|Railways Exceed Revenue Cap|
|Written by Neil Billinger|
|Wednesday, 19 December 2012 14:02|
The Canadian Transportation Agency (CTA) says CN Rail and CP Rail have gone over their revenue caps for the 2011-2012 crop year.
The revenue cap limits the amount of money that the major railways can earn from moving western Canadian grain. The cap is established by the CTA.
CP was $400,132 above its revenue cap of $494 million. CN went over its $542.5 million limit by $240,185.
The two railways have 30 days to pay the amount by which they exceeded the cap, in addition to a five per cent penalty. The combined $672,000 will go to the Western Grains Research Foundation, a farmer-financed and directed organization established to fund research that benefits Prairie farmers.
The CTA also reports 33.1 million tonnes of western grain were moved during the 2011-2012 crop year, which is 6.2 per cent higher than the previous crop year.