By Alice McFarlane

Railways pay fines for exceeding revenue entitlement in 2022-23

Dec 27, 2023 | 12:26 PM

Canada’s two railways will pay $7.1 million for exceeding revenue entitlement (MRE) in the 2022-23 crop year.

In a ruling by the Canadian Transportation Agency (CTA) CN’s grain revenue of $1,079.5 million was $3.46 million above its entitlement of $1,076.1 million, while CPKC’s grain revenue of $943.9 million was $3.37 million above its entitlement of $940.5 million.

CN owes $3,630,836, while CPKC will pay $3,537,877 to the Western Grains Research Foundation (WGRF).

Both railways now have 30 days to pay the amount they exceeded their entitlement, plus a five per cent penalty to WGRF.

Under the Canada Transportation Act, the CTA uses a formula that accounts for railway costs and the volume of grain shipped to determine MRE.

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The railways moved a total of 45.3 million tonnes of Western grain in 2022-23 which is a 60 per cent increase versus the drought-reduced total of 28.4 million tonnes the prior year.

The railways paid around $5.7 million to WGRF for exceeding their revenue entitlement on the small 2021 crop.

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alice.mcfarlane@pattisonmedia.com

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