CPR Overcharges On Grain Freight

WINNIPEG - Dec 31/07 - SNS -- The Canadian Pacific Railway (CPR) was fined CDN $3,948,371 for moving more grain in 2006-07 than permitted, while the volume of grain handled by the Canadian National Railway Company (CN) was below its cap.

The Canada Transport Agency said CPR's excess revenue of $3,760,353 is the largest such amount attributed to a single railway since the revenue cap régime was established in 2000. The railway's grain revenue for 2006-2007 was $437,107,995, while its cap was set at $433,347,642. This marks the third time that CPR has exceeded its revenue cap, as it was also over in 2005-2006 and 2003-2004.

CPR now has 30 days to pay $3,948,371, representing the amount it was over its cap plus a 5% penalty of $188,018, to the Western Grains Research Foundation, a farmer-funded and directed organization set up to fund research that benefits Prairie farmers.

On the other hand, the Agency has determined that CN's grain revenue for crop year 2006-2007 was $416,917,074, or $2,105,869 below its revenue cap of $419,022,943. Since the revenue cap régime's inception, CN has twice exceeded its cap, in 2005-2006 and 2004-2005.

The Canada Transportation Act requires the Agency to determine each railway company's revenue cap annually and whether each cap has been exceeded by the railway companies. The revenue caps apply to revenue the railways derive from the movement of grain from Prairie origins to terminals at Vancouver, Prince Rupert, Thunder Bay and Churchill. In the course of its determinations for 2006-2007, the Agency examined and verified detailed railway company submissions of grain traffic and revenue information.