CN and CP exceed their Maximum Grain Revenue Entitlements for Crop Year 2017-2018

OTTAWA, Dec. 31, 2018 /CNW/ - In a determination issued today, the Canadian Transportation Agency (CTA) ruled that revenues of the Canadian National Railway Company (CN) and the Canadian Pacific Railway Company (CP) have exceeded their maximum grain revenue entitlements for crop year 2017–2018.

• CN's grain revenue of $788,062,078 was $1,047,285 above its entitlement of $787,014,793.
• CP's grain revenue of $709,499,416 was $1,500,513 above its entitlement of $707,998,903.

CN and CP now have 30 days to pay the amount by which they exceeded their 2017–2018 revenue entitlements, in addition to a five percent penalty of $52,364 for CN and $75,026 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.

CN and CP moved 6.0 percent less grain this crop year

In the 2017–2018 crop year, 40,618,285 tonnes of Western grain were moved—6.0 percent less than the volume moved during the previous crop year. The average length of haul of 953 miles was unchanged from the previous crop year.

Determining the Maximum Revenue Entitlement

The Canada Transportation Act requires the CTA to determine each railway company's annual maximum revenue entitlement and whether each entitlement has been exceeded. The maximum revenue entitlement is a form of economic regulation that enables

Related Products

For more information on the CTA's maximum revenue entitlement determinations since 2000–2001, please see the .

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SOURCE Canadian Transportation Agency