(The Associated Press circulated the following on November 26.)
NEW YORK — Canadian National Railway Co. said a grain rate decision held up by the Canadian Federal Appeal Court will cut the railroad’s segment revenue by 23 million Canadian dollars ($18.6 million) this year.
The ruling upholds a Canadian Transportation Agency decision issued earlier this year to cut the revenue collected from grain shipments. The decision is retroactive and includes grain shipped in 2007.
Montreal-based Canadian National had appealed the CTA decision, saying it “was flawed and that retroactive application was illegal.”
“Rail rates for grain transport in Western Canada were already among the lowest in the world, and we can see no sound policy reason to lower them further,” President and Chief Executive E. Hunter Harrison said in a statement. “Canadian National is not in a position to cross-subsidize its grain movements with profits generated from the movement of goods in other sectors of the Canadian economy. As a result, CN will have to carefully review its future investments in grain-related equipment and infrastructure.”
Calgary-based rail Canadian Pacific Railway Ltd. said Tuesday the decision will cut its grain revenue by the same amount. Top of page