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

|By:, SA News Editor

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."