The Canadian Transportation Agency has set its volume-related composite price indices (VRCPI) for Canada’s national railways—key metrics used to determine the railways’ revenue caps for movement of Western Canadian grain.
The VRCPI for the Canadian National Railway is set at 1.9734, an increase of 1.72 per cent over last crop year. For Canadian Pacific Kansas City Railway, the VRCPI is set to 1.9349, an increase of 3.11 per cent from the previous crop year, the CTA said in a news release on Wednesday.
The VRCPI is an inflation factor determined based historical price information for railway inputs like labour, fuel, material and “other capital items,” the CTA said. Future changes in railway price components are also factored in.
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The indices are used to determine the railways’ maximum revenue entitlements for movement of Western Canadian grain in the 2025-2026 crop year.
If the railways exceed their maximum revenue entitlement, they must pay the excess, plus a penalty, to the Western Grains Research Foundation.
In 2024, CPKC exceeded its revenue cap by a bit more than $1.8 million. CN did not exceed its maximum revenue entitlement.
