CN Appeals Grain Handling Fine

TORONTO - Feb 1/07 - SNS -- CN Rail will appeal the fine imposed upon it for handling more grain in 2006 than it is allowed to under a revenue cap imposed on Canadian railways by the Transportation Act.

The Canadian Transportation Agency (CTA) had fined CN $2.7 million, the amount by which it says the railway exceeded the grain revenue cap. Under provisions of the Canadian Transportation Act, this amount plus a penalty of 5% (a total of more than $2.8 million) was to be paid to the Western Grains Research Foundation (WGRF).

CN is arguing that the CTA determination is $522,383 too high. "CN is seeking leave to appeal the decision of the Canadian Transportation Agency respecting Intermodal P&D and Demurrage adjusted amounts for which an amount of $522,383 has been included in CN's revenue," states Claude Mongeau of CN in a letter to the WGRF dated January 26th, 2007.

"CN has written us a cheque in the amount of $2,313,613 and is proposing that the $522,383 be held in an in-trust account pending the outcome of the appeal," says WGRF Executive Director Lanette Kuchenski.

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