Maximum Rate Scale for Rail Transportation of Western Grain for Crop Year 1999-2000 Higher by 0.2%

OTTAWA - April 23, 1999 - The Canadian Transportation Agency announces an increase of 0.2% in the maximum rate scale for the movement of western grain by rail, for crop year 1999-2000. Starting August 1, for a typical movement of 1026-1050 miles, the maximum rate for a tonne of grain will be $34.45, which represents an increase of 7 cents over the current rate of $34.38.

Western grain rates are adjusted annually to reflect inflationary allowances for railway labour, fuel, material and capital inputs in addition to a reduction reflecting the discontinuance of rail operations on grain-dependent branch lines.The modest increase in the maximum rate scale this year accounts for an increase in these costs to railways.

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.

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Information: Jim Riegle, (819) 997-6542

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