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or Name
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CA



Canadian Pacific Railway Ltd
Symbol CP
Shares Issued 172,249,390
Close 2014-09-18 C$ 226.35
Market Cap C$ 38,988,649,427
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Globe says Canadian Pacific Rail takes Ottawa to court

2014-09-19 05:48 ET - In the News

The Globe and Mail reports in its Friday, Sept. 19, edition that Canadian Pacific Railway has commenced legal action against the federal government in an effort to overturn new regulations. The Globe's Eric Atkins writes that CP is seeking permission in the Federal Court of Appeal to fight changes made by the Canadian Transportation Agency to the rules governing a customer's ability to ship goods with a competing railway, known as interswitching. Those changes came into effect last spring with the passing of the Fair Rail for Grain Farmers Act. The legislation gave rail customers in the three Prairie provinces extended rights to demand their local railway move their goods to another railway, if the rail interchange is within 160 kilometres. Previously, the distance was just 30 kilometres. The government also widened interswitching rights to shippers of all commodities, not just grain. In court filings, CP said its cost to switch a car to a rival line is $825, but it can charge only the regulated rate of $461. Based on expected traffic volumes, this means a loss of $13-million a year, the company said, describing the changes as "arbitrary" and beyond the regulator's authority.

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