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OTTAWA, Ont. — Paul Tellier, president and chief executive officer of Canadian National Railway (CN), is urging the government to adopt a tax credit regime that would lower shipper rates.

Tellier, in a speech delivered in mid-March, said CN’s proposed Road Relief and
Shipper Tax Credit, “has the potential to bring enormous benefits across the

Tellier explained the revenue-neutral tax credit, utilizing $160 million in annual fuel taxes already levied on railroads in Canada, would go to shippers – not railroads. Shippers would receive tax government diversion credits as incentives to move freight by rail rather than road.

By re-engineering their transportation processes to use rail instead of truck, Tellier said, shippers would also enjoy an immediate 10 to 15 per cent reduction in freight rates.

“The tax credit wouldn’t cost governments anything, because they would save even more on infrastructure costs related to increasing road traffic volumes,” he said.

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