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The Canadian Transportation Agency (CTA) has delivered its ruling on grain revenue entitlements.
The Canada Transportation Act requires CTA to determine each railway company’s annual maximum revenue entitlement (MRE) 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 that has been set.
CTA said the Canadian National Railway Company (CN) was below and the Canadian Pacific Kansas City Railway Company (CPKC) was above their respective maximum grain revenue entitlements for the crop year 2023–24.
CN’s grain revenue was $34,329,653 below its entitlement of $1,248,062,088 while CPKC’s grain revenue of was $1,824,083 above its entitlement of $869,892,839.
CPKC now has 30 days to pay the amount by which it exceeded its revenue entitlement, in addition to a five per cent penalty of $91,204. Regulations require this payment to go to the Western Grains Research Foundation.
CTA also indicated there was a decrease in the volume of grain moved this past crop year. There were 43,700,661 tonnes of Western grain moved, which represents a 3.5 per cent decrease in volumes compared to the previous crop year, which saw 45.3 million tonnes transported.
