CORRECTION – January 10, 2022 – 0900 CST – the formula for calculating the penalty CN must pay to the WGRF was corrected.
WINNIPEG (MarketsFarm) — The Canadian Transportation Agency recently ruled that Canadian National Railway exceeded its maximum grain revenue entitlement for the 2020-21 crop year.
Canadian Pacific Railway revenue, meanwhile, was under its entitlement, the CTA reported.
The CTA’s report stated CN’s revenue from transporting western Canadian grain was nearly $1.045 billion — $2.4 million more than its entitlement. The railway must pay the excess amount plus a five percent penalty of almost $120,000 to the Western Grains Research Foundation.
CP’s grain revenue was more than $1.014 billion, and $20.25 million below its allowable revenue cap.
The CTA noted 2020-21 saw record grain movement of more than 52.33 million tonnes, up nine percent from the previous year. The agency issued its ruling Dec. 22.
