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OTTAWA, Ont. — The Canadian Transportation Agency (CTA) will now determine how much money the railways are allowed to make on the backs of Canadian grain farmers.

Under the new revenue cap regime, the CTA is also empowered to monitor both Canadian National and Canadian Pacific to determine whether the railways have exceeded their respective limits. The legislation of the Canadian Transportation Act sets out the formula used to establish the thresholds.

If a railway exceeds its revenue cap, the law includes provisions for the pay out of any excess amount plus any applicable penalties. Further legislation on the subject is still being developed by Transport Canada.

In the course of interpreting items that might affect the railways’ grain revenue, the Agency consulted with the grain handling and transportation industry including producer representatives, grain companies, federal and provincial governments, western municipal organizations, and the railways.

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