TORONTO -- The Canadian government has imposed fines on Canadian National Rail and Canadian Pacific Railway Ltd. for failing to move a minimum amount of grain in compliance with national legislation.
By law the two railways are required to move a weekly minimum of grain, or face fines of up to $100,000 a week.
During the hard winter of 2013-2014 frozen rail lines prevented the two Canadian railways from carrying lumber, grain and other commodities to market. In March the Canadian National Railway set limits on forest products shipments to allow the freight trains to catch up.
The agricultural legislation was passed following complaints the railways “poor service” was having a negative impact on the farming communities.
Railroad officials said any shipment problem is due to a low supply of grain, not the railway’s inability to move the product.
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