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: 21421
0
Continue reading 0 Comments

Most Recent Posts

Search


Tag Cloud

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

Blog Archives