Thursday, January 8, 2015

Feds fine railways $150,000 over grain

The Harper government has announced that it us fining Canadian Pacific $100,000 and Canadian National $50,000 for failing to meet legislated weekly minimums for hauling Prairie grains to market.

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 Dec. 12.

At the time, there was outrage on the Prairies because the fines had quietly undergone amendment from $100,000 a day to $100,000 a week.

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 2014/2015 crop year.

By the end of 2014, it had 1,500 orders on its wait list, the equivalent of about three days of shipments.