OTTAWA, Ontario — Canadian Pacific Kansas City exceeded the allowed revenue for western grain movements by almost Ca$2 million during the 2023-24 crop year, and must pay the overage and a 5% penalty, the Canadian Transportation Agency has determined.
In a Dec. 24 decision, the CTA determined that CPKC exceeded the Maximum Revenue Entitlement of $869.9 million by $1,824,083. It must pay that amount, plus a penalty of $91,204, to the Western Grains Research Foundation within 30 days, the agency said. The MRE is based on a formula including the amount of grain hauled, the length of haul, and a volume-related composite price index set by the CTA.
CPKC hauled 18.6 million metric tons of grain during the Aug. 1, 2023-July 31, 2024 crop year. Canadian National, which hauled 25.1 million metric tons, was found to be more than $34 million below its Maximum Revenue Entitlement. The two-railroad total of 43.7 million metric tons was a 3.5% decrease from the 2022-23 crop year, the agency said.
This reminds me of the USDA having subsidized farmers NOT to grow certain crops, and become penalized if they do.
Maybe some of the Canadian readers could help us understand how this system works?
Are you kidding me???
That’ll encourage them to try harder next year!
So CN underserved and CPKC overserved, so they punish CPKC. Sounds a little too regulated to me.
Canada has price controls on grain movements??????????? Why???????????????