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12/28/2021
The Canadian Transportation Agency (CTA) last week ruled that CN was above and Canadian Pacific was below maximum grain revenue entitlements for the 2020-2021 crop year.
CN's grain revenue of CA$1,044,909,345 was CA$2,399,676 above its entitlement of CA$1,042,509,669. CP's grain revenue of CA$1,014,927,140 was CA$20,248,072 below its entitlement of CA$1,035,175,212.
CN now has 30 days to pay the amount by which it exceeded its 2020-2021 revenue entitlement and a 5% penalty of CA$119,984, CTA officials said in a press release.
Regulations require the payments to go to the Western Grains Research Foundation, a farmer-financed and directed organization to fund research that benefits Prairie farmers.
In the 2020-2021 crop year, 52,334,795 tonnes of Western grain were moved — 9% more than the volume moved during the previous crop year and the highest annual volume on record.
Canadian law requires the CTA to determine each railroad's annual maximum revenue entitlement and whether each entitlement has been exceeded.
The maximum revenue 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.