(Reuters circulated the following article on January 4.)
WINNIPEG, Manitoba — Canadian National Railway Co. exceeded its grain transport revenue cap and now owes nearly C$125,000 ($109,000) to the Western Grain Research Foundation, the Canadian Transportation Agency said on Wednesday.
CN’s revenues for the movement of western grain for the 2004-05 crop year surpassed its revenue cap of approximately C$306 million by C$118,714, the agency said in a press release.
Transport regulations give CN 30 days to pay the excess amount, plus a 5 percent penalty, to the foundation, which promotes research on behalf of Prairie farmers.
Canadian Pacific Railway Ltd.’s (CP.TO: Quote) revenues from grain transportation were below its cap for the same period. CP exceeded its revenue cap by C$321,912 in the previous crop year.
The cap applies to grain movement from the Prairies to terminals on the Pacific Coast, the Great Lakes and Hudson Bay. It replaced the former rate scale regime in 2000.