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During crop year 2004-2005, Canadian National Railway Co.’s western grain revenue of $305.8 million exceeded its cap by $118,700 while Canadian Pacific Railway’s revenue of $323.1 million remained $513,000 below its cap, according to the Canadian Transportation Agency (CTA).

In accordance with the Canada Transportation Act and federal regulations, CN has 30 days to pay the excess amount and a 5 percent penalty to the Western Grains Research Foundation. For crop year 2003-2004, the CTA — which has governed the revenue cap the past five years — determined CPR had exceeded its cap by $321,900.

The cap applies to grain moves from the Canadian Prairies to terminals in Vancouver and Prince Rupert, British Columbia; Thunder Bay, Ontario; and Churchill, Manitoba. In 2000, the cap replaced a rate scale system for grain shipments.