Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Your first question comes from Walter Spracklin with RBC Capital Markets.
Walter Spracklin - RBC Capital Markets
Thanks very much. Good afternoon everyone. Just on the grain, you’ve been doing very well on that side and I know you had some pressure on your rates given the Cap. Can you update us on what impact that your grain business is having on the Cap as you get some market share here and it looks likes actually your, maybe I’m calculating a little differently here, but it looks your overall revenue for revenue tone model is actually up compared to last year. So can you just talk to where the actual negative implication on the Cap came into that number?
Ray Foot
Walter it’s Ray, let me answer that in seg. So first of all, our product does continue to be very strong in the quarter, so we are pleased with that. The issue around the VRCPI is basically, it’s a 7.4% impact to revenue entitlement over the 2009-2010 crop year.
So, if we handle more business it doesn’t mean that we don’t get the revenue for handling that business, it’s just that a 7.5% impact overall. On the RTMs basically, we had extremely good volumes and strong volumes to Vancouver on the basis of that strong product offering we had in the market place to the third quarter, whereas some of our business within the US on the shorter haul lanes was down a bit. So that was the difference there.
Walter Spracklin - RBC Capital Markets
That’s great, thank you. My second question that was just on pricing, you mentioned you were just getting just under 4% on your renewal business. Can you talk to us a bit about what percent of your contracted base is locked in for 2010 and is it roughly around that 4%.
Ray foot
Will be locked in and around 55% to 60% right now Walter, and what I can tell you is that, I think we’ve been pretty consistent in our comments over the quarters that we have been coming in on renewals around the 4% range. So Fred has been saying for quite some time our goal is to exceed inflation going forward and that’s what we are targeting on.
Walter Spracklin - RBC Capital Markets
Okay, that’s my two questions. Thanks very much guys.
Ray Foot
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