Railways shipped less grain last year but, exceeded their revenue entitlement
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LETHBRIDGE — The Canadian Transportation Agency (CTA) has ruled that revenue of the Canadian National (CN) and Canadian Pacific (CP) Railway companies exceeded their Maximum Revenue Entitlements (MRE) for the 2017-2018 crop year.
The higher revenue came in spite of the railways transporting less grain than the previous year. In the 2017-2018 crops year, more than 40-Million tonnes western grain was moved, or about 6-per cent less.
Canadian National reaped just over $1 million more than its entitlement, while Canadian Pacific took in $1.5 million over its cap.
The Canadian Transportation Agency says C-N and C-P have 30 days to pay back the excess revenue, on top of a five per cent penalty.
The payments will go to the Western Grains Research Foundation, which funds research for Prairie farmers.
The MRE is an economic regulation which allows CN and CP to set their own service rate, as long as the total amount of revenue from western grain shipments remain below the ceiling set by the CTA
