CP Rail Exceeds Grain Revenue Cap
The Canadian Press announced on December 30, 2004 that
Canadian Pacific Railway Co. had exceeded its permissible revenue cap
for grain transportation in the latest crop year and must pay a penalty,
according to the Canadian Transportation Agency.
CP Rail's grain revenue of about $309.9 million was $321,912 above its
revenue cap.
The railway (TSX:CP) now has 30 days to pay the excess amount, plus a five
per cent penalty, to the Western Grains Research Foundation, an organization
set up to fund research that benefits Prairie farmers.
The revenue cap and the penalty are stipulated in the Canada Transportation
Act and grain transport regulations.
Canadian National Railway Co.'s revenues for the movement of western grain
were below its revenue cap for the 2003-2004 crop year. CN's grain revenue (TSX:CNR)
totalled $320.78 million, about $1.19 million below the cap.
The revenue cap applies to the movement of grain from Prairie origins to
terminals at Vancouver, Prince Rupert, B.C., Thunder Bay, Ont., and
Churchill, Man.
The Canadian Transportation Agency is a federal quasi-judicial tribunal. It
deals with, among other things, rate and service complaints arising in the
rail industry.