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News Release

Western Grain Revenue Cap Price Index for Crop Year 2002-2003 Announced

OTTAWA - April 25, 2002 - The Canadian Transportation Agency, in Decision No. 202-R-2002, today announced a 0.9% increase 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 2002-2003. 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.

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 to determine 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.

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.

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