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Canadian Railroads > Breakdown of CN & CP Grain to Vancouver, Rupert, T Bay, E CanadaDate: 01/02/19 22:38 Breakdown of CN & CP Grain to Vancouver, Rupert, T Bay, E Canada Author: Marcus The Canadian Transportation Agency (CTA) has released information
on the movement of Western Canadian grain, which is regulated. Western Canadian grain is defined by the CTA as originating West of Thunder Bay or Armstrong, Ontario, and destined for Eastern Canada, export at Thunder Bay, Ontario, export at Churchill, Manitoba, or export through a British Columbia port. Excluded is exports to the United States for U.S. consumption. The market share for both railways was exactly the same as the previous year. Metric tonnes for the crop year August 1, 2017 to July 31, 2018 To Vancouver CN = 11,197,003 CP = 13,795,623 To Prince Rupert CN = 5,542,416 CP = 0 To Thunder Bay CN = 2,287,164 CP = 4,697,699 To Eastern Canada CN = 1,924,275 CP = 1,174,105 Zero moved to Churchill, Manitoba Average Length of Haul CN = 1007 CP = 896 Totals CN = 20,983,547 ( 51.7% vs. 51.7% previous year) CP = 19,634,738 ( 48.3% vs. 48.3% previous year) Grand Total 40,618,285 Six percent lower than previous year. https://www.otc-cta.gc.ca/eng/ruling/r-2018-276 Both railways exceeded the maximum revenue entitlement as defined by the Canadian Transportation Agency, by over one million dollars each. They are ordered to pay the overcharge, plus a five percent penalty, to the Western Grains Research Foundation. Edited 2 time(s). Last edit at 01/03/19 07:46 by Marcus. Date: 01/03/19 00:51 Re: Breakdown of CN & CP Grain to Vancouver, Rupert, T Bay, E Can Author: aronco Will someone please explain what the "excess revenue" figures mean? Is that some convoluted means of controlling grain shipping rates, a la Crowsnest Pass rates of years ago?
Norm Norman Orfall Helendale, CA TIOGA PASS, a private railcar Date: 01/03/19 01:40 Re: Breakdown of CN & CP Grain to Vancouver, Rupert, T Bay, E Can Author: railsmith aronco Wrote:
------------------------------------------------------- > Will someone please explain what the "excess > revenue" figures mean? Is that some convoluted > means of controlling grain shipping rates, a la > Crowsnest Pass rates of years ago? Yes, that's exactly what it is. The Crow Rate was repealed in 1983 by the Western Grain Transportation Act. But the government then subsidized the railways to the tune of $600 million per year to keep the grain shipping rates down. In 1995, as the government strove to reduce its annual deficit, that subsidy was eliminated and replaced with the current regime that sets a cap on the maximum amount the railways can earn (the maximum revenue entitlement, or MRE), which is calculated annually. Since 2000, any "excess" above the MRE plus a 5% fine is paid to the Western Grains Research Foundation. Under amendments to federal transportation law passed in 2018, the formula for calculating the MRE has been changed in line with lobbying by the railways. From now on, the calculation of MRE will take into account capital spending by the railways on equipment used in hauling grain. One immediate effect of that change is that both CN and CP have placed substantial orders for new grain hoppers that will eventually replace the fleet purchased by the federal government back in the day when the Crow Rate was still in effect (and the railways back then not willing to renew their own fleets as a result). There have been several posts to Trainorders about these new cars on both CP and CN. |