The Canadian Transportation Agency (CTA) recently ruled that Canadian National Railway exceeded its maximum grain revenue entitlements for the 2020/21 crop year. Meanwhile, the CTA stated that Canadian Pacific was under its entitlement.
The CTA’s report stated that CN’s revenue from transporting Western Canadian grain was nearly C$1.045 billion and was C$2.4 million over its entitlement. The railway must now pay a five per cent penalty of nearly C$120,000 to Western Grains Research Foundation.
Conversely CP’s grain revenue amounted was in excess of C$1.014 billion, and C$20.25 million under its cap.
The CTA noted 2020/21 saw record grain movement of more than 52.33 million tonnes, up nine per cent from the previous year. The agency issued its ruling on Dec. 22.
