CN appeals ruling on revenue cap

Canadian National Railway is attempting to appeal a Canadian Transportation Agency ruling that the railway exceeded its revenue cap by nearly $7 million in 2014-15.

“CN believes the CTA did not apply the revenue cap properly, which erroneously caused it to conclude CN had exceeded its revenue entitlement,” company spokesperson Mark Hallman said in a Jan. 29 email.

“As part of its appeal, CN is also asking the Federal Court of Appeal to suspend the application of the CTA decision, including ordered payment and financial penalty.”

The CTA published a decision late last year that claimed CN exceeded it revenue entitlements for moving western Canadian grain by more than $6.86 million in the 2014-15 crop year.

It ordered the company to repay the $6.86 million along with a penalty of more than $343,000 to the Western Grains Research Foundation before the end of January.

CN provided In a document that summarizes the basis of its appeal, CN said the CTA committed several errors in its interpretation of the revenue cap provisions:

  • failure to recognize the actual mileage over which CN moved grain during the 2014-15 crop year
  • wrongly including grain movements to destinations that are ineligible under railway revenue cap provisions
  • improper accounting of revenues that CN receives for moving grain under federal interswitching provisions
  • using an “unfair” process that requires CN to raise material issues before April 30.

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