OTTAWA, ON, Dec. 24, 2024 /CNW/ - In a determination issued today, the Canadian Transportation Agency (CTA) ruled that revenue of the Canadian National Railway Company (CN) was below and the Canadian Pacific Kansas City Railway Company (CPKC) was above their respective maximum grain revenue entitlements for the crop year 2023–2024.

• CN's grain revenue of $1,213,732,435 was $34,329,653 below its entitlement of $1,248,062,088.
• CPKC's grain revenue of $871,716,922 was $1,824,083 above its entitlement of $869,892,839.

CPKC now has 30 days to pay the amount by which it exceeded its 2023–2024 revenue entitlement, in addition to a five percent penalty of $91,204. Regulations require this payment to go to the Western Grains Research Foundation.

A decrease in the volume of grain moved this crop year

In the 2023–2024 crop year, 43,700,661 tonnes of Western grain were moved. This represents a 3.5 percent decrease in volumes compared to the last crop year, which saw 45.3 million tonnes transported. The decrease in the volume of grain was due mainly to relatively lower crop exports for the year.

Determining the Maximum Revenue Entitlement

The Canada Transportation Act requires the CTA to determine each railway company's annual maximum revenue entitlement (MRE) and whether each entitlement has been exceeded. The revenue entitlement is a form of economic regulation that enables CN and CPKC to set their rates for services, provided the total amount of revenue collected from their shipments of Western grain remains below the ceiling set by the CTA.

Additional Resources

• Maximum Revenue Entitlement guide
• Maximum revenue entitlement determinations since 2000–2001

To learn more about CTA's mandate, please visit its website.

SOURCE Canadian Transportation Agency