CPKC overshoots grain revenue entitlement, CN comes up short

Canadian National Railway Company (CN)’s grain revenue fell below its annual entitlement, and Canadian Pacific Kansas City Railway Company (CPKC) overshot its entitlement in the 2023-2024 crop year.

That’s as per the Canadian Transportation Agency’s (CTA) ruling, announced on Christmas Eve in a news release.

• CN’s grain revenue of $1,213,732,435 was $34,329,653 below its entitlement of $1,248,062,088.
• CPKC’s grain revenue of $871,716,922 was $1,824,083 above its entitlement of $869,892,839.

CPKC has 30 days to pay the excess revenue, plus a five per cent penalty of $91,204, to the Western Grains Research Foundation.

The CTA determines the two railways’ annual revenue entitlement as a form of economic regulation, the CTA said.

The total amount of Western Canadian grain moved in 2023-2024 was a bit more than 43.7 million tonnes. This was down 3.5 per cent from the previous crop year, which the CTA attributed to lower crop exports for the year.