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Canada to force CN Rail, CP Rail to boost grain shipments through November

  • The Canadian government will require the country's two big railways to raise grain shipments above the current minimum of 1M metric tons/week until November in an attempt to prevent a repeat of last season's backlog.
  • The new regulations require Canadian National Railway (NYSE:CNI) and Canadian Pacific Railway (NYSE:CP) to each move 536,250 metric tons each week through the end of November or face penalties of C$100K per violation.
  • CNI CEO Claude Mongeau says he is disappointed in the government action "in reaction to a 100-year grain crop that has been handled reasonably well in the normal course of business."
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Comments (1)
  • Elliot Marel
    , contributor
    Comments (7) | Send Message
     
    Will this result in gains or losses to the railroads? Will other industries suffer? Do the railroads have the power to adjust rates to compensate for higher epenses?
    4 Aug, 04:27 PM Reply Like
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