The Canadian Pacific Railway exceeded its grain revenue cap for 2010-11 and must pay $1.315 million to the Western Grains Research Foundation, says the Canadian Transportation Agency.
Canadian National Railway was under its CTA-calculated revenue cap.
The calculations were published Dec. 22.
CPR exceeded its revenue cap of $442,570,741 as calculated under a Canada Transportation Act formula based on costs, capital purchases, inflation, grain tonnage hauled and distance hauled.
The railway’s grain freight revenue was $443,822,775, or $1.252 million above its allowed revenue. The CPR penalty comes with $62,000 in interest.
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The CTA estimates CPR hauled 14.686 million tonnes last transportation year, a nine percent and 1.46 million tonne decline from the previous year.
CN took in $913,447 less than its $509, 316, 957 revenue cap based on hauling 16.44 million tonnes of prairie grain.
CN grain traffic increased more than four percent and 668,000 tonnes last year, according to CTA estimates.
Under legislation, grain revenue excesses are sent to the WGRF, a farmer-financed and controlled organization that funds research to help the prairie grain sector.
The CTA says current estimates are that railways hauled 31.1 million tonnes of western grain last year, a 2.5 percent decrease from 2009-10. Prairie flooding and weather-related reduced yields are credited as major factors contributing to the reduced grain movement last year.
