Regulator says CN and CP topped grain revenue entitlement caps for 2019-20 crop year

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OTTAWA — The Canadian Transportation Agency says both the Canadian National Railway Co. and the Canadian Pacific Railway Co. exceeded their maximum grain revenue entitlements for the 2019–2020 crop year.

The regulator says CN's grain revenue totalled $933.5 million, while its entitlement was $930.3 million.

Grain revenue at CP Rail amounted to $999.2 million, while its entitlement was for nearly $997.1 million.

The agency says the railways have 30 days to pay the amount by which they exceeded their entitlements plus a five per cent penalty.

The rules require the payments go to the Western Grains Research Foundation.

The regulator says just over 48 million tonnes of Western grain were moved in the 2019-20 crop year, an increase of 4.3 per cent compared with the previous crop year.

This report by The Canadian Press was first published Dec. 22, 2020.

Companies in this story: (TSX:CNR, TSX:CP)

The Canadian Press