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12/27/2024
The Canadian Transportation Agency (CTA) this week ruled that revenue of CN was below and the Canadian Pacific Kansas City was above their respective maximum grain revenue entitlements for the 2023–2024 crop year.
CN’s grain revenue of C$1,213,732,435 was C$34,329,653 below its entitlement of C$1,248,062,088, while CPKC’s grain revenue of C$871,716,922 was C$1,824,083 above its entitlement of C$869,892,839, CTA officials said in a press release.
CPKC now has 30 days to pay the amount by which it exceeded its 2023–2024 revenue entitlement, in addition to a 5% penalty of C$91,204. Regulations require this payment to go to the Western Grains Research Foundation.
In the 2023–2024 crop year, 43,700,661 tonnes of western grain were moved. This represents a 3.5% decrease in volume compared to the previous crop year, in which 45.3 million tonnes were transported. The decrease in the volume of grain was due mainly to relatively lower crop exports for the year.
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 revenue entitlement is a form of economic regulation that enables CN and CPKC to set their rates for services, provided the total amount of revenue collected from their shipments of Western grain remains below the ceiling set by the CTA.