The CTA said CN and CP carried six percent less grain this year. The carriers blamed the decrease in grain traffic on shortages of crew members, locomotives, equipment, and frigid winter conditions causing a backlog of grain shipments. Though the railroads carried less tonnage this year, CP collected $1.5 million
above its entitlement of $707.99 million and CN collected $1.05 million more than its maximum of $787.01 for the crop year which ended on July 31, the Canadian Transportation Agency said.
Both Canadian Class 1’s, Canadian National and Canadian Pacific, have seen revenue increase from grain traffic in excess of $700 Million. With this increase, both railroads have put in orders for new, higher capacity grain hoppers to replace their aging fleet of hoppers, some being over 30 years old. CP has ordered nearly 6,000 cars and CN has ordered 1,000 cars.
The new legislation allows both Class 1 railroads to deduct the full cost of new cars from their grain revenue caps.