Western Grain Revenue Cap Price Index Decreases for Crop Year 2004-2005
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OTTAWA - April 22, 2004 - The Canadian Transportation Agency, in Decision No. 203-R-2004, today announced a 0.9 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 2004-2005. 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 publication/statistics-generating systems.
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