The Canadian Pacific is being sued by agri-processor ADM, which says service disruptions at its plants in North Dakota and Minnesota in 2013 and 2014 were due to the railroad’s cost-cutting and pursuit of merger partners, says Reuters. The lawsuit, in federal court, asks damages “resulting from one of the worst and most persistent railroad service failures experienced by ADM in many years.” Rail is the lowest-cost mode for long-distance shipping in the northern Plains.
ADM asks for “several million dollars” in damages, a comparatively small sum that is “potentially embarrassing for CP as it highlights key areas the railroad has touted in its bid to buy Norfolk Southern Corp.,” says Reuters.
A USDA study says rail service delays in the upper Midwest during the winter of 2013/14 lowered cash receipts by 3 percent to grain and oilseed farmers. A record harvest, the shale oil boom and harsh winter weather were factors in the delays.