Two Railways Ordered To Pay Saskatchewan-Based Farm Organization Over 4 Million Dollars

Dec 28, 2016

The Canadian Transportation Agency has ruled that CN Rail and CP Rail exceeded their revenue entitlement for the crop year ending July 31, 2016.

CP’s grain revenue of $681,266,322 was $3,386,483 above its entitlement.

CN’s grain revenue of $685,791,606 was $1,041,913 above its entitlement.

The maximum revenue entitlement (sometimes referred to as a revenue cap) 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 western grain shipments remains below the ceiling set by the CTA.

Both railway have 30 days to pay the amount by which they exceeded their revenue entitlement, in addition to a five per cent penalty.

The money will go to the Western Grains Research Foundation, a farmer-financed and directed organization set up to fund research that benefits Prairie farmers.

Source : CKRM

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