé, who described the rail network as the “backbone” of the Canadian economy.

By the time a product arrives at your doorstep or gets placed into your shopping cart, it has gone through “quite the logistical process” to get there, said Karl Littler, senior vice-president of the Retail Council of Canada.

The rail system is like the trunk of a transportation “tree” that spans the country, he explained.

Trains play a major role by doing the “heavy lifting” of transporting goods over long distances, he said. Then, trucks deliver products to distribution centres and stores.

Trucks can alleviate some of the pressure, but Littler said there’s a limit to how much that industry can help. “It’s not like there are thousands and thousands of trucks and truck drivers sitting around just waiting for a cessation in the rail system.”

Yet in B.C., that’s exactly what some truck drivers are being forced to do due to the rail disruptions, according to Dave Earl, president of the B.C. Trucking Association. His organization represents 26,000 workers who drive container trucks, chartered buses and moving trucks.

A backlog of cargo at the Port of Vancouver means it is not allowing as many trucks carrying cargo destined for ships to enter the facility, explained Earl. “From a truck driver standpoint, they’re just not going to go at all. They’re going to end up parked and not earning any money for that.”

About $435-million worth of goods are being stranded every day the blockade continues, according to Dennis Darby, CEO of Canadian Manufacturers and Exporters.

Meanwhile, the Port of Vancouver says some ships are stuck waiting for goods to arrive at the port via rail. As a result, there is a backlog of ships waiting to enter the port, said Danielle Jang, spokesperson for the Port of Vancouver. There are currently 45 ships anchored near the facility when usually there are about 30, she said.

More than a quarter of the goods moved by CN are transported via containers, which mostly hold consumer and retail goods, according to Boulé.

Will I see empty shelves in stores soon?

It depends where you live. Retailers in urban centres like Vancouver and Toronto are probably going to find alternatives across the border for products that are usually processed and manufactured in Central Canada, said Littler.

And those who have specific needs, like gluten free food, may feel the impact first, he said — because while shelves won’t be empty right away, retailers might not be able to source as wide a range of products as usual.

But some parts of the Maritimes are already feeling the effects of the rail blockades, said Littler.

“The trouble for Atlantic Canada is they are the furthest from the point of entry in Vancouver and they are also a significant distance from central Canada where a lot of processing and manufacturing is done,” he said.

In a matter of weeks, consumers across the country could see shortages in everything from food products like yogurt to household products like paper towels if the rail disruption continues, said Littler.

“Retailers are going to go out of their way to keep products on their shelves, but I think you’ll certainly see diminished selection within weeks,” he said.

“Eventually you will start to see significant problems on supply on a bunch of stuff Canadians use everyday.”

What’s the impact on Canadian farmers?

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Hundreds of farmers in Canada rely on trains to transport their crops to other parts of the country for processing and selling to markets.

“Trucks are not feasible because the cost of shipping would be outrageous for us. Trains have been the way it’s been forever,” says Preston Dorgan, a 34-year-old fourth-generation farmer in southwest Saskatchewan.

His family’s farm is located in Meyronne, a remote “special service area” with a population of just 35 people, according to the 2016 census. The sprawling 20,000-acre farm grows canola, lentils, chickpeas and durum wheat.

Their canola seed harvest is sitting in storage bins now, because the protests have delayed shipments to B.C. for at least a month, Dorgan told the Star in an interview.

Dorgan explained that farmers tend to get large chemical bills this time of the year, and are always under pressure to pay regular installments on expensive equipment like tractors.

“If we can’t ship grain right now, we miss our chemicals payment and that’s five per cent interest tacked on. In our area, some canola shipments have been delayed a month already so it’s making it harder to get by.

“In the last couple years, there has been drought, too, so we don’t have a whole pile of cash flow to just pay that all out. So we are really hoping that the trains get going again,” Dorgan said.

Rail disruptions probably won’t affect gas prices much — not in major urban centres, at least, according to Werner Antweiler, a professor at the University of British Columbia’s Sauder School of Business.

Gas pumps in Vancouver, Toronto, Ottawa and Montreal are all supplied via pipelines, not rail, explained Antweiler, adding that refineries and terminals in B.C. and Ontario keep a significant amount of extra fuel.

“The bottom line is that I do not see any reason to worry about gasoline supply in Ontario or in British Columbia. It is mostly other types of commercial goods that are stranded on rail cars, including grains and forestry products.”

How is the Canadian government handling the conflict?

In Ottawa, Prime Minister Justin Trudeau urged patience at the House of Commons as his ministers have been trying to meet with Indigenous leaders in an attempt to resolve the dispute.

“Patience may be in short supply and that makes it more valuable than ever.”

The federal minister in charge of Crown-Indigenous relations says she’s waiting on an invitation from the Wet’suwet’en hereditary clan chiefs to meet in their community.

Carolyn Bennett says a meeting had been proposed at the end of the month, but she would like to meet as soon as possible to discuss a peaceful resolution to the conflict over a natural gas pipeline that has spawned Canada-wide protests.

The Wet’suwet’en hereditary clan chiefs have been silent about whether they are open to a joint meeting with Bennett and B.C. Indigenous Relations Minister Scott Fraser since the minister publicly stated interest in doing so Monday.

Trudeau had rejected Conservative calls to order the national police force to break up rail blockades.

What do protesters say about the impact of blockades on ordinary Canadians?

According to Smogelgem, head chief of the Sun house of the Likhts’amisyu clan of the Wet’suwet’en, the impact the protests are having on the economy was “bound to happen.”

“So much obstruction is happening everywhere because Indigenous people … are the most marginalized group in the population and we are defending our land. The actions help to create awareness about problems ongoing since the beginning of colonization on our land,” he told the Star in a telephone interview.

Nikki Sanchez, of the Pipil Maya Nation, also stated that since some rail lines run through Indigenous territories, the power to shut the service down should belong to those First Nations.

It’s not an activity those communities take lightly, though, she told the Star.

“We have no interest in impacting individuals’ livelihoods,” Sanchez said, referring to the economic impact of the blockades. “We want a Canada that is upheld to justice.”

With files from Alex Boyd, Tonda MacCharles, Bruce Campion-Smith, Alex Ballingall and The Canadian Press