29 June 2007
Canadian Pacific Believes CTA Revenue Cap Maintenance Estimate is Overstated
Yesterday, the Canadian Transportation Agency (CTA) announced its
intent to review the hopper car maintenance compensation embedded in the revenue entitlement for the transportation of Canadian grain.
The announcement of the review was anticipated by Canadian Pacific and consistent with the passage of Bill C-11. The
Agency suggested that the revenue entitlement for CP and Canadian National Railway (CN) combined might be reduced by as much as $60 to
$75 million dollars.
"We believe the CTA's suggested adjustment is overstated," said Marcella Szel, Senior Vice President Marketing & Sales
for Canadian Pacific. "Over the next several months CP will be engaged in the formal review of the appropriate amount of money to
be embedded in the 2007- 2008 revenue cap."
CP earnings guidance for 2007 already accounts for an adjustment in revenue entitlement.
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