(The Canadian Press circulated the following story on December 30.)
OTTAWA — Canadian Pacific Railway Co. exceeded its permissible revenue cap for grain transportation in the latest crop year and must pay a penalty, the Canadian Transportation Agency says.
CP Rail’s grain revenue of about $309.9 million was $321,912 above its revenue cap.
The railway (TSX:CP) now has 30 days to pay the excess amount, plus a five per cent penalty, to the Western Grains Research Foundation, an organization set up to fund research that benefits Prairie farmers.
The revenue cap and the penalty are stipulated in the Canada Transportation Act and grain transport regulations.
Canadian National Railway Co.’s revenues for the movement of western grain were below its revenue cap for the 2003-2004 crop year. CN’s grain revenue (TSX:CNR) totalled $320.78 million, about $1.19 million below the cap.
The revenue cap applies to the movement of grain from Prairie origins to terminals at Vancouver, Prince Rupert, B.C., Thunder Bay, Ont., and Churchill, Man.
The Canadian Transportation Agency is a federal quasi-judicial tribunal. It deals with, among other things, rate and service complaints arising in the rail industry.