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Rail News: Federal Legislation & Regulation

Canadian Pacific, CN exceed grain revenue entitlements for 2014-15 crop year


Canadian Pacific and CN exceeded their Western grain revenue entitlements for the 2014-2015 crop year and must repay those amounts plus penalties, the Canadian Transportation Agency announced yesterday.

The two Class Is now have 30 days to pay the amount by which they exceeded the entitlements, in addition to a 5 percent penalty of $343,330 for CN and $106,858 for CP. Regulations stipulate that such payments must be made to the Western Grains Research Foundation, a farmer-financed and directed organization set up to fund research that benefits Prairie farmers, agency officials said in a press release.

CN's grain revenue of $745,068,906 was $6,866,595 above its entitlement of $738,202,311. CP's grain revenue of $724,045,774 was $2,137,168 above its entitlement of $721,908,606.

More than 41.3 million tons of Western grain were moved during the crop year, which was 7.4 percent more than the volume moved in previous crop year. The average length of haul was 947 miles, a 0.2 percent increase higher than the year-ago period.

The Canadian Transportation Act requires the agency to determine each railroad's annual maximum revenue entitlement and whether each entitlement has been exceeded. The maximum entitlement is a form of economic regulation under which CN and CP can set their own rates for services, provided the total amount of revenue collected from their shipments of Western grain remains below a ceiling set by the agency.

Contact Progressive Railroading editorial staff.

More News from 12/30/2015