OTTAWA, Dec. 28 /CNW Telbec/ - The Canadian Transportation Agency today
announced that the revenues of the Canadian Pacific Railway Company (CPR) for
the movement of Western grain had exceeded its revenue cap for crop year
2006-2007. The Agency has also ruled that the Canadian National Railway
Company (CN)'s revenues from grain transportation for the same period were
below its cap.
CPR's excess revenue of $3,760,353 is the largest such amount attributed
to a single railway by the Agency 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 five-percent 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.
The Canadian Transportation Agency is an independent quasi-judicial
tribunal which operates like a court. It regulates various modes of
transportation under Government of Canada jurisdiction, including air, marine
and rail. The Agency deals with, among other things, rate and service
complaints arising in the rail industry; disputes between railway companies
and other parties; applications for certificates of fitness for the proposed
construction and operation of railways; approvals for railway line
construction; regulated railway interswitching rates; and revenue caps for the
movement of Western grain by rail.
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