Canadian National Railway Company

CN and CPKC railways have surpassed their Maximum Revenue Entitlements for the 2022-2023 crop year, resulting in penalties payable to the Western Grains Research Foundation.

The Canadian Transportation Agency (CTA) has identified that Canadian National Railway Company (CN) and Canadian Pacific Kansas City Limited (CPKC) exceeded their Maximum Revenue Entitlements (MREs) for the movement of western grain in the 2022-2023 crop year. This overstep of their revenue boundaries mandates penalties under established regulations.

Annually, the CTA sets MREs for railway companies to ensure a fair and efficient grain transport system. This year, CN's revenue exceeded its MRE by approximately $3.46 million, while CPKC went over by about $3.37 million. These overages require them to pay back the excess amount plus a 5% penalty.

The CTA's decision followed an in-depth review of the rail companies' operations, including the volume of grain transported and the average distance of haulage. This year saw a significant increase in grain transportation, attributed to better crop yields following a previous year's drought in Western Canada.

CN and CPKC are now obligated to make payments to the Western Grains Research Foundation, totaling $3,630,836 for CN and $3,537,877 for CPKC. This organization, funded by farmers, focuses on agricultural research, benefiting the grain industry in Canada.

This outcome emphasizes the role of the CTA in overseeing and regulating Canada's grain transportation sector. It highlights the importance of adherence to regulatory limits and the financial implications of exceeding them. This is a significant development for the agricultural community, impacting both transporters and producers in the grain industry.


Photo credit: Canadian National Railway Company 


Related Articles

  • CN expands its central US reach Canadian National has agreed to purchase the agricultural Iowa Northern Railway. By Andrew Joseph, Editor With rival railroad company Canadian Pacific Kansas City (CPKC) valued at $104 billion market cap and pock...
  • Senators approve second Bill C-234 amendment As per the article reported on, Canadian senators voted in favour of a second amendment to Bill C-234. On Dec. 11, senators voted 44-40 in support of Senator Yuen Pau Woo’s amendment that changes the su...

Join the discussion...

You must be logged in as a CAAR member to comment.