February 20, 2008

Canada implement measures to drop rail freight charges for grain destined for export

The Canadian Transportation Agency has lowered revenue caps for the movement of Western Canadian grain on Canadian National Railway and Canadian Pacific Railway in effect lowering freight rates for producers shipping their grains to export markets. 

The CTA reduced railway revenue caps for the railways by CAN$72 million (US$71.9 million) which translates to US$2.59 per tonne based on forecast tonnage of 27.85 million tonnes.

The CTA said the decision will have a direct impact on grain farmers by way of lowered revenue caps for CN and CP, which should result in lower freight rates for shipping their Western grain to export markets.