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.
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???????????????