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Last week, the Canadian government contracted Edmonton, Alberta-based consulting firm QGI to conduct the first two projects under a two-pronged review of the nation's freight-rail service.

Under the first project, QGI will analyze the rail transportation logistics chain — including railroads' ability to fulfill shipment orders and provide consistent transit times — and identify problems to help a review panel develop recommendations for improvements.

The second project calls for providing a narrative description of the rail-based logistics system and identifying operating practices of railroads, shippers/receivers, terminal operators and ocean carriers that might adversely impact service, system efficiencies and capacity. QGI also will identify best operating practices of all parties. The second project will focus on operating practices related to freight-rail movements in the major corridors to and from Canada's main ports and border crossings.

The two projects will take six to eight months to complete, government officials estimate.

The government's two-stage review is expected to conclude in 18 months. Currently under way, the first stage calls for studying the country's rail-based logistics system. The second stage, which will be led by a three-person panel, involves the development of recommendations that will be submitted to the minister of transport, infrastructure and communities.