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News Release

CN AND CP Western Grain Revenue Below Revenue Caps for Crop Year 2001-2002

OTTAWA - December 17, 2002 - Canadian Transportation Agency Chairman Marian Robson today announced that the Agency, in its Decision No. 670-R-2002, has found that Canadian National and Canadian Pacific Railway (CN and CP) revenues for the movement of Western grain did not exceed their revenue caps for crop year 2001-2002.

CN's grain revenue of $280.2 million was $13.5 million below its revenue cap of $293.7 million while CP's grain revenue of $277.9 million was $8.7 million below its revenue cap of $286.6 million.

Effective August 1^st, 2000, a new revenue cap regime for the movement of Western grain by a prescribed railway company (currently CN and CP) 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 each cap has been exceeded by the railway company. If a railway company exceeds its revenue cap in a crop year, it must pay out the excess amount and the applicable penalty to the Western Grains Research Foundation.

In the course of establishing Western grain revenue, the Agency examined and verified detailed railway submissions of grain traffic and revenue information.

The revenue cap applies to the movement of grain from Prairie origins to terminals at Vancouver, Prince Rupert, Thunder Bay and Churchill. Crop year 2001-2002 is the Agency's second year for revenue cap determinations.

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For more information please contact:

Jim Riegle
Manager, Grain Division
Canadian Transportation Agency
(819) 997-6542

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