FPAC Calls for Forestry-Specific Rail Strategy as Transportation Costs Squeeze Canadian Mills

By James Murray
The Net News Ledger
August 10, 2026
Category: Business & Politics
Region: Canada, Canada East

OTTAWA — Canada’s forest-products industry is urging the federal government to develop a forestry-specific approach to rail transportation costs and reliability, arguing that the sector faces different competitive pressures than steel and other heavy industries. …For Northwestern Ontario the issue is particularly significant. Mills are often located hundreds of kilometres from major markets, ports and border crossings, making reliable and competitively priced rail service critical to maintaining production and jobs. …According to FPAC, the average shipment of Canadian forest products travels roughly 1,200 kilometres over land…. amount to between $2 billion and $3 billion annually. For mills across Northwestern Ontario, transportation reliability can influence inventory levels, production schedules, export competitiveness and ultimately employment. …For Northwestern Ontario, the rail-cost debate comes at a time when the forest sector is already dealing with pressures from international trade, changing lumber markets, energy and labour costs and the need for continued investment in mills and equipment.

Read More