OTTAWA - December 29, 2006 - The Canadian Transportation Agency today announced that the revenues of the Canadian National Company (CN) and Canadian Pacific Railway Company (CPR) for the movement of Western grain exceeded their revenue caps for crop year 2005-2006.
This marks the first time that both of the railway companies' caps have been exceeded during the same crop year. In 2000, the Government of Canada established the ceiling on maximum revenue to be derived from the movement of grain from Prairie origins to terminals at Vancouver, Prince Rupert, Thunder Bay and Churchill.
For 2005-2006, CN's grain revenue of $398,438,496 was $2,700,949 above its revenue cap of $395,737,547 while CPR's grain revenue of $396,537,502 was $1,495,535 above its revenue cap of $395,041,967.
Under the Canada Transportation Act (CTA) and the Railway Company Pay Out of Excess Revenue for the Movement of Grain Regulations, CN and CPR now have 30 days to pay their respective excess amounts, in addition to a five per cent penalty. Payment will be made to the Western Grains Research Foundation (WGRF), a farmer-funded and directed organization set up to fund research that benefits Prairie farmers.
The CTA requires the Agency to determine each railway company's revenue cap annually and whether each cap has been exceeded by the railway companies. In the course of its determinations for 2005-2006, the Agency examined and verified detailed railway company submissions of grain traffic and revenue information.
The Canadian Transportation Agency is a Government of Canada quasi-judicial tribunal responsible for the economic regulation of rail, air and marine transportation under federal jurisdiction. It deals with, among other things, rate and service complaints arising in the rail industry; disputes between railway companies and other parties; applications for certificates of fitness for the proposed construction and operation of railways; approvals for railway line construction; regulated railway interswitching rates; and revenue caps for the movement of Western grain by rail.
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For more information please contact:
Marc Comeau
Senior Communications Adviser
Canadian Transportation Agency
(819) 953-9961
The Canadian Transportation Agency is online at www.cta.gc.ca
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