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RAIL EMPLOYMENT & NOTICES



Rail News Home Financials

1/2/2008



Rail News: Financials

CPR went over, CN stayed under federal grain revenue caps last year


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The Canadian Transportation Agency (CTA) recently determined Canadian Pacific Railway exceeded and Canadian National Railway Co. remained under federally set grain revenue caps for crop year 2006-07.

CPR surpassed its western grain ceiling by $3.8 million — the largest overage attributed to a single railroad since the revenue cap was established in 2000, CTA said. The Class I now has exceeded the cap three times. CPR's western grain revenue totaled $437.1 million while its cap was set at $433.3 million, CTA said.

By January's end, the Class I has to pay $3.9 million — the overage plus a five percent penalty — to the farmer-funded Western Grains Research Foundation to comply with CTA regulations.

Meanwhile, CN's western grain revenue totaled $416.9 million, more than $2 million less than its $419 million revenue cap. Since 2000, the Class I has exceeded its revenue ceiling twice, in crop years 2004-05 and 2005-06.

The Canada Transportation Act requires the CTA to determine each railroad's western grain revenue cap annually and monitor total revenue. The caps apply to revenue generated by moving grain from western prairie origins to terminals in Vancouver and Prince Rupert, British Columbia; Thunder Bay, Ontario; and Churchill, Manitoba.


Contact Progressive Railroading editorial staff.

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