Maximum Rate Scale for Rail Transportation of Western Grain for Crop Year 1998-99 Lower by 1.2%

OTTAWA -- April 23, 1998 -- The Canadian Transportation Agency has lowered by 1.2 % the maximum rate scale for the movement of western grain, by rail, for crop year 1998-99. Starting August 1, for a typical movement of 1026-1050 miles, the maximum rate for a tonne of grain will be $34.38, which represents a decrease of 40 cents over the current rate of $34.78.

These rates apply to the movement of grain from Prairie elevators to terminals at Vancouver, Prince Rupert, Thunder Bay and Churchill.

The railways use the maximum rate scale to develop the rates they charge for eligible grain movements. The railway companies and shippers can negotiate lower rates, such as in situations where a shipper is able to load many cars within a short time period at one location.

In the course of establishing this new maximum rate scale, the Agency consulted with major parties in the grain handling and transportation industry including producer representatives, grain companies, federal and provincial governments, and the railways.

The rates reflect inflationary allowances for railway labour, fuel, material and capital inputs in addition to a reduction reflecting the abandonment of grain-dependent branch lines as well as a special one-time downward adjustment to ensure that the railways are not overcompensated for labour buyout costs.

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Information: Andy Gemmell (819) 997-4914

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