CTA updates information used for the Maximum Revenue Entitlement Program

The Canadian Transportation Agency (CTA) has released its Volume-Related Composite Price Index (VRCPI) for the railways.

The VRCPI was increased by 5.39  per cent for CN to 1.9281 and 6.49 per cent for CPKC to 1.8760  for the new crop year beginning August 1st.

The index is an inflation factor determined by detailed railway submissions and reflects a composite of the forecasted prices for railway labour, fuel, material, and capital purchases.

The VRCPI is used as part of the CTA's Maximum Revenue Entitlement determinations, which limit the overall revenue earned by CN and CPKC for shipping regulated grain.

For more information on the CTA's maximum revenue entitlement determinations since 2000, click here.