CN and CP Rail exceeded their maximum revenue entitlement (MRE) for moving grain in the 2017-18 crop year.
The Canadian Transportation Agency says CN Rail was $1,050,000 over its MRE, while CP Rail took in $1.5 million dollars beyond its entitlement.
The railways have one month to pay back the excess revenue, plus a five percent penalty. That works out to $52,000 for CN and $75,000 CP. All of the money will go the Western Grains Research Foundation.
Canadian Transportation Agency statistics also show that CN and CP Rail moved a combined 40.6 million metric tonnes of grain, or six percent less than the previous crop year. The breakdown was 20.98 million tonnes for CN and 19.63 million tonnes for CP.
The average length of haul was unchanged from the previous year at 1,534 kilometres.
Additional information can be viewed at https://www.otc-cta.gc.ca/eng/content/cn-and-cp-exceed-their-maximum-grain-revenue-entitlements-crop-year-2017-2018
