![](/web/20061210175444im_/http://www.cta-otc.gc.ca/images/headers/title_e.gif)
![Media](/web/20061210175444im_/http://www.cta-otc.gc.ca/images/headers/media_e.gif)
CTA Home :
Media : News Releases and Media Advisories : 2003![](/web/20061210175444im_/http://www.cta-otc.gc.ca/images/common/spacer.gif)
News Release
Western Grain Revenue Cap Price Index Decreases for Crop Year 2003-2004
OTTAWA - April 24, 2003 - The Canadian Transportation Agency, in Decision No. 215-R-2003, today
announced a 2.4 per cent decrease in the volume-related Composite Price Index to be used to
establish railway-specific revenue caps for the movement of Western grain for crop year 2003-2004.
This index is an inflation factor to cover Canadian National and Canadian Pacific Railway's price
changes for railway labour, fuel, material and capital inputs.
The revenue cap applies to the movement of grain by prescribed railway companies from Prairie
elevators to terminals at Vancouver, Prince Rupert, Thunder Bay and Churchill.
In the course of establishing the volume-related Composite Price Index, the Agency consulted with
parties in the grain handling and transportation industry including producer representatives, the
Canadian Wheat Board, shipper organizations, railway companies, grain companies and federal,
provincial and municipal governments.
Effective August 1st, 2000, a new "revenue cap" regime for the movement of Western grain, by a
prescribed railway company, replaced the former rate scale regime for such movements. As a result,
the Canada Transportation Act requires the Agency to determine each railway company's revenue
cap annually and whether or not each cap has been exceeded by the railway company. The volume-related Composite Price Index is one of several inputs required in the determination of the railway
company revenue caps.
The Canadian Transportation Agency is a federal quasi-judicial tribunal. The Agency deals with,
among other things, rate and service complaints arising in the rail industry; disputes between railway
companies and other parties; applications for certificates of fitness for the proposed construction and
operation of railways; approvals for railway line construction; regulated railway interswitching rates;
and revenue caps for the movement of Western grain by rail. The Agency also develops costing standards and regulations, and audits railway companies' accounting and statistics-generating systems.
-30-
For more information, please contact:
Jim Riegle
(819) 997-6542
To keep up-to-date with our latest news releases and other information, subscribe to our electronic mail service.
|