Grain Company's

[grower99]

The federal politicians are waiting to
see which railway lobbyist is buying
them lunch, dinner and all the
wine...they can consume! Also, don't
forget the fishing trips.. that come "as
part of doing business".Do our MPs ever
carry any money in their wallets?
meals,parking,transportation,cosmetics(E
ve Adams)..all paid by taxpayers. Too
funny but let me be clear "we support
our hard working farmers" we just want
you to pay more for your
seed,transportation..and get less for
your product.After all you had 3 good
years.lol

[food4u]

How can a country have a cheap food
policy if farmer are making money???

[bucket]

Everyone, please start thinking.

Today is the day the government should have hard numbers on the unloads.

If everyone gives the government a pass for not being public about the information, then what is the point???

[TOM4CWB]

99

Sit back and take pot shots at hard
working MPs that are honest and care for
Canada and our next generation.

Shows exactly where your morals are. No
proof in any way of what you accuse so
many of... That do care.

Sad and Sick

[WestwardHO]

How does that revenue cap work for the
railroads? If they hauled more grain,
wouldn't they be fined or have to donate
something to grain research?

[WestwardHO]

Backgrounder: Western Grain Revenue Cap
Program
What is the western grain revenue cap?

The revenue cap is a limit on the
overall revenue that can be earned by
the Canadian National Railway Company
(CN) and the Canadian Pacific Railway
Company (CP) shipping regulated grain
from Prairie elevators or U.S. origins,
to terminals in Vancouver, Prince
Rupert, Thunder Bay as well as movements
of grain up to Thunder Bay or Armstrong,
Ontario destined to Eastern Canada or
for export. It is based on a formula
that can also be described as a limit to
the average revenue per tonne for a
given length of haul that prescribed
railway companies, CN and CP, can earn,
adjusted for the level of inflation of
railway input prices.

The revenue cap was created in August
2000 by an Act of Parliament to replace
maximum freight rates. Parliament agreed
to let the railway companies set
individual rates for shipping western
grain, but required them to stay within
a total revenue limit based on all
western grain movements calculated by
the Canadian Transportation Agency in an
effort to provide some shipping price
protection.

What is the role of the Canadian
Transportation Agency in establishing
the revenue cap for rail transportation
of western grain?

The Agency is required by the Canada
Transportation Act to set annual revenue
cap for CN and CP, and to determine
whether each cap has been exceeded or
not by each railway company.

The Agency’s mandate with respect to the
revenue cap and the volume related
composite price index is set out in
legislation. Under the law, the Agency
bases its calculations on data related
to price changes for railway labour,
fuel, material and capital inputs.

What is the process to establish the
revenue cap for rail transportation of
western grain?

The revenue cap for a given crop is
established in relation to a “base
year”. Since 2000-2001, the Agency has
adjusted each railway company’s base
year revenue figure to reflect
inflation, actual tonnage moved and the
corresponding actual average length of
haul. The Agency announces the Volume-
Related Composite Price Index by April
30 before each new crop year begins on
August 1.

Based on the actual tonnage moved and
actual average length of haul, the
Agency then determines if each railway
company has come in over or under its
cap. This determination is made after
the crop year ends and must be announced
no later than December 31 of each year.

How is the Revenue Cap calculated?

For each crop year, starting in
2000/2001, the Agency has adjusted each
railway company's base year revenue
figure to reflect inflation, the actual
tonnage moved and the corresponding
actual average length of haul. The
Agency determines the level of inflation
before each crop year begins and
determines the actual tonnage moved and
the actual average length of haul after
each crop year ends.

These determinations are determined as
per the Canada Transportation Act,
section 151 formula [A/B ((C - D) x
$0.022)] x E x F, where:

Ais the company’s revenues for the
movement of grain in the base year;Bis
the number of tonnes of grain involved
in the company’s movement of grain in
the base year;Cis the number of miles of
the company’s average length of haul for
the movement of grain in that crop year
as determined by the Agency (column
C);Dis the number of miles of the
company’s average length of haul for the
movement of grain in the base year;Eis
the number of tonnes of grain involved
in the company’s movement of grain in
the crop year as determined by the
Agency (column E); andFis the volume-
related composite price index as
determined by the Agency (column F)

[farming101]

Westward, did you find the answer to your question in the info contained in your second post?
Notice the multipliers "E" and "F". This means that there is provision for hauling as many tonnes as possible with no penalty. It also means that the composite price index compensates the railways for increased costs. This index has increased rates per tonne by 29.19% between 2000-01 and 2012-13.
Over the life of the revenue cap program up until 2012-13 the railways have come in UNDER the cap 14 times out of 26 for the two railways combined.

[sumdumguy]

Guess we need revenue floor legislation. There
doen't seem to be a problem with the cap.
Railroads just found a better goose to pluck, but
wait until the tracks begin to fail with oil cars. I
may be wrong (again) but it seems to me that oil
sloshing around is likely to be very hard on the
railbed, not to mention the safety factor.

[sumdumguy]

Frozen, solid railbeds could be incentove to haul
oil in -30 weather, just saying.

[fjlip]

LDM mtg at Tisdale, demurrage is $800,000 per day, 8 times the RR slap on their wrists. Farmer's son works for CP, was laid off all winter. He said locomotives sat in Saskatoon due to NO workers!
It's getting crazy. Lawsuit time.