Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in CITA Shipper Pulse Survey

Pierre Berton, the late, famous Canadian author noted in his book, “The Last Spike,” that CP Rail has held a respected place in the country’s history.  He wrote that “no other private company, with the single exception of Hudson’s Bay Company, has had such an influence on the destinies of the nation.” For most of the past 15 years, CP Rail faced stiff competition from CN Rail as Paul Tellier and Hunter Harrison led the company’s move from a bloated government run enterprise to a highly profitable public company.  In fact CN’s operating ratio of 61.3 is not only the best among the major North American railroads, it is one of the best of any company in the transportation industry.

The fact that CP Rail lagged so far behind CN Rail and the other class 1 railways in North America led the activist investor Bill Ackman, of Pershing Square Capital, to launch his “palace revolt” proxy battle that resulted in the replacement of CP’s former President with Hunter Harrison, whom he brought out of retirement to drive the railway’s profit improvement.

As we pass through the last quarter of this year, Canada’s two largest railroads are heading down separate tracks.  With an operating ratio is the low 80’s, Mr. Harrison has embarked on a series of actions to reduce costs through improved asset utilization.  This is another way of saying that CP Rail is planning to move its equipment more quickly and efficiently, to become Canada’s second “precision” railroad.   It is seeking to accomplish this by undertaking a series of initiatives.  These include:

  • Building trains at CP’s intermodal terminal in Vancouver with blocks of cars for long haul destinations. This reduces stops and streamlines connections.
  • Increasing average train lengths to 7,000 to 12,000 feet
  • Speeding up the fueling of trains
  • Improving daily scheduling
  • Investing $1.2 billion in 2012 and $1 billion in 2013 on key infrastructure projects
  • Working with customers at both ends to improve coordination

The net result of these changes is that CP Rail now provides 4 day transit times between Vancouver and Chicago and Toronto.  These changes represent half of the transcontinental trains that CP launches daily across its network.  Mr. Harrison is not expecting an overnight drop in the company’s operating ratio.  He told Bloomberg News that he is targeting about 65 percent in the next four years.

Shippers appear to be taking notice of improved service on both major Canadian railways. 

Hits: 21384
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

FCPC FMCSA derailments robotics US Manufacturing Doug Nix Map-21 New York Times Load broker Amazon Cleveland Cavaliers freight payment Sales Training Deferred Packaging University of Tennessee Crude Oil by Rail Retail CN Rail automation MBA Twitter Packaging 2014 freight volumes ProMiles Truckload freight forwarders Business Strategy Success driver carrier conference shipper-carrier contracts Adrian Gonzalez Keystone Pipeline rail safety Colilers International shipper-carrier collaboration Social Media in Transportation freight costs routing guide Inbound Transportation US Election Ferromex Masters in Logistics shipping wine Driver Shortage Canada Broker Warehousing UP Canadian freight market Wal-Mart CP Rail Donald Trump Canadian Transportation & Logistics Trump Loblaw Freight Capacity Right Shoring Microsoft Driving for Profit driverless Derek Singleton Success failure entrepreneur Software Advice Surety bond Distribution Search engine optimization Freight Management LinkedIn US Auto Sales Freight Recession NAFTA ShipMax Canadian economy cheap oil Career Advice network optimization TMP Worldwide freight broker Stephen Harper Trade Vision NS Tracy Matura David Tuttle Otto transportation newspaper Toronto freight agreements CITA Shipper Pulse Survey selling trucking companies fuel surcharge transportation audit BlueGrace Logistics CSX CN Transportation Buying Trends Survey broker bonds solutions provider CSA scores Transport Capital Partners (TCP) Social Media freight RFP freight transportation conference TransForce Dan Goodwill EBOR shipper-carrier roundtable Entrepreneur JB Hunt employee termination RFP Werner 2013 Economic Forecast Blogging CSA FMS Horizontal Supply Chain Collaboration US Economy Climate Change Shipper Reshoring CRM Transportation freight payment freight audit pipelines Emergent Strategy Rail trucking company acquisitions financial management NCC tanker cars freight bid Business Transformation Strategy freight transportation in 2011 LTL hiring process truck drivers Scott Monty transportation news capacity shortages economy Canada-U.S. trade agreement YRC Spanx shipping Canadian truckers 3PL Hudsons Bay Company APL Consulting TMS Global Transportation Hub small business Infrastructure $75000 bond marketing Business skills Comey customer engagement Facebook freight cost savings LCV's bulk shipping freight transportation Railway Association of Canada Job satisfaction Doug Davis driver shortages Harper Davos speech Management BNSF Muhammad Ali dynamic pricing Canada U.S. trade 2012 Transportation Business Strategies. Jugaad intermodal mentoring energy efficiency the future of transportation freight rate increases Retail transportation Regina Leadership USA Truck Conway FCA Politics 2015 Economic Forecast Training New Hires future of freight industry Freight Shuttle System Freight Rotman School of Business 360ideaspace Dedicated Contract Carriage US Housing Market business start-up dimensional pricing peak season MPG e-commerce consumer centric Transportation service Celadon 2014 economic forecast President Obama freight audit capacity shortage Transloading Schneider Logistics broker security Life Lessons Finance and Transportation Training autonomous vehicles Sales Management KCS Education FuelQuest Global experience Accessorial Charges economic forecasts for 2012 Freight Carriers Association of Canada buying trucking companies Transplace Trucking Freight contracts Associates Freight Rates coaching drones professional drivers Crisis management Fire Phone 2014 freight forecast Transcom Fleet Leasing Rate per Mile Yield Improvement Bobby Harris Dedicated Trucking Canada's global strategy 3PLTL IANA Omni Channel Swift home delibery Carriers truck driver Failure NMFC

Blog Archives