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Railways meet first grain hauling revenue caps

REGINA, Sask. -- Canadian Pacific (CP) and Canadian National (CN) Railways both finished the 2000-2001 crop year un...


REGINA, Sask. — Canadian Pacific (CP) and Canadian National (CN) Railways both finished the 2000-2001 crop year under their revenue caps, causing farmers to hope for reduced freight rates.

The Canadian Transportation Agency (CTA) implemented a revenue cap system for railways in August, 2000. Figures released Dec. 27 indicate that CN earned grain hauling revenue of $391.7 million, while CP earned grain revenues of $363.3 million — both railways coming in at about $3 million less than their allowable limit.

Canadian Wheat Board spokesman, Justin Kohlman, tells local media, “If they’re under the revenue cap and everything checks out and the results are correct, then yes, that’s positive.” He says the key issue now is whether the savings will be passed back to the farmers.

But not everyone is happy with the process, including the Saskatchewan Association of Rural Municipalities, who claim the railways’ are able to manipulate expenses to ensure they come in under the cap.

However, Jim Riegle, manager of the CTA’s grain division, says, “There was a very significant amount of audit and verification that occurred here.”


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