CN Below, CPKC Above Grain Revenue Entitlements for Crop Year 2023–2024
Summary
The CTA determined that CN's grain revenue of $1,213,732,435 was $34,329,653 below its entitlement of $1,248,062,088, while CPKC's grain revenue of $871,716,922 exceeded its entitlement of $869,892,839 by $1,824,083. CPKC has 30 days to pay the overage plus a five percent penalty of $91,204 to the Western Grains Research Foundation. Western grain volumes decreased 3.5 percent to 43,700,661 tonnes from 45.3 million tonnes in the prior crop year.
“CPKC now has 30 days to pay the amount by which it exceeded its 2023–2024 revenue entitlement, in addition to a five percent penalty of $91,204.”
Railways subject to CTA jurisdiction under the Canada Transportation Act should note that revenue entitlement determinations are binding obligations—CPKC's payment requirement demonstrates the enforcement mechanism for excess revenue claims. Shippers and agricultural cooperatives that rely on competitive rail rates for grain exports should monitor these annual determinations as indicators of railway pricing behavior.
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GovPing monitors Canada CTA News for new government & legislation regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
The CTA issued determination R-2024-190 finding CN compliant with its maximum revenue entitlement and CPKC in excess of its entitlement for the 2023–2024 crop year. The Canada Transportation Act authorizes the CTA to set revenue ceilings for CN and CPKC on Western grain shipments and requires payment of any overage plus penalty to the Western Grains Research Foundation.
For CN and CPKC, this determination confirms their respective compliance positions under the revenue entitlement regime. CPKC faces a binding 30-day payment obligation of $1,915,287 (overage plus 5% penalty). Grain shippers and agricultural stakeholders should note that the entitlement mechanism functions as a price ceiling on railway services, providing economic protection for grain exporters and farmers dependent on competitive rail rates.
What to do next
- CPKC has 30 days to pay the amount by which it exceeded its 2023–2024 revenue entitlement, in addition to a five percent penalty of $91,204
Penalties
5% penalty of $91,204
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
OTTAWA, ON, Dec. 24, 2024 /CNW/ - In a determination issued today, the Canadian Transportation Agency (CTA) ruled that revenue of the Canadian National Railway Company (CN) was below and the Canadian Pacific Kansas City Railway Company (CPKC) was above their respective maximum grain revenue entitlements for the crop year 2023–2024.
- 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 now has 30 days to pay the amount by which it exceeded its 2023–2024 revenue entitlement, in addition to a five percent penalty of $91,204. Regulations require this payment to go to the Western Grains Research Foundation.
A decrease in the volume of grain moved this crop year
In the 2023–2024 crop year, 43,700,661 tonnes of Western grain were moved. This represents a 3.5 percent decrease in volumes compared to the last crop year, which saw 45.3 million tonnes transported. The decrease in the volume of grain was due mainly to relatively lower crop exports for the year.
Determining the Maximum Revenue Entitlement
The Canada Transportation Act requires the CTA to determine each railway company's annual maximum revenue entitlement (MRE) and whether each entitlement has been exceeded. The revenue entitlement is a form of economic regulation that enables CN and CPKC to set their rates for services, provided the total amount of revenue collected from their shipments of Western grain remains below the ceiling set by the CTA.
Additional Resources
- Maximum Revenue Entitlement guide
- Maximum revenue entitlement determinations since 2000–2001 To learn more about CTA's mandate, please visit its website.
SOURCE Canadian Transportation Agency
Media Relations, Canadian Transportation Agency, [email protected], 819-934-3448
Organization Profile
Canadian Transportation Agency
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