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4/30/2021



Rail News: Rail Industry Trends

CTA announces grain crop-year index for CN, CP


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The Canadian Transportation Agency (CTA) has announced its determination of the Volume-Related Composite Price Index (VRCPI) for CN at 1.4505 and the Canadian Pacific at 1.4787 for the 2021–2022 crop year beginning Aug. 1. 

The determination represents an increase in the VRCPI over the last crop year of 0.5% for CN and a decrease of -1.78% for CP, CTA officials said in a press release.

The indices will be used in determining CN's and CP's maximum revenue entitlement (MRE) for the movement of western grain in the 2021–2022 crop year. The MRE is a limit on the overall revenue earned by CN and CP for shipping regulated grain.

For CN, higher projected increases in fuel prices were offset by moderate increases in labor and material prices and a projected decline in CN's cost of capital, an important element in the investment component of the VRCPI.

For CP, expected declines in labor prices and cost of capital more than offset projected increases in fuel prices.

 



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