Canada's two largest railways have been fined a total of US$150,000 for failing to transport the minimum required grain volumes last year, Transport Minister Lisa Raitt said Thursday, The Star Phoenix reports.
Canadian National
Railway will pay US$100,000 for violations under the Fair Rail for Grain
Farmers Act related to shipments for the weeks of July 28 and September 7.
Canadian Pacific Railway has been assessed a US$50,000 penalty for the week of
September 7. Transport Canada said it continues to review the remaining fall
data on grain volumes to ensure the railways adhered to the volume
requirements.
The department said
in September it would fine the railways up to $100,000 per week at the
minister's discretion. It issued notices of violation on December 12.
Montreal-based CN
said it will pay the lower $50,000 per week administrative monetary penalty and
continue to focus on efficiently moving western Canadian grain to markets.
"CN is heartened
that the Transport Canada enforcement officer's investigation appropriately
took into account factors beyond CN's control and also reflected the important
role that others play in the grain supply chain," spokesman Mark Hallman
said.
He said the railway
continues to move record grain shipments from the 2014-15 crop year. By the end
of 2014, it had 1500 orders on its waiting list, the equivalent of about three
days of shipments.
The railway said its
grain volumes are subject to market demand, corridor constraints and the
performance of other supply chain partners such as grain elevator companies.
"To date, CN has
exceeded its government-mandated minimum grain volumes by more than 1.5 million
metric tonnes."
A spokesman for
Calgary-based CP Rail couldn't be reached for comment.
Read the article HERE.
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