CN, CPR told to pay $68M for exceeding revenue caps
Published: December 31st 2008
Canada's two main railway companies have been ordered to pay about $68
million after taking in too much revenue moving western grain.
The Canadian Transportation Agency, which made the ruling Tuesday, is giving the Canadian Pacific Railway and Canadian National 30 days to pay the money to the Western Grains Research Foundation.
The amount of revenue railways are allowed to make moving grain is based on a set formula and is capped at an amount that varies from year to year.
In the case of CPR, the revenue cap for the year in question was about $407 million. For CN, it was about $374 million. They exceeded the caps by $34 million and $26 million respectively.
The railways are also required to pay a 15 per cent penalty, bringing the total payment to $68 million.
According to the CTA, the amount owed is a record. It's also the second time that both railways are over their caps in the same year.