A CBC News investigation has uncovered a cross-border mystery involving unexplained shipments of biodiesel tanker cars that were sent back and forth numerous times between Canada and the U.S. by CN Rail but were never unloaded.

According to leaked internal CN documents, the rail company stood to make $2.6 million for the effort…

Here comes the papier-mâché excuse:

“CN received shipping directions from the customer, which, under law, it has an obligation to meet,” CN Rail spokesman Mark Hallman said last week. “CN discharged its obligations with respect to those movements in strict compliance with its obligations as a common carrier, and was compensated accordingly.”

When asked whether CN wasn’t helping to do something strange, Hallman responded: “CN met its obligations as a common carrier and we have no further comment.”

CN employees, although guarded, were more candid…“In 25 years, I’d never done anything like it,” one railway worker told CBC News on the condition he not be named for fear he might be fired. “The clerk told me it was some kind of money grab. We just did what we were told…”

“This unit train will move at least once daily to Port Huron starting on Tuesday, June 18,” said an email written by Teresa Edwards, CN’s manager of transportation for Port Huron/Sarnia.

It will “clear customs and return to Sarnia. If we can get in more flips back and forth we will attempt to do so. Each move per car across the border is revenue generated for Sarnia/Port Huron.

It will be the same cars flipping back and forth and the product will stay on the car…”

Each shipment generated bills of lading, customs import and export forms that suggest total biodiesel shipments of 1,984 cars — which, taken together, would be valued in the hundreds of millions.

The U.S. biodiesel companies listed as customers were HeroBX and Northern Biodiesel. Northern Biodiesel did not answer calls, and it is unclear whether it is still operating as a business. CBC News called HeroBX repeatedly, but it has refused to respond…

There is a portion of North American commerce completely absorbed in shuffling papers – with the complicity of local, regional and national bureaucrats – which produces a profit solely on the basis of manipulation. Entirely antithetical to the intent of law, commerce and justice. But, then, that doesn’t matter if it turns a profit, eh?

  1. Ziggy says:

    That’s how we keep the economy moving up here. The thing here is the paperwork has to outweigh the produced. Anyone with a university degree can tell you that.

  2. fishguy says:

    “When it, simply, has to be there overnight” I love it when liberals try to be capitalists.

  3. McCullough says:

    I say it’s time to invade Canada..kill Terrance and Phillip, steal their beer. Igloos are no match for predator drones.

    • JS says:

      But think of the poor Baldwin brothers…. what will we do without them?

    • NobodySpecial says:

      Remember 1812 – didn’t you guys learn your lesson last time?

    • dittmv says:

      I dunno… those Canadian planes looked pretty fearsome when they bombed the Baldwins. I think the drones would turn around and run away yelping at the site of the Canadian air force.

  4. noname says:

    B.S. Taxed not Enough, what Government fraud and corruption?

    If anything, it shows companies need more government regulations!

    Did you even read the story?

    Bioversel Trading Inc arranged with U.S. biodiesel companies HeroBX, Northern Biodiesel and CN this deal! Where is this fault of the government?

    The deal had CN company use its rail lines and tunnels 24 times without unloading any cargo to earn $2.6 million, for flipping shipments back and forth across the border . Again where is this fault of the government?

    You and pedro are the looniest of the loons! Both don’t bother to read, instead brainlessly knee jerk every comment!

    God gave you a brain, use it!

    This is classic a WallStreet type arbitrage shenanigan; making money from transaction fees, possible market price differences and not from adding any market value.

  5. Cap'nKangaroo says:

    From the article:

    “The Bioversel fight against the CBSA’s search warrant of its Bloor Street offices in Toronto on May 30, 2012, was heard in court Wednesday in Quebec City. Court documents show European authorities had contacted the CBSA alleging Bioversel and another company mislabelled their merchandise and its origin. Officials are now investigating claims the companies were routing American-made biodiesel through Canada and falsifying its origin to avoid paying tens of millions of dollars in European anti-dumping duties.”

    And according to TEAD, Obama is somehow responsible for this.

  6. bobbo, we think with words, and flower with ideas says:

    So, with USA tax subsidized corn to ethanol program that at best breaks even on any energy production and carbon foot print, THAT bio fuel ends up being sold to Europe?

    BWAHAHAHAHAHA. Boy are we f*cked, or should I say Teabagged as if by Alfie himself.

    As always–it makes ultimate good sense if you can follow the money. I can only “wonder” if this is how speculators cause market disruption and price spikes?

    Oh—and while following the money==BIG money is hardly ever completely legal. There is more profit in illegal.

    Know what I mean? ((I know that you do!))

  7. The Monster's Lawyer says:

    All of you have it wrong. This is part of Bio-Diesel refinement. Everyone knows that Bio-Diesel needs time to age before it is consumable. The train ride gives the brew time to ferment plus keeps the Mounties and Revenuers confused until the hooch is ready. After a quick stop at Seagrams the train is empty and can start again. Soon we will have trains running in stock car races. This is the future of Canadian NASCAR.

  8. anon says:

    AAAAAAAAaaaAAAtlas Shrugged…. By Ayn Rand

  9. Benjamin says:

    Of course government makes some incentive to do this. Probably one or both governments gave a tax credit to export or import biodiesel and some guy gets the idea to sell the same biodiesel back and forth.

    Only the government would fund something where no value is being created.

  10. BeBeBe says:

    The don’t call these crooks “slick” for nothing!

  11. deowll says:

    Subsidizing energy is for bleeps. Let the market decide what works unless you have local air pollution issues and then take care of it on that bases.

    No CO2 is not harmful to living things unless it is in vastly higher concentration than now exists. They add it to green houses to make plants grow better.

  12. MikeN says:

    Yea, this only makes sense in one of two ways.
    The train company or some other entity is lying about what they are shipping, letting people think they are getting new product when they are not. This is not a sustainable business and leads to jail pretty quickly, unless the paying company is asleep.

    The government is providing subsidies, which is likely as the product is biodiesel.

    We have seen this in Europe where people were collecting subsidies for solar power that they managed to deliver at night.

    Green energy is a scam. It is pushed by corporations to make money for themselves, who fool the e

  13. sargasso_c says:

    The lawyers representing the biofuel subsidising office of the Canadian Government will probably want to have a word.

  14. MartinJJ says:

    A bit of googling makes me believe Bioversel Trading Inc isn’t a stranger to shady deals. Investigations are going on already into possible fraudulent shipments of fuel to Romania (a $100-million deal). But it most likely has to do with the $65-million Ottawa grant for the biggest producer of biofuel in Canada. They want to appear bigger then they are?


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