GFM Network News


(Dave Bedard photo)

Cost index up for CN, down for CP in grain revenue formula

CP expects lower labour costs, CN higher

Expected labour costs were the major difference in a new ruling on the index that determines how much revenue each of Canada’s big two railways get to keep in the coming crop year from hauling Prairie grain. The Canadian Transportation Agency (CTA) on Thursday announced its decisions on the volume-related composite price index (VRCPI) for

(File photo by Dave Bedard)

Railways overshoot grain revenue limits for 2019-20

Grain revenues run $5.3 million over caps, CTA rules

Canada’s big two railways have about two more weeks to hand over about $5.6 million in Prairie grain revenue overages and related penalties for the 2019-20 crop year. The Canadian Transportation Agency (CTA) on Dec. 22 ruled Canadian National Railway (CN) and Canadian Pacific Railway (CP) each overshot their maximum revenue entitlements (MREs) for the


(File photo by Dave Bedard)

Fuel, labour to pull grain freight cost indices lower

CP's share buybacks also a factor in its VRCPI

The numbers that decide how much revenue Canada’s big two railways get to keep from Prairie grain handling have been marked downward for the 2020-21 crop year. The Canadian Transportation Agency last week announced it will set the volume-related composite price index (VRCPI) at 1.4202 for Canadian National Railway (CN) and at 1.4205 for Canadian

(File photo by Dave Bedard)

CN, CP come in under 2018-19 grain revenue caps

Changes to federal rail transport rules that took effect in 2018 have put Canada’s big two railways well under their new Prairie grain revenue caps for the 2018-19 crop year. The Canadian Transportation Agency on Monday announced Canadian National Railway (CN) booked 2018-19 Prairie grain revenue of $933,357,710, a figure $371,116 below what the CTA

(File photo by Dave Bedard)

Prairie grain freight cost index adjusted upward

Corrected, May 6, 2019 and Jan. 7, 2021 — Canada’s big two railways can expect a small raise in the amount of revenue they get to keep from hauling Prairie grain in the coming crop year. The Canadian Transportation Agency (CTA) on Tuesday announced it will set the volume-related composite price index (VRCPI) at 1.4371


(File photo by Dave Bedard)

CP, CN overshoot annual grain revenue caps

Both of Canada’s big two railways were found to have made more revenue from hauling Prairie grain in 2017-18 than their federally mandated limits allow. The Canadian Transportation Agency on Monday announced Canadian Pacific Railway and Canadian National Railway overtopped their maximum revenue entitlements (MREs) for the crop year by $1,500,513 and $1,047,285 respectively. CN’s

(File photo by Dave Bedard)

Railways say they’re ready for large shipping season

CNS Canada — Canadian Pacific Railway managed to slightly increase its grain shipping volumes last year, despite the extreme cold. CP moved 25.8 million tonnes of western Canadian grain, grain products, soybeans and non-regulated principal field crops during the 2017-18 crop year. That’s a one per cent increase from the previous crop year and one

(File photo by Dave Bedard)

Grain elevators brace for high-volume shipping season

CNS Canada — Grain companies in Western Canada are bracing for another high-volume year, as questions about the system’s ability to handle that amount continue to plague the industry. Wade Sobkowich, executive director of the Western Grain Elevator Association, said despite the heat stress that has hit many crops this year, grain companies expect this


Comment: Why calls to kill MRE being ignored

Comment: Why calls to kill MRE being ignored

Requests to update railway grain shipping costs face the same fate

[UPDATED: June 20, 2018] The North American Grain Grading Group’s (NAGGG) call to axe the maximum revenue entitlement (MRE) appears to be getting the cold shoulder from Western Canada’s grain sector. The MRE is a federal regulation that sets the annual limit the railways can earn in total hauling western grain to Thunder Bay and

Dried Ear of Cereal crop in studio isolated against white background.

Proposal says end MRE, wheat grading

The North American Grain Grading Group says both get in the way of efficient markets

Scrapping the maximum revenue entitlement (MRE) and grain grading will make western Canadian grain farmers more competitive, according to the North American Grain Grading Group (NAGGG). It’s a big change, but don’t call it radical, Mary-Jane Bennett, a transportation consultant and NAGGG supporter, said in a phone interview May 30. “What they’re saying is that