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 (10) | 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 2014, 04:27 PM Reply Like
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