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Rail News: Federal Legislation & Regulation

CN, CP exceed grain revenue limits for 2019-2020 crop year


The Canadian Transportation Agency (CTA) yesterday announced that the revenue earned by CN and Canadian Pacific from grain shipments were above their maximum entitlements for the 2019-2020 crop year.

CN's grain revenue of CA$933,502,041 was CA$3,170,615 above its entitlement of CA$930,331426; and CP's grain revenue of CA$999,230,8080 was CA$2,170,010 above its entitlement of CA$997,060,798, CTA officials said in a press release.

CN and CP now have 30 days to pay the amount by which they exceeded their revenue entitlements, in addition to a 5% penalty of CA$158,531 for CN and CA$108,501 for CP. Regulations require the payments be made to the Western Grains Research Foundation, a farmer-financed and directed organization set up to fund research that benefits Prairie farmers.

The Canada Transportation Act requires the CTA to determine each railroad's annual maximum revenue entitlement and whether each was exceeded. The entitlement is a form of economic regulation that enables CN and CP to set their own rates for services, provided the total amount of revenue collected from their shipments of western grain remains below the ceiling set by the CTA.


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